Pulling the Curtain Back on Dollar Tree, Inc. (NasdaqGS:DLTR)

Taking a look at some historical volatility numbers on shares of Dollar Tree, Inc. (NasdaqGS:DLTR), we can see that the 12 month volatility is presently 24.972000. The 6 month volatility is 22.592900, and the 3 month is spotted at 23.179500. Following volatility data can help measure how much the stock price has fluctuated over the specified time period. Although past volatility action may help project future stock volatility, it may also be vastly different when taking into account other factors that may be driving price action during the measured time period.

When dealing with the equity markets, investors are often tasked with trying to find stocks that are bound for glory. Every investor dreams of finding those stocks that were overlooked but are poised to pick up momentum. New investors are often instructed to set goals before starting to invest. Creating attainable, realistic goals can be a good starting point before digging into the investment trenches. After setting up goals considering financial status, objectives, timeframes and risk appetite, the next step may involve creating an actionable plan. Once the plan is in place, it may be extremely important to routinely monitor the performance of the portfolio. There are often many well crafted investment plans that for whatever reason don’t seem to be working out properly. Being able to evaluate and adjust the plan based on market activity may end up being the difference between a winning or losing portfolio. Being able to adapt to the fast paced and often times tumultuous market landscape can be a gigantic benefit for long-term portfolio health.

At the time of writing, Dollar Tree, Inc. (NasdaqGS:DLTR) has a Piotroski F-Score of 6. The F-Score may help discover companies with strengthening balance sheets. The score may also be used to spot the weak performers. Joseph Piotroski developed the F-Score which employs nine different variables based on the company financial statement. A single point is assigned to each test that a stock passes. Typically, a stock scoring an 8 or 9 would be seen as strong. On the other end, a stock with a score from 0-2 would be viewed as weak.

Some of the best financial predictions are formed by using a variety of financial tools. The Price Range 52 Weeks is one of the tools that investors use to determine the lowest and highest price at which a stock has traded in the previous 52 weeks.  The Price Range of Dollar Tree, Inc. (NasdaqGS:DLTR) over the past 52 weeks is 0.749000.  The 52-week range can be found in the stock’s quote summary. 

Investors may be interested in viewing the Gross Margin score on shares of Dollar Tree, Inc. (NasdaqGS:DLTR). The name currently has a score of 49.00000. This score is derived from the Gross Margin (Marx) stability and growth over the previous eight years. The Gross Margin score lands on a scale from 1 to 100 where a score of 1 would be considered positive, and a score of 100 would be seen as negative. The Q.i. Value of Dollar Tree, Inc. is 26.00000.  The Q.i. Value is a helpful tool in determining if a company is undervalued or not.  The Q.i. Value is calculated using the following ratios: EBITDA Yield, Earnings Yield, FCF Yield, and Liquidity.  The lower the Q.i. value, the more undervalued the company is thought to be.

The MF Rank (aka the Magic Formula) is a formula that pinpoints a valuable company trading at a good price.  The formula is calculated by looking at companies that have a high earnings yield as well as a high return on invested capital.  The MF Rank of Dollar Tree, Inc. (NasdaqGS:DLTR) is 2382.  A company with a low rank is considered a good company to invest in.  The Magic Formula was introduced in a book written by Joel Greenblatt, entitled, “The Little Book that Beats the Market”.  The ERP5 Rank is an investment tool that analysts use to discover undervalued companies.  The ERP5 looks at the Price to Book ratio, Earnings Yield, ROIC and 5 year average ROIC.  The ERP5 of Dollar Tree, Inc. (NasdaqGS:DLTR) is 2532.  The lower the ERP5 rank, the more undervalued a company is thought to be.

Free Cash Flow Growth (FCF Growth) is the free cash flow of the current year minus the free cash flow from the previous year, divided by last year’s free cash flow.  The FCF Growth of Dollar Tree, Inc. (NasdaqGS:DLTR) is 1.017698.  Free cash flow (FCF) is the cash produced by the company minus capital expenditure.  This cash is what a company uses to meet its financial obligations, such as making payments on debt or to pay out dividends.  The Free Cash Flow Score (FCF Score) is a helpful tool in calculating the free cash flow growth with free cash flow stability – this gives investors the overall quality of the free cash flow.  The FCF Score of Dollar Tree, Inc. is 1.215480.  Experts say the higher the value, the better, as it means that the free cash flow is high, or the variability of free cash flow is low or both.

We can now take a quick look at some historical stock price index data. Dollar Tree, Inc. (NasdaqGS:DLTR) presently has a 10 month price index of 0.96206. The price index is calculated by dividing the current share price by the share price ten months ago. A ratio over one indicates an increase in share price over the period. A ratio lower than one shows that the price has decreased over that time period. Looking at some alternate time periods, the 12 month price index is 0.76538, the 24 month is 0.94512, and the 36 month is 1.31374. Narrowing in a bit closer, the 5 month price index is 0.96839, the 3 month is 0.89714, and the 1 month is currently 1.07799.

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