Dollar Tree Inc., FCFE calculation

US$ in thousands

12 months ended:	Jan 29, 2022	Jan 30, 2021	Feb 1, 2020	Feb 2, 2019	Feb 3, 2018	Jan 28, 2017
Net income (loss)	1,327,900)	1,341,900)	827,000)	(1,590,800)	1,714,300)	896,200)
Net noncash charges	836,600)	824,200)	1,060,300)	3,578,800)	248,200)	639,600)
Changes in operating assets and liabilities	(733,000)	550,200)	(17,500)	(222,000)	(452,300)	137,500)
Net cash provided by operating activities	1,431,500)	2,716,300)	1,869,800)	1,766,000)	1,510,200)	1,673,300)
Capital expenditures	(1,021,200)	(898,800)	(1,034,800)	(817,100)	(632,200)	(564,700)
Proceeds from long-term debt, net of discount	1,197,400)	—)	—)	4,775,800)	—)	2,962,500)
Principal payments for long-term debt	(1,000,000)	(550,000)	(500,000)	(6,214,700)	(659,100)	(4,036,200)
Debt-issuance and debt extinguishment costs	(59,300)	—)	—)	(155,300)	—)	(6,100)
Proceeds from revolving credit facility	—)	750,000)	—)	50,000)	—)	140,000)
Repayments of revolving credit facility	—)	(750,000)	—)	(50,000)	—)	(140,000)
Free cash flow to equity (FCFE)	548,400)	1,267,500)	335,000)	(645,300)	218,900)	28,800)

Based on: 10-K (reporting date: 2022-01-29), 10-K (reporting date: 2021-01-30), 10-K (reporting date: 2020-02-01), 10-K (reporting date: 2019-02-02), 10-K (reporting date: 2018-02-03), 10-K (reporting date: 2017-01-28).

Net Cash Provided by Operating Activities: The net cash provided by operating activities exhibits fluctuations over the six-year period. Starting at $1,673,300 thousand in 2017, there was a decrease to $1,510,200 thousand in 2018, followed by an increase to $1,766,000 thousand in 2019. The upward trend continued in 2020, reaching $1,869,800 thousand, peaking significantly in 2021 at $2,716,300 thousand. However, in 2022, a notable decline to $1,431,500 thousand was observed, indicating increased volatility in operating cash flows toward the end of the period.
Free Cash Flow to Equity (FCFE): The FCFE demonstrates considerable variability during the period analyzed. The value started relatively low at $28,800 thousand in 2017, then experienced a significant rise to $218,900 thousand in 2018. In 2019, FCFE turned negative, with a substantial outflow of -$645,300 thousand, signaling a potential increase in expenditures or investment activities exceeding cash generated for equity holders. After this negative peak, FCFE rebounded in 2020 to a positive $335,000 thousand and continued to improve markedly in 2021, reaching $1,267,500 thousand. In 2022, FCFE decreased to $548,400 thousand but remained positive, suggesting a recovery and stabilization after previous volatility.

Download chart

Dollar Tree Inc., current P/FCFE calculation, comparison to benchmarks

No. shares of common stock outstanding	221,184,479
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in thousands)	548,400)
FCFE per share	2.48
Current share price (P)	152.37
Valuation Ratio
P/FCFE	61.45
Benchmarks
P/FCFE, Competitors¹
Costco Wholesale Corp.	70.38
Target Corp.	11.19
Walmart Inc.	66.06
P/FCFE, Sector
Consumer Staples Distribution & Retail	105.58
P/FCFE, Industry
Consumer Staples	33.94

Based on: 10-K (reporting date: 2022-01-29).

¹ Click competitor name to see calculations.

If the company P/FCFE is lower then the P/FCFE of benchmark then company is relatively undervalued.
Otherwise, if the company P/FCFE is higher then the P/FCFE of benchmark then company is relatively overvalued.

Dollar Tree Inc., historical P/FCFE calculation, comparison to benchmarks

	Jan 29, 2022	Jan 30, 2021	Feb 1, 2020	Feb 2, 2019	Feb 3, 2018	Jan 28, 2017
No. shares of common stock outstanding¹	225,110,329	233,420,925	236,810,841	238,204,351	237,335,999	236,297,936
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in thousands)²	548,400)	1,267,500)	335,000)	(645,300)	218,900)	28,800)
FCFE per share³	2.44	5.43	1.41	-2.71	0.92	0.12
Share price^1, 4	151.06	109.04	75.97	104.22	95.75	76.55
Valuation Ratio
P/FCFE⁵	62.01	20.08	53.70	—	103.81	628.08
Benchmarks
P/FCFE, Competitors⁶
Costco Wholesale Corp.	82.66	37.82	23.41	36.68	—	—
Target Corp.	16.84	11.15	13.90	—	—	—
Walmart Inc.	122.02	18.26	23.39	—	—	—
P/FCFE, Sector
Consumer Staples Distribution & Retail	60.47	19.63	21.92	—	—	—
P/FCFE, Industry
Consumer Staples	25.33	24.84	18.28	—	—	—

Based on: 10-K (reporting date: 2022-01-29), 10-K (reporting date: 2021-01-30), 10-K (reporting date: 2020-02-01), 10-K (reporting date: 2019-02-02), 10-K (reporting date: 2018-02-03), 10-K (reporting date: 2017-01-28).

¹ Data adjusted for splits and stock dividends.

² See details »

³ 2022 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= 548,400,000 ÷ 225,110,329 = 2.44

⁴ Closing price as at the filing date of Dollar Tree Inc. Annual Report.

⁵ 2022 Calculation
P/FCFE = Share price ÷ FCFE per share
= 151.06 ÷ 2.44 = 62.01

⁶ Click competitor name to see calculations.

The share price exhibited an overall upward trend throughout the observed periods, beginning at $76.55 in January 2017 and rising to $151.06 by January 2022. Notably, there was a peak in February 2019 at $104.22, followed by a decline to $75.97 in February 2020, after which the price increased significantly over the next two years.

Free Cash Flow to Equity (FCFE) per share demonstrated considerable volatility. It started at a low value of $0.12 in January 2017, then increased substantially to $0.92 by February 2018. However, this was followed by a sharp decline to negative $2.71 in February 2019, indicating a potential period of cash outflows or losses available to equity shareholders. The value then rebounded to $1.41 in February 2020 and further increased to $5.43 in January 2021, before declining to $2.44 in January 2022.

The price to FCFE ratio (P/FCFE) reflected significant fluctuations, closely associated with changes in FCFE per share and share price. Initially very high at 628.08 in January 2017 due to the low FCFE per share, it decreased substantially to 103.81 in February 2018, and then the value for February 2019 was unavailable. The ratio dropped to 53.7 in February 2020 and further to its lowest at 20.08 in January 2021, indicating a relatively more attractive valuation at that time. However, there was a sharp increase to 62.01 by January 2022, suggesting valuation adjustments potentially linked to the decline in FCFE per share and changes in share price.

Overall, the data indicate that while the share price generally increased, the underlying free cash flow available to equity holders experienced fluctuations including a period of negative cash flow, impacting valuation multiples across the periods analyzed.

Download chart

Dollar Tree Inc. (NASDAQ:DLTR)

Price to FCFE (P/FCFE)

Free Cash Flow to Equity (FCFE)

Price to FCFE Ratio, Current

Price to FCFE Ratio, Historical