Tuesday, April 29, 2014

Family Dollar is Worth a Look for Value Investors

The times they are still a-changin' at Family Dollar Stores. While growth is also slowing at competitors Dollar Tree Stores and Dollar General, and the market fears future competition from Wal-Mart, many of Family Dollar's problems are of its own making.

This is bad news, because no one likes an underperforming company. However, it could also be good news, because it means that Family Dollar could see some upside purely due to internal execution rather than needing to rely on the market.

Family Dollar rings up the changes
The following chart reveals how much the market has fallen out of love with Family Dollar. Over the last year, the company's valuation has fallen relative to Dollar Tree and Dollar General:
 
 

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