Update shared on30 Aug 2025
Fair value Decreased 1.04%Analysts have modestly lowered Dollarama’s price target to CA$196.73, balancing confidence in resilient sales and margin improvements against concerns over slower earnings growth, macroeconomic headwinds, and valuation pressures.
Analyst Commentary
- Bullish analysts cite continued strength in same-store sales growth and sustained high demand for value retail.
- Some analysts raise targets based on margin expansion and improved supply chain efficiencies.
- Bearish analysts express caution over potentially slower near-term consumer spending and macroeconomic headwinds.
- Price target reductions also reflect concerns about slower earnings growth relative to heightened prior expectations.
- Ongoing competitive pressures and valuation concerns contribute to tempered upside revisions from more cautious analysts.
What's in the News
- Dollarama and Skip have partnered to offer delivery from over 1,300 Dollarama locations across Canada, expanding accessibility and convenience for consumers.
- Dollarama announced a new share buyback program, authorizing the repurchase of up to 13,865,588 common shares (5% of issued share capital) expiring July 6, 2026.
- Between May and July 2025, Dollarama repurchased 932,046 shares for CAD 174.8 million, completing a total of 7,770,851 shares repurchased for CAD 1,097.4 million under the 2024 buyback plan.
- Dollarama completed a CAD 600 million private placement, issuing 3.850% senior unsecured notes due December 2030.
- The company reaffirmed its fiscal 2026 comparable store sales guidance at 3.0% to 4.0%.
Valuation Changes
Summary of Valuation Changes for Dollarama
- The Consensus Analyst Price Target remained effectively unchanged, moving only marginally from CA$198.80 to CA$196.73.
- The Net Profit Margin for Dollarama has fallen slightly from 17.93% to 17.48%.
- The Consensus Revenue Growth forecasts for Dollarama remained effectively unchanged, moving only marginally from 11.1% per annum to 10.9% per annum.
Disclaimer
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