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Dollarama

TSX:DOL
Snowflake Description

Mediocre balance sheet with acceptable track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
DOL
TSX
CA$10B
Market Cap
  1. Home
  2. CA
  3. Retail
Company description

Dollarama Inc. operates a chain of dollar stores in Canada. The last earnings update was 12 days ago. More info.


Add to Portfolio Compare Print
  • Dollarama has significant price volatility in the past 3 months.
DOL Share Price and Events
7 Day Returns
2.6%
TSX:DOL
-1.2%
North America Multiline Retail
-1.3%
CA Market
1 Year Returns
-38.6%
TSX:DOL
1.2%
North America Multiline Retail
-11.4%
CA Market
DOL Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Dollarama (DOL) 2.6% -9.8% -24.2% -38.6% 18.9% 118.3%
North America Multiline Retail -1.2% -9.7% -15.1% 1.2% 8.1% 7.9%
CA Market -1.3% -4.5% -10.6% -11.4% 12.6% 3.3%
1 Year Return vs Industry and Market
  • DOL underperformed the Multiline Retail industry which returned 1.2% over the past year.
  • DOL underperformed the Market in Canada which returned -11.4% over the past year.
Price Volatility
DOL
Industry
5yr Volatility vs Market

Value

 Is Dollarama undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Dollarama to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Dollarama.

TSX:DOL Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 12 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 8.5%
Perpetual Growth Rate 10-Year CA Government Bond Rate 2.3%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for TSX:DOL
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year CA Govt Bond Rate 2.3%
Equity Risk Premium S&P Global 7.7%
Multiline Retail Unlevered Beta Simply Wall St/ S&P Global 0.57
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.573 (1 + (1- 26.5%) (18.59%))
0.651
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.8
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.34% + (0.8 * 7.66%)
8.47%

Discounted Cash Flow Calculation for TSX:DOL using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Dollarama is arrived at by discounting future cash flows to their present value using the 2 stage method. We use analyst's estimates of cash flows going forward 5 years for the 1st stage, the 2nd stage assumes the company grows at a stable rate into perpetuity.

TSX:DOL DCF 1st Stage: Next 5 year cash flow forecast
2019 2020 2021 2022 2023
Levered FCF (CAD, Millions) 429.45 587.15 624.00 692.30 768.08
Source Analyst x4 Analyst x3 Analyst x1 Est @ 10.95% Est @ 10.95%
Present Value
Discounted (@ 8.47%)
395.93 499.05 488.97 500.14 511.56
Present value of next 5 years cash flows CA$2,395.64
TSX:DOL DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2023 × (1 + g) ÷ (Discount Rate – g)
= CA$768.08 × (1 + 2.34%) ÷ (8.47% – 2.34%)
CA$12,827.17
Present Value of Terminal Value = Terminal Value ÷ (1 + r)5
= CA$12,827.17 ÷ (1 + 8.47%)5
CA$8,543.24
TSX:DOL Total Equity Value
Calculation Result
Total Equity Value = Present value of next 5 years cash flows + Terminal Value
= CA$2,395.64 + CA$8,543.24
CA$10,938.89
Equity Value per Share
(CAD)
= Total value / Shares Outstanding
= CA$10,938.89 / 319.95
CA$34.19
TSX:DOL Discount to Share Price
Calculation Result
Value per share (CAD) From above. CA$34.19
Current discount Discount to share price of CA$31.73
= -1 x (CA$31.73 - CA$34.19) / CA$34.19
7.2%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Dollarama is available for.
Intrinsic value
7%
Share price is CA$31.73 vs Future cash flow value of CA$34.19
Current Discount Checks
For Dollarama to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Dollarama's share price is below the future cash flow value, but not at a moderate discount (< 20%).
  • Dollarama's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Dollarama's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Dollarama's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
TSX:DOL PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-10-28) in CAD CA$1.64
TSX:DOL Share Price ** TSX (2018-12-17) in CAD CA$31.73
North America Multiline Retail Industry PE Ratio Median Figure of 10 Publicly-Listed Multiline Retail Companies 11.34x
Canada Market PE Ratio Median Figure of 551 Publicly-Listed Companies 13.2x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Dollarama.

TSX:DOL PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= TSX:DOL Share Price ÷ EPS (both in CAD)

= 31.73 ÷ 1.64

19.31x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dollarama is overvalued based on earnings compared to the North America Multiline Retail industry average.
  • Dollarama is overvalued based on earnings compared to the Canada market.
Price based on expected Growth
Does Dollarama's expected growth come at a high price?
Raw Data
TSX:DOL PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 19.31x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 12 Analysts
9%per year
North America Multiline Retail Industry PEG Ratio Median Figure of 10 Publicly-Listed Multiline Retail Companies 1.4x
Canada Market PEG Ratio Median Figure of 265 Publicly-Listed Companies 0.89x

*Line of best fit is calculated by linear regression .

TSX:DOL PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 19.31x ÷ 9%

2.14x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dollarama is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Dollarama's assets?
Raw Data
TSX:DOL PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-10-28) in CAD CA$-0.68
TSX:DOL Share Price * TSX (2018-12-17) in CAD CA$31.73
North America Multiline Retail Industry PB Ratio Median Figure of 14 Publicly-Listed Multiline Retail Companies 1.89x
Canada Market PB Ratio Median Figure of 2,286 Publicly-Listed Companies 1.38x
TSX:DOL PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= TSX:DOL Share Price ÷ Book Value per Share (both in CAD)

= 31.73 ÷ -0.68

-46.9x

* Primary Listing of Dollarama.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dollarama has negative assets, we can't compare the value of its assets to the North America Multiline Retail industry average.
X
Value checks
We assess Dollarama's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Multiline Retail industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Multiline Retail industry average (and greater than 0)? (1 check)
  5. Dollarama has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Dollarama expected to perform in the next 1 to 3 years based on estimates from 12 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
9%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Dollarama expected to grow at an attractive rate?
  • Dollarama's earnings growth is expected to exceed the low risk savings rate of 2.3%.
Growth vs Market Checks
  • Dollarama's earnings growth is positive but not above the Canada market average.
  • Dollarama's revenue growth is positive but not above the Canada market average.
Annual Growth Rates Comparison
Raw Data
TSX:DOL Future Growth Rates Data Sources
Data Point Source Value (per year)
TSX:DOL Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 12 Analysts 9%
TSX:DOL Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 12 Analysts 6.7%
North America Multiline Retail Industry Earnings Growth Rate Market Cap Weighted Average 2.1%
North America Multiline Retail Industry Revenue Growth Rate Market Cap Weighted Average 3.8%
Canada Market Earnings Growth Rate Market Cap Weighted Average 16.5%
Canada Market Revenue Growth Rate Market Cap Weighted Average 7%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
TSX:DOL Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 12 Analyst Estimates (S&P Global) See Below
All numbers in CAD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
TSX:DOL Future Estimates Data
Date (Data in CAD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-01-31 858
2021-01-31 4,069 759 5
2020-01-31 3,770 706 605 12
2019-01-31 3,560 629 555 12
TSX:DOL Past Financials Data
Date (Data in CAD Millions) Revenue Cash Flow Net Income *
2018-10-28 3,427 557 540
2018-07-29 3,373 584 536
2018-04-29 3,317 580 526
2018-01-28 3,266 637 519
2017-10-29 3,183 587 503
2017-07-30 3,111 565 483
2017-04-30 3,027 551 457
2017-01-29 2,963 505 446
2016-10-30 2,875 512 424
2016-07-31 2,801 528 414
2016-05-01 2,725 487 404
2016-01-31 2,650 449 385
2015-11-01 2,553 408 361

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Dollarama's earnings are expected to grow by 9% yearly, however this is not considered high growth (20% yearly).
  • Dollarama's revenue is expected to grow by 6.7% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
TSX:DOL Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 12 Analyst Estimates (S&P Global) See Below

All data from Dollarama Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

TSX:DOL Future Estimates Data
Date (Data in CAD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-01-31
2021-01-31 2.17 2.17 2.16 2.00
2020-01-31 1.92 1.95 1.89 4.00
2019-01-31 1.67 1.69 1.65 3.00
TSX:DOL Past Financials Data
Date (Data in CAD Millions) EPS *
2018-10-28 1.64
2018-07-29 1.62
2018-04-29 1.57
2018-01-28 1.54
2017-10-29 1.47
2017-07-30 1.39
2017-04-30 1.30
2017-01-29 1.25
2016-10-30 1.17
2016-07-31 1.12
2016-05-01 1.07
2016-01-31 1.01
2015-11-01 0.93

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Dollarama will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Dollarama's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the North America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the North America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Dollarama has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Dollarama performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Dollarama's growth in the last year to its industry (Multiline Retail).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Dollarama's year on year earnings growth rate has been positive over the past 5 years.
  • Dollarama's 1-year earnings growth is less than its 5-year average (7.4% vs 17.1%)
  • Dollarama's earnings growth has not exceeded the North America Multiline Retail industry average in the past year (7.4% vs 49.1%).
Earnings and Revenue History
Dollarama's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Dollarama Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

TSX:DOL Past Revenue, Cash Flow and Net Income Data
Date (Data in CAD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-10-28 3,426.86 539.72 797.03
2018-07-29 3,373.18 536.27 790.34
2018-04-29 3,317.21 526.30 781.73
2018-01-28 3,266.09 519.41 774.21
2017-10-29 3,182.55 502.66 761.83
2017-07-30 3,110.67 482.62 756.12
2017-04-30 3,027.15 457.17 748.59
2017-01-29 2,963.22 445.64 736.69
2016-10-30 2,875.16 424.38 727.32
2016-07-31 2,800.95 414.40 715.85
2016-05-01 2,725.27 403.52 702.53
2016-01-31 2,650.33 385.15 691.74
2015-11-01 2,552.94 360.60 669.81
2015-08-02 2,476.42 333.54 653.46
2015-05-03 2,395.73 306.97 641.09
2015-02-01 2,330.81 295.41 627.08
2014-11-02 2,244.00 278.13 755.74
2014-08-03 2,178.98 266.80 691.13
2014-05-04 2,117.70 257.67 630.11
2014-02-02 2,064.68 250.09 567.33
2013-11-03 2,044.27 244.24 482.70
2013-08-04 1,979.31 234.03 475.26
2013-05-05 1,908.97 224.05 464.57
2013-02-03 1,858.82 220.99 453.65
2012-10-28 1,765.65 207.46 352.67
2012-07-29 1,708.00 197.77 412.07
2012-04-29 1,654.49 185.63 405.79
2012-01-29 1,602.83 173.47 400.50

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • It is difficult to establish if Dollarama has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) due to its liabilities exceeding its assets.
  • Dollarama used its assets more efficiently than the North America Multiline Retail industry average last year based on Return on Assets.
  • Dollarama has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Dollarama's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Multiline Retail industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Dollarama has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Dollarama's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Dollarama's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Dollarama is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Dollarama's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Dollarama's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Dollarama has negative shareholder equity (liabilities exceed assets) therefore debt is not covered by short term assets.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Dollarama Company Filings, last reported 1 month ago.

TSX:DOL Past Debt and Equity Data
Date (Data in CAD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-10-28 -216.47 1,902.99 78.84
2018-07-29 -57.21 1,779.92 181.70
2018-04-29 -146.63 1,787.35 90.57
2018-01-28 -252.36 1,665.65 54.84
2017-10-29 -15.30 1,516.97 83.94
2017-07-30 -59.39 1,473.81 86.81
2017-04-30 35.57 1,454.90 64.03
2017-01-29 100.28 1,328.74 62.02
2016-10-30 200.35 1,274.64 75.36
2016-07-31 251.43 1,197.83 115.10
2016-05-01 327.06 1,068.11 66.01
2016-01-31 466.85 924.90 68.08
2015-11-01 623.83 798.20 80.56
2015-08-02 737.25 690.38 61.39
2015-05-03 735.96 684.02 90.65
2015-02-01 740.48 566.05 45.42
2014-11-02 696.20 609.16 27.58
2014-08-03 678.05 585.92 34.58
2014-05-04 748.10 544.05 59.03
2014-02-02 864.17 400.97 76.85
2013-11-03 913.44 390.19 103.06
2013-08-04 912.06 357.51 108.15
2013-05-05 970.61 264.62 59.29
2013-02-03 931.49 262.68 58.32
2012-10-28 919.09 263.44 37.37
2012-07-29 974.00 266.84 100.52
2012-04-29 926.30 270.24 88.75
2012-01-29 894.95 272.35 74.71
  • Dollarama has negative shareholder equity (liabilities exceed assets), this is a more serious situation compared with a high debt level.
  • Irrelevant to check if Dollarama's debt level has increased considering it has negative shareholder equity.
  • Debt is well covered by operating cash flow (29.3%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 17.7x coverage).
X
Financial health checks
We assess Dollarama's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Dollarama has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Dollarama's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0.5%
Current annual income from Dollarama dividends. Estimated to be 0.55% next year.
If you bought CA$2,000 of Dollarama shares you are expected to receive CA$10 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Dollarama's pays a lower dividend yield than the bottom 25% of dividend payers in Canada (2.23%).
  • Dollarama's dividend is below the markets top 25% of dividend payers in Canada (6.38%).
Upcoming dividend payment

Purchase Dollarama on or before the 'Buy Limit' to receive their next dividend payment.

Dividends are usually paid every 3 or 6 months, you can time your share purchase to take advantage of upcoming dividend payments.
Dividend payment calendar
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
TSX:DOL Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 12 Analyst Estimates (S&P Global) See Below
North America Multiline Retail Industry Average Dividend Yield Market Cap Weighted Average of 9 Stocks 3%
Canada Market Average Dividend Yield Market Cap Weighted Average of 330 Stocks 3.8%
Canada Minimum Threshold Dividend Yield 10th Percentile 1.2%
Canada Bottom 25% Dividend Yield 25th Percentile 2.2%
Canada Top 25% Dividend Yield 75th Percentile 6.4%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

TSX:DOL Future Dividends Estimate Data
Date (Data in CA$) Dividend per Share (annual) Avg. No. Analysts
2022-01-31
2021-01-31 0.20 1.00
2020-01-31 0.18 2.00
2019-01-31 0.16 3.00
TSX:DOL Past Annualized Dividends Data
Date (Data in CA$) Dividend per share (annual) Avg. Yield (%)
2018-12-06 0.160 0.499
2018-09-13 0.160 0.421
2018-06-07 0.160 0.325
2018-03-29 0.160 0.320
2017-12-06 0.147 0.283
2017-09-07 0.147 0.307
2017-06-07 0.147 0.358
2017-03-30 0.147 0.367
2016-12-07 0.133 0.399
2016-09-01 0.133 0.397
2016-03-30 0.123 0.400
2015-03-25 0.120 0.461
2014-12-04 0.107 0.530
2014-09-11 0.107 0.643
2014-06-12 0.107 0.701
2014-04-09 0.107 0.701
2013-12-05 0.093 0.657
2013-09-11 0.093 0.649
2013-06-12 0.093 0.752
2013-04-12 0.093 0.769
2012-12-06 0.073 0.727
2012-09-12 0.073 0.702
2012-06-13 0.073 0.714
2012-04-11 0.073 0.796
2011-12-07 0.060 0.820
2011-09-14 0.060 0.961
2011-06-09 0.060 1.112

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dollarama is not paying a notable dividend for Canada, therefore no need to check if the payments are stable.
  • Dollarama is not paying a notable dividend for Canada, therefore no need to check if the payments are increasing.
Current Payout to shareholders
What portion of Dollarama's earnings are paid to the shareholders as a dividend.
  • No need to calculate the sustainability of Dollarama's dividends as it is not paying a notable one for Canada.
Future Payout to shareholders
  • No need to calculate the sustainability of Dollarama's dividends in 3 years as they are not expected to pay a notable one for Canada.
X
Income/ dividend checks
We assess Dollarama's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.2%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Dollarama afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Dollarama has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Dollarama's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Neil Rossy
COMPENSATION CA$4,157,592
AGE 48
TENURE AS CEO 2.6 years
CEO Bio

Mr. Neil Rossy has been the Chief Executive Officer and President of Dollarama Inc. since May 1, 2016. Mr. Rossy served as Chief Merchandising Officer at Dollarama Inc. since 2004 until April 2016 and its wholly owned subsidiaries, Dollarama Group Holdings Limited Partnership and Dollarama Group GP Inc., a General Partner of Dollarama Group L.P. Mr. Rossy is responsible for merchandising, overseeing the graphic design staff responsible for creating its house brands and conducting special projects such as head office/warehouse construction and store fixture design. He served as Senior Vice President of Merchandising at Dollarama Inc., Dollarama Group Holdings GP ULC, General Partner of Dollarama Group Holdings Limited Partnership and Dollarama Group GP Inc., General Partner of Dollarama Group L.P. Mr. Rossy has been with Dollarama Group since 1992. He has been a Director of Dollarama Inc. and Dollarama Group Holdings Limited Partnership since 2004. He serves as a Director of Dollarama Group GP Inc. He served as Director of Dollarama Group Holdings GP ULC. He is a graduate of Queen’s University.

CEO Compensation
  • Neil's compensation has been consistent with company performance over the past year.
  • Neil's remuneration is about average for companies of similar size in Canada.
Management Team Tenure

Average tenure and age of the Dollarama management team in years:

5.9
Average Tenure
58.5
Average Age
  • The average tenure for the Dollarama management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Neil Rossy

TITLE
CEO, President & Director
COMPENSATION
CA$4M
AGE
48
TENURE
2.6 yrs

Larry Rossy

TITLE
Chairman Emeritus
COMPENSATION
CA$3M
AGE
75
TENURE
26.9 yrs

Michael Ross

TITLE
Chief Financial Officer
COMPENSATION
CA$2M
AGE
58
TENURE
8.7 yrs

Johanne Choinière

TITLE
Chief Operating Officer
COMPENSATION
CA$2M
TENURE
4.6 yrs

Josée Kouri

TITLE
VP of Legal Affairs & Corporate Secretary

Geoffrey Robillard

TITLE
Senior Vice President of Import Division
COMPENSATION
CA$3M
AGE
59
TENURE
14.9 yrs

Nicolas Hien

TITLE
Senior Vice President of Project Management & Systems
TENURE
1.9 yrs

John Assaly

TITLE
Vice President of Global Procurement
COMPENSATION
CA$2M
TENURE
5.9 yrs
Board of Directors Tenure

Average tenure and age of the Dollarama board of directors in years:

7
Average Tenure
59.5
Average Age
  • The tenure for the Dollarama board of directors is about average.
Board of Directors

Steve Gunn

TITLE
Chairman & Lead Independent Director
COMPENSATION
CA$158K
AGE
63
TENURE
0.5 yrs

Neil Rossy

TITLE
CEO, President & Director
COMPENSATION
CA$4M
AGE
48
TENURE
14.9 yrs

Larry Rossy

TITLE
Chairman Emeritus
COMPENSATION
CA$3M
AGE
75
TENURE
0.5 yrs

Laki Nomicos

TITLE
Independent Director
COMPENSATION
CA$125K
AGE
55
TENURE
14.9 yrs

Richard Roy

TITLE
Independent Director
COMPENSATION
CA$124K
AGE
62
TENURE
6.2 yrs

Gregory David

TITLE
Director
COMPENSATION
CA$109K
AGE
50
TENURE
14.9 yrs

Josh Bekenstein

TITLE
Independent Director
COMPENSATION
CA$124K
AGE
59
TENURE
14.9 yrs

J. Thomas

TITLE
Independent Director
COMPENSATION
CA$114K
AGE
65
TENURE
7.8 yrs

Elisa Garcia C.

TITLE
Independent Director
COMPENSATION
CA$115K
AGE
60
TENURE
3.8 yrs

Kristin Mugford

TITLE
Independent Director
AGE
49
TENURE
0.8 yrs
Who owns this company?
Recent Insider Trading
  • Dollarama insiders have sold more shares than they have bought in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (CA$) Value (CA$)
13. Dec 18 Sell Geoffrey Robillard Individual 11. Dec 18 11. Dec 18 -280,000 CA$31.17 CA$-8,726,256
26. Oct 18 Sell Geoffrey Robillard Individual 26. Oct 18 26. Oct 18 -20,000 CA$39.19 CA$-783,800
12. Oct 18 Buy Michael Ross Individual 11. Oct 18 11. Oct 18 1,400 CA$36.98 CA$51,768
19. Jun 18 Sell John Assaly Individual 19. Jun 18 19. Jun 18 -40,212 CA$51.20 CA$-2,058,854
15. Jun 18 Sell Geoffrey Robillard Individual 12. Jun 18 13. Jun 18 -150,000 CA$50.02 CA$-7,502,991
26. Jan 18 Sell Geoffrey Robillard Individual 24. Jan 18 24. Jan 18 -45,000 CA$54.30 CA$-2,443,642
X
Management checks
We assess Dollarama's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Dollarama has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

External News
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Simply Wall St News

What Should Investors Know About Dollarama Inc's (TSE:DOL) Capital Returns?

and want a simplistic look at the return on Dollarama Inc (TSE:DOL) stock. … Your equity share is granted in return for the capital provided to the business to operate, and in order for an investment to be successful the business has to create earnings from the funds that make up this capital. … To understand Dollarama’s capital returns we will look at a useful metric called return on capital employed.

Simply Wall St -

Estimating The Intrinsic Value Of Dollarama Inc (TSE:DOL)

by projecting its future cash flows and then discounting them to today's value. … Discounted Cash Flows (DCF). … If you want to learn more about discounted cash flow, the basis for my calcs can be read in detail in the Simply Wall St analysis model

Simply Wall St -

Who Are The Major Shareholders In Dollarama Inc (TSE:DOL)?

In this article, I will take a quick look at Dollarama Inc’s (TSE:DOL) recent ownership structure – an unconventional investing subject, but an important one. … The impact of a company's ownership structure affects both its short- and long-term performance. … If an activist institution invests the same amount of capital in a stock as a passive long-term pension fund, the implications are potentially different for key corporate financing decisions such as the use of excess cash or the source of financing.

Simply Wall St -

Should You Sell Dollarama Inc (TSE:DOL) At This PE Ratio?

and want to better understand how you can grow your money by investing in Dollarama Inc (TSE:DOL). … Dollarama Inc (TSE:DOL) is trading with a trailing P/E of 34.1x, which is higher than the industry average of 16.2x. … While DOL might seem like a stock to avoid or sell if you own it, it is important to understand the assumptions behind the P/E ratio before you make any investment decisions

Simply Wall St -

Should You Be Tempted To Sell Dollarama Inc (TSE:DOL) Because Of Its PE Ratio?

It compares a stock’s price per share to the stock’s earnings per share. … Formula Price-Earnings Ratio = Price per share ÷ Earnings per share P/E Calculation for DOL Price per share = CA$147.35 Earnings per share = CA$4.607 ∴ Price-Earnings Ratio = CA$147.35 ÷ CA$4.607 = 32x The P/E ratio isn’t a metric you view in isolation and only becomes useful when you compare it against other similar companies. … Ultimately, our goal is to compare the stock’s P/E ratio to the average of companies that have similar attributes to DOL, such as company lifetime and products sold.

Simply Wall St -

Should You Buy Dollarama Inc (TSE:DOL) Now?

A question to answer is whether Dollarama's current trading price of CA$153.49 reflective of the actual value of the large-cap? … In addition to this, it seems like Dollarama’s share price is quite stable, which could mean two things: firstly, it may take the share price a while to fall back down to an attractive buying range, and secondly, there may be less chances to buy low in the future once it reaches that value. … DOL’s optimistic future growth appears to have been factored into the current share price, with shares trading above its fair value.

Simply Wall St -

Dollarama Inc (TSE:DOL)'s Earnings Grew 25.6%, Is It Enough?

This means on average, Dollarama has been able to consistently improve its earnings over the last couple of years as well. … Over the past couple of years, Dollarama increased its bottom line faster than revenue by successfully controlling its costs. … Looking at growth from a sector-level, the Canadian multiline retail industry has been growing its average earnings by double-digit 17.32% in the prior twelve months, and a less exciting 8.59% over the past five years.

Simply Wall St -

Should You Sell Dollarama Inc (TSX:DOL) At This PE Ratio?

It compares a stock’s price per share to the stock’s earnings per share. … Formula Price-Earnings Ratio = Price per share ÷ Earnings per share P/E Calculation for DOL Price per share = CA$149.73 Earnings per share = CA$4.176 ∴ Price-Earnings Ratio = CA$149.73 ÷ CA$4.176 = 35.9x On its own, the P/E ratio doesn’t tell you much; however, it becomes extremely useful when you compare it with other similar companies. … DOL’s P/E of 35.9x is higher than its industry peers (18.5x), which implies that each dollar of DOL’s earnings is being overvalued by investors.

Simply Wall St -

At $162.03, Is Dollarama Inc (TSX:DOL) A Buy?

In addition to this, it seems like DOL’s share price is quite stable, which could mean two things: firstly, it may take the share price a while to fall back down to an attractive buying range, and secondly, there may be less chances to buy low in the future once it reaches that value. … Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at DOL future expectations. … DOL’s optimistic future growth appears to have been factored into the current share price, with shares trading above its fair value.

Simply Wall St -

Will Dollarama Inc's (TSX:DOL) Earnings Grow In The Year Ahead?

This indicates a relatively solid earnings per share growth rate of 37.92% over the next few years, which is an optimistic outlook in the near term. … TSX:DOL Past Future Earnings Nov 7th 17 Basis for the growth The past can be a great indicator for future performance for a stock. … DOL’s triple-digit earnings growth the past couple of years indicates that the company's past performance is supportive of a strong continuation.

Simply Wall St -

Company Info

Map
Description

Dollarama Inc. operates a chain of dollar stores in Canada. The company’s stores offer consumer products, general merchandise, and seasonal items, including private label and branded products. As of July 29, 2018, it operated 1,178 stores. The company was formerly known as Dollarama Capital Corporation and changed its name to Dollarama Inc. in September 2009. Dollarama Inc. was founded in 1992 and is headquartered in Montreal, Canada.

Details
Name: Dollarama Inc.
DOL
Exchange: TSX
Founded: 1992
CA$10,235,045,988
319,945,170
Website: http://www.dollarama.com
Address: Dollarama Inc.
5805 Royalmount Avenue,
Montreal,
Quebec, H4P 0A1,
Canada
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
TSX DOL Common Shares The Toronto Stock Exchange CA CAD 08. Oct 2009
OTCPK DLMA.F Common Shares Pink Sheets LLC US USD 08. Oct 2009
DB DR3 Common Shares Deutsche Boerse AG DE EUR 08. Oct 2009
Number of employees
Current staff
Staff numbers
14,040
Dollarama employees.
Industry
General Merchandise Stores
Retail
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2018/12/18 00:11
End of day share price update: 2018/12/17 00:00
Last estimates confirmation: 2018/12/14
Last earnings filing: 2018/12/06
Last earnings reported: 2018/10/28
Last annual earnings reported: 2018/01/28


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.