TSX:DOL

Stock Analysis Report

Executive Summary

Dollarama Inc. operates a chain of dollar stores in Canada.

Snowflake

Fundamentals

Mediocre balance sheet with acceptable track record.


Similar Companies

Share Price & News

How has Dollarama's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-2.5%

TSX:DOL

0.9%

CA Multiline Retail

1.3%

CA Market


1 Year Return

12.0%

TSX:DOL

7.3%

CA Multiline Retail

-0.3%

CA Market

DOL outperformed the Multiline Retail industry which returned 7.1% over the past year.

DOL outperformed the Market in Canada which returned -0.1% over the past year.


Share holder returns

DOLIndustryMarket
7 Day-2.5%0.9%1.3%
30 Day-5.8%19.3%3.4%
90 Day2.0%10.4%1.1%
1 Year12.4%12.0%10.1%7.3%3.2%-0.3%
3 Year44.2%42.6%45.3%35.0%19.1%8.4%
5 Year209.4%203.0%47.2%29.0%19.5%2.3%

Price Volatility Vs. Market

How volatile is Dollarama's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

27.38x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Dollarama's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Dollarama's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

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

Dollarama is poor value based on expected growth next year.


Price Based on Value of Assets

Dollarama has negative assets, we can't compare the value of its assets to the North America Multiline Retail industry average.


Next Steps

Future Growth

How is Dollarama expected to perform in the next 1 to 3 years based on estimates from 10 analysts?

11.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Dollarama's revenue is expected to grow by 7.1% yearly, however this is not considered high growth (20% yearly).

Dollarama's earnings are expected to grow by 11.5% yearly, however this is not considered high growth (20% yearly).

Dollarama's revenue growth is expected to exceed the Canada market average.

Dollarama's earnings growth is positive but not above the Canada market average.

Dollarama's earnings growth is expected to exceed the low risk savings rate of 1.9%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Dollarama will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has Dollarama performed over the past 5 years?

14.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

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 (3.5% vs 14.4%)

Dollarama's earnings growth has exceeded the North America Multiline Retail industry average in the past year (3.5% vs -7%).


Return on Equity

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.


Return on Assets

Dollarama used its assets more efficiently than the North America Multiline Retail industry average last year based on Return on Assets.


Return on Capital Employed

Dollarama's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Dollarama's financial position?


Financial Position Analysis

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.


Debt to Equity History and Analysis

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 (28.3%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 15.2x coverage).


Balance Sheet

High level of physical assets or inventory.

Dollarama has negative shareholder equity (liabilities exceed assets) therefore debt is not covered by short term assets.


Next Steps

Dividend

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

0.38%

Expected Dividend Yield


Upcoming Dividend Payment

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


Dividend Yield and Payments Analysis

Dollarama's pays a lower dividend yield than the bottom 25% of dividend payers in Canada (1.99%).

Dollarama's dividend is below the markets top 25% of dividend payers in Canada (5.85%).

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

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.


Next Steps

Management

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

7.4yrs

Average management tenure


CEO

Neil Rossy (49yo)

3.3yrs

Tenure

CA$3,940,604

Compensation

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  ...


CEO Compensation Analysis

Neil's remuneration is lower than average for companies of similar size in Canada.

Neil's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

7.4yrs

Average Tenure

59.5yo

Average Age

The average tenure for the Dollarama management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

7.7yrs

Average Tenure

60.5yo

Average Age

The tenure for the Dollarama board of directors is about average.


Insider Trading

Dollarama individual insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellCA$2,407,71210 Jul 19
John Assaly
EntityIndividual
Shares49,874
Max PriceCA$48.34
SellCA$99,313,88112 Apr 19
The Rossy Family Foundation, Endowment Arm
EntityCompany
Shares2,557,000
Max PriceCA$38.84
SellCA$8,726,25613 Dec 18
Geoffrey Robillard
EntityIndividual
Role
Senior Key Executive
Senior Vice President of Import Division
Shares280,000
Max PriceCA$31.17
SellCA$783,80026 Oct 18
Geoffrey Robillard
EntityIndividual
Role
Senior Key Executive
Senior Vice President of Import Division
Shares20,000
Max PriceCA$39.19
BuyCA$51,76812 Oct 18
Michael Ross
EntityIndividual
Role
Chief Financial Officer
Chief Financial Officer
Shares1,400
Max PriceCA$36.98

Ownership Breakdown


Management Team

  • Larry Rossy (76yo)

    Chairman Emeritus

    • Tenure: 1.3yrs
    • Compensation: CA$689.62k
  • Johanne Choinière

    Chief Operating Officer

    • Tenure: 5.3yrs
    • Compensation: CA$1.43m
  • Michael Ross (59yo)

    Chief Financial Officer

    • Tenure: 9.4yrs
    • Compensation: CA$1.38m
  • Neil Rossy (49yo)

    CEO, President & Director

    • Tenure: 3.3yrs
    • Compensation: CA$3.94m
  • Geoffrey Robillard (60yo)

    Senior Vice President of Import Division

    • Tenure: 15.7yrs
    • Compensation: CA$3.01m
  • Nicolas Hien

    Senior Vice President of Project Management & Systems

    • Tenure: 2.7yrs
  • Josée Kouri

    VP of Legal Affairs & Corporate Secretary

    • Tenure: 0yrs

Board Members

  • Josh Bekenstein (60yo)

    Independent Director

    • Tenure: 15.7yrs
    • Compensation: CA$152.00k
  • Kristin Mugford (50yo)

    Independent Director

    • Tenure: 1.5yrs
    • Compensation: CA$131.00k
  • Steve Gunn (64yo)

    Independent Chairman of the Board

    • Tenure: 1.3yrs
    • Compensation: CA$220.78k
  • Larry Rossy (76yo)

    Chairman Emeritus

    • Tenure: 1.3yrs
    • Compensation: CA$689.62k
  • Richard Roy (63yo)

    Independent Director

    • Tenure: 6.9yrs
    • Compensation: CA$156.50k
  • Elisa Garcia C. (61yo)

    Independent Director

    • Tenure: 4.6yrs
    • Compensation: CA$143.00k
  • Laki Nomicos (56yo)

    Independent Director

    • Tenure: 15.7yrs
    • Compensation: CA$166.50k
  • Neil Rossy (49yo)

    CEO, President & Director

    • Tenure: 3.3yrs
    • Compensation: CA$3.94m
  • Gregory David (51yo)

    Director

    • Tenure: 15.7yrs
    • Compensation: CA$137.00k
  • John Thomas (66yo)

    Independent Director

    • Tenure: 8.5yrs
    • Compensation: CA$137.00k

Company Information

Dollarama Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Dollarama Inc.
  • Ticker: DOL
  • Exchange: TSX
  • Founded: 1992
  • Industry: General Merchandise Stores
  • Sector: Retail
  • Market Cap: CA$15.007b
  • Shares outstanding: 314.80m
  • Website: https://www.dollarama.com

Number of Employees


Location

  • Dollarama Inc.
  • 5805 Royalmount Avenue
  • Montreal
  • Quebec
  • H4P 0A1
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
DOLTSX (The Toronto Stock Exchange)YesCommon SharesCACADOct 2009
DR3DB (Deutsche Boerse AG)YesCommon SharesDEEUROct 2009
DLMA.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDOct 2009

Biography

Dollarama Inc. operates a chain of dollar stores in Canada. Its stores offer general merchandise, consumables, and seasonal items. The company also offers products online. As of August 4, 2019, it operated ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/16 00:09
End of Day Share Price2019/09/13 00:00
Earnings2019/08/04
Annual Earnings2019/02/03


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.