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DOL

Dollarama TSX:DOL Stock Report

Last Price

CA$75.76

Market Cap

CA$21.9b

7D

3.6%

1Y

33.8%

Updated

27 Jun, 2022

Data

Company Financials +
DOL fundamental analysis
Snowflake Score
Valuation2/6
Future Growth3/6
Past Performance5/6
Financial Health2/6
Dividends0/6

DOL Stock Overview

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

Dollarama Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Dollarama
Historical stock prices
Current Share PriceCA$75.76
52 Week HighCA$76.80
52 Week LowCA$53.39
Beta0.90
1 Month Change6.09%
3 Month Change10.24%
1 Year Change33.78%
3 Year Change64.45%
5 Year Change83.42%
Change since IPO2,232.27%

Recent News & Updates

Jun 21
Is It Time To Consider Buying Dollarama Inc. (TSE:DOL)?

Is It Time To Consider Buying Dollarama Inc. (TSE:DOL)?

Today we're going to take a look at the well-established Dollarama Inc. ( TSE:DOL ). The company's stock saw a...

May 26
Estimating The Fair Value Of Dollarama Inc. (TSE:DOL)

Estimating The Fair Value Of Dollarama Inc. (TSE:DOL)

Does the May share price for Dollarama Inc. ( TSE:DOL ) reflect what it's really worth? Today, we will estimate the...

Apr 29
If You Like EPS Growth Then Check Out Dollarama (TSE:DOL) Before It's Too Late

If You Like EPS Growth Then Check Out Dollarama (TSE:DOL) Before It's Too Late

Some have more dollars than sense, they say, so even companies that have no revenue, no profit, and a record of falling...

Shareholder Returns

DOLCA Multiline RetailCA Market
7D3.6%6.2%0.3%
1Y33.8%-13.6%-4.0%

Return vs Industry: DOL exceeded the Canadian Multiline Retail industry which returned -13.6% over the past year.

Return vs Market: DOL exceeded the Canadian Market which returned -4% over the past year.

Price Volatility

Is DOL's price volatile compared to industry and market?
DOL volatility
DOL Average Weekly Movement4.3%
Multiline Retail Industry Average Movement9.6%
Market Average Movement10.0%
10% most volatile stocks in CA Market17.3%
10% least volatile stocks in CA Market4.4%

Stable Share Price: DOL is less volatile than 75% of Canadian stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: DOL's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1992n/aNeil Rossyhttps://www.dollarama.com

Dollarama Inc. operates a chain of dollar stores in Canada. Its stores offer general merchandise, consumables, and seasonal products. The company also sells its products through online store.

Dollarama Fundamentals Summary

How do Dollarama's earnings and revenue compare to its market cap?
DOL fundamental statistics
Market CapCA$21.87b
Earnings (TTM)CA$695.10m
Revenue (TTM)CA$4.45b

31.8x

P/E Ratio

5.0x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
DOL income statement (TTM)
RevenueCA$4.45b
Cost of RevenueCA$2.35b
Gross ProfitCA$2.10b
Other ExpensesCA$1.40b
EarningsCA$695.10m

Last Reported Earnings

May 01, 2022

Next Earnings Date

n/a

Earnings per share (EPS)2.38
Gross Margin47.15%
Net Profit Margin15.62%
Debt/Equity Ratio-11,325.6%

How did DOL perform over the long term?

See historical performance and comparison

Dividends

0.3%

Current Dividend Yield

9%

Payout Ratio

Does DOL pay a reliable dividends?

See DOL dividend history and benchmarks
When do you need to buy DOL by to receive an upcoming dividend?
Dollarama dividend dates
Ex Dividend DateJul 07 2022
Dividend Pay DateAug 05 2022
Days until Ex dividend9 days
Days until Dividend pay date38 days

Does DOL pay a reliable dividends?

See DOL dividend history and benchmarks
We’ve recently updated our valuation analysis.

Valuation

Is DOL undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for DOL?

Other financial metrics that can be useful for relative valuation.

DOL key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue5.7x
Enterprise Value/EBITDA23.3x
PEG Ratio2.6x

Price to Earnings Ratio vs Peers

How does DOL's PE Ratio compare to its peers?

DOL PE Ratio vs Peers
The above table shows the PE ratio for DOL vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average19.8x
CTC.A Canadian Tire Corporation
8.6x1.3%CA$10.4b
ATZ Aritzia
25.2x14.6%CA$3.9b
7532 Pan Pacific International Holdings
22.8x10.6%JP¥1.2t
WES Wesfarmers
22.7x7.8%AU$50.1b
DOL Dollarama
31.8x12.3%CA$21.9b

Price-To-Earnings vs Peers: DOL is expensive based on its Price-To-Earnings Ratio (31.8x) compared to the peer average (19.8x).


Price to Earnings Ratio vs Industry

How does DOL's PE Ratio compare vs other companies in the Global Multiline Retail Industry?

Price-To-Earnings vs Industry: DOL is expensive based on its Price-To-Earnings Ratio (31.8x) compared to the North American Multiline Retail industry average (10x)


Price to Earnings Ratio vs Fair Ratio

What is DOL's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

DOL PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio31.8x
Fair PE Ratio21.8x

Price-To-Earnings vs Fair Ratio: DOL is expensive based on its Price-To-Earnings Ratio (31.8x) compared to the estimated Fair Price-To-Earnings Ratio (21.8x).


Share Price vs Fair Value

What is the Fair Price of DOL when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: DOL (CA$75.76) is trading below our estimate of fair value (CA$96.98)

Significantly Below Fair Value: DOL is trading below fair value by more than 20%.


Price to Earnings Growth Ratio

PEG Ratio: DOL is poor value based on its PEG Ratio (2.6x)


Discover undervalued companies

Future Growth

How is Dollarama forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

Future Growth Score

3/6

Future Growth Score 3/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


12.3%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DOL's forecast earnings growth (12.3% per year) is above the savings rate (1.6%).

Earnings vs Market: DOL's earnings (12.3% per year) are forecast to grow faster than the Canadian market (8.2% per year).

High Growth Earnings: DOL's earnings are forecast to grow, but not significantly.

Revenue vs Market: DOL's revenue (8.2% per year) is forecast to grow faster than the Canadian market (6.9% per year).

High Growth Revenue: DOL's revenue (8.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if DOL's Return on Equity is forecast to be high in 3 years time


Discover growth companies

Past Performance

How has Dollarama performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


5.7%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: DOL has high quality earnings.

Growing Profit Margin: DOL's current net profit margins (15.6%) are higher than last year (14.3%).


Past Earnings Growth Analysis

Earnings Trend: DOL's earnings have grown by 5.7% per year over the past 5 years.

Accelerating Growth: DOL's earnings growth over the past year (17.5%) exceeds its 5-year average (5.7% per year).

Earnings vs Industry: DOL earnings growth over the past year (17.5%) exceeded the Multiline Retail industry -1.7%.


Return on Equity

High ROE: DOL's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


Discover strong past performing companies

Financial Health

How is Dollarama's financial position?

Financial Health Score

2/6

Financial Health Score 2/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: DOL has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: DOL has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.


Debt to Equity History and Analysis

Debt Level: DOL has negative shareholder equity, which is a more serious situation than a high debt level.

Reducing Debt: DOL's has negative shareholder equity, so we do not need to check if its debt has reduced over time.

Debt Coverage: DOL's debt is well covered by operating cash flow (55.4%).

Interest Coverage: DOL's interest payments on its debt are well covered by EBIT (222.8x coverage).


Balance Sheet


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Dividend

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

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


0.29%

Current Dividend Yield

Upcoming Dividend Payment

TodayJun 27 2022Ex Dividend DateJul 07 2022Dividend Pay DateAug 05 202229 days from Ex DividendBuy in the next 9 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: DOL's dividend (0.29%) isn’t notable compared to the bottom 25% of dividend payers in the Canadian market (2.03%).

High Dividend: DOL's dividend (0.29%) is low compared to the top 25% of dividend payers in the Canadian market (5.33%).


Stability and Growth of Payments

Stable Dividend: DOL is not paying a notable dividend for the Canadian market, therefore no need to check if payments are stable.

Growing Dividend: DOL is not paying a notable dividend for the Canadian market, therefore no need to check if payments are increasing.


Earnings Payout to Shareholders

Earnings Coverage: DOL is not paying a notable dividend for the Canadian market.


Cash Payout to Shareholders

Cash Flow Coverage: DOL is not paying a notable dividend for the Canadian market.


Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

3.8yrs

Average management tenure


CEO

Neil Rossy (51 yo)

6.08yrs

Tenure

CA$7,831,415

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

Compensation vs Market: Neil's total compensation ($USD6.08M) is about average for companies of similar size in the Canadian market ($USD8.63M).

Compensation vs Earnings: Neil's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: DOL's management team is considered experienced (3.8 years average tenure).


Board Members

Experienced Board: DOL's board of directors are seasoned and experienced ( 12 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: DOL insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

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


Key Information

  • Name: Dollarama Inc.
  • Ticker: DOL
  • Exchange: TSX
  • Founded: 1992
  • Industry: General Merchandise Stores
  • Sector: Retail
  • Implied Market Cap: CA$21.871b
  • Shares outstanding: 291.81m
  • Website: https://www.dollarama.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/06/27 00:00
End of Day Share Price2022/06/27 00:00
Earnings2022/05/01
Annual Earnings2022/01/30


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.