Duyuru • Mar 27
Dollarama Inc. (TSX:DOL) agreed to acquire The Reject Shop Limited (ASX:TRS) from Kin Group Pty Ltd and others for approximately AUD 250 million. Dollarama Inc. (TSX:DOL) agreed to acquire The Reject Shop Limited (ASX:TRS) from Kin Group Pty Ltd and others for approximately AUD 250 million on March 26, 2025. A cash consideration valued at AUD 6.68 per share and will be paid by Dollarama Inc. As part of consideration, AUD 249.1 million is paid towards common equity and AUD 7.69 million is paid towards rights of The Reject Shop Limited. The purchase price will be funded through a mix of cash on hand and available liquidities under Dollarama Inc. revolving credit facility. In case of termination of transaction, Dollarama Inc. will pay a termination fee of AUD 2.59 million and Kin Group Pty Ltd will pay a termination fee of AUD 2.59 million. The transaction is subject to approval by regulatory board / committee, approval of merger agreement by target board, approval of offer by target shareholders and subject to court approval. The Board of Directors of The Reject Shop Limited unanimously recommends that shareholders vote in favor of the scheme. The closing is expected to occur in the second half of 2025.
National Bank Financial, Inc. acted as financial advisor for Dollarama Inc. UBS Securities Australia Ltd acted as financial advisor for The Reject Shop Limited. SBA LAW Liability limited acted as legal advisor for The Reject Shop Limited. Adam Foreman of Corrs Chambers Westgarth acted as legal advisor for Dollarama Inc. Board Change • Feb 04
Insufficient new directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 4 experienced directors. No highly experienced directors. Independent Non-Executive Director Margaret Anna Zabel was the last director to join the board, commencing their role in 2021. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Duyuru • Jan 28
The Reject Shop Limited to Report First Half, 2025 Results on Feb 20, 2025 The Reject Shop Limited announced that they will report first half, 2025 results on Feb 20, 2025 Board Change • Dec 24
Insufficient new directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 4 experienced directors. No highly experienced directors. Independent Non-Executive Director Margaret Anna Zabel was the last director to join the board, commencing their role in 2021. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Reported Earnings • Aug 23
Full year 2024 earnings released: EPS: AU$0.12 (vs AU$0.27 in FY 2023) Full year 2024 results: EPS: AU$0.12 (down from AU$0.27 in FY 2023). Revenue: AU$855.2m (up 4.4% from FY 2023). Net income: AU$4.71m (down 54% from FY 2023). Profit margin: 0.6% (down from 1.3% in FY 2023). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 4.2% p.a. on average during the next 3 years, compared to a 4.2% growth forecast for the Multiline Retail industry in Australia. Over the last 3 years on average, earnings per share has fallen by 1% per year but the company’s share price has fallen by 17% per year, which means it is performing significantly worse than earnings. Buy Or Sell Opportunity • Aug 05
Now 20% undervalued after recent price drop Over the last 90 days, the stock has fallen 21% to AU$3.16. The fair value is estimated to be AU$3.96, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has been flat over the last 3 years. Earnings per share has grown by 5.1%. For the next 3 years, revenue is forecast to grow by 4.0% per annum. Earnings are also forecast to grow by 28% per annum over the same time period. Board Change • Jul 01
Insufficient new directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 4 experienced directors. No highly experienced directors. Independent Non-Executive Director Margaret Anna Zabel was the last director to join the board, commencing their role in 2021. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. New Risk • May 08
New minor risk - Market cap size The company's market capitalization is less than US$100m. Market cap: AU$151.0m (US$99.2m) This is considered a minor risk. Companies with a small market capitalization are most likely businesses that have not yet released a product to market or are simply a very small company without a wide reach. Either way, risk is elevated with these companies because there is a chance the product may not come to fruition or the company's addressable market or demand may not be as large as expected. In addition, if the company's size is the main factor, it is less likely to have many investors and analysts following it and scrutinizing its performance and outlook. Currently, the following risks have been identified for the company: Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Large one-off items impacting financial results. Market cap is less than US$100m (AU$151.0m market cap, or US$99.2m). Upcoming Dividend • Apr 11
Upcoming dividend of AU$0.10 per share Eligible shareholders must have bought the stock before 18 April 2024. Payment date: 03 May 2024. Payout ratio is a comfortable 74% and this is well supported by cash flows. Trailing yield: 4.3%. Lower than top quartile of Australian dividend payers (6.2%). Higher than average of industry peers (3.0%). Buy Or Sell Opportunity • Apr 04
Now 21% overvalued Over the last 90 days, the stock has fallen 17% to AU$4.47. The fair value is estimated to be AU$3.71, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has been flat over the last 3 years. Earnings per share has grown by 5.1%. For the next 3 years, revenue is forecast to grow by 4.7% per annum. Earnings are also forecast to grow by 31% per annum over the same time period. Buy Or Sell Opportunity • Feb 26
Now 22% overvalued Over the last 90 days, the stock has fallen 7.8% to AU$4.76. The fair value is estimated to be AU$3.91, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has been flat over the last 3 years. Earnings per share has grown by 5.1%. For the next 3 years, revenue is forecast to grow by 4.7% per annum. Earnings are also forecast to grow by 32% per annum over the same time period. Reported Earnings • Feb 25
First half 2024 earnings released: EPS: AU$0.38 (vs AU$0.43 in 1H 2023) First half 2024 results: EPS: AU$0.38 (down from AU$0.43 in 1H 2023). Revenue: AU$458.3m (up 4.2% from 1H 2023). Net income: AU$14.5m (down 11% from 1H 2023). Profit margin: 3.2% (down from 3.7% in 1H 2023). Revenue is forecast to grow 4.9% p.a. on average during the next 3 years, compared to a 4.1% growth forecast for the Multiline Retail industry in Australia. Over the last 3 years on average, earnings per share has increased by 5% per year but the company’s share price has fallen by 10% per year, which means it is significantly lagging earnings. Duyuru • Feb 22
The Reject Shop Limited Announces Executive Changes, Effective 23 February 2024 The Reject Shop Limited announce the appointment of Lauren Harris as Company Secretary with effect from 23 February 2024. Lauren joined the Company as General Counsel in January 2024 and is an experienced legal andgovernance practitioner, having previously held roles at a top tier law firm and a number of ASX 100 companies across a range of industries. As announced on 23 October 2023, Michael Freier has resigned as General Counsel and Company Secretary and will be leaving the Company on 23 February 2024. Duyuru • Oct 24
The Reject Shop Limited to Report First Half, 2024 Results on Feb 22, 2024 The Reject Shop Limited announced that they will report first half, 2024 results on Feb 22, 2024 Duyuru • Oct 23
The Reject Shop Limited Announces Resignation of Michael Freier as General Counsel and Company Secretary The Reject Shop Limited announced that its General Counsel and Company Secretary, Michael Freier, has provided notice resigning from his roles. Michael will work through his notice period to complete an orderly handover of his responsibilities, including assisting the Company to deliver the 2024 half year results on 22 February 2024, before leaving the Company on 23 February 2024. Michael joined the Company in August 2016 as the inaugural General Counsel, and he was subsequently appointed Company Secretary in September 2019. Upcoming Dividend • Oct 12
Upcoming dividend of AU$0.16 per share at 1.1% yield Eligible shareholders must have bought the stock before 19 October 2023. Payment date: 03 November 2023. Trailing yield: 1.1%. Lower than top quartile of Australian dividend payers (7.2%). Lower than average of industry peers (3.9%). Reported Earnings • Aug 26
Full year 2023 earnings released: EPS: AU$0.27 (vs AU$0.21 in FY 2022) Full year 2023 results: EPS: AU$0.27 (up from AU$0.21 in FY 2022). Revenue: AU$819.3m (up 3.9% from FY 2022). Net income: AU$10.3m (up 31% from FY 2022). Profit margin: 1.3% (up from 1.0% in FY 2022). Revenue is forecast to grow 4.9% p.a. on average during the next 3 years, compared to a 3.5% growth forecast for the Multiline Retail industry in Australia. Over the last 3 years on average, earnings per share has increased by 20% per year but the company’s share price has fallen by 7% per year, which means it is significantly lagging earnings. Duyuru • Jul 04
The Reject Shop Limited Announces Resignation of Mark Ward from the Board The Reject Shop Limited advised that Mark Ward has resigned from the board of the Company effective from 2 July 2023. Reported Earnings • Feb 24
First half 2023 earnings released: EPS: AU$0.43 (vs AU$0.40 in 1H 2022) First half 2023 results: EPS: AU$0.43 (up from AU$0.40 in 1H 2022). Revenue: AU$439.7m (up 3.5% from 1H 2022). Net income: AU$16.3m (up 6.2% from 1H 2022). Profit margin: 3.7% (up from 3.6% in 1H 2022). The increase in margin was driven by higher revenue. Revenue is forecast to grow 5.7% p.a. on average during the next 3 years, compared to a 3.7% growth forecast for the Multiline Retail industry in Oceania. Over the last 3 years on average, earnings per share has increased by 78% per year but the company’s share price has only increased by 9% per year, which means it is significantly lagging earnings growth. Board Change • Nov 23
High number of new and inexperienced directors There are 4 new directors who have joined the board in the last 3 years. The company's board is composed of: 4 new directors. 1 experienced director. No highly experienced directors. Independent Non-Executive Chairman Steve Fisher is the most experienced director on the board, commencing their role in 2019. The company’s lack of experienced directors is considered a risk according to the Simply Wall St Risk Model. Valuation Update With 7 Day Price Move • Jun 16
Investor sentiment deteriorated over the past week After last week's 21% share price decline to AU$2.84, the stock trades at a forward P/E ratio of 13x. Average forward P/E is 11x in the Multiline Retail industry in Oceania. Total returns to shareholders of 45% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at AU$3.26 per share. Board Change • May 17
High number of new and inexperienced directors There are 5 new directors who have joined the board in the last 3 years. The company's board is composed of: 5 new directors. No experienced directors. No highly experienced directors. Independent Non-Executive Chairman Steve Fisher is the most experienced director on the board, commencing their role in 2019. The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of board continuity. Lack of experienced directors. Valuation Update With 7 Day Price Move • Aug 25
Investor sentiment improved over the past week After last week's 17% share price gain to AU$5.70, the stock trades at a forward P/E ratio of 27x. Average forward P/E is 17x in the Multiline Retail industry globally. Total returns to shareholders of 20% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at AU$6.70 per share. Reported Earnings • Aug 20
Full year 2021 earnings released: EPS AU$0.22 (vs AU$0.036 in FY 2020) The company reported a decent full year result with improved earnings and profit margins, although revenues were weaker. Full year 2021 results: Revenue: AU$778.8m (down 5.1% from FY 2020). Net income: AU$8.32m (up AU$7.20m from FY 2020). Profit margin: 1.1% (up from 0.1% in FY 2020). The increase in margin was driven by lower expenses. Over the last 3 years on average, earnings per share has fallen by 8% per year but the company’s share price has increased by 2% per year, which means it is well ahead of earnings. Is New 90 Day High Low • Feb 27
New 90-day low: AU$6.39 The company is down 9.0% from its price of AU$7.04 on 26 November 2020. The Australian market is up 3.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Multiline Retail industry, which is flat over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is AU$124 per share. Analyst Estimate Surprise Post Earnings • Feb 19
Revenue beats expectations Revenue exceeded analyst estimates by 0.009%. Over the next year, revenue is expected to shrink by 1.2% compared to a 12% growth forecast for the Multiline Retail industry in Australia. Reported Earnings • Feb 18
First half 2021 earnings released: EPS AU$0.45 (vs AU$0.33 in 1H 2020) The company reported a decent first half result with improved earnings and profit margins, although revenues were flat. First half 2021 results: Revenue: AU$434.3m (flat on 1H 2020). Net income: AU$17.0m (up 79% from 1H 2020). Profit margin: 3.9% (up from 2.2% in 1H 2020). Over the last 3 years on average, earnings per share has fallen by 56% per year but the company’s share price has increased by 3% per year, which means it is well ahead of earnings. Is New 90 Day High Low • Dec 11
New 90-day high: AU$7.70 The company is up 18% from its price of AU$6.55 on 11 September 2020. The Australian market is up 14% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Multiline Retail industry, which is up 11% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is AU$463 per share. Is New 90 Day High Low • Nov 02
New 90-day low: AU$6.23 The company is down 2.0% from its price of AU$6.37 on 04 August 2020. The Australian market is up 2.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Multiline Retail industry, which is up 2.0% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is AU$1.90 per share.