DOLLARAMA INC (DOL.CA) Stock Fundamental Analysis
TSX:DOL - Toronto Stock Exchange - CA25675T1075 - Common Stock - Currency: CAD
DOL gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 3 industry peers in the Broadline Retail industry. DOL has an excellent profitability rating, but there are some minor concerns on its financial health. DOL is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year DOL was profitable.
DOL had a positive operating cash flow in the past year.
Each year in the past 5 years DOL has been profitable.
DOL had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
DOL has a better Return On Assets (18.03%) than 100.00% of its industry peers.
With an excellent Return On Equity value of 98.34%, DOL belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 21.73%, DOL belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for DOL is significantly above the industry average of 11.29%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 18.03% | ||
| ROE | 98.34% | ||
| ROIC | 21.73% |
ROA(3y)17.95%
ROA(5y)16.71%
ROE(3y)1062.04%
ROE(5y)N/A
ROIC(3y)22.87%
ROIC(5y)23.07%
1.3 Margins
DOL has a better Profit Margin (18.22%) than 100.00% of its industry peers.
In the last couple of years the Profit Margin of DOL has grown nicely.
With an excellent Operating Margin value of 24.65%, DOL belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
DOL's Operating Margin has improved in the last couple of years.
DOL has a Gross Margin of 45.12%. This is amongst the best in the industry. DOL outperforms 100.00% of its industry peers.
DOL's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 24.65% | ||
| PM (TTM) | 18.22% | ||
| GM | 45.12% |
OM growth 3Y3.75%
OM growth 5Y1.7%
PM growth 3Y5.97%
PM growth 5Y4.12%
GM growth 3Y0.9%
GM growth 5Y0.68%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), DOL is creating value.
Compared to 1 year ago, DOL has less shares outstanding
The number of shares outstanding for DOL has been reduced compared to 5 years ago.
Compared to 1 year ago, DOL has an improved debt to assets ratio.
2.2 Solvency
DOL has an Altman-Z score of 7.84. This indicates that DOL is financially healthy and has little risk of bankruptcy at the moment.
DOL has a Altman-Z score of 7.84. This is amongst the best in the industry. DOL outperforms 100.00% of its industry peers.
DOL has a debt to FCF ratio of 3.37. This is a good value and a sign of high solvency as DOL would need 3.37 years to pay back of all of its debts.
The Debt to FCF ratio of DOL (3.37) is better than 100.00% of its industry peers.
A Debt/Equity ratio of 3.50 is on the high side and indicates that DOL has dependencies on debt financing.
DOL has a worse Debt to Equity ratio (3.50) than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.5 | ||
| Debt/FCF | 3.37 | ||
| Altman-Z | 7.84 |
ROIC/WACC2.78
WACC7.83%
2.3 Liquidity
DOL has a Current Ratio of 1.18. This is a normal value and indicates that DOL is financially healthy and should not expect problems in meeting its short term obligations.
DOL has a Current ratio of 1.18. This is in the lower half of the industry: DOL underperforms 66.67% of its industry peers.
DOL has a Quick Ratio of 1.18. This is a bad value and indicates that DOL is not financially healthy enough and could expect problems in meeting its short term obligations.
DOL's Quick ratio of 0.28 is on the low side compared to the rest of the industry. DOL is outperformed by 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.18 | ||
| Quick Ratio | 0.28 |
3. Growth
3.1 Past
DOL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 17.13%, which is quite good.
The Earnings Per Share has been growing by 18.83% on average over the past years. This is quite good.
The Revenue has grown by 9.30% in the past year. This is quite good.
Measured over the past years, DOL shows a quite strong growth in Revenue. The Revenue has been growing by 11.11% on average per year.
EPS 1Y (TTM)17.13%
EPS 3Y23.76%
EPS 5Y18.83%
EPS Q2Q%21.74%
Revenue 1Y (TTM)9.3%
Revenue growth 3Y13.98%
Revenue growth 5Y11.11%
Sales Q2Q%14.77%
3.2 Future
Based on estimates for the next years, DOL will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.60% on average per year.
Based on estimates for the next years, DOL will show a quite strong growth in Revenue. The Revenue will grow by 8.49% on average per year.
EPS Next Y9.18%
EPS Next 2Y11.54%
EPS Next 3Y11.5%
EPS Next 5Y12.6%
Revenue Next Year6.64%
Revenue Next 2Y7.24%
Revenue Next 3Y7.15%
Revenue Next 5Y8.49%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 46.28, DOL can be considered very expensive at the moment.
Based on the Price/Earnings ratio, DOL is valued a bit more expensive than 66.67% of the companies in the same industry.
DOL's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 26.55.
With a Price/Forward Earnings ratio of 42.39, DOL can be considered very expensive at the moment.
Based on the Price/Forward Earnings ratio, DOL is valued a bit more expensive than the industry average as 66.67% of the companies are valued more cheaply.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.40, DOL is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 46.28 | ||
| Fwd PE | 42.39 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of DOL indicates a slightly more expensive valuation: DOL is more expensive than 66.67% of the companies listed in the same industry.
DOL's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. DOL is more expensive than 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 38.29 | ||
| EV/EBITDA | 29.16 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of DOL may justify a higher PE ratio.
PEG (NY)5.04
PEG (5Y)2.46
EPS Next 2Y11.54%
EPS Next 3Y11.5%
5. Dividend
5.1 Amount
DOL has a yearly dividend return of 0.24%, which is pretty low.
Compared to an average industry Dividend Yield of 2.77, DOL is paying slightly less dividend.
With a Dividend Yield of 0.24, DOL pays less dividend than the S&P500 average, which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.24% |
5.2 History
The dividend of DOL is nicely growing with an annual growth rate of 15.08%!
DOL has been paying a dividend for at least 10 years, so it has a reliable track record.
DOL has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)15.08%
Div Incr Years13
Div Non Decr Years13
5.3 Sustainability
DOL pays out 8.32% of its income as dividend. This is a sustainable payout ratio.
The dividend of DOL is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP8.32%
EPS Next 2Y11.54%
EPS Next 3Y11.5%
TSX:DOL (6/11/2025, 7:00:00 PM)
192.99
+17.23 (+9.8%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)
Earnings (Next)
Inst Owners45.85%
Inst Owner ChangeN/A
Ins Owners3.62%
Ins Owner ChangeN/A
Market Cap53.50B
Analysts76.84
Price Target175.91 (-8.85%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.24% |
Yearly Dividend0.35
Dividend Growth(5Y)15.08%
DP8.32%
Div Incr Years13
Div Non Decr Years13
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)2.44%
Min EPS beat(2)-1.1%
Max EPS beat(2)5.97%
EPS beat(4)3
Avg EPS beat(4)2.5%
Min EPS beat(4)-1.1%
Max EPS beat(4)5.97%
EPS beat(8)7
Avg EPS beat(8)4.96%
EPS beat(12)10
Avg EPS beat(12)4.15%
EPS beat(16)12
Avg EPS beat(16)3.18%
Revenue beat(2)0
Avg Revenue beat(2)-0.59%
Min Revenue beat(2)-1.04%
Max Revenue beat(2)-0.14%
Revenue beat(4)0
Avg Revenue beat(4)-0.92%
Min Revenue beat(4)-1.28%
Max Revenue beat(4)-0.14%
Revenue beat(8)3
Avg Revenue beat(8)0.27%
Revenue beat(12)7
Avg Revenue beat(12)1.15%
Revenue beat(16)7
Avg Revenue beat(16)0.5%
PT rev (1m)0.54%
PT rev (3m)16.29%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.43%
EPS NY rev (1m)0%
EPS NY rev (3m)0.17%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.33%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.73%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 46.28 | ||
| Fwd PE | 42.39 | ||
| P/S | 8.34 | ||
| P/FCF | 38.29 | ||
| P/OCF | 32.54 | ||
| P/B | 45.02 | ||
| P/tB | 191.22 | ||
| EV/EBITDA | 29.16 |
EPS(TTM)4.17
EY2.16%
EPS(NY)4.55
Fwd EY2.36%
FCF(TTM)5.04
FCFY2.61%
OCF(TTM)5.93
OCFY3.07%
SpS23.13
BVpS4.29
TBVpS1.01
PEG (NY)5.04
PEG (5Y)2.46
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 18.03% | ||
| ROE | 98.34% | ||
| ROCE | 28.91% | ||
| ROIC | 21.73% | ||
| ROICexc | 22.23% | ||
| ROICexgc | 26.78% | ||
| OM | 24.65% | ||
| PM (TTM) | 18.22% | ||
| GM | 45.12% | ||
| FCFM | 21.79% |
ROA(3y)17.95%
ROA(5y)16.71%
ROE(3y)1062.04%
ROE(5y)N/A
ROIC(3y)22.87%
ROIC(5y)23.07%
ROICexc(3y)23.83%
ROICexc(5y)24.62%
ROICexgc(3y)30.27%
ROICexgc(5y)33.53%
ROCE(3y)30.42%
ROCE(5y)30.86%
ROICexcg growth 3Y-5.31%
ROICexcg growth 5Y-7.25%
ROICexc growth 3Y-0.65%
ROICexc growth 5Y-2.67%
OM growth 3Y3.75%
OM growth 5Y1.7%
PM growth 3Y5.97%
PM growth 5Y4.12%
GM growth 3Y0.9%
GM growth 5Y0.68%
F-Score6
Asset Turnover0.99
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.5 | ||
| Debt/FCF | 3.37 | ||
| Debt/EBITDA | 2.09 | ||
| Cap/Depr | 60.04% | ||
| Cap/Sales | 3.85% | ||
| Interest Coverage | 8.24 | ||
| Cash Conversion | 82.54% | ||
| Profit Quality | 119.57% | ||
| Current Ratio | 1.18 | ||
| Quick Ratio | 0.28 | ||
| Altman-Z | 7.84 |
F-Score6
WACC7.83%
ROIC/WACC2.78
Cap/Depr(3y)61.2%
Cap/Depr(5y)59.87%
Cap/Sales(3y)3.9%
Cap/Sales(5y)3.91%
Profit Quality(3y)110.77%
Profit Quality(5y)119.34%
High Growth Momentum
Growth
EPS 1Y (TTM)17.13%
EPS 3Y23.76%
EPS 5Y18.83%
EPS Q2Q%21.74%
EPS Next Y9.18%
EPS Next 2Y11.54%
EPS Next 3Y11.5%
EPS Next 5Y12.6%
Revenue 1Y (TTM)9.3%
Revenue growth 3Y13.98%
Revenue growth 5Y11.11%
Sales Q2Q%14.77%
Revenue Next Year6.64%
Revenue Next 2Y7.24%
Revenue Next 3Y7.15%
Revenue Next 5Y8.49%
EBIT growth 1Y11.29%
EBIT growth 3Y18.26%
EBIT growth 5Y13%
EBIT Next Year35.31%
EBIT Next 3Y17.06%
EBIT Next 5Y14.4%
FCF growth 1Y11.59%
FCF growth 3Y15.52%
FCF growth 5Y18.74%
OCF growth 1Y7.39%
OCF growth 3Y15.54%
OCF growth 5Y17.55%