DOLLARAMA INC (DOL.CA) Stock Fundamental Analysis
TSX:DOL - Toronto Stock Exchange - CA25675T1075 - Common Stock - Currency: CAD
We assign a fundamental rating of 6 out of 10 to DOL. DOL was compared to 3 industry peers in the Broadline Retail industry. DOL scores excellent on profitability, but there are some minor concerns on its financial health. DOL is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year DOL was profitable.
In the past year DOL had a positive cash flow from operations.
DOL had positive earnings in each of the past 5 years.
DOL had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 18.67%, DOL belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
DOL has a better Return On Equity (92.91%) than 100.00% of its industry peers.
DOL's Return On Invested Capital of 21.81% is amongst the best of the industry. DOL outperforms 100.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for DOL is significantly above the industry average of 11.32%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 18.67% | ||
| ROE | 92.91% | ||
| ROIC | 21.81% |
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's Profit Margin of 18.79% is amongst the best of the industry. DOL outperforms 100.00% of its industry peers.
In the last couple of years the Profit Margin of DOL has grown nicely.
DOL has a better Operating Margin (24.96%) than 100.00% of its industry peers.
DOL's Operating Margin has improved in the last couple of years.
DOL has a Gross Margin of 45.32%. 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 | 24.96% | ||
| PM (TTM) | 18.79% | ||
| GM | 45.32% |
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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so 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.
The debt/assets ratio for DOL has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 7.89 indicates that DOL is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 7.89, DOL belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
The Debt to FCF ratio of DOL is 3.28, which is a good value as it means it would take DOL, 3.28 years of fcf income to pay off all of its debts.
DOL has a better Debt to FCF ratio (3.28) than 100.00% of its industry peers.
DOL has a Debt/Equity ratio of 3.17. This is a high value indicating a heavy dependency on external financing.
DOL's Debt to Equity ratio of 3.17 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 | ||
|---|---|---|---|
| Debt/Equity | 3.17 | ||
| Debt/FCF | 3.28 | ||
| Altman-Z | 7.89 |
ROIC/WACC2.75
WACC7.94%
2.3 Liquidity
A Current Ratio of 1.31 indicates that DOL should not have too much problems paying its short term obligations.
With a Current ratio value of 1.31, DOL is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
A Quick Ratio of 0.33 indicates that DOL may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.33, DOL is doing worse than 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.31 | ||
| Quick Ratio | 0.33 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 17.57% over the past year.
The Earnings Per Share has been growing by 18.83% on average over the past years. This is quite good.
DOL shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.20%.
DOL shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 11.11% yearly.
EPS 1Y (TTM)17.57%
EPS 3Y23.76%
EPS 5Y18.83%
EPS Q2Q%23.38%
Revenue 1Y (TTM)9.2%
Revenue growth 3Y13.98%
Revenue growth 5Y11.11%
Sales Q2Q%8.21%
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 12.87% on average per year.
The Revenue is expected to grow by 8.75% on average over the next years. This is quite good.
EPS Next Y9.18%
EPS Next 2Y11.54%
EPS Next 3Y12.4%
EPS Next 5Y12.87%
Revenue Next Year6.64%
Revenue Next 2Y7.24%
Revenue Next 3Y7.04%
Revenue Next 5Y8.75%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of 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
Based on the Price/Earnings ratio of 43.69, the valuation of DOL can be described as expensive.
Based on the Price/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/Earnings ratio of 27.30, DOL is valued quite expensively.
Based on the Price/Forward Earnings ratio of 36.64, the valuation of DOL can be described as expensive.
66.67% of the companies in the same industry are cheaper than DOL, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.76, DOL is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 43.69 | ||
| Fwd PE | 36.64 |
4.2 Price Multiples
66.67% of the companies in the same industry are cheaper than DOL, based on the Enterprise Value to EBITDA ratio.
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 | 36.83 | ||
| EV/EBITDA | 28 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates DOL does not grow enough to justify the current Price/Earnings ratio.
The excellent profitability rating of DOL may justify a higher PE ratio.
A more expensive valuation may be justified as DOL's earnings are expected to grow with 12.40% in the coming years.
PEG (NY)4.76
PEG (5Y)2.32
EPS Next 2Y11.54%
EPS Next 3Y12.4%
5. Dividend
5.1 Amount
With a yearly dividend of 0.22%, DOL is not a good candidate for dividend investing.
DOL's Dividend Yield is slightly below the industry average, which is at 2.58.
With a Dividend Yield of 0.22, DOL pays less dividend than the S&P500 average, which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.22% |
5.2 History
On average, the dividend of DOL grows each year by 15.08%, which is quite nice.
DOL has been paying a dividend for at least 10 years, so it has a reliable track record.
DOL has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)15.08%
Div Incr Years13
Div Non Decr Years13
5.3 Sustainability
DOL pays out 8.40% of its income as dividend. This is a sustainable payout ratio.
DOL's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP8.4%
EPS Next 2Y11.54%
EPS Next 3Y12.4%
TSX:DOL (7/11/2025, 7:00:00 PM)
190.07
-0.53 (-0.28%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)
Earnings (Next)
Inst Owners45.13%
Inst Owner ChangeN/A
Ins Owners3.34%
Ins Owner ChangeN/A
Market Cap52.71B
Analysts75.79
Price Target207.35 (9.09%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.22% |
Yearly Dividend0.35
Dividend Growth(5Y)15.08%
DP8.4%
Div Incr Years13
Div Non Decr Years13
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)9.31%
Min EPS beat(2)5.97%
Max EPS beat(2)12.65%
EPS beat(4)3
Avg EPS beat(4)5.44%
Min EPS beat(4)-1.1%
Max EPS beat(4)12.65%
EPS beat(8)7
Avg EPS beat(8)5.82%
EPS beat(12)10
Avg EPS beat(12)4.95%
EPS beat(16)13
Avg EPS beat(16)4.25%
Revenue beat(2)1
Avg Revenue beat(2)0.07%
Min Revenue beat(2)-0.14%
Max Revenue beat(2)0.28%
Revenue beat(4)1
Avg Revenue beat(4)-0.53%
Min Revenue beat(4)-1.24%
Max Revenue beat(4)0.28%
Revenue beat(8)3
Avg Revenue beat(8)-0.06%
Revenue beat(12)7
Avg Revenue beat(12)1.03%
Revenue beat(16)8
Avg Revenue beat(16)0.63%
PT rev (1m)17.87%
PT rev (3m)35.04%
EPS NQ rev (1m)2.05%
EPS NQ rev (3m)2.05%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.15%
Revenue NQ rev (1m)1.54%
Revenue NQ rev (3m)1.54%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.73%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 43.69 | ||
| Fwd PE | 36.64 | ||
| P/S | 8.07 | ||
| P/FCF | 36.83 | ||
| P/OCF | 31.42 | ||
| P/B | 39.93 | ||
| P/tB | 128.18 | ||
| EV/EBITDA | 28 |
EPS(TTM)4.35
EY2.29%
EPS(NY)5.19
Fwd EY2.73%
FCF(TTM)5.16
FCFY2.71%
OCF(TTM)6.05
OCFY3.18%
SpS23.54
BVpS4.76
TBVpS1.48
PEG (NY)4.76
PEG (5Y)2.32
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 18.67% | ||
| ROE | 92.91% | ||
| ROCE | 29.01% | ||
| ROIC | 21.81% | ||
| ROICexc | 22.74% | ||
| ROICexgc | 27.35% | ||
| OM | 24.96% | ||
| PM (TTM) | 18.79% | ||
| GM | 45.32% | ||
| FCFM | 21.92% |
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 | 3.17 | ||
| Debt/FCF | 3.28 | ||
| Debt/EBITDA | 2.05 | ||
| Cap/Depr | 59.83% | ||
| Cap/Sales | 3.78% | ||
| Interest Coverage | 8.18 | ||
| Cash Conversion | 82.17% | ||
| Profit Quality | 116.68% | ||
| Current Ratio | 1.31 | ||
| Quick Ratio | 0.33 | ||
| Altman-Z | 7.89 |
F-Score6
WACC7.94%
ROIC/WACC2.75
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)17.57%
EPS 3Y23.76%
EPS 5Y18.83%
EPS Q2Q%23.38%
EPS Next Y9.18%
EPS Next 2Y11.54%
EPS Next 3Y12.4%
EPS Next 5Y12.87%
Revenue 1Y (TTM)9.2%
Revenue growth 3Y13.98%
Revenue growth 5Y11.11%
Sales Q2Q%8.21%
Revenue Next Year6.64%
Revenue Next 2Y7.24%
Revenue Next 3Y7.04%
Revenue Next 5Y8.75%
EBIT growth 1Y11.91%
EBIT growth 3Y18.26%
EBIT growth 5Y13%
EBIT Next Year35.31%
EBIT Next 3Y17.62%
EBIT Next 5Y14.68%
FCF growth 1Y74.46%
FCF growth 3Y15.52%
FCF growth 5Y18.74%
OCF growth 1Y69%
OCF growth 3Y15.54%
OCF growth 5Y17.55%