DOLLARAMA INC (DOL.CA) Stock Fundamental Analysis
TSX:DOL - CA25675T1075 - Common Stock
187.26 CAD
+2.21 (+1.19%)
We assign a fundamental rating of 6 out of 10 to DOL. DOL was compared to 3 industry peers in the Broadline Retail industry. While DOL has a great profitability rating, there are some minor concerns on its financial health. While showing a medium growth rate, DOL is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
DOL had positive earnings in the past year.
DOL had a positive operating cash flow in the past year.
Each year in the past 5 years DOL has been profitable.
In the past 5 years DOL always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of DOL (18.67%) is better than 100.00% of its industry peers.
With an excellent Return On Equity value of 92.91%, DOL belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
DOL has a Return On Invested Capital of 21.81%. This is amongst the best in 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 11.40%.
| 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 has a Profit Margin of 18.79%. This is amongst the best in the industry. DOL outperforms 100.00% of its industry peers.
DOL's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 24.96%, 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.
Looking at the Gross Margin, with a value of 45.32%, DOL belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
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
DOL has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
DOL has less shares outstanding than it did 1 year ago.
DOL has less shares outstanding than it did 5 years ago.
DOL has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 7.79 indicates that DOL is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 7.79, DOL belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
DOL has a debt to FCF ratio of 3.28. This is a good value and a sign of high solvency as DOL would need 3.28 years to pay back of all of its debts.
DOL's Debt to FCF ratio of 3.28 is amongst the best of the industry. DOL outperforms 100.00% of its industry peers.
A Debt/Equity ratio of 3.17 is on the high side and indicates that DOL has dependencies on debt financing.
DOL has a Debt to Equity ratio of 3.17. This is in the lower half of the industry: DOL underperforms 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.17 | ||
| Debt/FCF | 3.28 | ||
| Altman-Z | 7.79 |
ROIC/WACC2.7
WACC8.09%
2.3 Liquidity
A Current Ratio of 1.31 indicates that DOL should not have too much problems paying its short term obligations.
DOL has a Current ratio of 1.31. This is in the lower half of the industry: DOL underperforms 66.67% of its industry peers.
A Quick Ratio of 0.33 indicates that DOL may have some problems paying its short term obligations.
DOL has a worse Quick ratio (0.33) than 66.67% of its industry peers.
| 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 16.32% over the past year.
Measured over the past years, DOL shows a quite strong growth in Earnings Per Share. The EPS has been growing by 18.83% on average per year.
The Revenue has grown by 9.30% in the past year. This is quite good.
The Revenue has been growing by 11.11% on average over the past years. This is quite good.
EPS 1Y (TTM)16.32%
EPS 3Y23.76%
EPS 5Y18.83%
EPS Q2Q%13.73%
Revenue 1Y (TTM)9.3%
Revenue growth 3Y13.98%
Revenue growth 5Y11.11%
Sales Q2Q%10.26%
3.2 Future
The Earnings Per Share is expected to grow by 12.99% on average over the next years. This is quite good.
Based on estimates for the next years, DOL will show a quite strong growth in Revenue. The Revenue will grow by 8.86% on average per year.
EPS Next Y12.63%
EPS Next 2Y12.91%
EPS Next 3Y12.61%
EPS Next 5Y12.99%
Revenue Next Year7.82%
Revenue Next 2Y8.16%
Revenue Next 3Y6.8%
Revenue Next 5Y8.86%
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
DOL is valuated quite expensively with a Price/Earnings ratio of 41.71.
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 27.13.
A Price/Forward Earnings ratio of 35.23 indicates a quite expensive valuation of DOL.
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.
When comparing the Price/Forward Earnings ratio of DOL to the average of the S&P500 Index (22.76), we can say DOL is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 41.71 | ||
| Fwd PE | 35.23 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, DOL is valued a bit more expensive than the industry average as 66.67% of the companies are valued more cheaply.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of DOL indicates a slightly more expensive valuation: DOL is more expensive than 66.67% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 36.17 | ||
| EV/EBITDA | 27.54 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
DOL has an outstanding profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as DOL's earnings are expected to grow with 12.61% in the coming years.
PEG (NY)3.3
PEG (5Y)2.21
EPS Next 2Y12.91%
EPS Next 3Y12.61%
5. Dividend
5.1 Amount
DOL has a yearly dividend return of 0.23%, which is pretty low.
DOL's Dividend Yield is slightly below the industry average, which is at 2.85.
With a Dividend Yield of 0.23, DOL pays less dividend than the S&P500 average, which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.23% |
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 2Y12.91%
EPS Next 3Y12.61%
TSX:DOL (8/29/2025, 7:00:00 PM)
187.26
+2.21 (+1.19%)
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 Cap51.76B
Analysts75.79
Price Target207.79 (10.96%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.23% |
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)0.21%
PT rev (3m)18.76%
EPS NQ rev (1m)0.4%
EPS NQ rev (3m)2.45%
EPS NY rev (1m)3.16%
EPS NY rev (3m)3.16%
Revenue NQ rev (1m)0.23%
Revenue NQ rev (3m)1.77%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)1.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 41.71 | ||
| Fwd PE | 35.23 | ||
| P/S | 7.93 | ||
| P/FCF | 36.17 | ||
| P/OCF | 30.85 | ||
| P/B | 39.21 | ||
| P/tB | 125.87 | ||
| EV/EBITDA | 27.54 |
EPS(TTM)4.49
EY2.4%
EPS(NY)5.32
Fwd EY2.84%
FCF(TTM)5.18
FCFY2.76%
OCF(TTM)6.07
OCFY3.24%
SpS23.62
BVpS4.78
TBVpS1.49
PEG (NY)3.3
PEG (5Y)2.21
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 | 7.79 |
F-Score6
WACC8.09%
ROIC/WACC2.7
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)16.32%
EPS 3Y23.76%
EPS 5Y18.83%
EPS Q2Q%13.73%
EPS Next Y12.63%
EPS Next 2Y12.91%
EPS Next 3Y12.61%
EPS Next 5Y12.99%
Revenue 1Y (TTM)9.3%
Revenue growth 3Y13.98%
Revenue growth 5Y11.11%
Sales Q2Q%10.26%
Revenue Next Year7.82%
Revenue Next 2Y8.16%
Revenue Next 3Y6.8%
Revenue Next 5Y8.86%
EBIT growth 1Y11.91%
EBIT growth 3Y18.26%
EBIT growth 5Y13%
EBIT Next Year35.31%
EBIT Next 3Y17.84%
EBIT Next 5Y14.8%
FCF growth 1Y74.46%
FCF growth 3Y15.52%
FCF growth 5Y18.74%
OCF growth 1Y69%
OCF growth 3Y15.54%
OCF growth 5Y17.55%