DOLLARAMA INC (DOL.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:DOL - CA25675T1075 - Common Stock
205.3 CAD
+0.61 (+0.3%)
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. While showing a medium growth rate, DOL is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year DOL was profitable.
DOL had a positive operating cash flow in the past year.
In the past 5 years DOL has always been profitable.
DOL had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
DOL has a Return On Assets of 17.67%. This is amongst the best in the industry. DOL outperforms 100.00% of its industry peers.
With an excellent Return On Equity value of 100.76%, 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 21.54%, 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 11.07%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 17.67% | ||
| ROE | 100.76% | ||
| ROIC | 21.54% |
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
Looking at the Profit Margin, with a value of 18.59%, DOL belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
In the last couple of years the Profit Margin of DOL has grown nicely.
DOL has a better Operating Margin (24.63%) than 100.00% of its industry peers.
DOL's Operating Margin has improved in the last couple of years.
DOL has a better Gross Margin (45.38%) than 100.00% of its industry peers.
In the last couple of years the Gross Margin of DOL has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 24.63% | ||
| PM (TTM) | 18.59% | ||
| GM | 45.38% |
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.
DOL has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, DOL has less shares outstanding
The debt/assets ratio for DOL has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 7.26 indicates that DOL is not in any danger for bankruptcy at the moment.
DOL has a better Altman-Z score (7.26) than 100.00% of its industry peers.
DOL has a debt to FCF ratio of 3.65. This is a good value and a sign of high solvency as DOL would need 3.65 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 3.65, DOL belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
A Debt/Equity ratio of 3.56 is on the high side and indicates that DOL has dependencies on debt financing.
The Debt to Equity ratio of DOL (3.56) is worse than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.56 | ||
| Debt/FCF | 3.65 | ||
| Altman-Z | 7.26 |
ROIC/WACC2.82
WACC7.64%
2.3 Liquidity
DOL has a Current Ratio of 1.09. This is a normal value and indicates that DOL is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of DOL (1.09) is worse than 66.67% of its industry peers.
A Quick Ratio of 0.23 indicates that DOL may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.23, DOL is doing worse than 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.09 | ||
| Quick Ratio | 0.23 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 19.39% over the past year.
The Earnings Per Share has been growing by 18.83% on average over the past years. This is quite good.
Looking at the last year, DOL shows a quite strong growth in Revenue. The Revenue has grown by 14.02% in the last year.
The Revenue has been growing by 11.11% on average over the past years. This is quite good.
EPS 1Y (TTM)19.39%
EPS 3Y23.76%
EPS 5Y18.83%
EPS Q2Q%19.39%
Revenue 1Y (TTM)14.02%
Revenue growth 3Y13.98%
Revenue growth 5Y11.11%
Sales Q2Q%22.19%
3.2 Future
The Earnings Per Share is expected to grow by 15.26% on average over the next years. This is quite good.
The Revenue is expected to grow by 9.00% on average over the next years. This is quite good.
EPS Next Y11.32%
EPS Next 2Y12.31%
EPS Next 3Y12.62%
EPS Next 5Y15.26%
Revenue Next Year11.95%
Revenue Next 2Y11.64%
Revenue Next 3Y9.5%
Revenue Next 5Y9%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 43.87, the valuation of DOL can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of DOL indicates a slightly more expensive valuation: DOL is more expensive than 66.67% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.59, DOL is valued quite expensively.
The Price/Forward Earnings ratio is 39.03, which means the current valuation is very expensive for DOL.
66.67% of the companies in the same industry are cheaper than DOL, based on the Price/Forward Earnings ratio.
DOL's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 24.03.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 43.87 | ||
| Fwd PE | 39.03 |
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.
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 | 38.1 | ||
| EV/EBITDA | 28.19 |
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.
DOL's earnings are expected to grow with 12.62% in the coming years. This may justify a more expensive valuation.
PEG (NY)3.87
PEG (5Y)2.33
EPS Next 2Y12.31%
EPS Next 3Y12.62%
5. Dividend
5.1 Amount
DOL has a yearly dividend return of 0.21%, which is pretty low.
DOL's Dividend Yield is slightly below the industry average, which is at 2.86.
With a Dividend Yield of 0.21, DOL pays less dividend than the S&P500 average, which is at 1.88.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.21% |
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 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
8.41% of the earnings are spent on dividend by DOL. This is a low number and sustainable payout ratio.
DOL's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP8.41%
EPS Next 2Y12.31%
EPS Next 3Y12.62%
TSX:DOL (12/24/2025, 7:00:00 PM)
205.3
+0.61 (+0.3%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)
Earnings (Next)
Inst Owners45.23%
Inst Owner ChangeN/A
Ins Owners3.38%
Ins Owner ChangeN/A
Market Cap56.21B
Revenue(TTM)7.04B
Net Income(TTM)1.31B
Analysts77
Price Target209.98 (2.28%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.21% |
Yearly Dividend0.35
Dividend Growth(5Y)15.08%
DP8.41%
Div Incr Years13
Div Non Decr Years13
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)2.29%
Min EPS beat(2)-0.49%
Max EPS beat(2)5.07%
EPS beat(4)3
Avg EPS beat(4)5.8%
Min EPS beat(4)-0.49%
Max EPS beat(4)12.65%
EPS beat(8)6
Avg EPS beat(8)4.36%
EPS beat(12)10
Avg EPS beat(12)5.2%
EPS beat(16)13
Avg EPS beat(16)4.4%
Revenue beat(2)2
Avg Revenue beat(2)0.46%
Min Revenue beat(2)0.05%
Max Revenue beat(2)0.87%
Revenue beat(4)3
Avg Revenue beat(4)0.26%
Min Revenue beat(4)-0.14%
Max Revenue beat(4)0.87%
Revenue beat(8)4
Avg Revenue beat(8)-0.22%
Revenue beat(12)7
Avg Revenue beat(12)0.67%
Revenue beat(16)10
Avg Revenue beat(16)0.88%
PT rev (1m)1.05%
PT rev (3m)1.63%
EPS NQ rev (1m)1.93%
EPS NQ rev (3m)2.21%
EPS NY rev (1m)-0.11%
EPS NY rev (3m)-1.16%
Revenue NQ rev (1m)1.74%
Revenue NQ rev (3m)1.88%
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)0.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 43.87 | ||
| Fwd PE | 39.03 | ||
| P/S | 7.99 | ||
| P/FCF | 38.1 | ||
| P/OCF | 32.19 | ||
| P/B | 43.3 | ||
| P/tB | 171.26 | ||
| EV/EBITDA | 28.19 |
EPS(TTM)4.68
EY2.28%
EPS(NY)5.26
Fwd EY2.56%
FCF(TTM)5.39
FCFY2.62%
OCF(TTM)6.38
OCFY3.11%
SpS25.7
BVpS4.74
TBVpS1.2
PEG (NY)3.87
PEG (5Y)2.33
Graham Number22.34
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 17.67% | ||
| ROE | 100.76% | ||
| ROCE | 28.75% | ||
| ROIC | 21.54% | ||
| ROICexc | 22.3% | ||
| ROICexgc | 26.74% | ||
| OM | 24.63% | ||
| PM (TTM) | 18.59% | ||
| GM | 45.38% | ||
| FCFM | 20.97% |
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%
ROICexgc growth 3Y-5.31%
ROICexgc 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-Score7
Asset Turnover0.95
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.56 | ||
| Debt/FCF | 3.65 | ||
| Debt/EBITDA | 2.12 | ||
| Cap/Depr | 60.91% | ||
| Cap/Sales | 3.85% | ||
| Interest Coverage | 8.01 | ||
| Cash Conversion | 80.19% | ||
| Profit Quality | 112.78% | ||
| Current Ratio | 1.09 | ||
| Quick Ratio | 0.23 | ||
| Altman-Z | 7.26 |
F-Score7
WACC7.64%
ROIC/WACC2.82
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)19.39%
EPS 3Y23.76%
EPS 5Y18.83%
EPS Q2Q%19.39%
EPS Next Y11.32%
EPS Next 2Y12.31%
EPS Next 3Y12.62%
EPS Next 5Y15.26%
Revenue 1Y (TTM)14.02%
Revenue growth 3Y13.98%
Revenue growth 5Y11.11%
Sales Q2Q%22.19%
Revenue Next Year11.95%
Revenue Next 2Y11.64%
Revenue Next 3Y9.5%
Revenue Next 5Y9%
EBIT growth 1Y14.56%
EBIT growth 3Y18.26%
EBIT growth 5Y13%
EBIT Next Year39.75%
EBIT Next 3Y19.06%
EBIT Next 5Y16.82%
FCF growth 1Y21.98%
FCF growth 3Y15.52%
FCF growth 5Y18.74%
OCF growth 1Y17.92%
OCF growth 3Y15.54%
OCF growth 5Y17.55%
DOLLARAMA INC / DOL.CA FAQ
Can you provide the ChartMill fundamental rating for DOLLARAMA INC?
ChartMill assigns a fundamental rating of 6 / 10 to DOL.CA.
What is the valuation status for DOL stock?
ChartMill assigns a valuation rating of 1 / 10 to DOLLARAMA INC (DOL.CA). This can be considered as Overvalued.
How profitable is DOLLARAMA INC (DOL.CA) stock?
DOLLARAMA INC (DOL.CA) has a profitability rating of 9 / 10.
What are the PE and PB ratios of DOLLARAMA INC (DOL.CA) stock?
The Price/Earnings (PE) ratio for DOLLARAMA INC (DOL.CA) is 43.87 and the Price/Book (PB) ratio is 43.3.
What is the earnings growth outlook for DOLLARAMA INC?
The Earnings per Share (EPS) of DOLLARAMA INC (DOL.CA) is expected to grow by 11.32% in the next year.