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. While DOL has a great profitability rating, 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.
DOL had a positive operating cash flow in the past year.
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
Looking at the Return On Assets, with a value of 18.67%, DOL belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
Looking at the Return On Equity, with a value of 92.91%, DOL belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
The Return On Invested Capital of DOL (21.81%) is better than 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 has a better Profit Margin (18.79%) than 100.00% of its industry peers.
DOL's Profit Margin has improved in the last couple of years.
DOL has a Operating Margin of 24.96%. This is amongst the best in the industry. DOL outperforms 100.00% of its industry peers.
In the last couple of years the Operating Margin of DOL has grown nicely.
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.
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 7.99 indicates that DOL is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 7.99, DOL belongs to the top 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.
A Debt/Equity ratio of 3.17 is on the high side and indicates that DOL has dependencies on debt financing.
With a Debt to Equity ratio value of 3.17, DOL is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.17 | ||
| Debt/FCF | 3.28 | ||
| Altman-Z | 7.99 |
ROIC/WACC2.88
WACC7.58%
2.3 Liquidity
A Current Ratio of 1.31 indicates that DOL should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.31, DOL is doing worse than 66.67% of the companies in the same industry.
DOL has a Quick Ratio of 1.31. 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 0.33 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 | 1.31 | ||
| Quick Ratio | 0.33 |
3. Growth
3.1 Past
DOL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 17.57%, which is quite good.
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.
Looking at the last year, DOL shows a quite strong growth in Revenue. The Revenue has grown by 9.20% in the last year.
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.
Based on estimates for the next years, DOL will show a quite strong growth in Revenue. The Revenue will grow by 8.75% on average per year.
EPS Next Y9.18%
EPS Next 2Y11.54%
EPS Next 3Y12.4%
EPS Next 5Y12.87%
Revenue Next Year7.8%
Revenue Next 2Y8.17%
Revenue Next 3Y6.8%
Revenue Next 5Y8.75%
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 43.82, 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.
When comparing the Price/Earnings ratio of DOL to the average of the S&P500 Index (26.48), we can say DOL is valued expensively.
A Price/Forward Earnings ratio of 36.75 indicates a quite expensive valuation of 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 similar valuation than the S&P500 average which is at 34.04.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 43.82 | ||
| Fwd PE | 36.75 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, DOL is valued a bit more expensive than 66.67% of the companies in the same industry.
66.67% of the companies in the same industry are cheaper than DOL, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 36.94 | ||
| EV/EBITDA | 28.41 |
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 12.40% in the coming years. This may justify a more expensive valuation.
PEG (NY)4.77
PEG (5Y)2.33
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.
Compared to an average industry Dividend Yield of 2.93, DOL is paying slightly less dividend.
With a Dividend Yield of 0.22, DOL pays less dividend than the S&P500 average, which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.22% |
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
8.40% of the earnings are spent on dividend by DOL. This is a low number and sustainable payout ratio.
The dividend of DOL is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP8.4%
EPS Next 2Y11.54%
EPS Next 3Y12.4%
TSX:DOL (8/8/2025, 7:00:00 PM)
190.62
-2.42 (-1.25%)
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 Cap52.86B
Analysts75.79
Price Target207.35 (8.78%)
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)0%
PT rev (3m)18.51%
EPS NQ rev (1m)0%
EPS NQ rev (3m)2.05%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.54%
Revenue NY rev (1m)1.09%
Revenue NY rev (3m)1.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 43.82 | ||
| Fwd PE | 36.75 | ||
| P/S | 8.1 | ||
| P/FCF | 36.94 | ||
| P/OCF | 31.51 | ||
| P/B | 40.04 | ||
| P/tB | 128.55 | ||
| EV/EBITDA | 28.41 |
EPS(TTM)4.35
EY2.28%
EPS(NY)5.19
Fwd EY2.72%
FCF(TTM)5.16
FCFY2.71%
OCF(TTM)6.05
OCFY3.17%
SpS23.54
BVpS4.76
TBVpS1.48
PEG (NY)4.77
PEG (5Y)2.33
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 | 7.99 |
F-Score6
WACC7.58%
ROIC/WACC2.88
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 Year7.8%
Revenue Next 2Y8.17%
Revenue Next 3Y6.8%
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%