DOLLARAMA INC (DOL.CA) Stock Fundamental Analysis
Canada - TSX:DOL - CA25675T1075 - Common Stock
185.78 CAD
-0.36 (-0.19%)
Overall DOL gets a fundamental rating of 6 out of 10. We evaluated DOL 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 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.
Each year in the past 5 years DOL had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 16.43%, 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 86.66%, DOL belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
DOL's Return On Invested Capital of 20.45% is amongst the best of the industry. DOL outperforms 100.00% of its industry peers.
DOL had an Average Return On Invested Capital over the past 3 years of 22.87%. This is significantly above the industry average of 10.95%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.43% | ||
| ROE | 86.66% | ||
| ROIC | 20.45% |
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 (18.87%) than 100.00% of its industry peers.
In the last couple of years the Profit Margin of DOL has grown nicely.
DOL has a Operating Margin of 25.03%. 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.
The Gross Margin of DOL (45.39%) is better than 100.00% of its industry peers.
DOL's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 25.03% | ||
| PM (TTM) | 18.87% | ||
| GM | 45.39% |
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 6.58. This indicates that DOL is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of DOL (6.58) is better than 100.00% of its industry peers.
The Debt to FCF ratio of DOL is 3.89, which is a good value as it means it would take DOL, 3.89 years of fcf income to pay off all of its debts.
DOL has a Debt to FCF ratio of 3.89. This is amongst the best in the industry. DOL outperforms 100.00% of its industry peers.
DOL has a Debt/Equity ratio of 3.14. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of DOL (3.14) is worse than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.14 | ||
| Debt/FCF | 3.89 | ||
| Altman-Z | 6.58 |
ROIC/WACC2.66
WACC7.69%
2.3 Liquidity
A Current Ratio of 1.24 indicates that DOL should not have too much problems paying its short term obligations.
The Current ratio of DOL (1.24) is worse than 66.67% of its industry peers.
A Quick Ratio of 0.52 indicates that DOL may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.52, DOL is doing worse than 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.24 | ||
| Quick Ratio | 0.52 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 16.32% over the past year.
DOL shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 18.83% yearly.
DOL shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.91%.
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)16.32%
EPS 3Y23.76%
EPS 5Y18.83%
EPS Q2Q%13.73%
Revenue 1Y (TTM)9.91%
Revenue growth 3Y13.98%
Revenue growth 5Y11.11%
Sales Q2Q%10.26%
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 15.26% on average per year.
The Revenue is expected to grow by 9.00% on average over the next years. This is quite good.
EPS Next Y11.38%
EPS Next 2Y12.2%
EPS Next 3Y12.8%
EPS Next 5Y15.26%
Revenue Next Year11.94%
Revenue Next 2Y11.29%
Revenue Next 3Y9.98%
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 41.38, the valuation of DOL can be described as expensive.
DOL's Price/Earnings 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.
DOL is valuated expensively when we compare the Price/Earnings ratio to 26.89, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 35.39, the valuation of DOL can be described as expensive.
DOL's Price/Forward Earnings 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.
DOL's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 22.99.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 41.38 | ||
| Fwd PE | 35.39 |
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.
Based on the Price/Free Cash Flow ratio, DOL is valued a bit more expensive than the industry average as 66.67% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.66 | ||
| EV/EBITDA | 26.71 |
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 12.80% in the coming years. This may justify a more expensive valuation.
PEG (NY)3.64
PEG (5Y)2.2
EPS Next 2Y12.2%
EPS Next 3Y12.8%
5. Dividend
5.1 Amount
DOL has a yearly dividend return of 0.23%, which is pretty low.
Compared to an average industry Dividend Yield of 2.79, DOL is paying slightly less dividend.
With a Dividend Yield of 0.23, DOL pays less dividend than the S&P500 average, which is at 2.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.23% |
5.2 History
The dividend of DOL is nicely growing with an annual growth rate of 15.08%!
DOL has paid a dividend for at least 10 years, which is 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 8.45% of its income as dividend. This is a 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.
DP8.45%
EPS Next 2Y12.2%
EPS Next 3Y12.8%
TSX:DOL (10/24/2025, 7:00:00 PM)
185.78
-0.36 (-0.19%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)
Earnings (Next)
Inst Owners46.04%
Inst Owner ChangeN/A
Ins Owners3.35%
Ins Owner ChangeN/A
Market Cap50.97B
Revenue(TTM)6.69B
Net Income(TTM)1.26B
Analysts77
Price Target207.81 (11.86%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.23% |
Yearly Dividend0.35
Dividend Growth(5Y)15.08%
DP8.45%
Div Incr Years13
Div Non Decr Years13
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)6.02%
Min EPS beat(2)-0.6%
Max EPS beat(2)12.65%
EPS beat(4)2
Avg EPS beat(4)4.23%
Min EPS beat(4)-1.1%
Max EPS beat(4)12.65%
EPS beat(8)6
Avg EPS beat(8)4.49%
EPS beat(12)9
Avg EPS beat(12)4.71%
EPS beat(16)13
Avg EPS beat(16)4.45%
Revenue beat(2)2
Avg Revenue beat(2)0.16%
Min Revenue beat(2)0.05%
Max Revenue beat(2)0.28%
Revenue beat(4)2
Avg Revenue beat(4)-0.21%
Min Revenue beat(4)-1.04%
Max Revenue beat(4)0.28%
Revenue beat(8)3
Avg Revenue beat(8)-0.43%
Revenue beat(12)7
Avg Revenue beat(12)0.91%
Revenue beat(16)9
Avg Revenue beat(16)0.77%
PT rev (1m)0.57%
PT rev (3m)0.22%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.95%
EPS NY rev (1m)0%
EPS NY rev (3m)2.01%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)9.3%
Revenue NY rev (1m)0%
Revenue NY rev (3m)4.96%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 41.38 | ||
| Fwd PE | 35.39 | ||
| P/S | 7.62 | ||
| P/FCF | 35.66 | ||
| P/OCF | 30.29 | ||
| P/B | 35 | ||
| P/tB | 104.81 | ||
| EV/EBITDA | 26.71 |
EPS(TTM)4.49
EY2.42%
EPS(NY)5.25
Fwd EY2.83%
FCF(TTM)5.21
FCFY2.8%
OCF(TTM)6.13
OCFY3.3%
SpS24.38
BVpS5.31
TBVpS1.77
PEG (NY)3.64
PEG (5Y)2.2
Graham Number23.16
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.43% | ||
| ROE | 86.66% | ||
| ROCE | 27.2% | ||
| ROIC | 20.45% | ||
| ROICexc | 23.02% | ||
| ROICexgc | 27.98% | ||
| OM | 25.03% | ||
| PM (TTM) | 18.87% | ||
| GM | 45.39% | ||
| FCFM | 21.37% |
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-Score6
Asset Turnover0.87
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.14 | ||
| Debt/FCF | 3.89 | ||
| Debt/EBITDA | 2.19 | ||
| Cap/Depr | 60.92% | ||
| Cap/Sales | 3.79% | ||
| Interest Coverage | 8.65 | ||
| Cash Conversion | 80.5% | ||
| Profit Quality | 113.25% | ||
| Current Ratio | 1.24 | ||
| Quick Ratio | 0.52 | ||
| Altman-Z | 6.58 |
F-Score6
WACC7.69%
ROIC/WACC2.66
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 Y11.38%
EPS Next 2Y12.2%
EPS Next 3Y12.8%
EPS Next 5Y15.26%
Revenue 1Y (TTM)9.91%
Revenue growth 3Y13.98%
Revenue growth 5Y11.11%
Sales Q2Q%10.26%
Revenue Next Year11.94%
Revenue Next 2Y11.29%
Revenue Next 3Y9.98%
Revenue Next 5Y9%
EBIT growth 1Y11.57%
EBIT growth 3Y18.26%
EBIT growth 5Y13%
EBIT Next Year39.81%
EBIT Next 3Y19.46%
EBIT Next 5Y16.82%
FCF growth 1Y33.3%
FCF growth 3Y15.52%
FCF growth 5Y18.74%
OCF growth 1Y34.67%
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 41.38 and the Price/Book (PB) ratio is 35.
What is the earnings growth outlook for DOLLARAMA INC?
The Earnings per Share (EPS) of DOLLARAMA INC (DOL.CA) is expected to grow by 11.38% in the next year.