DOLLARAMA INC (DOL.CA) Stock Fundamental Analysis
Canada - TSX:DOL - CA25675T1075 - Common Stock
194.93 CAD
+0.86 (+0.44%)
Taking everything into account, DOL scores 6 out of 10 in our fundamental rating. 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. 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.
In the past 5 years DOL has always been profitable.
Each year in the past 5 years DOL had a positive operating cash flow.
1.2 Ratios
DOL's Return On Assets of 16.43% is amongst the best of the industry. DOL outperforms 100.00% of its industry peers.
DOL's Return On Equity of 86.66% is amongst the best of the industry. DOL outperforms 100.00% of its industry peers.
DOL has a Return On Invested Capital of 20.45%. 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 10.70%.
| 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
With an excellent Profit Margin value of 18.87%, DOL belongs to the best 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.
With an excellent Operating Margin value of 25.03%, 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.
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.
The number of shares outstanding for DOL has been reduced compared to 1 year ago.
The number of shares outstanding for DOL has been reduced compared to 5 years ago.
DOL has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 6.82 indicates that DOL is not in any danger for bankruptcy at the moment.
DOL has a Altman-Z score of 6.82. This is amongst the best in the industry. DOL outperforms 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.
DOL's Debt to Equity ratio of 3.14 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 | 3.14 | ||
| Debt/FCF | 3.89 | ||
| Altman-Z | 6.82 |
ROIC/WACC2.7
WACC7.58%
2.3 Liquidity
DOL has a Current Ratio of 1.24. 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 (1.24) is worse than 66.67% of its industry peers.
DOL has a Quick Ratio of 1.24. 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 has a Quick ratio of 0.52. This is in the lower half of the industry: DOL underperforms 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.24 | ||
| Quick Ratio | 0.52 |
3. Growth
3.1 Past
DOL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 16.32%, 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.
The Revenue has grown by 9.91% in the past year. This is quite good.
Measured over the past years, DOL shows a quite strong growth in Revenue. The Revenue has been growing by 11.11% on average per year.
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
DOL is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 15.26% yearly.
The Revenue is expected to grow by 9.00% on average over the next years. This is quite good.
EPS Next Y11.45%
EPS Next 2Y12.25%
EPS Next 3Y12.79%
EPS Next 5Y15.26%
Revenue Next Year11.98%
Revenue Next 2Y11.67%
Revenue Next 3Y10.56%
Revenue Next 5Y9%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
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
The Price/Earnings ratio is 43.41, 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/Earnings ratio.
DOL's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 25.89.
Based on the Price/Forward Earnings ratio of 37.10, the valuation of DOL can be described as expensive.
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.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.59, DOL is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 43.41 | ||
| Fwd PE | 37.1 |
4.2 Price Multiples
DOL's Enterprise Value to EBITDA 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/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 | 37.42 | ||
| EV/EBITDA | 27.91 |
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 12.79% in the coming years. This may justify a more expensive valuation.
PEG (NY)3.79
PEG (5Y)2.31
EPS Next 2Y12.25%
EPS Next 3Y12.79%
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 2.86, DOL is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.44, DOL's dividend is way lower than the S&P500 average.
| 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 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.
The dividend of DOL is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP8.45%
EPS Next 2Y12.25%
EPS Next 3Y12.79%
TSX:DOL (11/14/2025, 7:00:00 PM)
194.93
+0.86 (+0.44%)
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 Cap53.48B
Revenue(TTM)6.69B
Net Income(TTM)1.26B
Analysts77
Price Target207.81 (6.61%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.22% |
Yearly Dividend0.35
Dividend Growth(5Y)15.08%
DP8.45%
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%
PT rev (3m)0.22%
EPS NQ rev (1m)-0.07%
EPS NQ rev (3m)-2.02%
EPS NY rev (1m)0.06%
EPS NY rev (3m)2.08%
Revenue NQ rev (1m)0.05%
Revenue NQ rev (3m)9.36%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)3.88%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 43.41 | ||
| Fwd PE | 37.1 | ||
| P/S | 8 | ||
| P/FCF | 37.42 | ||
| P/OCF | 31.78 | ||
| P/B | 36.72 | ||
| P/tB | 109.98 | ||
| EV/EBITDA | 27.91 |
EPS(TTM)4.49
EY2.3%
EPS(NY)5.25
Fwd EY2.7%
FCF(TTM)5.21
FCFY2.67%
OCF(TTM)6.13
OCFY3.15%
SpS24.38
BVpS5.31
TBVpS1.77
PEG (NY)3.79
PEG (5Y)2.31
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 | 6.82 |
F-Score6
WACC7.58%
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 Y11.45%
EPS Next 2Y12.25%
EPS Next 3Y12.79%
EPS Next 5Y15.26%
Revenue 1Y (TTM)9.91%
Revenue growth 3Y13.98%
Revenue growth 5Y11.11%
Sales Q2Q%10.26%
Revenue Next Year11.98%
Revenue Next 2Y11.67%
Revenue Next 3Y10.56%
Revenue Next 5Y9%
EBIT growth 1Y11.57%
EBIT growth 3Y18.26%
EBIT growth 5Y13%
EBIT Next Year39.81%
EBIT Next 3Y19.81%
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 43.41 and the Price/Book (PB) ratio is 36.72.
What is the earnings growth outlook for DOLLARAMA INC?
The Earnings per Share (EPS) of DOLLARAMA INC (DOL.CA) is expected to grow by 11.45% in the next year.