DOLLARAMA INC (DOL.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:DOL - CA25675T1075 - Common Stock
201.11 CAD
+1.03 (+0.51%)
Taking everything into account, DOL scores 7 out of 10 in our fundamental rating. DOL was compared to 3 industry peers in the Broadline Retail industry. DOL gets an excellent profitability rating and is at the same time showing great financial health properties. DOL is quite expensive at the moment. It does show a decent growth rate. These ratings could make DOL a good candidate for quality investing.
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.
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
DOL has a Return On Assets of 16.43%. This is amongst the best in the industry. DOL outperforms 100.00% of its industry peers.
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.
Looking at the Return On Invested Capital, with a value of 20.45%, DOL belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
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
DOL has a better Profit Margin (18.87%) than 100.00% of its industry peers.
DOL's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 25.03%, 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 Operating Margin of DOL has grown nicely.
With an excellent Gross Margin value of 45.39%, 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 Gross Margin of DOL has remained more or less at the same level.
| 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so DOL is creating value.
The number of shares outstanding for DOL has been reduced compared to 1 year ago.
DOL has less shares outstanding than it did 5 years ago.
The debt/assets ratio for DOL has been reduced compared to a year ago.
2.2 Solvency
DOL has an Altman-Z score of 6.98. This indicates that DOL is financially healthy and has little risk of bankruptcy at the moment.
DOL has a better Altman-Z score (6.98) 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.
The Debt to FCF ratio of DOL (3.89) is better than 100.00% of its industry peers.
A Debt/Equity ratio of 3.14 is on the high side and indicates that DOL has dependencies on debt financing.
With a Debt to Equity ratio value of 3.14, DOL perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.14 | ||
| Debt/FCF | 3.89 | ||
| Altman-Z | 6.98 |
ROIC/WACC2.75
WACC7.43%
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 comparable to the rest of the industry.
A Quick Ratio of 0.52 indicates that DOL may have some problems paying its short term obligations.
DOL has a Quick ratio (0.52) which is comparable to the rest of the industry.
DOL does not score too well on the current and quick ratio evaluation. However, as it has excellent solvency and profitability, these ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| 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.
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%.
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
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.
Based on estimates for the next years, DOL will show a quite strong growth in Revenue. The Revenue will grow by 9.00% on average per year.
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.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 44.79, DOL can be considered very expensive at the moment.
DOL's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 26.49, DOL is valued quite expensively.
DOL is valuated quite expensively with a Price/Forward Earnings ratio of 38.23.
Compared to the rest of the industry, the Price/Forward Earnings ratio of DOL is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.69, DOL is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 44.79 | ||
| Fwd PE | 38.23 |
4.2 Price Multiples
DOL's Enterprise Value to EBITDA ratio is in line with the industry average.
The rest of the industry has a similar Price/Free Cash Flow ratio as DOL.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 38.52 | ||
| EV/EBITDA | 28.67 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates DOL does not grow enough to justify the current Price/Earnings ratio.
The excellent profitability rating of DOL 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)3.96
PEG (5Y)2.38
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 comparable with the industry average which is at 2.90.
Compared to an average S&P500 Dividend Yield of 2.31, DOL's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.21% |
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 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
8.45% 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.
DP8.45%
EPS Next 2Y12.31%
EPS Next 3Y12.62%
TSX:DOL (12/5/2025, 7:00:00 PM)
201.11
+1.03 (+0.51%)
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 Cap55.06B
Revenue(TTM)6.69B
Net Income(TTM)1.26B
Analysts77
Price Target209.98 (4.41%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.21% |
Yearly Dividend0.35
Dividend Growth(5Y)15.08%
DP8.45%
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)1.05%
PT rev (3m)1.63%
EPS NQ rev (1m)0.08%
EPS NQ rev (3m)0.01%
EPS NY rev (1m)-0.11%
EPS NY rev (3m)-1.16%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.28%
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)3.83%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 44.79 | ||
| Fwd PE | 38.23 | ||
| P/S | 8.23 | ||
| P/FCF | 38.52 | ||
| P/OCF | 32.72 | ||
| P/B | 37.81 | ||
| P/tB | 113.23 | ||
| EV/EBITDA | 28.67 |
EPS(TTM)4.49
EY2.23%
EPS(NY)5.26
Fwd EY2.62%
FCF(TTM)5.22
FCFY2.6%
OCF(TTM)6.15
OCFY3.06%
SpS24.43
BVpS5.32
TBVpS1.78
PEG (NY)3.96
PEG (5Y)2.38
Graham Number23.18
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 | 6.98 |
F-Score6
WACC7.43%
ROIC/WACC2.75
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 Y11.32%
EPS Next 2Y12.31%
EPS Next 3Y12.62%
EPS Next 5Y15.26%
Revenue 1Y (TTM)9.91%
Revenue growth 3Y13.98%
Revenue growth 5Y11.11%
Sales Q2Q%10.26%
Revenue Next Year11.95%
Revenue Next 2Y11.64%
Revenue Next 3Y9.5%
Revenue Next 5Y9%
EBIT growth 1Y11.57%
EBIT growth 3Y18.26%
EBIT growth 5Y13%
EBIT Next Year39.75%
EBIT Next 3Y19.06%
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 7 / 10 to DOL.CA.
What is the valuation status for DOL stock?
ChartMill assigns a valuation rating of 2 / 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 44.79 and the Price/Book (PB) ratio is 37.81.
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.