DOLLARAMA INC (DOL.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:DOL - CA25675T1075 - Common Stock
205.14 CAD
-0.8 (-0.39%)
Overall DOL gets a fundamental rating of 6 out of 10. We evaluated DOL 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. While showing a medium growth rate, DOL is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
DOL had positive earnings in the past year.
In the past year DOL had a positive cash flow from operations.
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 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.
The Return On Invested Capital of DOL (21.54%) is better than 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 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
With an excellent Profit Margin value of 18.59%, DOL belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
DOL's Profit Margin has improved in the last couple of years.
The Operating Margin of DOL (24.63%) is better than 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 (45.38%) 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 | 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
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.
Compared to 5 years ago, DOL has less shares outstanding
Compared to 1 year ago, DOL has an improved debt to assets ratio.
2.2 Solvency
DOL has an Altman-Z score of 7.25. This indicates that DOL is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 7.25, DOL belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
The Debt to FCF ratio of DOL is 3.65, which is a good value as it means it would take DOL, 3.65 years of fcf income to pay off all of its debts.
DOL has a Debt to FCF ratio of 3.65. This is amongst the best in the industry. DOL outperforms 100.00% of its industry peers.
A Debt/Equity ratio of 3.56 is on the high side and indicates that DOL has dependencies on debt financing.
DOL has a Debt to Equity ratio of 3.56. This is in the lower half of the industry: DOL underperforms 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.56 | ||
| Debt/FCF | 3.65 | ||
| Altman-Z | 7.25 |
ROIC/WACC2.78
WACC7.75%
2.3 Liquidity
A Current Ratio of 1.09 indicates that DOL should not have too much problems paying its short term obligations.
DOL's Current ratio of 1.09 is on the low side compared to the rest of the industry. DOL is outperformed by 66.67% of its industry peers.
DOL has a Quick Ratio of 1.09. 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 worse Quick ratio (0.23) than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.09 | ||
| Quick Ratio | 0.23 |
3. Growth
3.1 Past
DOL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 19.39%, 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 14.02% 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)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
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 Y13.27%
EPS Next 2Y12.96%
EPS Next 3Y12.92%
EPS Next 5Y15.26%
Revenue Next Year13.1%
Revenue Next 2Y12.53%
Revenue Next 3Y10.59%
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
With a Price/Earnings ratio of 43.83, DOL can be considered very expensive at the moment.
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.
The average S&P500 Price/Earnings ratio is at 26.51. DOL is valued rather expensively when compared to this.
DOL is valuated quite expensively with a Price/Forward Earnings ratio of 38.55.
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.
The average S&P500 Price/Forward Earnings ratio is at 23.13. DOL is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 43.83 | ||
| Fwd PE | 38.55 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, DOL is valued a bit more expensive than the industry average as 66.67% of the companies are valued more cheaply.
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 | 38.07 | ||
| EV/EBITDA | 28.17 |
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.
A more expensive valuation may be justified as DOL's earnings are expected to grow with 12.92% in the coming years.
PEG (NY)3.3
PEG (5Y)2.33
EPS Next 2Y12.96%
EPS Next 3Y12.92%
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 2.85.
With a Dividend Yield of 0.21, DOL pays less dividend than the S&P500 average, which is at 2.00.
| 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
DOL pays out 8.41% 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.
DP8.41%
EPS Next 2Y12.96%
EPS Next 3Y12.92%
TSX:DOL (12/31/2025, 7:00:00 PM)
205.14
-0.8 (-0.39%)
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 Cap56.17B
Revenue(TTM)7.04B
Net Income(TTM)1.31B
Analysts77
Price Target221.48 (7.97%)
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)6.58%
PT rev (3m)7.19%
EPS NQ rev (1m)1.86%
EPS NQ rev (3m)2.14%
EPS NY rev (1m)1.64%
EPS NY rev (3m)1.7%
Revenue NQ rev (1m)2.22%
Revenue NQ rev (3m)2.32%
Revenue NY rev (1m)1%
Revenue NY rev (3m)1.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 43.83 | ||
| Fwd PE | 38.55 | ||
| P/S | 7.98 | ||
| P/FCF | 38.07 | ||
| P/OCF | 32.17 | ||
| P/B | 43.27 | ||
| P/tB | 171.13 | ||
| EV/EBITDA | 28.17 |
EPS(TTM)4.68
EY2.28%
EPS(NY)5.32
Fwd EY2.59%
FCF(TTM)5.39
FCFY2.63%
OCF(TTM)6.38
OCFY3.11%
SpS25.7
BVpS4.74
TBVpS1.2
PEG (NY)3.3
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 | 7.25 |
F-Score7
WACC7.75%
ROIC/WACC2.78
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 Y13.27%
EPS Next 2Y12.96%
EPS Next 3Y12.92%
EPS Next 5Y15.26%
Revenue 1Y (TTM)14.02%
Revenue growth 3Y13.98%
Revenue growth 5Y11.11%
Sales Q2Q%22.19%
Revenue Next Year13.1%
Revenue Next 2Y12.53%
Revenue Next 3Y10.59%
Revenue Next 5Y9%
EBIT growth 1Y14.56%
EBIT growth 3Y18.26%
EBIT growth 5Y13%
EBIT Next Year42.48%
EBIT Next 3Y19.66%
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 of DOLLARAMA INC (DOL.CA) 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 is the valuation of DOLLARAMA INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for DOLLARAMA INC (DOL.CA) is 43.83 and the Price/Book (PB) ratio is 43.27.
Can you provide the financial health for DOL stock?
The financial health rating of DOLLARAMA INC (DOL.CA) is 6 / 10.