DOLLARAMA INC (DOL.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:DOL - CA25675T1075 - Common Stock
204.3 CAD
+0.91 (+0.45%)
DOL gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals 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 quite expensive at the moment. 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.
Each year in the past 5 years DOL has been profitable.
In the past 5 years DOL always reported a positive cash flow from operatings.
1.2 Ratios
DOL's Return On Assets of 17.67% is amongst the best of the industry. DOL outperforms 100.00% of its industry peers.
DOL has a better Return On Equity (100.76%) than 100.00% of its industry peers.
DOL has a better Return On Invested Capital (21.54%) than 100.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for DOL 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.
In the last couple of years the Profit Margin of DOL has grown nicely.
Looking at the Operating Margin, with a value of 24.63%, 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 45.38%, 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 | 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so DOL 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.
DOL has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 7.21 indicates that DOL is not in any danger for bankruptcy at the moment.
DOL has a Altman-Z score of 7.21. This is amongst the best in the industry. DOL outperforms 100.00% of its industry peers.
DOL has a debt to FCF ratio of 3.65. This is a good value and a sign of high solvency as DOL would need 3.65 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 3.65, DOL belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
DOL has a Debt/Equity ratio of 3.56. This is a high value indicating a heavy dependency on external financing.
DOL's Debt to Equity ratio of 3.56 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 | 3.56 | ||
| Debt/FCF | 3.65 | ||
| Altman-Z | 7.21 |
ROIC/WACC2.82
WACC7.65%
2.3 Liquidity
A Current Ratio of 1.09 indicates that DOL should not have too much problems paying its short term obligations.
The Current ratio of DOL (1.09) is worse than 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.
Looking at the Quick ratio, with a value of 0.23, DOL is doing worse than 66.67% of the companies in the same industry.
| 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.
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 14.02%.
The Revenue has been growing by 11.11% on average over the past years. This is quite good.
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 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
A Price/Earnings ratio of 43.65 indicates a quite expensive valuation of DOL.
66.67% of the companies in the same industry are cheaper than DOL, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 26.61, DOL is valued quite expensively.
The Price/Forward Earnings ratio is 38.84, 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/Forward Earnings ratio.
DOL's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 24.01.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 43.65 | ||
| Fwd PE | 38.84 |
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.
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 | 37.92 | ||
| EV/EBITDA | 27.95 |
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 12.62% in the coming years.
PEG (NY)3.86
PEG (5Y)2.32
EPS Next 2Y12.31%
EPS Next 3Y12.62%
5. Dividend
5.1 Amount
With a yearly dividend of 0.21%, DOL is not a good candidate for dividend investing.
DOL's Dividend Yield is slightly below the industry average, which is at 2.86.
Compared to an average S&P500 Dividend Yield of 1.87, 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 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 2Y12.31%
EPS Next 3Y12.62%
TSX:DOL (12/22/2025, 7:00:00 PM)
204.3
+0.91 (+0.45%)
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 Cap55.94B
Revenue(TTM)7.04B
Net Income(TTM)1.31B
Analysts77
Price Target209.98 (2.78%)
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)1.05%
PT rev (3m)1.63%
EPS NQ rev (1m)1.93%
EPS NQ rev (3m)2.21%
EPS NY rev (1m)-0.11%
EPS NY rev (3m)-1.16%
Revenue NQ rev (1m)1.74%
Revenue NQ rev (3m)1.88%
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)0.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 43.65 | ||
| Fwd PE | 38.84 | ||
| P/S | 7.95 | ||
| P/FCF | 37.92 | ||
| P/OCF | 32.04 | ||
| P/B | 43.09 | ||
| P/tB | 170.43 | ||
| EV/EBITDA | 27.95 |
EPS(TTM)4.68
EY2.29%
EPS(NY)5.26
Fwd EY2.57%
FCF(TTM)5.39
FCFY2.64%
OCF(TTM)6.38
OCFY3.12%
SpS25.7
BVpS4.74
TBVpS1.2
PEG (NY)3.86
PEG (5Y)2.32
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 | 7.21 |
F-Score7
WACC7.65%
ROIC/WACC2.82
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 Y11.32%
EPS Next 2Y12.31%
EPS Next 3Y12.62%
EPS Next 5Y15.26%
Revenue 1Y (TTM)14.02%
Revenue growth 3Y13.98%
Revenue growth 5Y11.11%
Sales Q2Q%22.19%
Revenue Next Year11.95%
Revenue Next 2Y11.64%
Revenue Next 3Y9.5%
Revenue Next 5Y9%
EBIT growth 1Y14.56%
EBIT growth 3Y18.26%
EBIT growth 5Y13%
EBIT Next Year39.75%
EBIT Next 3Y19.06%
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 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 43.65 and the Price/Book (PB) ratio is 43.09.
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.