DOLLARAMA INC (DOL.CA) Stock Fundamental Analysis
TSX:DOL - Toronto Stock Exchange - CA25675T1075 - Common Stock - Currency: CAD
We assign a fundamental rating of 6 out of 10 to DOL. DOL was compared to 3 industry peers in the Broadline Retail industry. DOL has an excellent profitability rating, but 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
In the past year DOL was profitable.
In the past year DOL had a positive cash flow from operations.
Each year in the past 5 years DOL has been profitable.
DOL had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
DOL has a Return On Assets of 18.03%. This is amongst the best in the industry. DOL outperforms 100.00% of its industry peers.
The Return On Equity of DOL (98.34%) is better than 100.00% of its industry peers.
DOL has a better Return On Invested Capital (21.73%) 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 11.59%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 18.03% | ||
| ROE | 98.34% | ||
| ROIC | 21.73% |
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 18.22%, 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.
With an excellent Operating Margin value of 24.65%, 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.
With an excellent Gross Margin value of 45.12%, 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 | 24.65% | ||
| PM (TTM) | 18.22% | ||
| GM | 45.12% |
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.
Compared to 1 year ago, DOL has less shares outstanding
Compared to 5 years ago, DOL has less shares outstanding
The debt/assets ratio for DOL has been reduced compared to a year ago.
2.2 Solvency
DOL has an Altman-Z score of 7.15. This indicates that DOL is financially healthy and has little risk of bankruptcy at the moment.
DOL has a better Altman-Z score (7.15) than 100.00% of its industry peers.
The Debt to FCF ratio of DOL is 3.37, which is a good value as it means it would take DOL, 3.37 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 3.37, DOL belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
DOL has a Debt/Equity ratio of 3.50. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 3.50, DOL is doing worse than 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.5 | ||
| Debt/FCF | 3.37 | ||
| Altman-Z | 7.15 |
ROIC/WACC2.61
WACC8.32%
2.3 Liquidity
DOL has a Current Ratio of 1.18. This is a normal value and indicates that DOL is financially healthy and should not expect problems in meeting its short term obligations.
DOL has a worse Current ratio (1.18) than 66.67% of its industry peers.
DOL has a Quick Ratio of 1.18. 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's Quick ratio of 0.28 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 | ||
|---|---|---|---|
| Current Ratio | 1.18 | ||
| Quick Ratio | 0.28 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 17.13% over the past year.
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 9.30% in the past year. This is quite good.
The Revenue has been growing by 11.11% on average over the past years. This is quite good.
EPS 1Y (TTM)17.13%
EPS 3Y23.76%
EPS 5Y18.83%
EPS Q2Q%21.74%
Revenue 1Y (TTM)9.3%
Revenue growth 3Y13.98%
Revenue growth 5Y11.11%
Sales Q2Q%14.77%
3.2 Future
The Earnings Per Share is expected to grow by 12.35% on average over the next years. This is quite good.
Based on estimates for the next years, DOL will show a quite strong growth in Revenue. The Revenue will grow by 8.81% on average per year.
EPS Next Y9.18%
EPS Next 2Y11.54%
EPS Next 3Y11.54%
EPS Next 5Y12.35%
Revenue Next Year6.66%
Revenue Next 2Y7.25%
Revenue Next 3Y7.01%
Revenue Next 5Y8.81%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past 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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 40.97 indicates a quite expensive valuation of DOL.
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.
When comparing the Price/Earnings ratio of DOL to the average of the S&P500 Index (28.87), we can say DOL is valued slightly more expensively.
DOL is valuated quite expensively with a Price/Forward Earnings ratio of 37.52.
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.
When comparing the Price/Forward Earnings ratio of DOL to the average of the S&P500 Index (21.38), we can say DOL is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.97 | ||
| Fwd PE | 37.52 |
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.
66.67% of the companies in the same industry are cheaper than DOL, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.89 | ||
| EV/EBITDA | 26.1 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of DOL may justify a higher PE ratio.
PEG (NY)4.46
PEG (5Y)2.18
EPS Next 2Y11.54%
EPS Next 3Y11.54%
5. Dividend
5.1 Amount
DOL has a yearly dividend return of 0.25%, which is pretty low.
Compared to an average industry Dividend Yield of 3.25, DOL is paying slightly less dividend.
With a Dividend Yield of 0.25, DOL pays less dividend than the S&P500 average, which is at 2.46.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.25% |
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
8.32% of the earnings are spent on dividend by DOL. This is a low number and sustainable payout ratio.
The dividend of DOL is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP8.32%
EPS Next 2Y11.54%
EPS Next 3Y11.54%
TSX:DOL (4/28/2025, 7:00:00 PM)
170.84
-0.15 (-0.09%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)
Earnings (Next)
Inst Owners45.85%
Inst Owner ChangeN/A
Ins Owners3.62%
Ins Owner ChangeN/A
Market Cap47.35B
Analysts75.56
Price Target174.97 (2.42%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.25% |
Yearly Dividend0.35
Dividend Growth(5Y)15.08%
DP8.32%
Div Incr Years13
Div Non Decr Years13
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)2.44%
Min EPS beat(2)-1.1%
Max EPS beat(2)5.97%
EPS beat(4)3
Avg EPS beat(4)2.5%
Min EPS beat(4)-1.1%
Max EPS beat(4)5.97%
EPS beat(8)7
Avg EPS beat(8)4.96%
EPS beat(12)10
Avg EPS beat(12)4.15%
EPS beat(16)12
Avg EPS beat(16)3.18%
Revenue beat(2)0
Avg Revenue beat(2)-0.59%
Min Revenue beat(2)-1.04%
Max Revenue beat(2)-0.14%
Revenue beat(4)0
Avg Revenue beat(4)-0.92%
Min Revenue beat(4)-1.28%
Max Revenue beat(4)-0.14%
Revenue beat(8)3
Avg Revenue beat(8)0.27%
Revenue beat(12)7
Avg Revenue beat(12)1.15%
Revenue beat(16)7
Avg Revenue beat(16)0.5%
PT rev (1m)15.66%
PT rev (3m)15.77%
EPS NQ rev (1m)-1.6%
EPS NQ rev (3m)-1.53%
EPS NY rev (1m)-0.15%
EPS NY rev (3m)-0.97%
Revenue NQ rev (1m)-0.26%
Revenue NQ rev (3m)-0.13%
Revenue NY rev (1m)1.74%
Revenue NY rev (3m)1.79%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.97 | ||
| Fwd PE | 37.52 | ||
| P/S | 7.38 | ||
| P/FCF | 33.89 | ||
| P/OCF | 28.8 | ||
| P/B | 39.85 | ||
| P/tB | 169.25 | ||
| EV/EBITDA | 26.1 |
EPS(TTM)4.17
EY2.44%
EPS(NY)4.55
Fwd EY2.66%
FCF(TTM)5.04
FCFY2.95%
OCF(TTM)5.93
OCFY3.47%
SpS23.14
BVpS4.29
TBVpS1.01
PEG (NY)4.46
PEG (5Y)2.18
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 18.03% | ||
| ROE | 98.34% | ||
| ROCE | 28.91% | ||
| ROIC | 21.73% | ||
| ROICexc | 22.23% | ||
| ROICexgc | 26.78% | ||
| OM | 24.65% | ||
| PM (TTM) | 18.22% | ||
| GM | 45.12% | ||
| FCFM | 21.79% |
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%
ROICexcg growth 3Y-5.31%
ROICexcg 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 Turnover0.99
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.5 | ||
| Debt/FCF | 3.37 | ||
| Debt/EBITDA | 2.09 | ||
| Cap/Depr | 60.04% | ||
| Cap/Sales | 3.85% | ||
| Interest Coverage | 8.24 | ||
| Cash Conversion | 82.54% | ||
| Profit Quality | 119.57% | ||
| Current Ratio | 1.18 | ||
| Quick Ratio | 0.28 | ||
| Altman-Z | 7.15 |
F-Score6
WACC8.32%
ROIC/WACC2.61
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)17.13%
EPS 3Y23.76%
EPS 5Y18.83%
EPS Q2Q%21.74%
EPS Next Y9.18%
EPS Next 2Y11.54%
EPS Next 3Y11.54%
EPS Next 5Y12.35%
Revenue 1Y (TTM)9.3%
Revenue growth 3Y13.98%
Revenue growth 5Y11.11%
Sales Q2Q%14.77%
Revenue Next Year6.66%
Revenue Next 2Y7.25%
Revenue Next 3Y7.01%
Revenue Next 5Y8.81%
EBIT growth 1Y11.29%
EBIT growth 3Y18.26%
EBIT growth 5Y13%
EBIT Next Year35.33%
EBIT Next 3Y16.26%
EBIT Next 5Y14.34%
FCF growth 1Y11.59%
FCF growth 3Y15.52%
FCF growth 5Y18.74%
OCF growth 1Y7.39%
OCF growth 3Y15.54%
OCF growth 5Y17.55%