DOLLARAMA INC (DOL.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:DOL - CA25675T1075 - Common Stock
205.48 CAD
+0.18 (+0.09%)
We assign a fundamental rating of 6 out of 10 to DOL. DOL was compared to 3 industry peers in the Broadline Retail industry. While DOL belongs to the best of the industry regarding profitability, 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.
DOL had a positive operating cash flow in the past year.
DOL had positive earnings in each of the past 5 years.
Each year in the past 5 years DOL had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 17.67%, DOL belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
DOL has a better Return On Equity (100.76%) than 100.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 21.54%, 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 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
Looking at the Profit Margin, with a value of 18.59%, DOL belongs to the top 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.
DOL has a Operating Margin of 24.63%. This is amongst the best in the industry. DOL outperforms 100.00% of its industry peers.
In the last couple of years the Operating Margin of DOL has grown nicely.
DOL has a Gross Margin of 45.38%. This is amongst the best in the industry. DOL outperforms 100.00% of its industry peers.
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
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.
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 7.26. This indicates that DOL is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 7.26, DOL belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
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.
With an excellent Debt to FCF ratio value of 3.65, 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 3.56. 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 | 7.26 |
ROIC/WACC2.78
WACC7.76%
2.3 Liquidity
A Current Ratio of 1.09 indicates that DOL should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.09, DOL is doing worse than 66.67% of the companies in the same industry.
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's Quick ratio of 0.23 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 | 1.09 | ||
| 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.
The Revenue has grown by 14.02% in the past year. This is quite good.
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.
The Revenue is expected to grow by 9.00% on average over the next years. This is quite good.
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
The EPS growth rate is stable: in the next years the growth will be about the same than in the last 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 stable.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 43.91, 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.
When comparing the Price/Earnings ratio of DOL to the average of the S&P500 Index (26.84), we can say DOL is valued expensively.
DOL is valuated quite expensively with a Price/Forward Earnings ratio of 38.62.
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 23.40, DOL is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 43.91 | ||
| Fwd PE | 38.62 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, DOL is valued a bit more expensive than 66.67% of the companies in the same industry.
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 | 38.14 | ||
| EV/EBITDA | 28.21 |
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.
DOL has an outstanding profitability rating, which may justify a higher PE ratio.
DOL's earnings are expected to grow with 12.92% in the coming years. This may justify a more expensive valuation.
PEG (NY)3.31
PEG (5Y)2.33
EPS Next 2Y12.96%
EPS Next 3Y12.92%
5. Dividend
5.1 Amount
With a yearly dividend of 0.21%, DOL is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.85, DOL is paying slightly less dividend.
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 paid a dividend for at least 10 years, which is 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 (12/29/2025, 7:00:00 PM)
205.48
+0.18 (+0.09%)
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 Cap56.26B
Revenue(TTM)7.04B
Net Income(TTM)1.31B
Analysts77
Price Target221.48 (7.79%)
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 | 43.91 | ||
| Fwd PE | 38.62 | ||
| P/S | 8 | ||
| P/FCF | 38.14 | ||
| P/OCF | 32.22 | ||
| P/B | 43.34 | ||
| P/tB | 171.41 | ||
| EV/EBITDA | 28.21 |
EPS(TTM)4.68
EY2.28%
EPS(NY)5.32
Fwd EY2.59%
FCF(TTM)5.39
FCFY2.62%
OCF(TTM)6.38
OCFY3.1%
SpS25.7
BVpS4.74
TBVpS1.2
PEG (NY)3.31
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 | 7.26 |
F-Score7
WACC7.76%
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 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 43.91 and the Price/Book (PB) ratio is 43.34.
What is the earnings growth outlook for DOLLARAMA INC?
The Earnings per Share (EPS) of DOLLARAMA INC (DOL.CA) is expected to grow by 13.27% in the next year.