DOLLARAMA INC (DOL.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:DOL - CA25675T1075 - Common Stock
200.12 CAD
-1.96 (-0.97%)
Taking everything into account, DOL scores 6 out of 10 in our fundamental rating. 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. DOL is quite expensive at the moment. It does show a decent growth rate.
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.
In the past 5 years DOL has always been profitable.
DOL had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
DOL has a better Return On Assets (17.67%) than 100.00% of its industry peers.
The Return On Equity of DOL (100.76%) is better than 100.00% of its industry peers.
DOL's Return On Invested Capital of 21.54% is amongst the best of the industry. DOL outperforms 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
DOL has a Profit Margin of 18.59%. This is amongst the best in the industry. DOL outperforms 100.00% of its industry peers.
In the last couple of years the Profit Margin of DOL has grown nicely.
DOL has a better Operating Margin (24.63%) than 100.00% of its industry peers.
DOL's Operating Margin has improved in the last couple of years.
The Gross Margin of DOL (45.38%) is better than 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.
DOL has less shares outstanding than it did 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
An Altman-Z score of 7.17 indicates that DOL is not in any danger for bankruptcy at the moment.
The Altman-Z score of DOL (7.17) is better than 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.
A Debt/Equity ratio of 3.56 is on the high side and indicates that DOL has dependencies on debt financing.
DOL has a worse Debt to Equity ratio (3.56) than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.56 | ||
| Debt/FCF | 3.65 | ||
| Altman-Z | 7.17 |
ROIC/WACC2.77
WACC7.78%
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.
A Quick Ratio of 0.23 indicates that DOL may have some problems paying 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
The Earnings Per Share has grown by an nice 19.39% over the past year.
The Earnings Per Share has been growing by 18.83% on average over the past years. This is quite good.
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
The Earnings Per Share is expected to grow by 15.26% 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 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
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
Based on the Price/Earnings ratio of 42.76, the valuation of DOL can be described as expensive.
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.
DOL is valuated expensively when we compare the Price/Earnings ratio to 27.30, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 37.61 indicates a quite expensive valuation of DOL.
66.67% of the companies in the same industry are cheaper than DOL, based on the Price/Forward Earnings ratio.
DOL is valuated expensively when we compare the Price/Forward Earnings ratio to 24.04, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 42.76 | ||
| Fwd PE | 37.61 |
4.2 Price Multiples
66.67% of the companies in the same industry are cheaper than DOL, based on the Enterprise Value to EBITDA ratio.
DOL's Price/Free Cash Flow 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.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 37.14 | ||
| EV/EBITDA | 27.78 |
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 12.92% in the coming years. This may justify a more expensive valuation.
PEG (NY)3.22
PEG (5Y)2.27
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.
DOL's Dividend Yield is slightly below the industry average, which is at 2.81.
Compared to an average S&P500 Dividend Yield of 1.92, DOL's dividend is way lower than the S&P500 average.
| 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 (1/13/2026, 7:00:00 PM)
200.12
-1.96 (-0.97%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)
Earnings (Next)
Inst Owners45.32%
Inst Owner ChangeN/A
Ins Owners3.36%
Ins Owner ChangeN/A
Market Cap54.79B
Revenue(TTM)7.04B
Net Income(TTM)1.31B
Analysts76
Price Target221.48 (10.67%)
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)5.47%
PT rev (3m)6.58%
EPS NQ rev (1m)1.86%
EPS NQ rev (3m)2.14%
EPS NY rev (1m)1.75%
EPS NY rev (3m)1.7%
Revenue NQ rev (1m)2.22%
Revenue NQ rev (3m)2.32%
Revenue NY rev (1m)1.02%
Revenue NY rev (3m)1.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 42.76 | ||
| Fwd PE | 37.61 | ||
| P/S | 7.79 | ||
| P/FCF | 37.14 | ||
| P/OCF | 31.38 | ||
| P/B | 42.21 | ||
| P/tB | 166.94 | ||
| EV/EBITDA | 27.78 |
EPS(TTM)4.68
EY2.34%
EPS(NY)5.32
Fwd EY2.66%
FCF(TTM)5.39
FCFY2.69%
OCF(TTM)6.38
OCFY3.19%
SpS25.7
BVpS4.74
TBVpS1.2
PEG (NY)3.22
PEG (5Y)2.27
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 | 7.17 |
F-Score7
WACC7.78%
ROIC/WACC2.77
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 42.76 and the Price/Book (PB) ratio is 42.21.
Can you provide the financial health for DOL stock?
The financial health rating of DOLLARAMA INC (DOL.CA) is 6 / 10.