DOLLARAMA INC (DOL.CA) Stock Fundamental Analysis
TSX:DOL - Toronto Stock Exchange - CA25675T1075 - Common Stock - Currency: CAD
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 belongs to the best of the industry regarding profitability, 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.
In the past 5 years DOL has always been profitable.
In the past 5 years DOL always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of DOL (18.67%) is better than 100.00% of its industry peers.
DOL has a Return On Equity of 92.91%. This is amongst the best in the industry. DOL outperforms 100.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 21.81%, 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 11.32%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 18.67% | ||
| ROE | 92.91% | ||
| ROIC | 21.81% |
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 better Profit Margin (18.79%) than 100.00% of its industry peers.
In the last couple of years the Profit Margin of DOL has grown nicely.
DOL's Operating Margin of 24.96% is amongst the best of the industry. DOL outperforms 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 (45.32%) 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 | 24.96% | ||
| PM (TTM) | 18.79% | ||
| GM | 45.32% |
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.
DOL has less shares outstanding than it did 5 years ago.
The debt/assets ratio for DOL has been reduced compared to a year ago.
2.2 Solvency
DOL has an Altman-Z score of 7.87. This indicates that DOL is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 7.87, DOL belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
The Debt to FCF ratio of DOL is 3.28, which is a good value as it means it would take DOL, 3.28 years of fcf income to pay off all of its debts.
DOL has a better Debt to FCF ratio (3.28) than 100.00% of its industry peers.
A Debt/Equity ratio of 3.17 is on the high side and indicates that DOL has dependencies on debt financing.
DOL has a worse Debt to Equity ratio (3.17) than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.17 | ||
| Debt/FCF | 3.28 | ||
| Altman-Z | 7.87 |
ROIC/WACC2.7
WACC8.07%
2.3 Liquidity
DOL has a Current Ratio of 1.31. This is a normal value and indicates that DOL is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of DOL (1.31) is worse than 66.67% of its industry peers.
DOL has a Quick Ratio of 1.31. This is a bad value and indicates that DOL is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of DOL (0.33) is worse than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.31 | ||
| Quick Ratio | 0.33 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 17.13% over the past year.
DOL shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 18.83% yearly.
Looking at the last year, DOL shows a quite strong growth in Revenue. The Revenue has grown by 9.20% in the last year.
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%27.79%
Revenue 1Y (TTM)9.2%
Revenue growth 3Y13.98%
Revenue growth 5Y11.11%
Sales Q2Q%8.21%
3.2 Future
The Earnings Per Share is expected to grow by 12.87% on average over the next years. This is quite good.
DOL is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.75% yearly.
EPS Next Y9.18%
EPS Next 2Y11.54%
EPS Next 3Y12.4%
EPS Next 5Y12.87%
Revenue Next Year6.64%
Revenue Next 2Y7.24%
Revenue Next 3Y7.04%
Revenue Next 5Y8.75%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in 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
The Price/Earnings ratio is 45.75, which means the current valuation is very expensive for DOL.
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.
When comparing the Price/Earnings ratio of DOL to the average of the S&P500 Index (27.45), we can say DOL is valued expensively.
With a Price/Forward Earnings ratio of 36.78, DOL can be considered very expensive at the moment.
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.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.90, DOL is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 45.75 | ||
| Fwd PE | 36.78 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of DOL indicates a slightly more expensive valuation: DOL is more expensive than 66.67% of the companies listed 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 | 36.96 | ||
| EV/EBITDA | 27.9 |
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 12.40% in the coming years. This may justify a more expensive valuation.
PEG (NY)4.98
PEG (5Y)2.43
EPS Next 2Y11.54%
EPS Next 3Y12.4%
5. Dividend
5.1 Amount
With a yearly dividend of 0.22%, DOL is not a good candidate for dividend investing.
DOL's Dividend Yield is slightly below the industry average, which is at 2.68.
Compared to an average S&P500 Dividend Yield of 2.42, DOL's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.22% |
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
8.40% of the earnings are spent on dividend by DOL. This is a low number and sustainable payout ratio.
DOL's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP8.4%
EPS Next 2Y11.54%
EPS Next 3Y12.4%
TSX:DOL (7/3/2025, 7:00:00 PM)
190.78
-1.09 (-0.57%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)
Earnings (Next)
Inst Owners45.13%
Inst Owner ChangeN/A
Ins Owners3.34%
Ins Owner ChangeN/A
Market Cap52.89B
Analysts76.84
Price Target207.35 (8.69%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.22% |
Yearly Dividend0.35
Dividend Growth(5Y)15.08%
DP8.4%
Div Incr Years13
Div Non Decr Years13
Ex-Date
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)0.04%
Min Revenue beat(2)-0.14%
Max Revenue beat(2)0.21%
Revenue beat(4)1
Avg Revenue beat(4)-0.55%
Min Revenue beat(4)-1.24%
Max Revenue beat(4)0.21%
Revenue beat(8)3
Avg Revenue beat(8)-0.07%
Revenue beat(12)7
Avg Revenue beat(12)1.03%
Revenue beat(16)8
Avg Revenue beat(16)0.63%
PT rev (1m)18.51%
PT rev (3m)36.65%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.7%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.15%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.06%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.73%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 45.75 | ||
| Fwd PE | 36.78 | ||
| P/S | 8.1 | ||
| P/FCF | 36.96 | ||
| P/OCF | 31.52 | ||
| P/B | 40.06 | ||
| P/tB | 128.62 | ||
| EV/EBITDA | 27.9 |
EPS(TTM)4.17
EY2.19%
EPS(NY)5.19
Fwd EY2.72%
FCF(TTM)5.16
FCFY2.71%
OCF(TTM)6.05
OCFY3.17%
SpS23.55
BVpS4.76
TBVpS1.48
PEG (NY)4.98
PEG (5Y)2.43
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 18.67% | ||
| ROE | 92.91% | ||
| ROCE | 29.01% | ||
| ROIC | 21.81% | ||
| ROICexc | 22.74% | ||
| ROICexgc | 27.35% | ||
| OM | 24.96% | ||
| PM (TTM) | 18.79% | ||
| GM | 45.32% | ||
| FCFM | 21.92% |
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 | 3.17 | ||
| Debt/FCF | 3.28 | ||
| Debt/EBITDA | 2.05 | ||
| Cap/Depr | 59.83% | ||
| Cap/Sales | 3.78% | ||
| Interest Coverage | 8.18 | ||
| Cash Conversion | 82.17% | ||
| Profit Quality | 116.68% | ||
| Current Ratio | 1.31 | ||
| Quick Ratio | 0.33 | ||
| Altman-Z | 7.87 |
F-Score6
WACC8.07%
ROIC/WACC2.7
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%27.79%
EPS Next Y9.18%
EPS Next 2Y11.54%
EPS Next 3Y12.4%
EPS Next 5Y12.87%
Revenue 1Y (TTM)9.2%
Revenue growth 3Y13.98%
Revenue growth 5Y11.11%
Sales Q2Q%8.21%
Revenue Next Year6.64%
Revenue Next 2Y7.24%
Revenue Next 3Y7.04%
Revenue Next 5Y8.75%
EBIT growth 1Y11.91%
EBIT growth 3Y18.26%
EBIT growth 5Y13%
EBIT Next Year35.31%
EBIT Next 3Y17.62%
EBIT Next 5Y14.68%
FCF growth 1Y74.46%
FCF growth 3Y15.52%
FCF growth 5Y18.74%
OCF growth 1Y69%
OCF growth 3Y15.54%
OCF growth 5Y17.55%