DOLLARAMA INC (DOL.CA) Stock Fundamental Analysis
Canada - TSX:DOL - CA25675T1075 - Common Stock
184.94 CAD
+3.23 (+1.78%)
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 scores excellent on profitability, 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.
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 16.43%, DOL belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
With an excellent Return On Equity value of 86.66%, DOL belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
DOL's Return On Invested Capital of 20.45% 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 10.95%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.43% | ||
| ROE | 86.66% | ||
| ROIC | 20.45% |
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 (18.87%) than 100.00% of its industry peers.
DOL's Profit Margin has improved in the last couple of years.
DOL's Operating Margin of 25.03% is amongst the best of the industry. DOL outperforms 100.00% of its industry peers.
DOL's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 45.39%, DOL belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
DOL's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 25.03% | ||
| PM (TTM) | 18.87% | ||
| GM | 45.39% |
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
DOL has a better debt/assets ratio than last year.
2.2 Solvency
DOL has an Altman-Z score of 6.47. This indicates that DOL is financially healthy and has little risk of bankruptcy at the moment.
DOL's Altman-Z score of 6.47 is amongst the best of the industry. DOL outperforms 100.00% of its industry peers.
DOL has a debt to FCF ratio of 3.89. This is a good value and a sign of high solvency as DOL would need 3.89 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 3.89, DOL belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
A Debt/Equity ratio of 3.14 is on the high side and indicates that DOL has dependencies on debt financing.
The Debt to Equity ratio of DOL (3.14) is worse than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.14 | ||
| Debt/FCF | 3.89 | ||
| Altman-Z | 6.47 |
ROIC/WACC2.67
WACC7.65%
2.3 Liquidity
A Current Ratio of 1.24 indicates that DOL should not have too much problems paying its short term obligations.
The Current ratio of DOL (1.24) is worse than 66.67% of its industry peers.
DOL has a Quick Ratio of 1.24. 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 has a Quick ratio of 0.52. This is in the lower half of the industry: DOL underperforms 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.24 | ||
| Quick Ratio | 0.52 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 16.32% 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.
DOL shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.91%.
The Revenue has been growing by 11.11% on average over the past years. This is quite good.
EPS 1Y (TTM)16.32%
EPS 3Y23.76%
EPS 5Y18.83%
EPS Q2Q%13.73%
Revenue 1Y (TTM)9.91%
Revenue growth 3Y13.98%
Revenue growth 5Y11.11%
Sales Q2Q%10.26%
3.2 Future
DOL is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 15.26% yearly.
The Revenue is expected to grow by 9.00% on average over the next years. This is quite good.
EPS Next Y11.38%
EPS Next 2Y12.2%
EPS Next 3Y12.8%
EPS Next 5Y15.26%
Revenue Next Year11.94%
Revenue Next 2Y11.29%
Revenue Next 3Y9.98%
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
The Price/Earnings ratio is 41.19, 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.
DOL's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 25.83.
The Price/Forward Earnings ratio is 35.23, 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.
The average S&P500 Price/Forward Earnings ratio is at 32.68. DOL is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 41.19 | ||
| Fwd PE | 35.23 |
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.
Based on the Price/Free Cash Flow ratio, DOL is valued a bit more expensive than 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.5 | ||
| EV/EBITDA | 26.18 |
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.
A more expensive valuation may be justified as DOL's earnings are expected to grow with 12.80% in the coming years.
PEG (NY)3.62
PEG (5Y)2.19
EPS Next 2Y12.2%
EPS Next 3Y12.8%
5. Dividend
5.1 Amount
With a yearly dividend of 0.23%, DOL is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.96, DOL is paying slightly less dividend.
With a Dividend Yield of 0.23, DOL pays less dividend than the S&P500 average, which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.23% |
5.2 History
On average, the dividend of DOL grows each year by 15.08%, which is quite nice.
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 8.45% of its income as dividend. This is a sustainable payout ratio.
DOL's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP8.45%
EPS Next 2Y12.2%
EPS Next 3Y12.8%
TSX:DOL (11/7/2025, 7:00:00 PM)
184.94
+3.23 (+1.78%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)
Earnings (Next)
Inst Owners46.04%
Inst Owner ChangeN/A
Ins Owners3.35%
Ins Owner ChangeN/A
Market Cap50.74B
Revenue(TTM)6.69B
Net Income(TTM)1.26B
Analysts77
Price Target207.81 (12.37%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.23% |
Yearly Dividend0.35
Dividend Growth(5Y)15.08%
DP8.45%
Div Incr Years13
Div Non Decr Years13
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)6.02%
Min EPS beat(2)-0.6%
Max EPS beat(2)12.65%
EPS beat(4)2
Avg EPS beat(4)4.23%
Min EPS beat(4)-1.1%
Max EPS beat(4)12.65%
EPS beat(8)6
Avg EPS beat(8)4.49%
EPS beat(12)9
Avg EPS beat(12)4.71%
EPS beat(16)13
Avg EPS beat(16)4.45%
Revenue beat(2)2
Avg Revenue beat(2)0.16%
Min Revenue beat(2)0.05%
Max Revenue beat(2)0.28%
Revenue beat(4)2
Avg Revenue beat(4)-0.21%
Min Revenue beat(4)-1.04%
Max Revenue beat(4)0.28%
Revenue beat(8)3
Avg Revenue beat(8)-0.43%
Revenue beat(12)7
Avg Revenue beat(12)0.91%
Revenue beat(16)9
Avg Revenue beat(16)0.77%
PT rev (1m)0.57%
PT rev (3m)0.22%
EPS NQ rev (1m)-0.07%
EPS NQ rev (3m)-2.02%
EPS NY rev (1m)0%
EPS NY rev (3m)2.01%
Revenue NQ rev (1m)0.05%
Revenue NQ rev (3m)9.36%
Revenue NY rev (1m)0%
Revenue NY rev (3m)3.83%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 41.19 | ||
| Fwd PE | 35.23 | ||
| P/S | 7.59 | ||
| P/FCF | 35.5 | ||
| P/OCF | 30.15 | ||
| P/B | 34.84 | ||
| P/tB | 104.34 | ||
| EV/EBITDA | 26.18 |
EPS(TTM)4.49
EY2.43%
EPS(NY)5.25
Fwd EY2.84%
FCF(TTM)5.21
FCFY2.82%
OCF(TTM)6.13
OCFY3.32%
SpS24.38
BVpS5.31
TBVpS1.77
PEG (NY)3.62
PEG (5Y)2.19
Graham Number23.16
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.43% | ||
| ROE | 86.66% | ||
| ROCE | 27.2% | ||
| ROIC | 20.45% | ||
| ROICexc | 23.02% | ||
| ROICexgc | 27.98% | ||
| OM | 25.03% | ||
| PM (TTM) | 18.87% | ||
| GM | 45.39% | ||
| FCFM | 21.37% |
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-Score6
Asset Turnover0.87
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.14 | ||
| Debt/FCF | 3.89 | ||
| Debt/EBITDA | 2.19 | ||
| Cap/Depr | 60.92% | ||
| Cap/Sales | 3.79% | ||
| Interest Coverage | 8.65 | ||
| Cash Conversion | 80.5% | ||
| Profit Quality | 113.25% | ||
| Current Ratio | 1.24 | ||
| Quick Ratio | 0.52 | ||
| Altman-Z | 6.47 |
F-Score6
WACC7.65%
ROIC/WACC2.67
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)16.32%
EPS 3Y23.76%
EPS 5Y18.83%
EPS Q2Q%13.73%
EPS Next Y11.38%
EPS Next 2Y12.2%
EPS Next 3Y12.8%
EPS Next 5Y15.26%
Revenue 1Y (TTM)9.91%
Revenue growth 3Y13.98%
Revenue growth 5Y11.11%
Sales Q2Q%10.26%
Revenue Next Year11.94%
Revenue Next 2Y11.29%
Revenue Next 3Y9.98%
Revenue Next 5Y9%
EBIT growth 1Y11.57%
EBIT growth 3Y18.26%
EBIT growth 5Y13%
EBIT Next Year39.81%
EBIT Next 3Y19.46%
EBIT Next 5Y16.82%
FCF growth 1Y33.3%
FCF growth 3Y15.52%
FCF growth 5Y18.74%
OCF growth 1Y34.67%
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 41.19 and the Price/Book (PB) ratio is 34.84.
What is the earnings growth outlook for DOLLARAMA INC?
The Earnings per Share (EPS) of DOLLARAMA INC (DOL.CA) is expected to grow by 11.38% in the next year.