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. 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.
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 Return On Assets of 17.10%. This is amongst the best in the industry. DOL outperforms 100.00% of its industry peers.
DOL has a Return On Equity of 87.40%. This is amongst the best in the industry. DOL outperforms 100.00% of its industry peers.
The Return On Invested Capital of DOL (19.47%) is better than 100.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 17.1% | ||
| ROE | 87.4% | ||
| ROIC | 19.47% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
DOL has a Profit Margin of 17.85%. This is amongst the best in the industry. DOL outperforms 100.00% of its industry peers.
DOL's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 24.51%, DOL belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
In the last couple of years the Operating Margin of DOL has remained more or less at the same level.
Looking at the Gross Margin, with a value of 44.92%, 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 | 24.51% | ||
| PM (TTM) | 17.85% | ||
| GM | 44.92% |
OM growth 3Y0.89%
OM growth 5Y0.33%
PM growth 3Y7.11%
PM growth 5Y2.32%
GM growth 3Y0.48%
GM growth 5Y-0.04%
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.
There is no outstanding debt for DOL. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
An Altman-Z score of 6.76 indicates that DOL is not in any danger for bankruptcy at the moment.
DOL has a Altman-Z score of 6.76. This is amongst the best in the industry. DOL outperforms 100.00% of its industry peers.
DOL has a debt to FCF ratio of 3.47. This is a good value and a sign of high solvency as DOL would need 3.47 years to pay back of all of its debts.
The Debt to FCF ratio of DOL (3.47) is better than 100.00% of its industry peers.
A Debt/Equity ratio of 3.50 is on the high side and indicates that DOL has dependencies on debt financing.
With a Debt to Equity ratio value of 3.50, DOL is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.5 | ||
| Debt/FCF | 3.47 | ||
| Altman-Z | 6.76 |
ROIC/WACC2.03
WACC9.61%
2.3 Liquidity
DOL has a Current Ratio of 1.43. 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 (1.43) is worse than 66.67% of its industry peers.
DOL has a Quick Ratio of 1.43. This is a bad value and indicates that DOL is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.40, DOL is doing worse than 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.43 | ||
| Quick Ratio | 0.4 |
3. Growth
3.1 Past
DOL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 18.07%, which is quite good.
Measured over the past years, DOL shows a quite strong growth in Earnings Per Share. The EPS has been growing by 16.11% on average per year.
The Revenue has grown by 8.24% in the past year. This is quite good.
Measured over the past years, DOL shows a quite strong growth in Revenue. The Revenue has been growing by 10.58% on average per year.
EPS 1Y (TTM)18.07%
EPS 3Y25.52%
EPS 5Y16.11%
EPS Q2Q%6.52%
Revenue 1Y (TTM)8.24%
Revenue growth 3Y13.37%
Revenue growth 5Y10.58%
Sales Q2Q%5.75%
3.2 Future
The Earnings Per Share is expected to grow by 13.43% on average over the next years. This is quite good.
The Revenue is expected to grow by 9.22% on average over the next years. This is quite good.
EPS Next Y15.49%
EPS Next 2Y12.99%
EPS Next 3Y13.04%
EPS Next 5Y13.43%
Revenue Next Year9.48%
Revenue Next 2Y7.15%
Revenue Next 3Y7.06%
Revenue Next 5Y9.22%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
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
A Price/Earnings ratio of 39.55 indicates a quite expensive valuation of 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.
DOL's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 29.35.
The Price/Forward Earnings ratio is 34.11, which means the current valuation is very expensive for DOL.
Based on the Price/Forward Earnings ratio, DOL is valued a bit more expensive than 66.67% of the companies in the same industry.
DOL's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 22.10.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.55 | ||
| Fwd PE | 34.11 |
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.
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 | 32.03 | ||
| EV/EBITDA | 24.57 |
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.
DOL's earnings are expected to grow with 13.04% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.55
PEG (5Y)2.45
EPS Next 2Y12.99%
EPS Next 3Y13.04%
5. Dividend
5.1 Amount
DOL has a yearly dividend return of 0.24%, which is pretty low.
DOL's Dividend Yield is slightly below the industry average, which is at 3.36.
With a Dividend Yield of 0.24, DOL pays less dividend than the S&P500 average, which is at 2.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.24% |
5.2 History
The dividend of DOL is nicely growing with an annual growth rate of 8.48%!
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)8.48%
Div Incr Years13
Div Non Decr Years13
5.3 Sustainability
DOL pays out 8.30% of its income as dividend. This is a sustainable payout ratio.
The dividend of DOL is growing, but earnings are growing more, so the dividend growth is sustainable.
DP8.3%
EPS Next 2Y12.99%
EPS Next 3Y13.04%
TSX:DOL (3/7/2025, 7:00:00 PM)
155.03
+1.79 (+1.17%)
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 Cap42.97B
Analysts74.44
Price Target151.27 (-2.43%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.24% |
Yearly Dividend0.22
Dividend Growth(5Y)8.48%
DP8.3%
Div Incr Years13
Div Non Decr Years13
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.57%
Min EPS beat(2)-1.1%
Max EPS beat(2)4.23%
EPS beat(4)3
Avg EPS beat(4)2.93%
Min EPS beat(4)-1.1%
Max EPS beat(4)7.67%
EPS beat(8)7
Avg EPS beat(8)4.9%
EPS beat(12)10
Avg EPS beat(12)3.93%
EPS beat(16)11
Avg EPS beat(16)2.79%
Revenue beat(2)0
Avg Revenue beat(2)-1.14%
Min Revenue beat(2)-1.24%
Max Revenue beat(2)-1.04%
Revenue beat(4)1
Avg Revenue beat(4)-0.7%
Min Revenue beat(4)-1.28%
Max Revenue beat(4)0.75%
Revenue beat(8)4
Avg Revenue beat(8)0.88%
Revenue beat(12)7
Avg Revenue beat(12)1.09%
Revenue beat(16)7
Avg Revenue beat(16)0.32%
PT rev (1m)0%
PT rev (3m)2.28%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.5%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.2%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.11%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)0.23%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.55 | ||
| Fwd PE | 34.11 | ||
| P/S | 6.96 | ||
| P/FCF | 32.03 | ||
| P/OCF | 27.67 | ||
| P/B | 34.1 | ||
| P/tB | 121.99 | ||
| EV/EBITDA | 24.57 |
EPS(TTM)3.92
EY2.53%
EPS(NY)4.55
Fwd EY2.93%
FCF(TTM)4.84
FCFY3.12%
OCF(TTM)5.6
OCFY3.61%
SpS22.26
BVpS4.55
TBVpS1.27
PEG (NY)2.55
PEG (5Y)2.45
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 17.1% | ||
| ROE | 87.4% | ||
| ROCE | 27.39% | ||
| ROIC | 19.47% | ||
| ROICexc | 20.47% | ||
| ROICexgc | 24.5% | ||
| OM | 24.51% | ||
| PM (TTM) | 17.85% | ||
| GM | 44.92% | ||
| FCFM | 21.74% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3Y0.89%
OM growth 5Y0.33%
PM growth 3Y7.11%
PM growth 5Y2.32%
GM growth 3Y0.48%
GM growth 5Y-0.04%
F-Score7
Asset Turnover0.96
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.5 | ||
| Debt/FCF | 3.47 | ||
| Debt/EBITDA | 2.31 | ||
| Cap/Depr | 53.66% | ||
| Cap/Sales | 3.42% | ||
| Interest Coverage | 14.2 | ||
| Cash Conversion | 81.47% | ||
| Profit Quality | 121.81% | ||
| Current Ratio | 1.43 | ||
| Quick Ratio | 0.4 | ||
| Altman-Z | 6.76 |
F-Score7
WACC9.61%
ROIC/WACC2.03
Cap/Depr(3y)59.02%
Cap/Depr(5y)59.44%
Cap/Sales(3y)3.85%
Cap/Sales(5y)3.88%
Profit Quality(3y)116.47%
Profit Quality(5y)116.42%
High Growth Momentum
Growth
EPS 1Y (TTM)18.07%
EPS 3Y25.52%
EPS 5Y16.11%
EPS Q2Q%6.52%
EPS Next Y15.49%
EPS Next 2Y12.99%
EPS Next 3Y13.04%
EPS Next 5Y13.43%
Revenue 1Y (TTM)8.24%
Revenue growth 3Y13.37%
Revenue growth 5Y10.58%
Sales Q2Q%5.75%
Revenue Next Year9.48%
Revenue Next 2Y7.15%
Revenue Next 3Y7.06%
Revenue Next 5Y9.22%
EBIT growth 1Y12.01%
EBIT growth 3Y14.39%
EBIT growth 5Y10.94%
EBIT Next Year43.68%
EBIT Next 3Y19.07%
EBIT Next 5Y16.05%
FCF growth 1Y123.07%
FCF growth 3Y20.21%
FCF growth 5Y19.91%
OCF growth 1Y105.69%
OCF growth 3Y19.88%
OCF growth 5Y17.42%