DOLLARAMA INC (DOL.CA) Stock Fundamental Analysis
Canada • Toronto Stock Exchange • TSX:DOL • CA25675T1075
183.5 CAD
-1.77 (-0.96%)
Last: Jan 30, 2026, 07:00 PM
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. While showing a medium growth rate, DOL is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
- In the past year DOL was profitable.
- DOL had a positive operating cash flow in the past year.
- Each year in the past 5 years DOL has been profitable.
- DOL had a positive operating cash flow in each of the past 5 years.
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 Return On Equity of 100.76%. This is amongst the best in the industry. DOL outperforms 100.00% of its industry peers.
- DOL has a Return On Invested Capital of 21.54%. This is amongst the best in the industry. DOL outperforms 100.00% of its industry peers.
- DOL had an Average Return On Invested Capital over the past 3 years of 22.87%. This 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
- The Profit Margin of DOL (18.59%) is better than 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.
- Looking at the Gross Margin, with a value of 45.38%, 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 | 24.63% | ||
| 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
- DOL has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
- DOL has less shares outstanding than it did 1 year ago.
- The number of shares outstanding for DOL has been reduced compared to 5 years ago.
- Compared to 1 year ago, DOL has an improved debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 6.67 indicates that DOL is not in any danger for bankruptcy at the moment.
- DOL's Altman-Z score of 6.67 is amongst the best of the industry. DOL outperforms 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'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 | 6.67 |
ROIC/WACC2.72
WACC7.91%
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.
- A Quick Ratio of 0.23 indicates that DOL may have some problems paying its short term obligations.
- The Quick ratio of DOL (0.23) is worse than 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.
- 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.
- The Revenue has been growing by 11.11% on average over the past years. This is quite good.
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
- 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.
- 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
- 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.
- 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
- DOL is valuated quite expensively with a Price/Earnings ratio of 39.21.
- Based on the Price/Earnings ratio, DOL is valued a bit more expensive than the industry average as 66.67% of the companies are valued more cheaply.
- When comparing the Price/Earnings ratio of DOL to the average of the S&P500 Index (28.41), we can say DOL is valued slightly more expensively.
- DOL is valuated quite expensively with a Price/Forward Earnings ratio of 34.49.
- Based on the Price/Forward Earnings ratio, DOL is valued a bit more expensive than 66.67% of the companies in the same industry.
- When comparing the Price/Forward Earnings ratio of DOL to the average of the S&P500 Index (25.64), we can say DOL is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.21 | ||
| Fwd PE | 34.49 |
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.
- 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 | 34.06 | ||
| EV/EBITDA | 25.45 |
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.
- A more expensive valuation may be justified as DOL's earnings are expected to grow with 12.92% in the coming years.
PEG (NY)2.95
PEG (5Y)2.08
EPS Next 2Y12.96%
EPS Next 3Y12.92%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.23%, DOL is not a good candidate for dividend investing.
- DOL's Dividend Yield is slightly below the industry average, which is at 2.88.
- Compared to an average S&P500 Dividend Yield of 1.83, DOL's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.23% |
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%
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 39.21 and the Price/Book (PB) ratio is 38.71.
Can you provide the financial health for DOL stock?
The financial health rating of DOLLARAMA INC (DOL.CA) is 6 / 10.