Stan Wong Dollarama Inc. DOL-T PAST TOP PICK Aug 08, 2025

So richly priced. Valuation is north of 30x PE because value proposition is so strong and consumers are pinched so hard.

Still adding for new clients. Key has been that it has very little competition, unlike US counterparts. You pay up for that position, at 35x forward PE, but you get 15% earnings growth going forward. 

Beneficiary of cumulative effects of inflation and uncertainty in Canadian economy. Recession-resilient business model. Outpaced the TSX since its IPO in 2009.

Still loves it. Paying 34x forward PE for 15% earnings growth. Dominant position. Cumulative effects of inflation driving more people to cost-conscious shopping. Recession resilient.

Fantastic growth. Outperformed US peers. With tariffs, opportunity to expand margins, which would make a big difference to revenues. A top 10 holding for him. In a slowdown, consumers will be looking for bargains.

Wouldn't buy now. Has benefited from the economic uncertainty, and so valuation has come up dramatically. North of 35x PE, so risk that could contract over the long term. Wonderful business, well positioned with price points to capture a larger portion of wallets in tough times. 

Last conference call referenced a small impact from sourcing from China, with the hit to margins yet to be seen.

It has been a phenomenal success story. It is expanding in Latin America and Australia and can increase efficiency there. It is getting expensive at 38 to 39% expected earnings.

Great numbers yesterday, as well as an all-time high. Still likes it. Canadians continue to downshift spending into more affordable channels. 60% of sales from private labels, which increases margins and differentiates themselves from competitors (not that there are many). International expansion into Dollar City in Latin America is good for long-term growth.

Premium valuation of 41x forward earnings. Sees 15% growth. To add, wait for better pricing opportunity.

In his firm's Canadian dividend growth strategy portfolio. Not a great dividend, though it does grow. Focused more on inorganic growth and share buybacks. Almost AMZN-proof, scale gives them buying power. In Canada, topline is growing close to 10%, margins are improving. Trades at over 40x next year's earnings, so wise to trim.

Last year, even when US dollar stores were struggling, DOL was chugging ahead. Management has been a great acquirer, integrator, and operator. Not cheap. Wouldn't bet against it. Hold and be happy, until something changes.