TSE:DOL

Dollarama Inc. (DOL.TO)

181.22
+5.35 (3.04%)
as of Jun 5, 2026, 8:00:00 pm Market Open.
672 watching
0
Investor Insights
star iconJun 6, 2026, 12:00 am

This summary was created by AI, based on 37 opinions in the last 12 months.

Dollarama Inc. (DOL-T) is facing mixed expert opinions as it navigates pressures such as high valuations and softening same-store sales growth in Canada. While analysts acknowledge DOL's strong performance and potential for international expansion, particularly in Latin America, concerns are raised about market saturation and the challenges of growing in foreign markets. Most experts note its premium valuation, highlighting it trades at high multiples, which makes it less appealing for new investors. The company is still recognized for its solid business model and resilience during economic downturns, benefiting from consumers' increasing preference for value-oriented shopping. Future growth prospects are tied to store expansions and adapting to global economic conditions, particularly the impacts of inflation and consumer spending trends.

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Consensus
Cautious
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Valuation
Overvalued
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WMT
HOLD

Great company, executing well. Concerned, as it's below 200-day moving average. Underperforming Dollar General, because US consumer is stronger than the Canadian, plus DG is in optimal rural locations.

BUY
He likes DOL. When compared to other similar stores, they are in the top tier of the key metrics. A small price increase goes directly to the profitability as prices are generally pretty low. He thinks this makes for good growth opportunities long term. At 19 times earnings it is not outside of their historical ranges. (Analysts’ price target is $48.00)
COMMENT
His firm follows it. He would look at it to see the overall health of retail. It's the go-to for when the economy goes bad.
DON'T BUY
They got their first bear from analysts. He would be interested in buying this for a long term hold. It got ahead of itself and then pulled back. The overall trend is down so it is not something he would be interested in. Set a stop point. The next layer of support is below this.
PAST TOP PICK
(A Top Pick Feb 25/19, Up 15%) It pulled back recently. He's hanging on. It's a quasi-recession-proof stock.
BUY
It looks attractive at current prices. It is a growth stock and a leader in the dollar store space. Same store sales growth is showing a re-acceleration back up to 5%. Gross margins were hit by the cost of opening another logistics center in Montreal.
BUY ON WEAKNESS
He sold part of his position after a ramp up in 2019. It has good growth prospects in Canada still. It is defensiveness in a recessionary environment. The South American acquisition could be an interesting growth angle for them. He would recommend it on a pull back.
PAST TOP PICK
(A Top Pick Jan 21/19, Up 29%) He trimmed them in the mid-to high $50s about a year or so ago and then added them back. They exercised their option to take a 50.1 stake in a chain in South America. They do everything very carefully. He thinks it could be a really nice growth avenue for them.
WATCH
If we go into recession, this should do very well. He is not sure where the balance sheet is presently. Overall, the stock has done well. He would not be a buyer at this level. He wondered what impact there was to their margins when they introduced credit cards for payments. He thinks they have a great supportive demographic.
BUY

A great company that can still open more stores across Canada. Top managers. Can't go wrong here long-term. A risk is if American competitors enter Canada, but that isn't happening. Dollar Tree isn't a threat now.

COMMENT

Hold, if you own. Otherwise, buy Dollar Tree in the U.S. All dollar stores are struggling with margin pressure. Great same-store sales growth. 21x forward earnings vs. Dollar Tree's 17x. He loves this sector.

WATCH
Great operators in a fine niche. But same-store sales growth has recently disappointed and are feeling more margin pressure. Price points are getting squeezed. Valuation is still high at mid/high-20s. DOL is positioned well long-term, though there are risks if they miss a report. Wait a quarter or two to see how their results fare.
HOLD
He's not following consumer discretionary, but if the economy weakens, look at this as a hedge. Otherwise, wait.
WEAK BUY
Great story. They're great at price increases and sourcing new products. Last year has been a bit slower. Rebalancing their products. Expansion in South America is smart. Great dividend, own for a long time. Reasonable valuation at these levels.
TOP PICK
Best operator in the tough retail space with 1,250 Canadian stores with the aim of growing to 1,700. They're very good at price sharply and build traffic and basket size. They buyback shares and recently struck a deal to buy a majority in Dollar City in Latin America; this accelerates their growth in faster-growing geographies. Great secular growth. (Analysts’ price target is $50.77)
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