TSE:DOL

Dollarama Inc. (DOL.TO)

193.93
+1.98 (1.03%)
as of Jun 26, 2026, 8:00:00 pm Market Open.
678 watching
0
Investor Insights
star iconJun 28, 2026, 12:00 am

This summary was created by AI, based on 38 opinions in the last 12 months.

Dollarama Inc. (DOL-T) has been recognized as a strong growth story, particularly as consumers tend to trade down during tough economic times, which bodes well for dollar stores like DOL. Despite its impressive growth and expansion into international markets such as Latin America and Australia, a significant concern remains the high valuation, with many analysts noting a price-to-earnings (PE) ratio that approaches or exceeds 40x. Expert reviews highlight mixed feelings regarding the company's future growth potential, particularly as the Canadian market shows signs of saturation. Although there are arguments for its robust business model and consistent earnings growth, valuation concerns often overshadow these positives, leading many to advise caution or to wait for a more favorable buying opportunity. Overall, while DOL is viewed as a well-managed and valued brand in the retail sector, its high valuation and potential slowing growth in Canada create a nuanced investment outlook.

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Consensus
Caution
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Valuation
Overvalued
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PAST TOP PICK
(A Top Pick May 29/19, Up 5%) He still likes it. It has done a great job of defending market share in Canada. If you think the economy is not going to come out of this to the same extent it was a year ago, then you will see a cascading of retail dollars down to DOL-T.
DON'T BUY
While there is a component of online retailing that is taking a share from them right now, this is an essential service. The type of consumer that shows up wants a quick in and out and knows what they want. It could do well in this environment but he is not buying any consumer names at this point.
HOLD
They have low price points and do well during recessions. She owns a different store based in the US instead. She would hold it if you own it, but at 21 times earnings, she would not be buying yet.
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.
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