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
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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
WATCH
He is not sure it is going to have as much growth as other publicly traded stores of this kind. They are considering an ownership position in a Latin American chain. He would not consider it until they do this.
BUY
He bought it around 37-38$. It's come back to a reasonable level. It is still expensive, but it has a nice growth rate. They are opening up stores in South America, and there is still growth in Canada. It can be a good place to enter here.
BUY ON WEAKNESS
It's pulled back since the summer. Was once a top pick. It's been a rollercoaster with talk of competition. It's one of the best recession-proof stocks around. He won't add to it until there is a pullback.
COMMENT

Likes the space. Will do well in a slowdown. Instead he owns Dollar General, which has performed extremely well. Broke above 200-day in April of this year. Has floated down recently because of profit taking. Not cheap, but has moved well compared to the TSX. Recession resilient.

HOLD

A brilliantly run business but the PE is too high for him. It is one of the few retailers that does not compete with AMZN-Q. Growth is slowing because they can't keep opening more stores. He has total respect for the company but it is rather expensive.

COMMENT
Trading so high above its fundamental value. DOL doesn't really have a real balance sheet, no real equity. $15.86 is his target price, 66% below the current price. But this should be in a long-term portfolio, because people will pay anything for growth and he sees growth here.
PAST TOP PICK
(A Top Pick Sep 24/18, Up 14%) A core holding. Very well-run. They tripped with weak same-store sales last year, but the valuation became attractive. They exercised their option to buy Dollar City (in Latin America) which the market overlooked. This will add to growth. They can continue to grow in Canada, too, and buy back shares. One of the best retailers in Canada.
BUY
It has a lot of growth potential. They haven’t been growing by inflation, though they missed their last quarter. They are doing fine with same store growth, and it’s a nice high growth name. It trades at 22 times which is pricey. With this kind of growth, you can still buy into it. In a recession, you want this in your portfolio.
COMMENT

They saturated Canada with stores, but are now adding higher-value goods in the store with prices up to $5. The glory days of growth are over and this will be a cyclical retailer. It's okay to hold it, but not as a core holding. He prefers Aritzia.

PARTIAL SELL
Some other companies have successfully moved into central America. DOL-T has a formula that has worked for them. He would take some profit along the way here. It has always looked rather expensive.
PAST TOP PICK
(A Top Pick May 29/19, Up 15%) He still likes it, but it's getting pricey so he may lighten up on it. Definitely want to own this going into a recession, more so than say Canadian Tire.
BUY

It has done well and if the position is too large, trim it back. It has done a phenomenal job because they are one of the few that does not compete with AMZN-Q. The issue they are facing is that it is getting tougher to find more locations to open new stores. They made an acquisition elsewhere and will find out if they can execute that well. It is probably a recession proof stock in Canada. They have strong management.

WATCH
A great company, but have reached saturation in Canada. So, they are investing into Central America. Their valuation has declined from historic highs, but it's still elevated. Investors are watching their Central America move. He once owned this.
BUY
He really likes it. They had a scare over the last 6 months. But in Canada they have some of the best store metrics in North America. They had an option to buy a company in central America and they have exercised it, saying it echoes the metrics of Canadian stores. They are shareholder friendly.
SELL ON STRENGTH
The chart is dizzying! He regrets not buying the breakout, but now it's returning to its old resistance with lows of $50 and highs of high-$50s. That's the zone. It could pause here, but sell it in this range. A lot of shareholders bough this at $50 and want to make their money back.
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