TSE:DOL

Dollarama Inc. (DOL.TO)

187.93
-2.07 (1.09%)
as of Jul 21, 2026, 8:00:01 pm Market Open.
676 watching
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Investor Insights
star iconJul 21, 2026, 12:00 am

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

Dollarama Inc. (DOL-T) is recognized by many experts as a solid growth story, particularly in challenging economic climates where consumers tend to seek value. The company's expansion efforts both domestically in Canada and internationally in regions like Latin America and Australia are viewed positively, yet there are concerns about its high valuation and potential growth deceleration. Analysts note that despite a history of robust performance, current operational challenges, such as increased competition and economic pressures, have led to caution surrounding its stock price. Overall, while its business model remains appealing and its consumer base potentially resilient, the prevailing sentiment is a cautious evaluation of its pricing and growth prospects.

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Consensus
Cautious
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Valuation
Overvalued
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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 $50.77)
WATCH
He is not sure it is going to have as much growth as other publicly traded stores of this kind. They are considering an ownership position in a Latin American chain. He would not consider it until they do this.
BUY
He bought it around 37-38$. 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.
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