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
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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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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.
BUY
He just bought it last month. It pulled back last year, but have recovered. They enjoy high returns on capital and rapid growth, more than most retailers. They're opening new stores. They're exercised their option to buy Dollar City in Latin America, virgin territory with no competitors in this space; this operation will grow for years to come.
DON'T BUY
It rallied last quarter even though they missed their number. Same store sales remained strong, however, by their not raising prices. She does not think this is necessarily sustainable. The stock is pretty expensive at these levels.
TOP PICK
It has been a ten-bagger since the IPO. Had a couple of tough quarters in the last year. A new addition in their portfolio. 1,200 stores in Canada. They are excellent at logistics, procurement and merchandising. They have a joint-venture in Central America with an option to take control of Dollar City next year. A good entry point. (Analysts’ price target is $44.67)
BUY
He sees it going a little higher than it is today. It has been a darling for a long time. In a recession, people tend to shop down.
HOLD
Time to take profits? It has had a great run in 2019. It would not hurt to take some profit ahead of earnings next week. Same store sales have continued to look good.
HOLD
A great stock. It struggled last year as the stock price fell, but has responded well thus far in 2019. Last quarter earnings were an improvement, but the multiples are now much more affordable. It is subject to opportunity if the economy slows down.
TOP PICK
Tripped up because of its pricing strategy, and the market beat it up for that. Dominant player in Canada. It's a growth and a defensive strategy, especially if there's a recession in the next 1-2 years. Adding stores every single year. You buy this for protection of market share. Yield is 0.4%. (Analysts’ price target is $41.25)
PAST TOP PICK
(A Top Pick Mar 11/19, Up 16%) He'd continue to hold it. Thinks it will get back to the recent highs.
COMMENT
They've had some cost issues. Very structured about how they run their business. There is a market for it and Amazon proof to certain degrees. They will continue to do well if they can continue increasing their average price per client. The issue is how much further they can grow. Maybe they need to move to the U.S. but that's a bigger competitve market which may be very difficult for them.
BUY ON WEAKNESS
It has been a pretty good performer and has not been affected much by the AMZN-Q push into retail. Buy it on dips. He is not in the retail sector except for AMZN-Q.
PAST TOP PICK
(A Top Pick Apr 12/18, Down 19%) He is still loyal to them and increased his position not long ago. The market is predicting better days ahead. They are still growing. They are aggressively buying back shares and opening new stores. It is very, very well run company. Debt is bumping up against levels that are almost concerning him. He thinks they are a great company.
TOP PICK
A safe, defensive investment. They have 1,100 stores, so they're by far the leader in Canada which is less competitive than the US. The share price is down a lot, but is trading at 19X earnings now instead of the previous 30x. They could buy Dollar City in Latin America (an option for them in 2020). Good runway of growth. (Analysts’ price target is $39.85)
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