TSE:DOL

Dollarama Inc. (DOL.TO)

181.22
+5.35 (3.04%)
as of Jun 5, 2026, 8:00:00 pm Market Open.
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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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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)
TOP PICK
A strong cash flow generator. It has 24% ROA and earnings are growing at 13% in 2020. If it breaks above $40, there is room for it to move to $45 on a technical basis. Yield 0.46%
DON'T BUY
Dollar General vs. Dollarama The dollar stores are a good ivnestment when the economy stores. American dollar stores are priced at a discount to Canadian ones. December's pullback was a good opportunity to buy, and she would be on a future pullback. Dollarama's same-stores growth has slowed and has always traded at a premium to Canadian ones. Also, their valuation has contracted, but still higher than American ones. Also, the Canadian consumer has slowed spending overall.
PAST TOP PICK
(A Top Pick May 31/18, Down 23%) He sold it out at a loss during the free-fall from $50 towards $40. He was happy to have a stop-loss.
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