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
DON'T BUY
Loves the space. Faced challenges from CAD and Chinese imports. Experienced growing pains. Good entry point, but you have to think what the next leg of growth is. Might go sideways for a while. Doesn't see what drives him to buy it now.
BUY
A growth company, adding stores. They've built their brand and are well-managed. However, they had a few quarters where same-store sales disappointed, so the stock got hit. But there's still room for them to grow in Canada. A decent place to put your money if you're long-term and don't need a big dividend.
DON'T BUY
With a 20-year horizon It's on her watch list, but they had a few disappointing quarters. They've always traded at a premium to peers in America. DOL has grown their basket by gradually raising item prices. She wants to see a turnaround in traffic or how they plan their growth in the next few quarters.
TOP PICK
Its 200-day average was support then became resistance. Today it crossed that resistance line which is huge. Long-term resistance at $37. This will rise 10% easily. Volumes are rising. It's a good play here. (Analysts’ price target is $47.86)
PARTIAL BUY
Reports on March 28th. He does not own it but it has been one of the darlings on the TSX this decade. It has its challenges. Last year we saw same store sales drop. It has come off its highs but is starting to rebound. 22 times price to earnings. The decline is not meaningful enough to back up the truck. Take a third or a half position. Be ready to buy on weakness.
WAIT
Dollarama was a great growth story but disappointed in 2018. They did not grow at expectation levels, resulting in a multiple collapse. He is looking at it now.
DON'T BUY
It's been a great growth story in the past decade, but fell victim to those large numbers--it's hard to keep opening new stores and raising prices forever. It's come to the point where their products are close to those at Walmart. Also, Dollar Tree will give them competition. A well-run company that has some defensiveness, but there are better opprortunities.
TOP PICK
It's holding above $30, a key support line. He still likes it when he bought at $50. A definite recession stock. It's continued to open stores and is getting into online sales. (Analysts’ price target is $41.43)
WATCH
An incredible story, a ten bagger. Has stalled out. Issue was that margins were challenged because of competition from the likes of Canadian Tire. Still, the multiple has come down. Fantastic merchandisers. Reluctant to call it a sell, because of quality management. But would like to see a really good quarter before she steps in.
COMMENT
YTD it's done much better than last year. It's more highly valued than, say, Canadian Tire, though DOL is a better stock. People will still shop at DOL; their products are cheap. Introducing credit cards doubled the spend size in shops. A defensive name and they're growing online. To buy this, the multiple must be much lower; this stock needs to be cheaper. Also, there is competition to consider. That said, DOL is selling items for $2, 3, 4 which increases margins.
COMMENT
Stay on the sidelines here. If there was a time to rebound, it would have done so recently. As for its new online business, given shipping costs, how profitable would it be?
HOLD
There is wonderful hope for them. They are one of the most successful retailers in Canada. There was slowdown in the growth rate and so they corrected. It might take two to three years but it will gradually work higher as the market adjusts to slower growth.
DON'T BUY
When they missed and the stock cratered, he spent time looking at it. He concluded that, given the muted growth with higher valuations, he would buy at $28 and it hasn't reached that. Thinks it will go sideways for a while, but that doesn't make it attractive.
BUY
The stock got hammered. It is a good buying opportunity. He thinks same store sales will climb back up. There is still more growth ahead of them. It is a great time to buy it.
PAST TOP PICK
(A Top Pick Nov 16/18, Up 1%) He ran into a bad earnings quarter but this has since fought back. It'll hit $40 again soon. It's cheap now.
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