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
0
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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Walmart,WMT
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.
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?
Showing 181 to 195 of 524 entries