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
0
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

Growth stock and he is not a growth investor. A lot of expectations built into the price. More dollar stores are going to come to Canada from the US. 24x earnings is too rich.

HOLD

There is a US player entering Canada in this space, meaning more competition, potentially, but it is all about getting locations. She thought it was expensive a year and a half ago. Their expansion to multi-dollar items has really helped. The hurricane would not benefit them by sales of batteries, etc. That is a onetime event and so analysts wouldn`t give it credit anyway. They are very good operators.

WEAK BUY

US competitors may have more presence in Canada in 3-5 years. Dollarama has good relationships with landlords, good inventory management but not much competition. Likes it but it is rather expensive here. Wishes he owned it.

COMMENT

Management has done a terrific job. Stock price has soared but so has earnings. There is still room for it to grow. Doesn’t think their market is saturated. He is not buying, but is watching it.

WATCH

Missed this one because he wasn’t sure they could carry on consistently with the margins that they had done in the past. Has done an incredible job. Their format, the way they manage their inventory, the way they can squeeze more margin out is pretty impressive. Odds are going against them that they can continue in that direction. Has fallen below the 200 day moving average for most of August.

BUY

For a growth portfolio, he would look at this one. One of the few Canadian retailers that has continued to grow. Issues better and better earnings quarter after quarter. Trading at 20X forward earnings.

PAST TOP PICK
(A Top Pick May 20/11. Up 77.33%.) Took his prophets. Recommending that if you own, you sell half.
DON'T BUY
Have done very well. In this soft economy this format has really caught on. Trading at 21X earnings and she would prefer to see it at 16 or 18 times. Trades at a premium to the other Dollar stores in the US but the competition is not as intense here.
PAST TOP PICK
(Top Pick Apr 4/11, Up 52.85%) Over last year they put in price points of $1.25, $1.50, $2. All stores are company owned and growth from higher price points, scanning and card swipe payments. He would be comfortable buying it here.
DON'T BUY
Stock has done exceptionally well and is where you want to be in retail right now. His only trepidation is the valuation. It is not a high-growth company. Strategy is good and the company is doing well but the multiples are to high for him
SELL
This is one that he missed. It is priced to perfection. He would take profits. Significant premium to the market. Better value elsewhere. Prefers MTY-T. Would not even be interested in DOL if it pulled back 15%.
DON'T BUY
Multiple is pretty high at near 20 times. Still have expansion space in Canada. Has had a good run and there may not be that much left in the stock.
PAST TOP PICK
(Top Pick Sep 16/10, Up 42.20%) Kicking himself because it went higher. Very good earnings and some money has downshifted to dollar stores. A little over bought at this point.
DON'T BUY
Good company and great management. In the right space but no longer has a good valuation at 15.5X earnings. There are so many good stocks out there.
BUY
Thinks there is good money to be made in the Dollar stores. Modest dividend of about 1% on a payout ratio of about 18%. Good value.
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