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
0
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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COMMENT

A real Canadian success story. The time to buy it was probably under $40-$45 a share. Company has to grow into its share price at this time because its growth rate is not going to be what it was in the past.

COMMENT

Great company and is in the right place at the right time. When it got up to the mid--$60 area, it was probably ahead of itself. He is a value investor and this is not a value play here but for other types of investors, it’s a good one to own.

DON'T BUY

You had a massive run up and then you start to see a distribution pattern. Over a 6 months window if you start to see this including a failed high, anyone who bought in that period may want to get out. You are looking at a return to about $50.

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.
Showing 496 to 510 of 523 entries