TSE:DOL

Dollarama Inc. (DOL.TO)

177.21
+0.32 (0.18%)
as of Sep 4, 2026, 8:00:01 pm Market Open.
677 watching
0
Investor Insights
star iconSep 6, 2026, 12:00 am

This summary was created by AI, based on 34 opinions in the last 12 months.

Dollarama Inc. (DOL-T) has garnered mixed reviews from experts, reflecting their concerns over valuation despite recognizing the company's solid business model and growth potential. Many analysts point out that while Dollarama has shown impressive international expansion plans, particularly in Latin America and Australia, its current price-to-earnings (PE) ratio, which hovers around 30x to 40x, raises significant valuation concerns. Several experts have noted that while the company offers a defensive play during tougher economic times, the high multiples could lead to reduced future returns. Others emphasize the need for caution, recommending potential investors to await better buying opportunities as the market for retail becomes increasingly saturated in Canada. Overall, Dollarama remains a strong operational entity, but its current valuation may deter long-term investment interest.

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Consensus
Neutral
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Valuation
Overvalued
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WMT
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.
PAST TOP PICK
(A Top Pick May 12/10. Up 34.64%.)
TOP PICK
The dominant dollar store brand in Canada. Increased their sales to include $1.50 and $2 in addition to $1, which has boosted same store sales. Also brought in scanning and taking debit cards. Generating so much cash that they could easily start paying dividends.
TOP PICK
The dominant dollar store brand in Canada. Increased their sales to include $1.50 and $2 in addition to $1, which has boosted same store sales. Also brought in scanning and taking debit cards. Generating so much cash that they could easily start paying dividends.
TOP PICK
Dollarama Stores. Increase of prices from $1 to up to $2 has given them a very big boost in the items they can sell. Brought in point-of-sale scanning equipment to help in stocking. Also started accepting debit cards. Will get back to the 3%-3.5% sales growth it has had in the last decade. US competition coming in should not be a problem as there is lots of room.
TOP PICK
One of the best growth stories in the Canadian retailing space. 600 locations. Will be introducing point of sales scanning next quarter which will result in better margins, inventory control, etc. Long-term growth is forecast at 15%.
TOP PICK
Dollarama Canadian stores. Non-resource growth company. Not a lot of competition. Their core is in Ontario and Quebec and are working on growing out West.
TOP PICK
Very successful retail story in Canada. Have ability to expand customer base by moving their price point from $2 to $4 or $6. Increasing their floor base by almost 10% per year and same store sales growth is 5%-10% per year.
COMMENT
Doing very well. Most of their goods they purchase are from overseas so with a high Cdn$ they have an advantage. He is more geared towards the higher end of consumer discretionary stores.
BUY ON WEAKNESS
Tremendous company. US chain contains Milk and Dairy, but Canada doesn’t, but that is the higher margin way to operarate. Buy on weakness.
TOP PICK
Discount retailer where you can buy anything under $10. Growing their store base by about 10% and same-store sales.
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