Dollarama Inc. (DOL.TO)

Household name, especially during inflationary times. Business has grown well. Not necessarily a great stock. Valuation quite expensive at 33x PE, twice as expensive as the TSX. Virtually no yield. Wonky balance sheet. Take profits, redeploy into something with a better multiple.

It trades at 28X PE, always expensive. Their US peers like Dollar Tree, have not done well. Long-term, he's not sure. To make money, you may need to trade it. But he's unsure about DOL which continues to defy gravity. Maybe buy a dip, which seems overdue.

They face little competition and consumer demand for cheap goods keeps rising given inflation and high taxes. They are efficiency with consistent revenue growth and operating margins. They bought back 13.6 million shares last summer. 17.5% EPS growth rate over the next several years. The chart shows higher highs and higher lows

Strong business model. Owns shares. Excellent retail footprint. Would recommend holding.

Unique business, big player. If you see a dip, buy it. Even at these levels, if you're buying for the long term, has proven itself to execute incredibly well on its vision. Will continue to grow across Canada. Keep an eye on possible hiccups with international operations down the road.

Largest operator in Canada, aiming for 2000 locations. Resilient business model, can do well in almost any environment. Growing consumer demand for value-priced goods. Operational efficiencies surpass many companies. Steady revenue growth of 10% a year for the last 5 years, healthy operating margins. Yield is 0.3%.

Last year, introduced share repurchase program. Buying back more shares. 17% earnings growth forecast. Technically sound, stock's making higher highs and higher lows.

Great business. Always executes incredibly well. Does well in a recession. Great Canadian company, strong competitive advantage over US interlopers.

Does not own shares in business, however - strong business with excellent management team. Inflation not impacting business too much. Defensive stock good for weak economic times. Would recommend holding company shares. 

Unique franchise. Executes incredibly well. Benefits in an environment where people are looking to save money. When stock falls a bit, like now, you have to take that chance and buy. You'll do well over the long term.

Stock recently hit record highs. Has been buying on weakness. Is a very strong business. Expecting growth from price increases and store count increases. Would wait for share price to fall before buying. 

They plan to expand from 1,500 to 2,000 locations. Have a joint venture in Latin America. Are taking market share from other retailers as consumers tighten their belts. A fantastic compounder. He remains long and strong on this.

He wished he bought this 5 years ago.  They have a niche, many loyal customers and more will shop here than at Amazon if there's an Amazon. But shares are fully valued currently. Be cautious.

Their advantage is merchandise procurement so they can price sharply, never more important then these inflationary times. Same-store sales growth is around 19% from consumers trading down. Have a small, rapidly growing partnership with Dollar City in Latin America with 400 stores, early days there. Will also expand in Canada this decade. A cash flow machine. Offers value and grow and will be resilient in a weak economy.

DOL continues to execute extremely well and we think it is a good stock in the current uncertain environment. Its last quarter was solid and it increased its same store sales outlook to 10%+, which is still likely conservative giving it has been tracking higher than that recently. 
Unlock Premium - Try 5i Free