Dollarama Inc. (DOL.TO) Buy, Sell or Hold

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Dollarama Inc. (DOL.TO)

183.57

+3.52 (1.96%)

as of Sep 25, 2026, 8:00:01 pm Market Open.

678 watching

BUY ON WEAKNESS

Allan Tong’s Discover Picks

DOL’s chart shows an upward trend in the past 12 months from $66.66 to peak at $85.88, with higher highs and higher lows. Currently, DOL is trading right at its 50- and 200-day moving averages in the ballpark of $79-80. The current PE is 31x, so DOL is trading above its five-year median average of 28.95x and mathematical average of 28.39x. Shares are now toppy, so buy this on a pullback. DOL pays only a 0.28% dividend yield, but trades at a stable 0.75 beta. Yes, debt is significant, but so is cash flow. Read: Buying pullbacks: DOL, UNH, Linde for our full analysis.

TOP PICK

It grinds out profits year in year out, and grows at double digits. They will expand from 1,500 stores to 2,000 over the decade in high-traffic locations and moderate costs. Same-store sales growth will continue. They have a controlling interest in a Latin American joint venture, Dollar City, which extends growth in that faster-growing region.

(Analysts’ price target is $90.46)

HOLD

Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research.

On several metrics, DOL trades close to the upper end of its 3-year valuation range.
The range is pretty tight to begin with, with forward P/E ratios in the 24x and 29x range, excluding the pandemic crash ratios.
Price to-sales ratio has ranged from 3.4x to 4.7x.
The current multiples are 26.0x forward earnings and 4.2x forward sales.
Debt is high, no doubt, but debt servicing capabilities are high. EBIT to interest expense stands at 69.6x.
Having said that we would be okay with some profit-taking.
We still like it a lot, but if other sectors start performing it could see some selling rotation.
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PARTIAL SELL

With inflation, many consumers are being driven into dollar stores. High quality, good returns. Share price at multi-year highs, 33x earnings. TSX is at 13x. Very levered balance sheet. Take profits. "Be fearful when others are greedy." See his Top Picks.

BUY ON WEAKNESS

Stock price is up 43% YTD. Company offers internationally exposure and is a quality business. Is a good long term investment. Share price is high right now. Wait to buy shares on a pullback.

BUY ON WEAKNESS

Stock price is up 43% YTD. Company offers internationally exposure and is a quality business. Is a good long term investment. Share price is high right now. Wait to buy shares on a pullback.

HOLD

Great price momentum. Very stable stock in terms of volatility. Not the cheapest at 34x earnings. Quality of earnings is high, balance sheet is great, in the right sector. If we see a rise in unemployment, will benefit. In the sweet spot for a recession.

BUY

Very high quality Canadian company. Consistent performer throughout the years. Proven track record of execution. Mature business in Canada. Gains will come fro Latin America growth. Price point is fantastic with multiple entry points ($1, $2, $5). Share price is not cheap and has expensive multiples. Waiting for shares to pullback before buying (below $70).

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TOP PICK

Great short, medium, and long-term investment. Very well managed. Great balance sheet. Good long-term, predictable growth. Foot traffic is up, as is basket size. Same store sales growth is quite robust. Great purchasing power and scale. 3% annualized earnings growth for next 3 years. Lots of free cash. Majority ownership in South America's Dollar City is growing significantly faster than Canadian segment. Yield is 0.29%. (Analysts’ price target is $79.31)

BUY

Earl: In this type of market, you need to be concerned about your return of cash, in addition to return on cash. Rotation into value retailers. Great free cashflow, great growth profile.

SELL

Recent increase in share price is a cause for concern (lots of room for downside). Concerned about margins on products with inflation & supply chain issues. Does not own shares in company. Would sell shares.

PAST TOP PICK

(A Top Pick May 21/21, Up 32%) Thought that as Covid-19 subsided, more customers would be shopping in physical stores. Ability to raise prices. Inflation turning customers to cheaper options. Trading multiples still have room for growth. Will continue to hold.

BUY

Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. It is doing very well and will probably continue to do well in the current market climate. Has a good free cash flow conversion rate. Also consistent in holding well during recessions and tougher market conditions. Unlock Premium - Try 5i Free

HOLD

All-time highs. Earnings beat, dividend raise. Solid company and management. Strong price trend, not expensive, very high ROE. 33x earnings looks quite rich, but it's actually reasonable in light of other metrics. High quality earnings and cashflow.

BUY

More economically sensitive, so when the economy's doing well people spend a bit more money.

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Dollarama Inc. (DOL.TO)