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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WMT
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).
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.
BUY ON WEAKNESS
Doesn't own because prefers others. It has been a good stock. A big percentage of the population shops there. Buy but be price conscious when buying.
COMMENT
She owns Dollar Tree instead, because it has multiple price points of products in its store. DOL dominates Canada and has introduced those price points, but has backed off on $5. Inflationary and shipping pressures may impact them, but are handling them well, like packaging items smaller to keep their prices low. She prefers Dollar Tree.
WAIT
A great company. Owned it in the past. Sold it with the notion that the windfall from last year was not going to return. It was deemed an essential retailer when everything was closed. Same store sales comparisons are struggling due to last year. Has checked back a little. A slow and steady grower in retail. It is a good thing but it incurs opportunity cost for other, cheaper cyclical players. Will revisit later in the cycle.
BUY
Dollar Tree and DOL outlooks These stores did well during the lockdown. Soft share prices lately are due to return-to-work. DT is a little cheaper at 14x PE with a recent earnings beat and recently had an earnings beat. But DT has weak price momentum. DOL has outperformed, offers a good PE and had a good earnings beat. DOL has better price momentum. DOL isn't cheap at 30x PE, but it's okay; low volatility. Both stocks are similar overall.
PAST TOP PICK
(A Top Pick Jun 11/20, Up 13%) He sold. Still likes the company, but he had better ideas in the near-term. Windfall last year, as it was an essential retailer. This year, comparisons will lag and some aisles are off-limits as non-essential.
TOP PICK
Held in very well during the pandemic. Also a very strong re-opening play. Guiding opening for 50-60 stores. Made a big acquisition in South America. Earnings up 23% YoY. Expects earnings to grow by 21% 2021-2023. Trading at 20x 2023. A name that works on price to growth, even in inflation. M&A and SA growth is positive. (Analysts’ price target is $62.00)
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