
TSE:DOL
This summary was created by AI, based on 38 opinions in the last 12 months.
Dollarama Inc. (DOL-T) is viewed as a well-run company with continued growth potential, especially in the expanding international markets of Latin America and Australia. However, experts are cautious about the stock's current high valuation, often citing it as overvalued with price-to-earnings (PE) ratios hovering around the mid-30s to 40x range. While the company has demonstrated resilience during tougher economic times, pushing consumers toward value-focused stores, concerns about market saturation in Canada and slower same-store sales growth persist. The company's strong profit margins and openings of new locations are positive indicators, suggesting that while Dollarama is a solid establishment in Canada's retail space, timing and valuation are crucial factors for potential investors. Several experts recommend waiting for a better buying opportunity or a significant pullback before investing.
They're making money with a 3.8% free cash flow yield or $610 million FCF. In their December quarterly report, sales were up 14% and earnings 23% (15% above the street's expectations). Earnings are expected to grow 15% in 2021 + 17% in 2022. High ROE of 11%. (Analysts’ price target is $59.93)
Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. It knows its business and has maintained it for a while. The addition of food is a natural move. Unlock Premium - Try 5i Free
Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. Likes it quite a bit and it has proven itself over decades. It is currently not cheap but there is good growth prospects for the stock. Unlock Premium - Try 5i Free
Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. The company is very well run with a strong position in Canada.They have high debt but it should not affect their small dividend payments. Growth will be better in 2021. Unlock Premium - Try 5i Free
DOL vs Dollar Tree vs. Dollar General He likes Dollar General for its location and execution. Doesn't like Dollar Tree because their locations are urban centres where there's too much competition. He prefers Dollarama over Dollar General, but likes DOL, but many DOL stores are inside malls, which is a problem now (malls are closed). He prefers DOL to Dollar Tree because they execute better; and Dollar General over Dollar Tree.