TSE:DOL

Dollarama Inc. (DOL.TO)

186.93
-1.00 (0.53%)
as of Jul 22, 2026, 5:11:09 pm Market Open.
676 watching
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Investor Insights
star iconJul 22, 2026, 12:00 am

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.

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Consensus
Cautious
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Valuation
Overvalued
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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)
BUY ON WEAKNESS
They reported earnings in March, good numbers, and shares moved up, but since then shares have pulled back. Puzzling. Investors are looking for reopening stocks like hotels and cinemas. DOL is a steady eddy in earnings and revenues growth, and continues to do well. It's on his radar and he'd buy on a pullback.
PARTIAL BUY
Allan Tong’s Discover Picks Dollarama sells cheap stuff and has enjoyed a near-monopoly on selling household goods during these lockdowns. No argument that DOL has done very well. It peaked December 9 at $54.58 November 1, just shy of its all-time high. DOL stock has since peeled back 10%. It continues to enjoy a strong brand in Canada and the ubiquity of its locations. Its last quarter in December reported sales up 14% and earnings 23%, blowing past street expectations. DOL stock is expected to grow 15% this year. Given the winter lockdown, it’s safe to say that DOL stock will report another strong quarter or two. In fact, DOL has beaten three of its last four quarters. Read
Consumer Products
PARTIAL SELL
Good name in the TSX. One of the better growth names. 15% growth rate going forward. 24x forward PE. He's not into consumer staples at this point, favours cyclicals.
TOP PICK

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)

BUY

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

BUY

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

PAST TOP PICK
(A Top Pick Nov 13/19, Up 4%) Essential service, pandemic-resistant business model. High ROE. Investments in Central America could do well over time. Continues to like the growth prospects.
HOLD

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

BUY ON WEAKNESS
He trimmed his holding. It's a safe-haven retailer during the pandemic. It's fully priced now. Wait for the low-$40s to enter.
HOLD
This segment will likely come out of this doing well. They will benefit from increased consumer thriftiness. He has others out there he prefers in this market segment, where growth opportunities are better.
BUY ON WEAKNESS
The stock has been rallying into earnings. They have a unique position in Canada as a value retailer and they have growth levers in Canada along with Latin America. They have an opportunity as other retailers may drop out. It trades at 27 times earnings -- a little rich. A long term winner. He owns it, but would add at lower levels.
PAST TOP PICK
(A Top Pick Jun 13/19, Up 13%) People are buying more on each trip. DOL-T is an essential service. Results yesterday were better than expected, even if down year over year. Same-store growth was positive. Earnings were under pressure because of cost pressures to deal with COVID-19. They are a strong retailer and the biggest dollar store in the country. This stock will be a beauty over the long term.
TOP PICK
It is a very long term growth story. They have well telegraphed plans to increase to 1700 stores. They are experts at procurement and merchandising. They create a compelling value proposition for shoppers. They may benefit from a lot of retailers not surviving the pandemic. (Analysts’ price target is $50.31)
BUY

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.

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