
TSE:DOL
This summary was created by AI, based on 37 opinions in the last 12 months.
Dollarama Inc. (DOL-T) is facing mixed expert opinions as it navigates pressures such as high valuations and softening same-store sales growth in Canada. While analysts acknowledge DOL's strong performance and potential for international expansion, particularly in Latin America, concerns are raised about market saturation and the challenges of growing in foreign markets. Most experts note its premium valuation, highlighting it trades at high multiples, which makes it less appealing for new investors. The company is still recognized for its solid business model and resilience during economic downturns, benefiting from consumers' increasing preference for value-oriented shopping. Future growth prospects are tied to store expansions and adapting to global economic conditions, particularly the impacts of inflation and consumer spending trends.
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.
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)