
TSE:DOL
This summary was created by AI, based on 37 opinions in the last 12 months.
Dollarama Inc. (DOL-T) is recognized as a well-managed company with solid long-term growth prospects, particularly as economic conditions encourage consumers to seek value. However, many experts express concerns regarding the stock's high valuation, indicating a price-to-earnings (PE) ratio that hovers around 30-40x, which some consider excessive given its growth rate. While the retail giant has successfully expanded internationally, particularly in Australia and Latin America, this growth is perceived as insufficient to justify its current price. There's a consensus that despite the company being seen as a reliable haven during economic downturns, the stock's price point may not offer an attractive entry for long-term investors at present. Experts recommend caution and suggest potentially waiting for a more favorable valuation before investing further.
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.