TSE:DOL

Dollarama Inc. (DOL.TO)

181.22
+5.35 (3.04%)
as of Jun 5, 2026, 8:00:00 pm Market Open.
672 watching
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Investor Insights
star iconJun 6, 2026, 12:00 am

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.

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Consensus
Cautious
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Valuation
Overvalued
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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.

COMMENT
It was a darling 2-3 years ago. There is a limit to how much money they can make on their low margin business. He would need to see a 5% dividend yield before feeling comfortable to own given the competitiveness of the retail space.
PAST TOP PICK
(A Top Pick May 29/19, Up 5%) He still likes it. It has done a great job of defending market share in Canada. If you think the economy is not going to come out of this to the same extent it was a year ago, then you will see a cascading of retail dollars down to DOL-T.
DON'T BUY
While there is a component of online retailing that is taking a share from them right now, this is an essential service. The type of consumer that shows up wants a quick in and out and knows what they want. It could do well in this environment but he is not buying any consumer names at this point.
HOLD
They have low price points and do well during recessions. She owns a different store based in the US instead. She would hold it if you own it, but at 21 times earnings, she would not be buying yet.
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