BUY
Dollarama Inc.
Allan Tong’s Discover Picks

Let’s start with this homegrown success story. Since February 2020, DOL has moved from $39 to $84 currently, close to 52-week highs. DOL has beaten or met its last four quarters, it continues to expand, it trades at a low 0.72 beta at 30.41x earnings. That’s lower than the 34x in 2022, but lately has crept above its 5-year average of 28.23x.  Read The dollar wars for our full analysis.

Consumer Products
COMMENT
Dollarama Inc.

Has done. They continue to open new stores with some international presence. Inflation and a possible recession could drive more foot traffic. Highly defensive. She owns Dollar Tree in the US instead which offers more upside as they raise prices and add products. DOL also trades at a premium to peers.

Consumer Products
Unspecified
Dollarama Inc.

Although he has trimmed a bit, it is still a core position. It has always done well with growth, etc., and share buybacks. Very expensive at mid 20's to low 30's times earnings.

Consumer Products
WEAK BUY
Dollarama Inc.
DOL vs. ATD

Both are timely, great secular growers. If he really had to choose, he'd pick ATD because of the more attractive valuation of 15-16x. DOL is at a mid-high 20s multiple, but it's justifiable because it has a faster organic growth rate. ATD has a more under-levered balance sheet, a capable serial acquirer. ATD announced significant transaction last week, increases presence in Europe. Good deal, high single-digit accretion, manageable financially, more to come.

Consumer Products
BUY ON WEAKNESS
Dollarama Inc.
Allan Tong’s Discover Picks

DOL’s chart shows an upward trend in the past 12 months from $66.66 to peak at $85.88, with higher highs and higher lows. Currently, DOL is trading right at its 50- and 200-day moving averages in the ballpark of $79-80. The current PE is 31x, so DOL is trading above its five-year median average of 28.95x and mathematical average of 28.39x. Shares are now toppy, so buy this on a pullback. DOL pays only a 0.28% dividend yield, but trades at a stable 0.75 beta. Yes, debt is significant, but so is cash flow. Read: Buying pullbacks: DOL, UNH, Linde for our full analysis.

Consumer Products
TOP PICK
Dollarama Inc.

It grinds out profits year in year out, and grows at double digits. They will expand from 1,500 stores to 2,000 over the decade in high-traffic locations and moderate costs. Same-store sales growth will continue. They have a controlling interest in a Latin American joint venture, Dollar City, which extends growth in that faster-growing region.

(Analysts’ price target is $90.46)
Consumer Products
HOLD
Dollarama Inc.
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research.

On several metrics, DOL trades close to the upper end of its 3-year valuation range. 
The range is pretty tight to begin with, with forward P/E ratios in the 24x and 29x range, excluding the pandemic crash ratios. 
Price to-sales ratio has ranged from 3.4x to 4.7x. 
The current multiples are 26.0x forward earnings and 4.2x forward sales. 
Debt is high, no doubt, but debt servicing capabilities are high. EBIT to interest expense stands at 69.6x. 
Having said that we would be okay with some profit-taking. 
We still like it a lot, but if other sectors start performing it could see some selling rotation. 
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Consumer Products
PARTIAL SELL
Dollarama Inc.

With inflation, many consumers are being driven into dollar stores. High quality, good returns. Share price at multi-year highs, 33x earnings. TSX is at 13x. Very levered balance sheet. Take profits. "Be fearful when others are greedy." See his Top Picks.

Consumer Products
BUY ON WEAKNESS
Dollarama Inc.
Stock price is up 43% YTD. Company offers internationally exposure and is a quality business. Is a good long term investment. Share price is high right now. Wait to buy shares on a pullback.
Consumer Products
BUY ON WEAKNESS
Dollarama Inc.
Stock price is up 43% YTD. Company offers internationally exposure and is a quality business. Is a good long term investment. Share price is high right now. Wait to buy shares on a pullback.
Consumer Products
HOLD
Dollarama Inc.
Great price momentum. Very stable stock in terms of volatility. Not the cheapest at 34x earnings. Quality of earnings is high, balance sheet is great, in the right sector. If we see a rise in unemployment, will benefit. In the sweet spot for a recession.
Consumer Products
BUY
Dollarama Inc.
Very high quality Canadian company. Consistent performer throughout the years. Proven track record of execution. Mature business in Canada. Gains will come fro Latin America growth. Price point is fantastic with multiple entry points ($1, $2, $5). Share price is not cheap and has expensive multiples. Waiting for shares to pullback before buying (below $70).
Consumer Products
TOP PICK
Dollarama Inc.
Great short, medium, and long-term investment. Very well managed. Great balance sheet. Good long-term, predictable growth. Foot traffic is up, as is basket size. Same store sales growth is quite robust. Great purchasing power and scale. 3% annualized earnings growth for next 3 years. Lots of free cash. Majority ownership in South America's Dollar City is growing significantly faster than Canadian segment. Yield is 0.29%. (Analysts’ price target is $79.31)
Consumer Products
BUY
Dollarama Inc.
Earl: In this type of market, you need to be concerned about your return of cash, in addition to return on cash. Rotation into value retailers. Great free cashflow, great growth profile.
Consumer Products
SELL
Dollarama Inc.
Recent increase in share price is a cause for concern (lots of room for downside). Concerned about margins on products with inflation & supply chain issues. Does not own shares in company. Would sell shares.
Consumer Products
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Dollarama Inc.(DOL-T) Rating

Ranking : 4 out of 5

Bullish - Buy Signals / Votes : 7

Neutral - Hold Signals / Votes : 2

Bearish - Sell Signals / Votes : 2

Total Signals / Votes : 11

Stockchase rating for Dollarama Inc. is calculated according to the stock experts' signals. A high score means experts mostly recommend to buy the stock while a low score means experts mostly recommend to sell the stock.

Dollarama Inc.(DOL-T) Frequently Asked Questions

What is Dollarama Inc. stock symbol?

Dollarama Inc. is a Canadian stock, trading under the symbol DOL-T on the Toronto Stock Exchange (DOL-CT). It is usually referred to as TSX:DOL or DOL-T

Is Dollarama Inc. a buy or a sell?

In the last year, 11 stock analysts published opinions about DOL-T. 7 analysts recommended to BUY the stock. 2 analysts recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for Dollarama Inc..

Is Dollarama Inc. a good investment or a top pick?

Dollarama Inc. was recommended as a Top Pick by on . Read the latest stock experts ratings for Dollarama Inc..

Why is Dollarama Inc. stock dropping?

Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.

Is Dollarama Inc. worth watching?

11 stock analysts on Stockchase covered Dollarama Inc. In the last year. It is a trending stock that is worth watching.

What is Dollarama Inc. stock price?

On 2023-06-01, Dollarama Inc. (DOL-T) stock closed at a price of $82.32.