Dollarama (DOL) AI Stock Analysis

• Market Cap: $53.09B
• Dividend Yield: 0.21%
• Average Volume (3M): 431.33K
• Price to Earnings (P/E): 44.0
• Beta (1Y): 0.53
• Revenue Growth: 9.20%
• EPS Growth: 18.11%
• Country: CA
• Employees: 7,720
• Sector: Consumer Defensive
• Sector Strength: 46
• Industry: Discount Stores
• EPS (TTM): 1.16
• Shares Outstanding: 276,387,820
• 10 Day Avg. Volume: 468,064
• 30 Day Avg. Volume: 431,329
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 0.97
• Enterprise Value/Revenue: 7.93
• Enterprise Value/Gross Profit: 17.49
• Enterprise Value/Ebitda: 23.40
• 1Y Price Target: $204.15
• Price Target Upside: 6.29% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 12

• Rating: 77 Outperform
• Price Target: C$223.00 ▲(16.10% Upside)

Dollarama's overall stock score is driven by its strong financial performance and positive earnings call, reflecting robust growth and expansion strategies. Technical indicators support a bullish outlook, though valuation concerns and macroeconomic challenges present potential risks.

Positive Factors

Earnings

Expecting another solid quarter; increasing target to C$178.00.

Market Position

Analyst rates Dollarama shares as Outperform due to its status as a high-quality retailer with several competitive advantages in the Canadian market.

Product Strategy

Portable Model Bodes Promising for BUY.

Negative Factors

International Growth

There is caution towards Dollarcity's near-term growth trajectory due to a lower growth rate and a volatile political climate in Colombia.

Media Rights

Lowering Estimates/Targets Owing to New NHL Rights.

Dollarama Business Overview & Revenue Model

Company Description

Dollarama Inc. operates a chain of dollar stores in Canada. Its stores offer general merchandise, consumables, and seasonal products. The company also sells its products through online store. As of January 30, 2022, it operated 1,421 stores. The company was formerly known as Dollarama Capital Corporation and changed its name to Dollarama Inc. in September 2009. Dollarama Inc. was founded in 1992 and is headquartered in Montreal, Canada.

How the Company Makes Money

Dollarama generates revenue primarily through the sale of a wide assortment of products at fixed low prices. The company's revenue model is based on high-volume sales, low operating costs, and a carefully managed supply chain. Key revenue streams include in-store sales from its extensive product range and seasonal merchandise. Dollarama also benefits from private label products, which help to enhance profit margins. The company maintains strong relationships with suppliers to negotiate favorable pricing, enabling it to keep costs low. Significant factors contributing to its earnings include its widespread store presence across Canada, a growing customer base, and the strategic expansion of its product offerings to meet diverse consumer needs.

Dollarama Financial Statement Overview

Summary

Dollarama demonstrates robust financial performance with consistent revenue growth, strong profitability, and effective cash flow management. However, the high debt-to-equity ratio presents a leverage risk that requires monitoring.

Income Statement

Dollarama shows strong financial performance with consistent revenue growth and solid profitability. The TTM (Trailing-Twelve-Months) gross profit margin is 45.3%, and the net profit margin is 18.8%. Revenue grew by 10.1% from 2024 to 2025, indicating a positive growth trajectory. The EBIT and EBITDA margins are robust at 27.2% and 33.9% respectively, highlighting operational efficiency. Overall, Dollarama's income statement reflects a healthy business with strong growth and profitability.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 3.56, indicating significant leverage which could pose risks during economic downturns. However, the return on equity is impressive at 92.9% for TTM, driven by high net income. The equity ratio stands at 20.1%, suggesting moderate financial stability. While the company effectively utilizes its equity to generate returns, the high leverage warrants careful monitoring.

Cash Flow

Dollarama's cash flow statement showcases strong cash generation capabilities. The operating cash flow to net income ratio of 1.37 indicates efficient cash conversion. Free cash flow grew by 10.5% from 2024 to 2025, reflecting effective cash management. The free cash flow to net income ratio is 1.16, underscoring the company's ability to generate cash relative to its net earnings. Overall, Dollarama's cash flow situation is strong, supporting its growth and debt service.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	6.53B	6.41B	5.87B	5.05B	4.33B	4.03B
Gross Profit	2.96B	2.89B	2.61B	2.20B	1.90B	1.77B
EBITDA	2.21B	2.15B	1.81B	1.48B	1.25B	1.11B
Net Income	1.23B	1.17B	1.01B	801.86M	663.17M	564.35M
Balance Sheet
Total Assets	6.57B	6.48B	5.26B	4.82B	4.06B	4.22B
Cash, Cash Equivalents and Short-Term Investments	229.01M	122.69M	313.92M	101.26M	71.06M	439.14M
Total Debt	4.70B	4.71B	4.33B	4.21B	3.61B	3.46B
Total Liabilities	5.25B	5.29B	4.88B	4.79B	4.13B	3.89B
Stockholders Equity	1.32B	1.19B	380.85M	28.41M	-66.03M	334.85M
Cash Flow
Free Cash Flow	1.43B	1.40B	1.25B	712.22M	906.37M	721.25M
Operating Cash Flow	1.68B	1.64B	1.53B	869.04M	1.07B	889.08M
Investing Cash Flow	-200.80M	-224.14M	-250.87M	-156.55M	-158.67M	-264.52M
Financing Cash Flow	-1.54B	-1.61B	-966.62M	-682.29M	-1.28B	-275.88M

Dollarama Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 192.07
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:DOL, the sentiment is Neutral. The current price of 192.07 is below the 20-day moving average (MA) of 192.47, above the 50-day MA of 190.83, and above the 200-day MA of 162.23, indicating a neutral trend. The MACD of 1.47 indicates Positive momentum. The RSI at 50.57 is Neutral, neither overbought nor oversold. The STOCH value of 29.47 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:DOL.

Dollarama Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DOL	77 Outperform	$53.09B	43.98	94.57%	0.21%	9.20%	18.11%
LNF	75 Outperform	C$2.07B	12.95	14.38%	2.67%	0.57%	8.54%
Sector *	63 Neutral	$20.46B	14.47	-3.60%	3.13%	2.63%	-6.18%
CDNTF	―	$6.91B	18.24	13.84%	2.85%	―	―
ATZAF	―	$5.45B	38.82	23.27%	―	―	―
CDNAF	―	$6.91B	12.39	13.84%	4.08%	―	―
PET	72 Outperform	C$2.62B	28.06	126.66%	1.20%	5.18%	17.66%

Dollarama Corporate Events

Dollarama Enters Australian Market with Acquisition of The Reject Shop

Dollarama has completed its acquisition of The Reject Shop, Australia’s largest discount retailer, marking its entry into the Australian market. This strategic move is expected to enhance Dollarama’s international growth strategy by leveraging its expertise in sourcing, merchandising, and retail operations to deliver value to Australian consumers and expand its market presence.

The most recent analyst rating on (TSE:DOL) stock is a Hold with a C$138.00 price target. To see the full list of analyst forecasts on Dollarama stock, see the TSE:DOL Stock Forecast page.

Dollarama Announces $600 Million Private Offering of Senior Unsecured Notes

Dollarama Inc. announced a private offering of $600 million in senior unsecured notes, which are due in December 2030 and carry an interest rate of 3.850% per annum. The proceeds from this offering will be used to repay existing debt and for general corporate purposes, potentially strengthening Dollarama’s financial position and operational flexibility. The notes have been assigned a provisional BBB (high) rating by DBRS Limited and are being offered in Canada through a private placement, highlighting Dollarama’s strategic financial management and its focus on maintaining a stable credit profile.

The most recent analyst rating on (TSE:DOL) stock is a Hold with a C$128.00 price target. To see the full list of analyst forecasts on Dollarama stock, see the TSE:DOL Stock Forecast page.

Dollarama Announces Election of Board of Directors

Dollarama Inc. announced the election of its board of directors at the annual shareholders meeting, with all nominees listed in the management proxy circular being elected. This election reflects the company’s stable governance structure, which is crucial for maintaining its market position and operational continuity, benefiting stakeholders by ensuring consistent leadership.

The most recent analyst rating on (TSE:DOL) stock is a Hold with a C$128.00 price target. To see the full list of analyst forecasts on Dollarama stock, see the TSE:DOL Stock Forecast page.

Dollarama Reports Strong Q1 2026 Results and Expands Internationally

Dollarama Inc. reported strong financial results for the first quarter of fiscal 2026, with an 8.2% increase in sales to $1,521.2 million and a 26.9% rise in net earnings to $273.8 million. The company attributes this growth to increased store numbers, strong demand for consumables, and successful seasonal offerings. Dollarama is also advancing its international expansion plans with the imminent opening of its first stores in Mexico and the anticipated acquisition of Australia’s largest discount retailer, The Reject Shop, which is expected to close by the end of July.

The most recent analyst rating on (TSE:DOL) stock is a Hold with a C$128.00 price target. To see the full list of analyst forecasts on Dollarama stock, see the TSE:DOL Stock Forecast page.