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Dollarama Inc
TSX:DOL

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Dollarama Inc Logo
Dollarama Inc
TSX:DOL
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Price: 104.26 CAD -0.69% Market Closed
Updated: Mar 2, 2024

Intrinsic Value

Dollarama, Inc. engages in the provision of online shopping services to various customers. [ Read More ]

The intrinsic value of one DOL stock under the Base Case scenario is 63.12 CAD. Compared to the current market price of 104.26 CAD, Dollarama Inc is Overvalued by 39%.

Key Points:
DOL Intrinsic Value
Base Case
63.12 CAD
Overvaluation 39%
Intrinsic Value
Price
Worst Case
Base Case
Best Case

Valuation Backtest
Dollarama Inc

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Fundamental Analysis

Dollarama's Strong Quarter with SSS and EPS Growth
2024-Q3 Earnings Call

Dollarama's Strong Quarter with SSS and EPS Growth

Dollarama continued to thrive in Q3, marking its 6th quarter of robust double-digit same-store sales (SSS) growth and opening 16 net new stores. A 24% increase in EBITDA and an over 31% rise in earnings per share (EPS) to $0.92 underscored this success. Gross margins reached an impressive 45.4%, with full-year guidance expectations being on the higher end of the 43.5% to 44.5% range, driven by reduced shipping costs and supply chain normalization. The company's Latin America expansion through Dollarcity also prospered, hitting 500 stores. SG&A as a percentage of sales slightly increased to 14.5% for Q3, attributed to higher labor costs with year-end predictions landing on the lower end of the 14.7% to 15.2% guidance range. Dollarcity contributed $18 million to net earnings, reflecting a solid performance. As for fiscal 2025, current economic uncertainties have led Dollarama to defer guidance until Q4 results in March but suggest a normalization of SSS trends after two years of double-digit increases.

Financials

Balance Sheet Decomposition
Dollarama Inc

Current Assets 1.7B
Cash & Short-Term Investments 730.2m
Receivables 35.2m
Other Current Assets 969.1m
Non-Current Assets 3.9B
Long-Term Investments 341.5m
PP&E 2.7B
Intangibles 892.7m
Current Liabilities 1.2B
Accounts Payable 341.1m
Other Current Liabilities 810.5m
Non-Current Liabilities 4.2B
Long-Term Debt 4.1B
Other Non-Current Liabilities 135m
Efficiency
Fundamental Scores

DOL Profitability Score
Profitability Due Diligence

Dollarama Inc's profitability score is 75/100. The higher the profitability score, the more profitable the company is.

Exceptional 3-Year Average ROE
Positive Free Cash Flow
Exceptional ROE
Positive Gross Profit
75/100
Profitability
Score

Dollarama Inc's profitability score is 75/100. The higher the profitability score, the more profitable the company is.

DOL Solvency Score
Solvency Due Diligence

Dollarama Inc's solvency score is 46/100. The higher the solvency score, the more solvent the company is.

High Altman Z-Score
Short-Term Solvency
Long-Term Solvency
Average Interest Coverage
46/100
Solvency
Score

Dollarama Inc's solvency score is 46/100. The higher the solvency score, the more solvent the company is.

Wall St
Price Targets

DOL Price Targets Summary
Dollarama Inc

Wall Street analysts forecast DOL stock price to rise over the next 12 months.

According to Wall Street analysts, the average 1-year price target for DOL is 106.34 CAD with a low forecast of 94.94 CAD and a high forecast of 119.7 CAD.

Lowest
Price Target
94.94 CAD
9% Downside
Average
Price Target
106.34 CAD
2% Upside
Highest
Price Target
119.7 CAD
15% Upside
View Analyst Estimates
View Analyst Estimates

Competitive Landscape

Shareholder Return

DOL Price
Dollarama Inc

1M 1M
+4%
6M 6M
+17%
1Y 1Y
+36%
3Y 3Y
+111%
5Y 5Y
+186%
10Y 10Y
+657%
Annual Price Range
104.26
52w Low
75.5247
52w High
107.23
Price Metrics
Average Annual Return 21.65%
Standard Deviation of Annual Returns 4.08%
Max Drawdown -10%
Shares Statistics
Market Capitalization 29.9B CAD
Shares Outstanding 281 236 129
Percentage of Shares Shorted 1.14%

DOL Return Decomposition
Main factors of price return

What is price return decomposition?

DOL News

Last Important Events
Dollarama Inc

Significant happenings or occurrences that are of interest to investors. These could be company-specific developments or market-wide shifts.

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Sentiment Analysis
Dollarama Inc

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Company Profile

Dollarama Inc Logo
Dollarama Inc

Country

Canada

Industry

Retail

Market Cap

29.9B CAD

Dividend Yield

0.27%

Description

Dollarama, Inc. engages in the provision of online shopping services to various customers. The company is headquartered in Mont-Royal, Quebec. The company went IPO on 2009-10-16. The firm operates through its subsidiaries, including Dollarama L.P and Dollarama International Inc. (Dollarama International). Dollarama L.P. operates the chain of stores in Canada and performs related logistical and administrative support activities. Dollarama International has retail operations in Latin America through Dollarcity, a value retailer that offers an assortment of general merchandise, consumable products and seasonal items in stores located in El Salvador and Guatemala and stores located in Colombia and Peru. Dollarama International also sells merchandise and renders services to Dollarcity. The company offers products under various departments, such as Christmas, school and office, home, kitchen, food, health and beauty, cleaning, hardware, party, toys, electronics and pets.

Contact

QUEBEC
Mont-Royal
5805 Royalmount Ave
+15147371006.0
http://www.dollarama.com/

IPO

2009-10-16

Employees

9 087

Officers

CEO, President & Director
Mr. Neil Rossy
Chief Operating Officer
Ms. Johanne Choinière
Chief Information Officer
Mr. Nicolas Hien
Senior Vice President of Import Division
Mr. Geoffrey Robillard
Founder & Chairman Emeritus
Mr. Laurence Rossy
Chief Financial Officer
Mr. Patrick Bui
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Senior VP of Legal Affairs & Corporate Secretary
Laurence L'Abbe
Senior Vice President of Human Resources
Mark Di Pesa
Special Advisor
Mr. Michael Ross A.C.A., F.C.A., FCPA
VP & Treasurer
Mr. Jean-Philippe Durivage-Lachance
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See Also

Discover More
What is the Intrinsic Value of one DOL stock?

The intrinsic value of one DOL stock under the Base Case scenario is 63.12 CAD.

Is DOL stock undervalued or overvalued?

Compared to the current market price of 104.26 CAD, Dollarama Inc is Overvalued by 39%.