Dollarama, Inc. (DOL) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Dollarama, Inc.

Why is Dollarama, Inc. ?

High Management Efficiency with a high ROCE of 48.29%

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 9.84

Healthy long term growth as Net Sales has grown by an annual rate of 11.56%

Flat results in Apr 25

INTEREST(HY) At CAD 91.48 MM has Grown at 27.22%
INTEREST COVERAGE RATIO(Q) Lowest at 973.18
DIVIDEND PAYOUT RATIO(Y) Lowest at 10.71%

With ROE of 86.90%, it has a fair valuation with a 35.66 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 35.04%, its profits have risen by 14.8% ; the PEG ratio of the company is 2.3

Majority shareholders : Mutual Funds

Consistent Returns over the last 3 years

Along with generating 35.04% returns in the last 1 year, the stock has outperformed S&P/TSX 60 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Retailing)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Dollarama, Inc. for you?

Low Risk, High Return

Absolute

Risk Adjusted

Volatility

Dollarama, Inc.

42.34%

2.17

21.09%

S&P/TSX 60

19.1%

1.54

14.62%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

11.56%

EBIT Growth (5y)

15.43%

EBIT to Interest (avg)

9.84

Debt to EBITDA (avg)

1.41

Net Debt to Equity (avg)

1.74

Sales to Capital Employed (avg)

1.79

Tax Ratio

26.57%

Dividend Payout Ratio

8.81%

Pledged Shares

Institutional Holding

0.16%

ROCE (avg)

48.29%

ROE (avg)

285.09%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

33.54

EV to EBIT

30.40

EV to EBITDA

24.39

EV to Capital Employed

12.89

EV to Sales

7.68

PEG Ratio

2.20

Dividend Yield

ROCE (Latest)

42.40%

ROE (Latest)

86.90%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bearish

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Bullish

No Trend

OBV

Mildly Bullish

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

10What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CAD 1,568.78 MM

DEBT-EQUITY RATIO (HY)

Lowest at 338.46 %

DIVIDEND PER SHARE(HY)

Highest at CAD 183.82

RAW MATERIAL COST(Y)

Fallen by -4.9% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 4.31%

DEBTORS TURNOVER RATIO(HY)

Highest at 183.82%

-8What is not working for the Company

INTEREST(HY)

At CAD 91.48 MM has Grown at 27.22%

INTEREST COVERAGE RATIO(Q)

Lowest at 973.18

DIVIDEND PAYOUT RATIO(Y)

Lowest at 10.71%

Here's what is working for Dollarama, Inc.

Operating Cash Flow

Highest at CAD 1,568.78 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CAD MM)

Debt-Equity Ratio

Lowest at 338.46 % and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Dividend per share

Highest at CAD 183.82 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (CAD)

Inventory Turnover Ratio

Highest at 4.31%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Debtors Turnover Ratio

Highest at 183.82%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -4.9% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for Dollarama, Inc.

Interest

At CAD 91.48 MM has Grown at 27.22%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CAD MM)

Interest Coverage Ratio

Lowest at 973.18

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Dividend Payout Ratio

Lowest at 10.71%

in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)