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Dollarama

TSX:DOL
Snowflake Description

Reasonable growth potential with questionable track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
DOL
TSX
CA$12B
Market Cap
  1. Home
  2. CA
  3. Retail
Company description

Dollarama Inc. operates a chain of dollar stores in Canada. The last earnings update was 119 days ago. More info.


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DOL Share Price and Events
7 Day Returns
-5.5%
TSX:DOL
-1%
North America Multiline Retail
3.7%
CA Market
1 Year Returns
1.5%
TSX:DOL
-12.2%
North America Multiline Retail
-23.7%
CA Market
DOL Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Dollarama (DOL) -5.5% -1.5% -13.3% 1.5% 2.9% 59.3%
North America Multiline Retail -1% -14.4% -25.2% -12.2% 19.5% -19%
CA Market 3.7% -19.7% -24.3% -23.7% -21.4% -15.5%
1 Year Return vs Industry and Market
  • DOL outperformed the Multiline Retail industry which returned -12.2% over the past year.
  • DOL outperformed the Market in Canada which returned -23.7% over the past year.
Price Volatility
DOL
Industry
5yr Volatility vs Market

Value

 Is Dollarama undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Dollarama to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Dollarama.

TSX:DOL Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 12 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 5.8%
Perpetual Growth Rate 10-Year CA Government Bond Rate 1.4%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for TSX:DOL
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year CA Govt Bond Rate 1.4%
Equity Risk Premium S&P Global 5.4%
Multiline Retail Unlevered Beta Simply Wall St/ S&P Global 0.42
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.424 (1 + (1- 26.5%) (27.87%))
0.672
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.8
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.44% + (0.8 * 5.44%)
5.79%

Discounted Cash Flow Calculation for TSX:DOL using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Dollarama is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

TSX:DOL DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (CAD, Millions) Source Present Value
Discounted (@ 5.79%)
2020 553.00 Analyst x5 522.72
2021 637.40 Analyst x5 569.52
2022 758.00 Analyst x3 640.19
2023 750.00 Analyst x1 598.76
2024 748.11 Est @ -0.25% 564.55
2025 750.03 Est @ 0.26% 535.01
2026 754.61 Est @ 0.61% 508.81
2027 761.10 Est @ 0.86% 485.08
2028 768.97 Est @ 1.03% 463.27
2029 777.85 Est @ 1.16% 442.96
Present value of next 10 years cash flows CA$5,330.00
TSX:DOL DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= CA$777.85 × (1 + 1.44%) ÷ (5.79% – 1.44%)
CA$18,130.82
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= CA$18,130.82 ÷ (1 + 5.79%)10
CA$10,324.98
TSX:DOL Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= CA$5,330.00 + CA$10,324.98
CA$15,654.98
Equity Value per Share
(CAD)
= Total value / Shares Outstanding
= CA$15,654.98 / 310.23
CA$50.46
TSX:DOL Discount to Share Price
Calculation Result
Value per share (CAD) From above. CA$50.46
Current discount Discount to share price of CA$39.04
= -1 x (CA$39.04 - CA$50.46) / CA$50.46
22.6%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Dollarama is available for.
Intrinsic value
23%
Share price is CA$39.04 vs Future cash flow value of CA$50.46
Current Discount Checks
For Dollarama to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Dollarama's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Dollarama's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Dollarama's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Dollarama's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
TSX:DOL PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-11-03) in CAD CA$1.78
TSX:DOL Share Price ** TSX (2020-03-31) in CAD CA$39.04
North America Multiline Retail Industry PE Ratio Median Figure of 10 Publicly-Listed Multiline Retail Companies 7.62x
Canada Market PE Ratio Median Figure of 499 Publicly-Listed Companies 10.37x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Dollarama.

TSX:DOL PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= TSX:DOL Share Price ÷ EPS (both in CAD)

= 39.04 ÷ 1.78

21.97x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dollarama is overvalued based on earnings compared to the North America Multiline Retail industry average.
  • Dollarama is overvalued based on earnings compared to the Canada market.
Price based on expected Growth
Does Dollarama's expected growth come at a high price?
Raw Data
TSX:DOL PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 21.97x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 12 Analysts
8.6%per year
North America Multiline Retail Industry PEG Ratio Median Figure of 9 Publicly-Listed Multiline Retail Companies 0.24x
Canada Market PEG Ratio Median Figure of 233 Publicly-Listed Companies 0.71x

*Line of best fit is calculated by linear regression .

TSX:DOL PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 21.97x ÷ 8.6%

2.55x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dollarama is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Dollarama's assets?
Raw Data
TSX:DOL PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-11-03) in CAD CA$-0.36
TSX:DOL Share Price * TSX (2020-03-31) in CAD CA$39.04
North America Multiline Retail Industry PB Ratio Median Figure of 14 Publicly-Listed Multiline Retail Companies 0.96x
Canada Market PB Ratio Median Figure of 2,354 Publicly-Listed Companies 0.99x
TSX:DOL PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= TSX:DOL Share Price ÷ Book Value per Share (both in CAD)

= 39.04 ÷ -0.36

-108.16x

* Primary Listing of Dollarama.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dollarama has negative assets, we can't compare the value of its assets to the North America Multiline Retail industry average.
X
Value checks
We assess Dollarama's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Multiline Retail industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Multiline Retail industry average (and greater than 0)? (1 check)
  5. Dollarama has a total score of 1/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Dollarama expected to perform in the next 1 to 3 years based on estimates from 12 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
8.6%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Dollarama expected to grow at an attractive rate?
  • Dollarama's earnings growth is expected to exceed the low risk savings rate of 1.4%.
Growth vs Market Checks
  • Dollarama's earnings growth is expected to exceed the Canada market average.
  • Dollarama's revenue growth is expected to exceed the Canada market average.
Annual Growth Rates Comparison
Raw Data
TSX:DOL Future Growth Rates Data Sources
Data Point Source Value (per year)
TSX:DOL Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 12 Analysts 8.6%
TSX:DOL Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 12 Analysts 6.9%
North America Multiline Retail Industry Earnings Growth Rate Market Cap Weighted Average 6.9%
North America Multiline Retail Industry Revenue Growth Rate Market Cap Weighted Average 4.2%
Canada Market Earnings Growth Rate Market Cap Weighted Average 7.1%
Canada Market Revenue Growth Rate Market Cap Weighted Average 3.7%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
TSX:DOL Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (4 months ago) See Below
Future Estimates Average of up to 12 Analyst Estimates (S&P Global) See Below
All numbers in CAD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
TSX:DOL Future Estimates Data
Date (Data in CAD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-01-31 938
2022-01-31 4,354 936 672 6
2021-01-31 4,039 853 606 12
2020-04-01
2020-01-31 3,784 790 558 12
TSX:DOL Past Financials Data
Date (Data in CAD Millions) Revenue Cash Flow Net Income *
2019-11-03 3,782 606 560
2019-08-04 3,698 531 554
2019-05-05 3,620 568 551
2019-02-03 3,549 533 549
2018-10-28 3,427 660 537
2018-07-29 3,373 652 535
2018-04-29 3,317 613 526
2018-01-28 3,266 637 519
2017-10-29 3,183 587 503
2017-07-30 3,111 565 483
2017-04-30 3,027 551 457
2017-01-29 2,963 505 446

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Dollarama's earnings are expected to grow by 8.6% yearly, however this is not considered high growth (20% yearly).
  • Dollarama's revenue is expected to grow by 6.9% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
TSX:DOL Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (4 months ago) See Below
Future Estimates Average of up to 12 Analyst Estimates (S&P Global) See Below

All data from Dollarama Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

TSX:DOL Future Estimates Data
Date (Data in CAD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-01-31
2022-01-31 2.25 2.27 2.23 3.00
2021-01-31 1.97 2.13 1.89 6.00
2020-04-01
2020-01-31 1.76 1.78 1.74 6.00
TSX:DOL Past Financials Data
Date (Data in CAD Millions) EPS *
2019-11-03 1.78
2019-08-04 1.74
2019-05-05 1.72
2019-02-03 1.69
2018-10-28 1.63
2018-07-29 1.61
2018-04-29 1.57
2018-01-28 1.54
2017-10-29 1.47
2017-07-30 1.39
2017-04-30 1.30
2017-01-29 1.25

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Dollarama is expected to make outstanding use of shareholders’ funds in the future (Return on Equity greater than 40%).
X
Future performance checks
We assess Dollarama's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the North America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the North America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Dollarama has a total score of 4/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Dollarama performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Dollarama's growth in the last year to its industry (Multiline Retail).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Dollarama's year on year earnings growth rate has been positive over the past 5 years.
  • Dollarama's 1-year earnings growth is less than its 5-year average (4.2% vs 13.2%)
  • Dollarama's earnings growth has not exceeded the North America Multiline Retail industry average in the past year (4.2% vs 4.4%).
Earnings and Revenue History
Dollarama's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Dollarama Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

TSX:DOL Past Revenue, Cash Flow and Net Income Data
Date (Data in CAD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-11-03 3,781.80 560.22 877.27
2019-08-04 3,698.42 553.68 852.67
2019-05-05 3,620.47 550.85 837.28
2019-02-03 3,548.50 548.87 826.60
2018-10-28 3,426.86 536.81 655.56
2018-07-29 3,373.18 534.81 696.18
2018-04-29 3,317.21 526.26 734.04
2018-01-28 3,266.09 519.41 774.21
2017-10-29 3,182.55 502.66 761.83
2017-07-30 3,110.67 482.62 756.12
2017-04-30 3,027.15 457.17 748.59
2017-01-29 2,963.22 445.64 736.69
2016-10-30 2,875.16 424.38 727.32
2016-07-31 2,800.95 414.40 715.85
2016-05-01 2,725.27 403.52 702.53
2016-01-31 2,650.33 385.15 691.74
2015-11-01 2,552.94 360.60 669.81
2015-08-02 2,476.42 333.54 653.46
2015-05-03 2,395.73 306.97 641.09
2015-02-01 2,330.81 295.41 627.08
2014-11-02 2,244.00 278.13 755.74
2014-08-03 2,178.98 266.80 691.13
2014-05-04 2,117.70 257.67 630.11
2014-02-02 2,064.68 250.09 567.33
2013-11-03 2,044.27 244.24 482.70
2013-08-04 1,979.31 234.03 475.26
2013-05-05 1,908.97 224.05 464.57

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • It is difficult to establish if Dollarama has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) due to its liabilities exceeding its assets.
  • Dollarama used its assets more efficiently than the North America Multiline Retail industry average last year based on Return on Assets.
  • Dollarama's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Dollarama's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Multiline Retail industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Dollarama has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Dollarama's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Dollarama's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Dollarama's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • Dollarama's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Dollarama's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Dollarama has negative shareholder equity (liabilities exceed assets) therefore debt is not covered by short term assets.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Dollarama Company Filings, last reported 4 months ago.

TSX:DOL Past Debt and Equity Data
Date (Data in CAD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-11-03 -112.70 1,883.45 64.00
2019-08-04 -106.01 1,874.10 139.05
2019-05-05 -219.00 1,887.75 55.30
2019-02-03 -234.10 1,898.23 50.37
2018-10-28 -216.47 1,899.00 78.84
2018-07-29 -57.21 1,775.81 181.70
2018-04-29 -146.63 1,783.08 90.57
2018-01-28 -252.36 1,665.65 54.84
2017-10-29 -15.30 1,516.97 83.94
2017-07-30 -59.39 1,473.81 86.81
2017-04-30 35.57 1,454.90 64.03
2017-01-29 100.28 1,328.74 62.02
2016-10-30 200.35 1,274.64 75.36
2016-07-31 251.43 1,197.75 115.10
2016-05-01 327.06 1,067.78 66.01
2016-01-31 466.85 924.31 68.08
2015-11-01 623.83 797.37 80.56
2015-08-02 737.25 689.29 61.39
2015-05-03 735.96 682.70 90.65
2015-02-01 740.48 564.49 45.42
2014-11-02 696.20 607.35 27.58
2014-08-03 678.05 583.88 34.58
2014-05-04 748.10 541.78 59.03
2014-02-02 864.17 398.46 76.85
2013-11-03 913.44 387.40 103.06
2013-08-04 912.06 357.27 108.15
2013-05-05 970.61 264.20 59.29
  • Dollarama has negative shareholder equity (liabilities exceed assets), this is a more serious situation compared with a high debt level.
  • Irrelevant to check if Dollarama's debt level has increased considering it has negative shareholder equity.
  • Debt is well covered by operating cash flow (32.2%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 14.6x coverage).
X
Financial health checks
We assess Dollarama's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Dollarama has a total score of 2/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Dollarama's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0.45%
Current annual income from Dollarama dividends. Estimated to be 0.49% next year.
If you bought CA$2,000 of Dollarama shares you are expected to receive CA$9 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Dollarama's pays a lower dividend yield than the bottom 25% of dividend payers in Canada (2.69%).
  • Dollarama's dividend is below the markets top 25% of dividend payers in Canada (8.66%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
TSX:DOL Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 12 Analyst Estimates (S&P Global) See Below
North America Multiline Retail Industry Average Dividend Yield Market Cap Weighted Average of 7 Stocks 2.5%
Canada Market Average Dividend Yield Market Cap Weighted Average of 327 Stocks 4.7%
Canada Minimum Threshold Dividend Yield 10th Percentile 1.4%
Canada Bottom 25% Dividend Yield 25th Percentile 2.7%
Canada Top 25% Dividend Yield 75th Percentile 8.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

TSX:DOL Future Dividends Estimate Data
Date (Data in CA$) Dividend per Share (annual) Avg. No. Analysts
2023-01-31
2022-01-31
2021-01-31 0.19 1.00
2020-04-01
2020-01-31 0.17 1.00
TSX:DOL Past Annualized Dividends Data
Date (Data in CA$) Dividend per share (annual) Avg. Yield (%)
2019-12-04 0.176 0.413
2019-09-12 0.176 0.375
2019-06-13 0.176 0.360
2019-03-28 0.176 0.432
2018-12-06 0.160 0.464
2018-09-13 0.160 0.421
2018-06-07 0.160 0.325
2018-03-29 0.160 0.320
2017-12-06 0.147 0.283
2017-09-07 0.147 0.307
2017-06-07 0.147 0.358
2017-03-30 0.147 0.367
2016-12-07 0.133 0.399
2016-09-01 0.133 0.397
2016-03-30 0.123 0.400
2015-03-25 0.120 0.461
2014-12-04 0.107 0.530
2014-09-11 0.107 0.643
2014-06-12 0.107 0.701
2014-04-09 0.107 0.701
2013-12-05 0.093 0.657
2013-09-11 0.093 0.649
2013-06-12 0.093 0.752
2013-04-12 0.093 0.769
2012-12-06 0.073 0.728
2012-09-12 0.073 0.703
2012-06-13 0.073 0.714
2012-04-11 0.073 0.797
2011-12-07 0.060 0.820
2011-09-14 0.060 0.961
2011-06-09 0.060 1.112

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dollarama is not paying a notable dividend for Canada, therefore no need to check if the payments are stable.
  • Dollarama is not paying a notable dividend for Canada, therefore no need to check if the payments are increasing.
Current Payout to shareholders
What portion of Dollarama's earnings are paid to the shareholders as a dividend.
  • No need to calculate the sustainability of Dollarama's dividends as it is not paying a notable one for Canada.
Future Payout to shareholders
  • No need to calculate the sustainability of Dollarama's dividends in 3 years as they are not expected to pay a notable one for Canada.
X
Income/ dividend checks
We assess Dollarama's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.4%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Dollarama afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Dollarama has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Dollarama's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Neil Rossy
COMPENSATION CA$3,940,604
AGE 49
TENURE AS CEO 3.9 years
CEO Bio

Mr. Neil Rossy has been the Chief Executive Officer and President of Dollarama Inc. since May 1, 2016. Mr. Rossy served as Chief Merchandising Officer at Dollarama Inc. since 2004 until April 2016 and its wholly owned subsidiaries, Dollarama Group Holdings Limited Partnership and Dollarama Group GP Inc., a General Partner of Dollarama Group L.P. Mr. Rossy is responsible for merchandising, overseeing the graphic design staff responsible for creating its house brands and conducting special projects such as head office/warehouse construction and store fixture design. He served as Senior Vice President of Merchandising at Dollarama Inc., Dollarama Group Holdings GP ULC, General Partner of Dollarama Group Holdings Limited Partnership and Dollarama Group GP Inc., General Partner of Dollarama Group L.P. Mr. Rossy has been with Dollarama Group since 1992. He has been a Director of Dollarama Inc. and Dollarama Group Holdings Limited Partnership since 2004. He serves as a Director of Dollarama Group GP Inc. He served as Director of Dollarama Group Holdings GP ULC. He is a graduate of Queen’s University.

CEO Compensation
  • Neil's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Neil's remuneration is about average for companies of similar size in Canada.
Management Team Tenure

Average tenure and age of the Dollarama management team in years:

8
Average Tenure
59.5
Average Age
  • The average tenure for the Dollarama management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Neil Rossy

TITLE
CEO, President & Director
COMPENSATION
CA$4M
AGE
49
TENURE
3.9 yrs

Larry Rossy

TITLE
Chairman Emeritus
COMPENSATION
CA$690K
AGE
76
TENURE
28.3 yrs

Michael Ross

TITLE
Chief Financial Officer
COMPENSATION
CA$1M
AGE
59
TENURE
10 yrs

Johanne Choinière

TITLE
Chief Operating Officer
COMPENSATION
CA$1M
TENURE
5.9 yrs

Geoffrey Robillard

TITLE
Senior Vice President of Import Division
COMPENSATION
CA$3M
AGE
60
TENURE
16.3 yrs

Josée Kouri

TITLE
VP of Legal Affairs & Corporate Secretary

Nicolas Hien

TITLE
Senior Vice President of Project Management & Systems
TENURE
3.3 yrs
Board of Directors Tenure

Average tenure and age of the Dollarama board of directors in years:

8.3
Average Tenure
60.5
Average Age
  • The tenure for the Dollarama board of directors is about average.
Board of Directors

Steve Gunn

TITLE
Independent Chairman of the Board
COMPENSATION
CA$221K
AGE
64
TENURE
1.8 yrs

Neil Rossy

TITLE
CEO, President & Director
COMPENSATION
CA$4M
AGE
49
TENURE
16.3 yrs

Larry Rossy

TITLE
Chairman Emeritus
COMPENSATION
CA$690K
AGE
76
TENURE
1.8 yrs

Laki Nomicos

TITLE
Independent Director
COMPENSATION
CA$167K
AGE
56
TENURE
16.3 yrs

Richard Roy

TITLE
Independent Director
COMPENSATION
CA$157K
AGE
63
TENURE
7.5 yrs

Gregory David

TITLE
Director
COMPENSATION
CA$137K
AGE
51
TENURE
16.3 yrs

Josh Bekenstein

TITLE
Independent Director
COMPENSATION
CA$152K
AGE
60
TENURE
16.3 yrs

John Thomas

TITLE
Independent Director
COMPENSATION
CA$137K
AGE
66
TENURE
9.1 yrs

Elisa Garcia C.

TITLE
Independent Director
COMPENSATION
CA$143K
AGE
61
TENURE
5.2 yrs

Kristin Mugford

TITLE
Independent Director
COMPENSATION
CA$131K
AGE
50
TENURE
2.1 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (CA$) Value (CA$)
16. Dec 19 Sell Geoffrey Robillard Individual 12. Dec 19 13. Dec 19 -196,700 CA$44.84 CA$-8,783,425
14. Dec 19 Sell Geoffrey Robillard Individual 10. Dec 19 11. Dec 19 -103,300 CA$44.01 CA$-4,540,398
29. Oct 19 Sell John Assaly Individual 28. Oct 19 28. Oct 19 -32,000 CA$45.08 CA$-1,442,560
19. Sep 19 Sell Neil Rossy Individual 18. Sep 19 18. Sep 19 -638,931 CA$47.74 CA$-30,502,566
19. Sep 19 Sell Laurence Rossy Individual 18. Sep 19 18. Sep 19 -1,415,233 CA$47.74 CA$-67,563,223
10. Jul 19 Sell John Assaly Individual 05. Jul 19 05. Jul 19 -49,874 CA$48.34 CA$-2,407,712
12. Apr 19 Sell The Rossy Family Foundation, Endowment Arm Company 11. Apr 19 11. Apr 19 -2,557,000 CA$38.84 CA$-99,313,881
X
Management checks
We assess Dollarama's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Dollarama has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Here's What Dollarama Inc.'s (TSE:DOL) ROCE Can Tell Us

Specifically, we're going to calculate its Return On Capital Employed (ROCE), in the hopes of getting some insight into the business. … Analysts use this formula to calculate return on capital employed: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for Dollarama:0.30 = CA$811m ÷ (CA$3.4b - CA$691m) (Based on the trailing twelve months to May 2019.) So, Dollarama has an ROCE of 30%. … Due to the way ROCE is calculated, a high level of current liabilities makes a company look as though it has less capital employed, and thus can (sometimes unfairly) boost the ROCE.

Simply Wall St -

Is Dollarama's (TSE:DOL) Share Price Gain Of 225% Well Earned?

During five years of share price growth, Dollarama achieved compound earnings per share (EPS) growth of 23% per year. … So the EPS growth rate is rather close to the annualized share price gain of 27% per year. … As well as measuring the share price return, investors should also consider the total shareholder return (TSR).

Simply Wall St -

We Think Dollarama (TSE:DOL) Can Stay On Top Of Its Debt

Debt and other liabilities become risky for a business when it cannot easily fulfill those obligations, either with free cash flow or by raising capital at an attractive price. … When analysing debt levels, the balance sheet is the obvious place to start. … If you're interested in investing in businesses that can grow profits without the burden of debt, then check out this free list of growing businesses that have net cash on the balance sheet.

Simply Wall St -

Does Dollarama Inc.'s (TSE:DOL) CEO Pay Matter?

This analysis aims first to contrast CEO compensation with other large companies. … Check out our latest analysis for Dollarama How Does Neil Rossy's Compensation Compare With Similar Sized Companies? … Most shareholders would consider it a positive that Neil Rossy takes less in total compensation than the CEOs of most other large companies, leaving more for shareholders.

Simply Wall St -

What Type Of Shareholder Owns Dollarama Inc.'s (TSE:DOL)?

Generally speaking, as a company grows, institutions will increase their ownership. … Taking a look at our data on the ownership groups (below), it's seems that institutions are noticeable on the share registry. … Insider Ownership Of Dollarama The definition of an insider can differ slightly between different countries, but members of the board of directors always count.

Simply Wall St -

Here's Why I Think Dollarama (TSE:DOL) Is An Interesting Stock

For beginners, it can seem like a good idea (and an exciting prospect) to buy a company that tells a good story to investors, even if it completely lacks a track record of revenue and profit. … We would not expect to see insiders owning a large percentage of a CA$14b company like Dollarama. … For growth investors like me, Dollarama's raw rate of earnings growth is a beacon in the night.

Simply Wall St -

Dollarama Inc. (TSE:DOL) Is Employing Capital Very Effectively

Analysts use this formula to calculate return on capital employed: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for Dollarama: 0.43 = CA$804m ÷ (CA$2.2b - CA$289m) (Based on the trailing twelve months to February 2019.) Therefore, Dollarama has an ROCE of 43%. … The ROCE equation subtracts current liabilities from capital employed, so a company with a lot of current liabilities appears to have less capital employed, and a higher ROCE than otherwise. … What We Can Learn From Dollarama's ROCE With low current liabilities and a high ROCE, Dollarama could be worthy of further investigation.

Simply Wall St -

The Dollarama (TSE:DOL) Share Price Is Up 166% And Shareholders Are Boasting About It

There will continue to be wide discrepancies between price and value in the marketplace...' One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS). … During five years of share price growth, Dollarama achieved compound earnings per share (EPS) growth of 24% per year. … As it happens, Dollarama's TSR for the last 5 years was 172%, which exceeds the share price return mentioned earlier.

Simply Wall St -

Have Insiders Been Selling Dollarama Inc. (TSE:DOL) Shares?

So we'll take a look at whether insiders have been buying or selling shares in Dollarama Inc. … That means that even when the share price was below the current price of CA$40.98, an insider wanted to cash in some shares. … While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign

Simply Wall St -

Estimating The Fair Value Of Dollarama Inc. (TSE:DOL)

by taking the foreast future cash flows of the company and discounting them back to today's value. … I will use the Discounted Cash Flow (DCF) model! … We generally believe that a company's value is the present value of all of the cash it will generate in the future.

Simply Wall St -

Company Info

Description

Dollarama Inc. operates a chain of dollar stores in Canada. Its stores offer general merchandise, consumables, and seasonal items. The company also offers products online. As of August 4, 2019, it operated 1,250 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.

Details
Name: Dollarama Inc.
DOL
Exchange: TSX
Founded: 1992
CA$12,111,419,684
310,231,037
Website: http://www.dollarama.com
Address: Dollarama Inc.
5805 Royalmount Avenue,
Montreal,
Quebec, H4P 0A1,
Canada
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
TSX DOL Common Shares The Toronto Stock Exchange CA CAD 08. Oct 2009
OTCPK DLMA.F Common Shares Pink Sheets LLC US USD 08. Oct 2009
DB DR3 Common Shares Deutsche Boerse AG DE EUR 08. Oct 2009
Number of employees
Current staff
Staff numbers
14,230
Dollarama employees.
Industry
General Merchandise Stores
Retail
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/04/01 05:17
End of day share price update: 2020/03/31 00:00
Last estimates confirmation: 2020/03/30
Last earnings filing: 2019/12/04
Last earnings reported: 2019/11/03
Last annual earnings reported: 2019/02/03


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.