Ratings Dollarama Inc.

Equities

DOL

CA25675T1075

Market Closed - Toronto S.E. Other stock markets 04:00:00 2024-04-26 pm EDT			5-day change	1st Jan Change
115.6 ^CAD	-1.18%		+2.50%	+21.08%

Apr. 19	RBC Anticipates Soft Consumer Spending in H1, Favours Dollarama, Loblaw	MT
Apr. 05	Dollarama Target Price Raised to $124 on Q4, "Strong Tone on Growth Trajectory" at BMO	MT

Summary

The company has strong fundamentals. More than 70% of companies have a lower mix of growth, profitability, debt and visibility.
Overall, and from a short-term perspective, the company presents an interesting fundamental situation.

Strengths

The company's EBITDA/Sales ratio is relatively high and results in high margins before depreciation, amortization and taxes.
The group's high margin levels account for strong profits.
Over the past four months, analysts' average price target has been revised upwards significantly.
There is high visibility into the group's activities for the coming years. Outlooks on future revenues from analysts covering the equity remain similar. Such hardly dispersed estimates support highly predictable sales for the current and upcoming fiscal years.
The divergence of price targets given by the various analysts who make up the consensus is relatively low, suggesting a consensus method of evaluating the company and its prospects.
Historically, the company has been releasing figures that are above expectations.

Weaknesses

The company is in debt and has limited leeway for investment
The company's valuation in terms of earnings multiples is rather high. Indeed, the firm is getting paid 28.78 times its estimated earnings per share for the ongoing year.
Based on current prices, the company has particularly high valuation levels.
The company is highly valued given the cash flows generated by its activity.
The firm pays small or no dividend to shareholders. For that reason, it is not a yield company.
Over the past twelve months, analysts' opinions have been revised negatively.

Ratings chart - Surperformance

Chart ESG Refinitiv

Sector: Discount Stores

	1st Jan change	Capi.	ESG Refinitiv
DOLLARAMA INC.	+21.08%	23.54B	B
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PEPCO GROUP N.V.	-26.00%	2.74B	C+

Investor Rating

Trading Rating

ESG Refinitiv

Financials

Sales growth

Earnings Growth

EBITDA / Sales

Profitability

Finances

Valuation

P/E ratio

EV / Sales

Price to Book

Price to Free Cash Flow

Yield

Momentum

1 year Revenue revision

4 months Revenue revision

7 days Revenue revision

1 year EPS revision

4 months EPS revision

Consensus

Analyst Opinion

Potential Price Target

4m Target Price Revision

4m Revision of opinion

12m Revision of opinion

Business Predictability

Analyst Coverage

Divergence of Estimates

Divergence of analysts' opinions

Divergence of Target Price

Earnings quality

Environment

Emissions

Innovation

Use of resources

Governance

CSR Strategy

Management

Shareholders

Controversy

Technical analysis

ST Timing

MT Timing

LT Timing

RSI

Bollinger Spread

Unusual volumes