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Stock: Dollarama (TSX: DOL)
Quick take: Defensive + growthy? Yep. Dollarama blends steady comp-store gains, international expansion (Dollarcity + Australia), and a tiny but growing dividend. Momentum softened this week, but the long-term engine still hums.
Major developments this week
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Earnings momentum still in focus: Recent quarters have consistently topped expectations as value-seeking shoppers trade down; investors remain tuned to comps and margin durability.
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Global footprint expands: Dollarama completed its acquisition of Australia’s The Reject Shop (395 stores), a new growth leg beyond Canada and Latin America.
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Resilient consumer trade-down theme: Prior beats underline demand strength for low-price essentials, supporting the defensive growth narrative.
Key Metrics (as of Wednesday’s close)
| Metric | Value |
|---|---|
| Price | $176.62 |
| Weekly Move (5-day) | −2.8% |
| Market Cap | US$34.9B |
| P/E (TTM) | 39.1 |
| Forward P/E | 34.0 |
| 52-Week Range | $132.37 – $198.66 |
| YTD Return | +26.1% |
| Dividend Yield (fwd) | ~0.2% |
Source: figures from your data package.
Analyst Insights
| Item | Detail |
|---|---|
| Consensus Rating | BUY ⭐⭐⭐⭐ |
| Average Target Price | $204.46 |
| Upside Potential | +15.76% |
| Breakdown (14 analysts) | Strong Buy: 6 • Buy: 2 • Hold: 6 • Sell: 0 • Strong Sell: 0 |
Signals: Solidly positive stance; upside framed by continued comp growth, international roll-out, and operating leverage.
Recent News (top 2–3)
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Quarterly beat as consumers trade down — Dollarama outperformed on sales/EPS with comps ahead of estimates; value focus continues to resonate.
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Australian deal closed — Dollarama completed the purchase of The Reject Shop, adding 395 stores and a new geography to the platform.
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Holiday-quarter strength (context) — Earlier report showed beats on revenue and EPS with margin improvement.
Growth Indicators
| Growth Metric | Dollarama |
|---|---|
| Sales Growth (Next Year) | +11.7% |
| EPS Growth (Next Year) | +13.1% |
| 5-Year EPS Growth Estimate | +23.0% |
Read: Double-digit growth + a defensive format = rare combo for a consumer-defensive name.
What to watch
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Comps & gross margin (inflation, mix, shrink).
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Integration progress at The Reject Shop + Dollarcity store growth pipeline.
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Leverage & cash returns: modest dividend today (low payout), but runway for raises as international cash flow scales.
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Qayyum Rajan, CFA
Qayyum is the CEO of Wealth Awesome, a leading Canadian personal finance publication. As a CFA charterholder with extensive experience in fintech, data science, and quantitative finance, he brings a unique analytical perspective to investing and wealth management.
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