# Dollarama Inc. (DOL.TO) fundamentals

Data as of 2026-09-08. TSX, Canada. Sector: Consumer Defensive / Household Products. Price C$177.21, market value C$49.0 billion.

## Valuation
- **P/E (trailing): 36.5×** (5-yr avg 31.5×, 3-yr avg 33.1×). Dollarama Inc. trades at 36.5× trailing earnings, close to its own five-year average of 31.5×. The Consumer Defensive median in the September 2026 study was 20.1×. Forward P/E is 30.4×, lower than trailing, so analysts expect earnings to grow.
- **PEG: 2.14**. A PEG of 2.14 means the P/E is high relative to expected earnings growth; the price already assumes a lot.
- **Price / sales: 6.5×**. Each dollar of revenue is priced at 6.5×.
- **Price / book: 35.0×**. The shares trade at 35.0× book value; most of the value is in earnings power and intangibles rather than the balance sheet.
- **EV / EBITDA: 22.9×**. Enterprise value is 22.9× operating earnings before depreciation, the multiple that ignores how the company is financed; above 20× is demanding.
- **Free-cash-flow yield: 3.0%** (5-yr avg 3.8%). Free cash flow equals 3.0% of the market value, below its five-year average of 3.8%, so the shares are pricier on cash than usual.
- **Earnings yield: 2.7%**. The inverse of the P/E: 2.7% of the price is earned each year.

## Profitability
- **Gross margin: 40.8%**. Dollarama Inc. keeps 40.8% of revenue after the direct cost of what it sells.
- **Operating margin: 24.0%**. 24.0% of revenue is left after running the business, a healthy level in most sectors.
- **Net margin: 18.0%**. 18.0% of each dollar of sales reaches the bottom line.
- **Return on equity: 89.9%**. A 89.9% return on equity is extremely high; check whether buybacks or debt have shrunk the equity base, which flatters the ratio.
- **Return on invested capital: 20.6%**. Return on all capital, debt included, is 20.6%: comfortably above what that capital costs.
- **Return on assets: 17.7%**. Each dollar of assets produces 17.7% of profit.

## Growth
- **Revenue growth (1 yr): 13.1%** (3-yr 12.8%/yr, 5-yr 12.5%/yr). Revenue grew 13.1% over the last year, against 12.5% a year compounded over five years.
- **EPS growth (1 yr): 14.3%** (3-yr 19.7%/yr, 5-yr 21.2%/yr). Earnings per share rose 14.3%, roughly in step with revenue.
- **Free-cash-flow growth (3 yr): 27.7%/yr**. Free cash flow has compounded at 27.7% a year over three years, keeping pace with earnings: the growth is real cash.

## Financial health
- **Debt to equity: 3.71**. Debt is 3.71 times equity, a leveraged balance sheet that needs steady cash flow to service.
- **Net debt / EBITDA: 2.1×**. It would take 2.1 years of operating earnings to repay net borrowings, within the comfortable range.
- **Interest coverage: 8.3×**. Operating profit covers interest 8.3× over, a safe margin.
- **Current ratio: 1.13** (quick 0.31). Current assets cover the next year's liabilities 1.13 times.
- **Piotroski F-score: 5/9**. 5 of 9 checks pass: mixed.

## Dividends
- **Dividend yield: 0.25%** (C$0.44 per share, trailing). Dollarama Inc. yields 0.25%, a modest yield more typical of a growth-oriented payer.
- **Payout ratio: 9%** (8% of free cash flow). 9% of earnings goes out as dividends, leaving room to keep raising it.
- **Consecutive years of increases: 15**. 15 straight years of increases, a record that survived at least one recession.
- **Dividend growth (5 yr): 18.4%/yr** (1-yr 18.2%). The dividend has compounded at 18.4% a year over five years, doubling roughly every 4 years at that pace.
- **Shareholder yield: 2.7%**. Dividends plus net buybacks return 2.7% of the market value a year.

## Price and momentum
- **Total return (1 yr): -5.7%** (YTD -13.5%, 3-mo -2.1%). The shares are down 5.7% over twelve months including dividends.
- **From 52-week high: -15.6%** (6.8% above the low). Trading 16% below its 52-week high.
- **200-day average: below**. The price sits below its 200-day moving average, the usual definition of a downtrend.
- **RSI (14-day): 36**. An RSI of 36 is neutral.
- **Beta (1 yr): 0.46** (volatility 23%). Beta of 0.46 against the S&P/TSX Composite: the shares move much less than the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=DOL.TO · Page: https://foliofundamentals.com/stocks/dol.to

Not investment advice.