Dollarama Inc. (DOL.TO) stock analysis

In our weekly check, Dollarama Inc. is graded B (A to F). Of 25 checks on debt, profit, cash flow and trend: 20 pass, warnings: 3, red flags: 2.

About Dollarama Inc.

Dollarama Inc. is a Consumer Defensive company (Discount Stores) based in Canada, listed on TSX as DOL.TO.

What our checks show for DOL.TO

Red flags

• Net debt is 2.1x a year of EBITDA (debt/equity 4). That limits room in a downturn and raises refinancing risk.
• The gross margin fell by 5.7 points, to 41.6%: costs are rising faster than prices.

Warning signs

• The price is 41.4 times earnings (P/E): the market already pays for a lot of future growth.
• The stock has fallen as much as 45% from a peak. Would you have held through that?
• Recovering from its deepest fall took about 2.3 years.

Strengths

• The net margin rose by 2 points over 5 years, to 17.3%.
• Operating cash flow is 1.44x net profit: the profit arrives as real cash.
• Analysts expect earnings per share to grow about 11.7% a year over the next years.
• Analysts expect the net margin to improve by 2.2 points from today's 17.3%.
• Revenue grew 16% a year over the last 3 years.
• Earnings per share grew 21.8% a year over the last 3 years.

Next earnings report: 2026-12-10

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Questions

What grade does Dollarama Inc. (DOL.TO) have?

In our weekly check, Dollarama Inc. is graded B (A to F). Of 25 checks on debt, profit, cash flow and trend: 20 pass, warnings: 3, red flags: 2. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of DOL.TO stock?

This week's biggest flags for Dollarama Inc.: High debt, Gross margin falling, High P/E. In total 5 of 25 checks show a warning or a red flag.

What does Dollarama Inc. do?

Dollarama Inc. is a Consumer Defensive company (Discount Stores) based in Canada, listed on TSX as DOL.TO.

When does Dollarama Inc. report earnings next?

The next earnings report is expected on 2026-12-10. We re-run the checks every week, so the grade can change after it.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-24

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