- Dollarama’s 2nd quarter sales reached C$1.72 billion, marking a 10% increase from the previous year and surpassing the estimated C$1.69 billion.
- The company’s gross margin improved slightly to 45.5%, beating both the previous year’s 45.2% and the estimated 45.1%.
- EBITDA rose by 12% year-over-year to C$588.5 million, exceeding the forecasted C$571.1 million.
- Earnings per share (EPS) were reported at C$1.16, up from C$1.02 last year and slightly above the anticipated C$1.15.
- Net income saw a 12% year-over-year increase, reaching C$321.5 million, above the expected C$320.5 million.
- The stock has received 9 buy recommendations, 6 hold recommendations, and 1 sell recommendation.
A look at Dollarama Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 2 | |
| Growth | 4 | |
| Resilience | 3 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.0 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Analysts are optimistic about Dollarama’s long-term prospects, especially in terms of growth and momentum. Smartkarma’s scores indicate that Dollarama ranks high in these areas, with a score of 4 for Growth and 4 for Momentum. This suggests that Dollarama is well-positioned to continue expanding its market presence and maintaining its positive trajectory in the future.
While Dollarama scores moderately in the areas of Value and Dividend, with scores of 2 for both factors, its resilience score of 3 highlights the company’s ability to withstand economic challenges. Overall, Dollarama’s strong performance in growth and momentum bodes well for its future outlook, making it a promising investment option in the long run.
### Dollarama Inc. operates as an online marketplace. The Company offers cleaning, school, office, home, kitchen, food, health, beauty, hardware, electronics, toys, and pets products, as well as provides delivery services. Dollarama serves customers in Canada. ###
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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