- Dollarama’s comparable sales increased by 4.9%, surpassing estimates of 3.21%, although lower than last year’s growth of 8.7%.
- Total sales reached C$1.88 billion, marking a 15% increase compared to the previous year and slightly exceeding the C$1.86 billion estimate.
- The gross margin improved to 46.8%, higher than both last year’s 46.3% and the estimated 45.8%.
- EBITDA rose by 20% from the previous year to C$670.1 million, outperforming the expected C$630.6 million.
- Earnings per share (EPS) increased to C$1.40, beating last year’s C$1.15 and surpassing the estimated C$1.31.
- Net income grew by 21% to C$391.0 million, exceeding the estimate of C$365.8 million.
- Dollarama opened 15 new stores during the period, matching the expected number of new stores, and bringing the total to 1,616, a 4.2% increase from last year.
- The analyst ratings for Dollarama include 9 buys, 5 holds, and 1 sell.
A look at Dollarama Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 2 | |
| Growth | 4 | |
| Resilience | 2 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 2.8 |
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 at Smartkarma have rated Dollarama with a mixed outlook based on their Smart Scores. With a Growth score of 4 and Momentum score of 4, the company is viewed positively for its potential to expand and its current market performance. However, Dollarama’s Value, Dividend, and Resilience scores all fall at 2, indicating some concerns about the company’s value, dividend offerings, and ability to withstand economic challenges. Overall, Dollarama’s long-term outlook appears to be a balance of strengths and weaknesses according to these Smart Scores.
Dollarama Inc., an online marketplace operating in Canada, offers a wide range of products including cleaning supplies, office essentials, electronics, toys, and more. The company also provides delivery services to its customers. Despite its diverse product offerings, Dollarama’s Smart Scores suggest a combination of growth potential and momentum, tempered by lower ratings in value, dividend, and resilience factors. Investors may want to consider these mixed signals when evaluating the long-term prospects of Dollarama.
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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