Robust consumer demand has driven higher traffic and spending across stores, supporting the chain's market leadership. Dollarama owns The Reject Shop, an Australian variety store chain, and is the majority owner of Dollarcity, a dollar store chain operating in Latin America. The company demonstrates strong operational efficiency with a gross margin of 45.69%, operating margin of 24.63%, and profit margin of 18.59%.
Cyborg Score Rationale
Dollarama has a consensus analyst rating of Moderate Buy based on 6 buy ratings, 5 hold ratings and 0 sell ratings. Fiscal 2026 guidance shows comparable store sales growth of 4.2%-4.7% and gross margin expansion to 45.0%-45.5%. The stock price increased 46.12% over the past 52 weeks, demonstrating strong market momentum.
Top Insights
Analyst average 12-month price target is C$222.97, representing 15.97% upside from recent levels of C$192.27.
Exceptional return metrics with ROE of 102.25% and ROIC of 17.19% demonstrate superior capital efficiency.
Strong free cash flow generation of C$1.50 billion in the last 12 months from operating cash flow of C$1.75 billion.
Beta of 0.23 indicates lower volatility than market average, positioning Dollarama as a stable defensive holding.
Named Competitors
Costco — Membership-based warehouse retailer
Walmart — Mass-market discount retailer
Dollar Tree — Dollar store operator with fixed-price points
Dollarcity — Latin American dollar store chain (majority-owned by Dollarama)
Recent Developments
(January 2026) Q4 2026 financial results scheduled for release on Tuesday, March 24, 2026.
(December 2025) Fiscal 2026 guidance raised with comparable store sales increased to 4.2%-4.7% and gross margin guidance increased to 45.0%-45.5%.
(February 2026) Moody's Ratings changed Dollarama's outlook to positive from stable while affirming its Baa2 long-term rating.
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