Desjardins Issues Pessimistic Outlook for Dollarama Earnings

Dollarama Inc. (TSE:DOL) – Investment analysts at Desjardins lowered their FY2026 EPS estimates for shares of Dollarama in a research note issued on Thursday, December 5th. Desjardins analyst C. Li now expects that the company will post earnings of $4.45 per share for the year, down from their prior forecast of $4.59. Desjardins currently has a “Buy” rating and a $150.00 target price on the stock. The consensus estimate for Dollarama’s current full-year earnings is $5.33 per share.

Dollarama (TSE:DOL) last released its quarterly earnings results on Wednesday, September 11th. The company reported C$1.02 earnings per share (EPS) for the quarter, beating the consensus estimate of C$0.96 by C$0.06. The business had revenue of C$1.56 billion during the quarter, compared to analyst estimates of C$1.57 billion. Dollarama had a return on equity of 156.46% and a net margin of 17.85%.

Other analysts have also recently issued reports about the stock. Wells Fargo & Company cut shares of Dollarama from an “overweight” rating to an “equal weight” rating and reduced their price objective for the stock from C$136.00 to C$130.00 in a research note on Thursday, September 12th. Cfra raised shares of Dollarama from a “hold” rating to a “buy” rating and upped their target price for the stock from C$130.00 to C$155.00 in a report on Thursday, September 12th. Canaccord Genuity Group raised their price target on Dollarama from C$138.00 to C$140.00 and gave the company a “hold” rating in a report on Thursday, November 28th. BMO Capital Markets upped their price objective on Dollarama from C$147.00 to C$154.00 in a research note on Friday, November 22nd. Finally, National Bank Financial cut Dollarama from a “strong-buy” rating to a “hold” rating in a research report on Wednesday, December 4th. Seven analysts have rated the stock with a hold rating and five have issued a buy rating to the company. Based on data from MarketBeat, the stock presently has an average rating of “Hold” and an average target price of C$145.00.

Dollarama Stock Up 1.5 %

TSE DOL opened at C$142.23 on Monday. Dollarama has a 52 week low of C$89.93 and a 52 week high of C$152.97. The company has a quick ratio of 0.08, a current ratio of 1.99 and a debt-to-equity ratio of 391.24. The company has a market capitalization of C$40.08 billion, a P/E ratio of 36.85, a price-to-earnings-growth ratio of 1.93 and a beta of 0.56. The stock’s 50-day moving average price is C$144.28 and its 200-day moving average price is C$134.73.

Dollarama Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Friday, November 1st. Stockholders of record on Friday, November 1st were given a dividend of $0.092 per share. The ex-dividend date was Friday, October 4th. This represents a $0.37 dividend on an annualized basis and a dividend yield of 0.26%. Dollarama’s dividend payout ratio is currently 9.59%.

Insider Buying and Selling

In other Dollarama news, Director John Huw Thomas sold 2,000 shares of the company’s stock in a transaction that occurred on Wednesday, October 2nd. The stock was sold at an average price of C$137.73, for a total transaction of C$275,450.00. Also, Director Nicolas Hien sold 5,167 shares of the firm’s stock in a transaction that occurred on Tuesday, September 17th. The shares were sold at an average price of C$135.18, for a total value of C$698,490.04. Over the last 90 days, insiders have sold 7,697 shares of company stock worth $1,049,979. Insiders own 2.23% of the company’s stock.

About Dollarama

Dollarama Inc operates a chain of dollar stores in Canada. Its stores offer general merchandise, consumables, and seasonal products. It also sells its products through online store. The company was formerly known as Dollarama Capital Corporation and changed its name to Dollarama Inc in September 2009.