Dollarama (OTCMKTS:DLMAF) Stock Rating Upgraded by Scotiabank

Key Points

• Scotiabank upgraded Dollarama to a "strong-buy", joining a cluster of upgrades from TD, National Bank Financial, Jefferies and others that leave the consensus rating at an overall "Buy".
• Quarterly results were mixed—EPS of $1.03 beat estimates by $0.01 but revenue of $1.51B slightly missed—and while margins and ROE remain strong, the stock trades at a rich P/E (~145) with high leverage (debt/equity ~3.55), increasing downside risk if growth softens.

Dollarama (OTCMKTS:DLMAF - Get Free Report) was upgraded by Scotiabank to a "strong-buy" rating in a research note issued on Tuesday,Zacks.com reports.

Other equities research analysts have also recently issued research reports about the stock. TD Securities upgraded shares of Dollarama to a "strong-buy" rating in a report on Wednesday. National Bank Financial raised Dollarama to a "strong-buy" rating in a research report on Wednesday. Royal Bank Of Canada upgraded Dollarama to a "moderate buy" rating in a research note on Monday, March 16th. Zacks Research upgraded Dollarama to a "hold" rating in a research note on Monday, March 16th. Finally, Jefferies Financial Group raised Dollarama to a "strong-buy" rating in a research note on Wednesday. Six research analysts have rated the stock with a Strong Buy rating, three have given a Buy rating and three have issued a Hold rating to the company's stock. Based on data from MarketBeat.com, Dollarama currently has an average rating of "Buy".

Dollarama Stock Performance

Shares of DLMAF stock opened at $121.96 on Tuesday. The company's fifty day moving average price is $140.04 and its 200-day moving average price is $138.81. The stock has a market cap of $33.29 billion and a PE ratio of 145.19. The company has a current ratio of 1.09, a quick ratio of 0.23 and a debt-to-equity ratio of 3.55. Dollarama has a 12 month low of $104.40 and a 12 month high of $160.86.

Dollarama (OTCMKTS:DLMAF - Get Free Report) last issued its quarterly earnings results on Tuesday, March 24th. The company reported $1.03 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.02 by $0.01. Dollarama had a net margin of 18.05% and a return on equity of 96.58%. The company had revenue of $1.51 billion during the quarter, compared to analyst estimates of $1.52 billion.

Dollarama News Roundup

Here are the key news stories impacting Dollarama this week:

• Positive Sentiment: Canadian Imperial Bank of Commerce upgraded Dollarama to "strong-buy," signaling increased analyst conviction in the company's outlook. Zacks.com
• Positive Sentiment: TD Securities also raised its rating to "strong-buy," adding another institutional endorsement that could support demand for the shares. Zacks.com
• Positive Sentiment: National Bank Financial upgraded Dollarama to "strong-buy," reinforcing a broader, same-day shift among Canadian brokers toward a bullish stance. Zacks.com TickerReport
• Positive Sentiment: Jefferies Financial Group upgraded the stock to "strong-buy," joining the cluster of upgrades that may reflect improving analyst views on margins, cash flow or market positioning. Zacks.com TickerReport
• Neutral Sentiment: Quarterly results were mixed: Dollarama reported $1.03 EPS (in line with consensus) but revenue of $1.51B slightly missed estimates of $1.52B. Profitability metrics remain strong (net margin ~18%, ROE high), so earnings neither surprised positively nor materially worsened the story. MarketBeat
• Negative Sentiment: Despite the analyst upgrades, the stock is under pressure—partly because the quarter's revenue shortfall is a reminder of sensitivity to traffic and consumption trends, and the shares trade with a rich P/E and leverage profile that can amplify downside risk if growth softens. (Background price/metrics cited by market summaries.)

Dollarama Company Profile

Dollarama Inc operates as a leading Canadian dollar store chain, offering a variety of everyday consumer goods at fixed price points. The company’s retail format emphasizes value and convenience, providing a one-stop shopping experience for cost-conscious customers. Merchandise spans multiple categories, including household items, food and consumables, health and beauty products, stationery, seasonal and party supplies, and toys.

Founded in 1992 by Laurent “Larry” Rossy, Dollarama opened its first location in Montreal, Quebec.

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