Dollarama (TSE:DOL) Trading Down 6.5% - Here's Why

Key Points

• Shares fell 6.5% intraday to C$174.49 (from C$186.58) on Tuesday, with ~252,416 shares trading—about 61% below average daily volume.
• Analysts remain broadly positive, raising targets and leaving a consensus “Moderate Buy” with a consensus target of C$217.08; notable upgrades include BMO to C$222 and Bernstein to C$232.
• Fundamentals show strong profitability (net margin 18.59%, ROE 99.41%) but a high valuation (PE 36.90) and weak liquidity (quick ratio 0.08) alongside a very high reported debt-to-equity of 415.13.

Dollarama Inc. (TSE:DOL - Get Free Report)'s share price dropped 6.5% during trading on Tuesday . The company traded as low as C$170.10 and last traded at C$174.49. Approximately 252,416 shares traded hands during mid-day trading, a decline of 61% from the average daily volume of 654,933 shares. The stock had previously closed at C$186.58.

Analyst Upgrades and Downgrades

A number of equities research analysts have recently weighed in on DOL shares. BMO Capital Markets boosted their price target on Dollarama from C$215.00 to C$222.00 in a research note on Wednesday, December 3rd. Royal Bank Of Canada set a C$225.00 price objective on shares of Dollarama and gave the company an "outperform" rating in a research report on Monday, March 16th. Sanford C. Bernstein boosted their target price on shares of Dollarama from C$223.00 to C$232.00 in a research report on Friday, December 12th. Canaccord Genuity Group upped their price target on shares of Dollarama from C$198.00 to C$207.00 in a research note on Friday, December 12th. Finally, Stifel Nicolaus raised their price target on shares of Dollarama from C$190.00 to C$200.00 and gave the stock a "hold" rating in a report on Friday, December 12th. One equities research analyst has rated the stock with a Strong Buy rating, six have assigned a Buy rating and four have given a Hold rating to the company. Based on data from MarketBeat, Dollarama currently has an average rating of "Moderate Buy" and a consensus target price of C$217.08.

Dollarama Stock Performance

The company has a quick ratio of 0.08, a current ratio of 1.09 and a debt-to-equity ratio of 415.13. The stock has a market capitalization of C$47.44 billion, a PE ratio of 36.90, a PEG ratio of 1.93 and a beta of 0.15. The firm has a 50 day moving average price of C$193.21 and a 200-day moving average price of C$192.25.

Dollarama (TSE:DOL - Get Free Report) last issued its earnings results on Tuesday, March 24th. The company reported C$1.43 EPS for the quarter. Dollarama had a return on equity of 99.41% and a net margin of 18.59%.The firm had revenue of C$2.10 billion for the quarter. Research analysts expect that Dollarama Inc. will post 5.3295203 EPS for the current fiscal year.

About Dollarama

Dollarama Inc is a Canada-based company principally engaged in operating discount retail stores. The company provides a broad range of everyday consumer products, general merchandise, and seasonal items, with merchandise at low fixed price points. General merchandise and consumer products jointly account for the majority of the company's product offerings. The company's stores are throughout Canada, generally located in convenient locations, such as metropolitan areas, midsize cities, and small towns.

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