Should I buy Dollarama stock in 2025? (Canada Guide)

What is Dollarama?

Important information about the P/E ratio calculation

P/E ratio calculated using Market Cap (CAD 47.03B) / Net Earnings (CAD 1.17B) ≈ 40.2; closest rounded figure.

How much is Dollarama stock?

The price of Dollarama stock is rising this week. As of now, Dollarama (DOL.TO) is trading at CAD 169.65, up 1.05% over the past 24 hours and gaining 2.11% for the week. The company boasts a market capitalization of CAD 47.03 billion, with a 3-month average daily trading volume of approximately 525,000 shares. Dollarama’s price-to-earnings (P/E) ratio stands at 40.80, and it offers a dividend yield of 0.25%, while the stock’s beta is 0.61, reflecting lower volatility compared to the broader market. With strong recent momentum and solid fundamentals, Dollarama continues to appeal to Canadian investors looking for growth with relative stability.

Our full analysis on Dollarama stock

After a thorough review of Dollarama’s (DOL.TO) latest financial results and the impressive progression of its shares over the past three years, our proprietary analysis draws upon a rigorous blend of financial metrics, technical trends, and sector-wide intelligence. By benchmarking Dollarama against key industry competitors and running granular diagnostics on valuation, growth factors, and market sentiment, we arrive at a holistic perspective for 2025. So, why might Dollarama stock once again become a strategic entry point into the North American consumer discretionary sector in the year ahead?

Recent Performance and Market Context

Dollarama’s stock has delivered a remarkable run in recent periods, solidifying its credentials as a best-in-class performer within both the Canadian and global discount retail space. As of May 19, 2025, Dollarama trades at CAD 169.65—a level near its 52-week high of CAD 174.75, reflecting robust investor confidence.

The trailing twelve months have seen the stock gain an impressive +38.7%, backed by consistent outperformance over both short and long-term horizons (14.6% over six months; 303.9% over five years). This sustained momentum has not been accidental. It is grounded in a string of consistently strong earnings releases and visible progress in key expansion initiatives.

Favourable sector dynamics are also at play. In an era marked by heightened consumer price sensitivity, Dollarama’s value-focused model sits at the intersection of necessity, convenience, and affordability. Even as Canadian retail sales have moderated in certain discretionary segments, the discount channel continues to witness robust traffic and wallet share growth.

Recent positive events, such as the increase in the company’s quarterly dividend (+15%), strategic share repurchases (over CAD 1 billion in 2025 YTD), and strengthened international footprint, reinforce the market’s optimistic outlook. Dollarama’s ability to capture double-digit revenue and profit growth amidst a complex macroeconomic environment serves as a concrete endorsement of its operational resilience.

Technical Analysis

A closer look at Dollarama’s technical configuration reveals ample evidence to support the bullish narrative. As of the latest session:

• Relative Strength Index (RSI 14): 58.02, signifying a neutral but upward-leaning trajectory. This level suggests a well-balanced market with room for further appreciation before entering overbought territory.
• MACD (12,26,9): At 1.75, signals a clear ‘buy’, indicating underlying upward momentum in the stock’s price action.

Dollarama’s price currently sits at its 20-day simple moving average (SMA) of CAD 169.60, while trading noticeably above longer-term SMAs: 50-day (160.40), 100-day (150.68), and 200-day (144.86). This technical structure is quintessentially bullish, confirming a robust medium-term uptrend and underlining the prospect of continued outperformance. Likewise, tipRanks’ “Strong Buy” technical rating encapsulates this positive sentiment.

Current support and resistance levels suggest that even in the event of minor pullbacks, the stock may find buyers stepping in at CAD 169.60 and CAD 163.58, with the next bullish targets at resistance zones of 171.00–172.40 and the 52-week high at 174.75. The stock’s resilient structure and absence of major technical weakness suggest favorable odds for an upside breakout, potentially catalyzed by operational or M&A news.

Fundamental Analysis

Dollarama’s 2025 fiscal year showcased another year of superior financial execution:

• Annual revenue rose 9.3% YoY to CAD 6.41 billion.
• Comparable store sales increased a healthy 4.6%.
• EBITDA margin expanded strongly from 31.7% to 33.1%.
• Diluted EPS was CAD 4.16, up 16.9% YoY—a testament to both operational and financial discipline.

In Q4 FY2025, the growth trend not only persisted but accelerated: quarterly revenue climbed 14.8%, gross margin improved to a robust 46.8%, and diluted EPS surged 21.7% year over year.

From a valuation perspective, Dollarama trades at a premium P/E ratio relative to some retail peers but remains justified given its consistent double-digit earnings growth, sector-leading margins, and disciplined expansion. Its PEG ratio—factoring in forward growth—appears attractive in light of projected high single-digit to low double-digit annual EPS growth through FY2026 and beyond.

Structural strengths abound: Dollarama’s direct sourcing capabilities, efficient cost structure, and firm brand equity underpin lasting competitive advantage. The proven business model, validated in both Canada and Latin America (through Dollarcity), suggests resilience and the scalability demanded by investors seeking strong, multi-geography compounders.

Volume and Liquidity

A key pillar supporting Dollarama’s recent ascent has been high and sustained trading volumes. Share turnover remains robust, with healthy liquidity that appeals to both institutional and retail investors. This dynamic float not only reflects ongoing market confidence but also provides elasticity, supporting price recoveries even during sporadic bouts of volatility.

The recent share repurchase program—buying back 8.1 million shares for over CAD 1 billion—also signals management’s confidence in Dollarama’s intrinsic value, organically supporting EPS and contributing to valuation discipline.

Catalysts and Positive Outlook

Looking ahead, several compelling catalysts suggest that Dollarama’s bullish narrative is far from fully priced in:

• Store expansion continues apace: With 65 net new stores opened in FY2025 and 70-80 planned for FY2026, Dollarama is fast approaching its updated long-term Canadian target of 2,200 stores by 2034. This underscores an ambitious yet credible platform for national growth.
• International momentum is building: Increasing its stake in Dollarcity to 60.1% in June 2024 and unveiling plans to enter Mexico in summer 2025, Dollarama is unlocking sizeable new addressable markets. Meanwhile, the announced acquisition of The Reject Shop in Australia points to global aspirations and significant optionality outside the Americas.
• Operational enhancements, such as the development of a major logistics hub in Alberta and persistent productivity initiatives, promise to further drive efficiency and margin expansion.
• ESG and governance advances, including further supply chain transparency and local sourcing, may improve the company’s profile for increasingly sustainability-minded institutional investors.
• Consumer tailwinds remain supportive: Economic pressure on households is likely to sustain value-retailer momentum, with a growing demographic turning to affordable, fixed-price chains for everyday essentials.

Each of these trends and strategic moves coincides with favorable retail consumption data and a sector-wide premium on resilient, scale-driven operators. Dollarama’s capacity for high-visibility, profitable growth thus seems well insulated for the medium term.

Investment Strategies

For investors considering Dollarama, several strategic entry points present themselves:

• Short-term: The current consolidation just below resistance (~CAD 169–172) could offer tactical opportunities ahead of the next quarterly catalyst or on dips above support at CAD 163–169. A breakout above the 52-week high of CAD 174.75 may confirm the beginning of another bullish leg.
• Medium-term: The execution of new store openings, M&A news, and subsequent earnings releases throughout 2025/2026 are likely to reward patient holders and provide periodic reentry signals.
• Long-term: Dollarama’s expanding addressable market—from Canadian saturation to Latin American and soon Australian/Mexican footprints—sets the stage for compounding value. The disciplined approach to capital allocation and ongoing share repurchases support a steadfast buy-and-hold strategy.

Investors seeking an “ideal positioning” may look to accumulate on technical pullbacks to established support zones, or ahead of anticipated catalysts—such as Dollarcity’s entrance into Mexico or logistic hub operationalization—where valuation still reflects conservative growth assumptions.

Is It the Right Time to Buy Dollarama?

Dollarama exemplifies many attributes that historically reward investors: sector leadership, resilient demand in challenging times, scalable expansion, best-in-class margins, and a management team demonstrating executional excellence. The stock’s long-term chart evidences structural compounding returns; its present technical setup and positive fundamental drivers suggest the trend is poised to continue.

All told, Dollarama’s unique blend of defensive characteristics with strong growth optionality, bolstered by visible expansion drivers domestically and abroad, mean the fundamentals justify renewed interest at current levels. In an environment where macro conditions remain fluid, Dollarama stands out as a stock that may be entering a new bullish phase—providing both stability and growth potential in a diversified portfolio.

For those searching for an exemplary Canadian consumer story displaying resilient outperformance and significant upside potential, Dollarama seems to represent an excellent opportunity worth serious consideration. As the company accelerates its expansion both at home and internationally, its shares may well provide investors not only with a dependable anchor in the retail sector, but also with exposure to the next wave of value-driven growth.

How to buy Dollarama stock in CA?

Buying shares of Dollarama (DOL.TO) online is both straightforward and secure when you use a regulated broker in Canada. As a retail investor, you can choose between two accessible methods: purchasing the stock directly (“spot buying”) or trading via Contracts for Difference (CFDs). Spot buying allows you to own Dollarama shares outright, while CFDs let you potentially amplify returns—though with higher risk—by speculating on price movements without owning the shares. Both options are available through most reputable online brokers. To help you make an informed choice, you’ll find a detailed broker comparison further down the page.

Spot buying

A cash, or spot, purchase involves buying actual Dollarama shares on the Toronto Stock Exchange (TSX) through a Canadian brokerage. You become a legal shareholder and can benefit from dividends and long-term appreciation. Typical fees include a fixed commission per trade, often around CAD $5 to $10, depending on the broker.

Practical example

If the Dollarama share price is CAD $169.65, with a $1,000 investment and a $5 commission, you can buy about 5 shares:
- $1,000 – $5 = $995 available for shares
- $995 ÷ $169.65 ≈ 5 shares (rounded down)

Gain scenario

If the share price rises by 10% to about CAD $186.60, your 5 shares are then worth $933.
- New value: 5 × $186.60 = $933
- Gross gain: $933 – $850 = $83 (+10%, not accounting for commission and taxes)

Trading via CFD

CFD (Contract for Difference) trading allows you to speculate on Dollarama’s share price changes without actually owning the underlying stock. CFDs offer leverage, meaning you can control a larger position with less upfront capital. With CFDs, fees usually include the “spread” (the difference between bid and ask prices) and overnight financing charges if you hold positions longer than a day.

Concrete example

With a $1,000 stake and 5x leverage, you take a CFD position on Dollarama shares, gaining $5,000 in market exposure.
- If Dollarama’s share price rises by 8%, your leveraged position generates an 8% × 5 = 40% return.
- That’s a $400 gain on your $1,000 margin (excluding spreads and financing costs).

Final advice

Before making your first investment in Dollarama, be sure to compare brokers’ fees, available features, and regulatory protections. Whether you choose to buy shares outright for long-term holding or trade CFDs for short-term opportunities, your choice should reflect your risk tolerance and investment goals. To simplify your decision, a comprehensive broker comparison is available further down this page.

Our 7 tips for buying Dollarama stock

The latest news about Dollarama

Dollarama’s stock reached a new high this week, continuing its strong momentum with a 2.11% gain. As of May 19, 2025, Dollarama traded at CAD 169.65, near its 52-week high of CAD 174.75, highlighting growing investor confidence. The intraday and weekly performance underscore a positive market reaction, likely reflecting robust fundamentals and favorable sentiment toward the discount retail sector in Canada.

Dollarama’s Q4 2025 results revealed double-digit growth in revenue, net earnings, and EPS, reinforcing operational strength. For the quarter ending in early February, revenue rose 14.8% year over year to CAD 1.88 billion, with comparable store sales up 4.9%. Net earnings surged 20.8% to CAD 391 million, and diluted EPS increased by 21.7%. These results, reported within the last week, underscore the company’s ability to deliver growth in a competitive Canadian retail environment and signal resilience to shifting consumer demand.

The company raised its quarterly dividend by 15%, reflecting confidence and ongoing commitment to shareholder returns. The latest dividend, paid on May 9, 2025, was increased to CAD 0.1058 per share, with the dividend yield standing at 0.25%. This marks another step in Dollarama’s steady capital return program, which also includes an aggressive share repurchase initiative, and signals management’s belief in sustained cash flow generation.

Dollarama elevated its long-term Canadian store target to 2,200 by 2034 and confirmed near-term expansion plans. The last week saw the reaffirmation of ambitious domestic growth, with 65 net new stores opened in FY2025 and a target of 70–80 openings in FY2026. This expanded footprint deepens the company’s reach across all Canadian regions, strengthening its leadership in value retail and supporting continued sales growth amid changing economic conditions.

Technical indicators are strongly bullish, with the stock above all key moving averages and a recent ‘strong buy’ consensus from analysts. Dollarama’s price remains well above its 50-, 100-, and 200-day moving averages, and the MACD indicates ongoing buy momentum, while the relative strength index (RSI) remains neutral—suggesting there is room for further upside. Major platforms and experts have echoed a positive technical outlook in the past week, reinforcing favorable prospects for investors focused on the Canadian market.

FAQ

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P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.