Dollarama Inc. (OTC:DLMAF) is a leading figure in the discount retail industry, now marking its presence in the Australian market through the acquisition of The Reject Shop Limited. This move not only broadens Dollarama's geographical footprint but also strengthens its position in the competitive discount retail sector.
On August 27, 2025, Dollarama reported an EPS of $0.838, slightly beating the estimated $0.834. Despite this positive EPS outcome, the company's revenue of about $1.25 billion did not meet the anticipated $1.37 billion. This discrepancy was a focal point during the Q2 2026 earnings conference call, where CEO Neil Rossy and CFO Patrick Bui shed light on Dollarama's performance and future plans. The earnings call, featuring analysts and researchers from leading financial institutions like TD Cowen, Jefferies LLC, and Wells Fargo Securities, underscored Dollarama's strategic focus on international expansion through the acquisition of The Reject Shop. This move is a key milestone in Dollarama's growth strategy, introducing two reportable segments: the Canadian segment and the newly formed Australian segment.
Dollarama's financial metrics reveal its market stance. The company's P/E ratio is approximately 41.56, showing investor readiness to pay over 41 times the company's earnings over the past twelve months. The Price-to-Sales ratio is about 7.81, indicating the market values the company nearly 8 times its annual sales. These ratios demonstrate investor confidence in Dollarama's growth prospects. The company's Enterprise Value to Sales ratio stands at approximately 8.50, reflecting its total valuation in relation to sales.
Furthermore, the Enterprise Value to Operating Cash Flow ratio is around 33.06, showing how many times the company's operating cash flow is covered by its enterprise value. Despite a high Debt-to-Equity ratio of approximately 3.56, Dollarama maintains a reasonable liquidity level with a Current Ratio of about 1.31, indicating its capability to cover short-term liabilities efficiently.
