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DOL - Dollarama


FourCastles

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  Is there a thread on Dollarama? I couldn't find one.

 

  Discount store chain, ~1000 stores across Canada, selling non-perishable goods in the 1-3 dollar range. As of last quarter, sales growth at 13% YoY (6% in same store growth), earnings growth at 27%, margins stable at 20%. Company repurchases stock (5% over the next year), stable management team. Somewhat overpriced (PE 32 compared to competition at 24, PEG 3) but it seems the execution is excellent, exceeding targets every quarter, there is some room to grow (another 200 stores can be opened, maybe introduce somewhat higher priced items). Their past stock performance has been stellar, I am hoping for 10-20% annual appreciation at relatively low risk.

 

  What do you guys think? 

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