FMP
Jun 12, 2025 12:05 AM - Gordon Thompson
Image credit: Google Images
Dollarama Inc. (OTC:DLMAF) is a leading Canadian retailer known for offering a wide range of affordable products. The company operates numerous stores across Canada, providing consumers with discounted alternatives for household supplies and groceries. Dollarama competes with other discount retailers, benefiting from economic uncertainty as consumers seek cost-effective options.
On June 11, 2025, Dollarama reported earnings per share of $0.71, surpassing the estimated $0.60. This positive performance reflects the company's ability to exceed market expectations. The revenue reported was approximately $1.1 billion, slightly above the estimated $1.097 billion, showcasing Dollarama's strong sales momentum.
Dollarama's financial metrics reveal a robust performance. The company reported a 26.9% surge in net earnings to $273.8 million, with diluted net earnings per share rising by 27.3% to $0.98. The EBITDA margin improved to 32.6%, up from 29.7%, while operating income grew by 20.7% to $388.8 million. These figures highlight Dollarama's operational efficiency and profitability.
Despite a high debt-to-equity ratio of approximately 3.96, Dollarama maintains a current ratio of around 1.18, indicating short-term financial health. The company's valuation metrics, such as a P/E ratio of 46.38 and a price-to-sales ratio of 8.34, reflect investor confidence in its growth prospects. Dollarama's strategic expansion, including the opening of 22 new stores, further supports its positive outlook.
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