Dollarama Shares Expected to Surge Over $100 on Q2
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Dollarama is scheduled to report Q2 Earnings on Thursday, September 1st, 2016.
Symbol: DOL @ TSX (Toronto Stock Exchange) and DLMA @ OTC.
While Dollarama’s P/E Ratio is 29.98, while the industry’s (Retail - Discount stores) P/E Ratio is 11.30, Dollarama is still undervalued and warrants higher P/E Ratio. It is easy to see why Dollarama is undervalued, here is why:
Dollarama’s Price to Cash Flow Ratio is 26.56, while the industry’s P/CS is only 7.10. Also, Dollarama’s Price to Free Cash Flow is 3.79, while Industry’s P/FCF is negative, -25.40.
Dollarama’s Dividend is 0.36, while the industry’s dividend is only 0.19. Also, Dollarama’s Dividend 5 Yr Growth Rate is 17.32, while Industry’s dividend 5 year growth rate is negative, -15.78. Dollarama’s dividend payout ratio is 11, while Industry’s dividend payout ratio is only 6.
Perhaps, most importantly, Dollarama’s Net Profit Margion is 14.81, compared to the industry’s 6.58, and TSX 60’s 1.92. Additionally, Dollarama is highly profitable. Net Profit Margin (5 year average) is 12.60, compared to the industry’s 3.0 and TSX 60’s 1.92.
Dollarama’s Return on Equity is 75.92, while the industry’s ROE is only 35.80.
Dollarama’s Return on Assets is 20.42, while the industry’s RON is only 9.
Dollarama’s Return on Investment is 25.53, compared to the industry’s 17.60 and TSX 60’s 1.30.
Dollarama’s 5 Year Average Return on Investment is 19.04, compared to the industry’s 5.90, and TSX 60’s 5.80.
Recently, a number of analyst banks upgraded Dollarama to Buy and raised Dollarama’s price target substantially.
On 9 June 2016 CIBC World Markets increased Dollarama’s price target from $100.00 to $102.00, while BMO Capital Markets increased Dollarama’s price target from $96.00 to $105.00.
On 19 August 2016, RBC Capital Markets rated Dollarama (DOL:TSX) “Outperform” and raised Dollarama’s price target from $111.00 to $120.00.
On 24 August 2016 TD Securities upgraded Dollarama stock from Hold to “Buy” and raised Dollarama’s price target from $105.00 to $115.00.
On 25 August 2016, Scotia Capital reiterated Dollarama’s price target of $106.
Read more at http://www.stockhouse.com/companies/bullboard...0g8RE8f.99