Topic: How To Invest

Q: Pat, your opinion, please, on the following stock: Dollarama. I’d really appreciate it. Thanks.

Article Excerpt

A: Dollarama Inc., $37.87, symbol DOL on Toronto (Shares outstanding: 327.7 million; Market cap: $11.9 billion; www.dollarama.com), is Canada’s leading dollar-store operator, with 1,225 locations across the country. On June 19, 2018, the company split its shares on a 3-for-1 basis. Overall revenue rose from $2.33 billion in 2015 (fiscal years end February 3) to $2.65 billion for 2016 and to $2.96 billion for 2017. Revenue in fiscal 2018 was up 10.2% to $3.27 billion while sales in fiscal 2019 increased a further 8.6% to $3.55 billion. Earnings rose from $0.74 a share (or $348.5 million) in 2015 to $1.01 ($388.6 million) for 2016. Earnings increased again in 2017, by 15.7% to $445.6 million, although per-share earnings jumped 23.7%, to $1.25, on fewer shares outstanding. Fiscal 2018 saw earnings rise 16.6%, to $519.4 million, while per-share earnings rose 22.9% to $1.54, on fewer shares outstanding. In fiscal 2019, earnings gained 5.7%, to $548.9 million, while per-share earnings rose 9.7% to $1.69, again, on…