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Dollarama (TSX:DOL) ROE % : 87.31% (As of Apr. 2025)


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What is Dollarama ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Dollarama's annualized net income for the quarter that ended in Apr. 2025 was C$1,095 Mil. Dollarama's average Total Stockholders Equity over the quarter that ended in Apr. 2025 was C$1,254 Mil. Therefore, Dollarama's annualized ROE % for the quarter that ended in Apr. 2025 was 87.31%.

The historical rank and industry rank for Dollarama's ROE % or its related term are showing as below:

TSX:DOL' s ROE % Range Over the Past 10 Years
Min: 63.8   Med: 493.6   Max: Negative Equity
Current: 113.95

During the past 13 years, Dollarama's highest ROE % was Negative Equity%. The lowest was 63.80%. And the median was 493.60%.

TSX:DOL's ROE % is ranked better than
98.7% of 307 companies
in the Retail - Defensive industry
Industry Median: 9.27 vs TSX:DOL: 113.95

Dollarama ROE % Historical Data

The historical data trend for Dollarama's ROE % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Dollarama ROE % Chart

Dollarama Annual Data
Trend Jan16 Jan17 Jan18 Jan19 Jan20 Jan21 Jan22 Jan23 Jan24 Jan25
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 465.14 493.39 Negative Equity 493.80 148.94

Dollarama Quarterly Data
Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24 Apr24 Jul24 Oct24 Jan25 Apr25
ROE % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 213.61 141.82 90.22 127.74 87.31

Competitive Comparison of Dollarama's ROE %

For the Discount Stores subindustry, Dollarama's ROE %, along with its competitors' market caps and ROE % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Dollarama's ROE % Distribution in the Retail - Defensive Industry

For the Retail - Defensive industry and Consumer Defensive sector, Dollarama's ROE % distribution charts can be found below:

* The bar in red indicates where Dollarama's ROE % falls into.


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Dollarama ROE % Calculation

Dollarama's annualized ROE % for the fiscal year that ended in Jan. 2025 is calculated as

ROE %=Net Income (A: Jan. 2025 )/( (Total Stockholders Equity (A: Jan. 2024 )+Total Stockholders Equity (A: Jan. 2025 ))/ count )
=1168.545/( (380.848+1188.258)/ 2 )
=1168.545/784.553
=148.94 %

Dollarama's annualized ROE % for the quarter that ended in Apr. 2025 is calculated as

ROE %=Net Income (Q: Apr. 2025 )/( (Total Stockholders Equity (Q: Jan. 2025 )+Total Stockholders Equity (Q: Apr. 2025 ))/ count )
=1095.024/( (1188.258+1320.073)/ 2 )
=1095.024/1254.1655
=87.31 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data, the net income data used here is four times the quarterly (Apr. 2025) net income data. ROE % is displayed in the 30-year financial page.


Dollarama  (TSX:DOL) ROE % Explanation

ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.

The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:

ROE %(Q: Apr. 2025 )
=Net Income/Total Stockholders Equity
=1095.024/1254.1655
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(1095.024 / 6084.84)*(6084.84 / 6525.388)*(6525.388 / 1254.1655)
=Net Margin %*Asset Turnover*Equity Multiplier
=18 %*0.9325*5.203
=ROA %*Equity Multiplier
=16.79 %*5.203
=87.31 %

With this breakdown, it is clear that if a company grows its Net Profit Margin, its Asset Turnover, or its Leverage, it can grow its ROE %.

The factors that affect a company's ROE % can also be illustrated with the five-step DuPont Analysis:

ROE %(Q: Apr. 2025 )
=Net Income/Total Stockholders Equity
=1095.024/1254.1655
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (1095.024 / 1420.688) * (1420.688 / 1393.888) * (1393.888 / 6084.84) * (6084.84 / 6525.388) * (6525.388 / 1254.1655)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.7708 * 1.0192 * 22.91 % * 0.9325 * 5.203
=87.31 %

Note: The net income data used here is four times the quarterly (Apr. 2025) net income data. The Revenue data used here is four times the quarterly (Apr. 2025) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Be Aware

Net Income is used.

Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.

Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.


Dollarama ROE % Related Terms

Thank you for viewing the detailed overview of Dollarama's ROE % provided by GuruFocus.com. Please click on the following links to see related term pages.


Dollarama Business Description

Traded in Other Exchanges
Address
5805 Royalmount Avenue, Montreal, QC, CAN, H4P 0A1
Dollarama is Canada's largest dollar store chain that sells a broad range of everyday consumables and household items at low fixed price points currently capped at CAD 5. General merchandise and consumables make up 90% of total sales, and the rest is from festivity-related seasonal items. The retailer operates more than 1,600 stores across Canada, mostly in convenient locations in metropolitan areas, midsize cities, and small towns. It also holds a 60% stake in South American value retailer Dollarcity, which operates 550 stores across Colombia, Guatemala, El Salvador, and Peru.
Executives
Mark Di Pesa Senior Officer
John Huw Thomas Director
Stephen Gunn Director
Paul Roche Director or Senior Officer of Insider or Subsidiary (other than in 4,5,6)
Geoffrey Peter Robillard Senior Officer
Nicolas Hien Director or Senior Officer of Insider or Subsidiary (other than in 4,5,6), Senior Officer
John Assaly Director or Senior Officer of Insider or Subsidiary (other than in 4,5,6)
Gregory David Director
Jean-philippe Towner Senior Officer
Joshua Bekenstein Director
Johanne Choinière Senior Officer
Nicholas George Nomicos Director
Josée Kouri Director or Senior Officer of Insider or Subsidiary (other than in 4,5,6), Senior Officer
Michael Ross Senior Officer
Lawrence Rossy Director, Senior Officer