DLMAY (Dollarama) Moat Score: 6/10 (As of Jul. 01, 2026)


DLMAY Dollarama Inc DLMAY
74 GF Score
Price $14.44
GF Value $13.94
Valuation Modestly Overvalued
! 1 Warning Sign
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What is Dollarama Moat Score?

Dollarama DLMAY -7.55% 74 Moat Score is 6 as of Jul. 01, 2026. GuruFocus rates DLMAY with a GF Score™ of 74/100 and a GF Value™ of $13.94 (Modestly Overvalued). The stock has 1 warning sign investors should review. Among 315 Retail - Defensive companies, Dollarama ranks better than 96.83% on this metric.

Dollarama has the Moat Score of 6, which implies that the company might have Narrow Moat - Strong narrow moat, clearly distinguishable but not wide.

Dollarama has Narrow Moat: Dollarama has a strong narrow moat due to its extensive distribution network and economies of scale in the discount retail sector. Its brand strength and pricing power are notable, but competition from other retailers limits a wider moat.

Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more.

The company's Moat Score is based on these criteria:

1. Market leadership and sustainable market share
2. Network effects and significant customer switching costs
3. Valuable intellectual property and patents
4. Strong brand strength and deep customer loyalty
5. Durable cost advantages (e.g., economies of scale, proprietary technology)
6. Significant regulatory barriers and exclusive licenses
7. Superior distribution network
8. Strong and sustainable pricing power
9. Consistent and impactful innovation and R&D capabilities

Based on the research, GuruFocus believes Dollarama might have Narrow Moat - Strong narrow moat, clearly distinguishable but not wide.

Dollarama  (OTCPK:DLMAY) Moat Score Explanation

The Moat Score ranges from 0 to 10, with 10 as the highest. GuruFocus divided Moat Score into following 8 categories:

Moat Score Moat Level
10Wide Moat - Exceptionally dominant and durable wide moat
8 - 9Wide Moat - Clear and robust wide moat
7Wide Moat - Entry-level wide moat, clearly possessing durable advantages
6Narrow Moat - Strong narrow moat, clearly distinguishable but not wide
5Narrow Moat - Solid narrow moat
4Narrow Moat - Discernible but modest moat
1 - 3No Moat - Very weak/transient advantages
0No Moat - No discernible moat

Dollarama Moat Score Related Terms

DLMAY vs WMT, COST, TGT: Moat Score Comparison

For the Discount Stores subindustry, Dollarama's Moat Score, along with its competitors' market caps and Moat Score 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 Moat Score vs Retail - Defensive Industry

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

* The bar in red indicates where Dollarama's Moat Score falls into.


DLMAY
74GF Score
Dollarama Inc DLMAY
Moat Score is just one metric. See GF Score™, valuation, warning signs, and more.
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Frequently Asked Questions Learn more about Moat Score →
What does a Moat Score of 6 mean?
Dollarama (DLMAY) has a Moat Score of 6 as of Jul. 01, 2026. Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more. According to the industry distribution chart, Dollarama ranks #10 out of 315 companies in the Retail - Defensive industry, placing it in the top 3.2%.
Is Dollarama's Moat Score too high?
Dollarama's current Moat Score is 6. Based on the distribution chart, Dollarama ranks #10 out of 315 companies in the Retail - Defensive industry, which is in the top quartile — a strong position relative to peers. Overall, Dollarama has a GF Score™ of 74/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Dollarama's Moat Score compare to WMT and COST?
According to the Retail - Defensive industry distribution chart, Dollarama ranks #10 out of 315 companies for Moat Score. This places Dollarama in the top 3% of its industry — outperforming the majority of peers. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Moat Score for a Retail - Defensive company?
A good Moat Score depends on the Retail - Defensive industry context. However, Moat Score should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Moat Score mean?
A high Moat Score can signal that a stock is expensive relative to its fundamentals. Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more. Dollarama's current Moat Score is 6. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Dollarama stock overvalued right now?
Based on GuruFocus' analysis, Dollarama (DLMAY) is currently considered Modestly Overvalued. The stock's GF Value™ is $13.94, compared to a current price of $14.44 — trading 3.6% above its estimated fair value. The current Moat Score is 6. Dollarama's overall GF Score™ is 74/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Moat Score calculated?
Moat Score is calculated from a company's financial statements. For Dollarama (DLMAY), the current Moat Score is 6 as of Jul. 01, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Dollarama (DLMAY) Overvalued in 2026?

Based on GuruFocus' analysis, Dollarama stock appears to be overvalued. The current stock price of $14.44 is trading 3.6% above its estimated GF Value™ of $13.94. GuruFocus considers Dollarama to be Modestly Overvalued.

Key valuation signals for DLMAY:

  • Moat Score: 6
  • GF Value™: $13.94 vs. price of $14.44 (3.6% above fair value)
  • GF Score™: 74/100 with 1 warning sign

No single metric tells the full story. See the DLMAY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Dollarama Business Description

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 close to 1,700 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 more than 600 stores across Colombia, Guatemala, El Salvador, Peru, and Mexico. In 2025, the firm closed its CAD 234 million acquisition of Australian retail chain The Reject Shop, which operates about 400 stores.
74GF Score

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Moat Score is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$14.44
Price
$13.94
GF Value