DollaramaDLMAY -7.55%74 Return-on-Tangible-Equity is 280.08% as of Apr. 2026, which is 19% below its 10-year median of 346.56. GuruFocus rates DLMAY with a GF Score™ of 74/100 and a GF Value™ of $13.92 (Modestly Overvalued). The stock has 1 warning sign investors should review. Among 298 Retail - Defensive companies, Dollarama ranks better than 93.29% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Dollarama's annualized net income for the quarter that ended in Apr. 2026 was $879 Mil. Dollarama's average shareholder tangible equity for the quarter that ended in Apr. 2026 was $314 Mil. Therefore, Dollarama's annualized Return-on-Tangible-Equity for the quarter that ended in Apr. 2026 was 280.08%.
The historical rank and industry rank for Dollarama's Return-on-Tangible-Equity or its related term are showing as below:
DLMAY'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 320.13 Med: 346.56 Max: 346.56
Current: 320.13
During the past 13 years, Dollarama's highest Return-on-Tangible-Equity was 346.56%. The lowest was 320.13%. And the median was 346.56%.
DLMAY's Return-on-Tangible-Equity is ranked better than 93.29% of 298
companies
in the Retail - Defensive industry
Industry Median: 11.085
vs DLMAY: 320.13
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity 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 Return-on-Tangible-Equitys can be extremely high.
Dollarama Return-on-Tangible-Equity Related Terms
Dollarama Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Dollarama's Return-on-Tangible-Equity 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.
DLMAY vs WMT, COST, TGT: Return-on-Tangible-Equity Comparison
For the Discount Stores subindustry, Dollarama's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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 Return-on-Tangible-Equity vs Retail - Defensive Industry
For the Retail - Defensive industry and Consumer Defensive sector, Dollarama's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Dollarama's Return-on-Tangible-Equity falls into.
* 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 Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Apr. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 280.08% mean?
Dollarama (DLMAY) has a Return-on-Tangible-Equity of 280.08% as of Apr. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Dollarama and its competitors. This is 19% below median its historical median of 346.56. Over the past decade, Dollarama's Return-on-Tangible-Equity has ranged from 320.13 to 346.56. According to the industry distribution chart, Dollarama ranks #20 out of 298 companies in the Retail - Defensive industry, placing it in the top 6.7%.
Is Dollarama's Return-on-Tangible-Equity too high?
Dollarama's current Return-on-Tangible-Equity of 280.08% is 19% below median its 10-year median of 346.56. Over the past 10 years, this metric has ranged from a low of 320.13 to a high of 346.56. The Retail - Defensive industry median Return-on-Tangible-Equity is 11.09. Dollarama's value of 280.08% is 2426.7% above this industry median. Based on the distribution chart, Dollarama ranks #20 out of 298 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 Return-on-Tangible-Equity compare to WMT and COST?
According to the Retail - Defensive industry distribution chart, Dollarama ranks #20 out of 298 companies for Return-on-Tangible-Equity. This places Dollarama in the top 7% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 11.09. Dollarama's value of 280.08% is 2426.7% above this benchmark. Historically, Dollarama's own Return-on-Tangible-Equity has ranged from 320.13 to 346.56 over the past decade. While the company's 10-year median is 346.56 vs. the industry median of 11.09, Dollarama has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Equity for a Retail - Defensive company?
The median Return-on-Tangible-Equity among Retail - Defensive companies is 11.09, based on 298 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Dollarama's current Return-on-Tangible-Equity of 280.08% is 2426.7% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Dollarama and its competitors. For the Retail - Defensive industry, the median Return-on-Tangible-Equity is 11.09 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Dollarama's current Return-on-Tangible-Equity is 280.08%, which is 19% below median its own 10-year median of 346.56. 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 $13.92, compared to a current price of $14.44 — trading 3.7% above its estimated fair value. The current Return-on-Tangible-Equity is 280.08%, which is 19% below median its 10-year median of 346.56 and 2426.7% above the Retail - Defensive industry median of 11.09. 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 Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Dollarama (DLMAY), the current Return-on-Tangible-Equity is 280.08% as of Apr. 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 3.7% above its estimated GF Value™ of $13.92.
GuruFocus considers Dollarama to be Modestly Overvalued.
Key valuation signals for DLMAY:
Return-on-Tangible-Equity: 280.08% (19% below median its 10-year median of 346.56)
GF Value™: $13.92 vs. price of $14.44 (3.7% above fair value)
Industry Position: 2426.7% above the Retail - Defensive median (#20 of 298)
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 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
Get the complete analysis for DLMAY
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