Dollarama (OTCMKTS:DLMAF) Shares Gap Up – Should You Buy?

Dollarama Inc. (OTCMKTS:DLMAF) shares gapped up before the market opened on Thursday. The stock had previously closed at $132.9635, but opened at $142.37. Dollarama shares last traded at $142.37, with a volume of 148 shares changing hands.

Analyst Ratings Changes

A number of equities research analysts have recently weighed in on DLMAF shares. Royal Bank Of Canada restated an “outperform” rating on shares of Dollarama in a research note on Thursday, September 17th. Ventum Financial raised shares of Dollarama to a “strong-buy” rating in a research report on Thursday, August 20th. Five equities research analysts have rated the stock with a Strong Buy rating, four have assigned a Buy rating and four have issued a Hold rating to the stock. Based on data from MarketBeat.com, the company presently has a consensus rating of “Buy”.

Dollarama Stock Performance

The stock has a market capitalization of $39.11 billion and a price-to-earnings ratio of 40.52. The firm has a fifty day moving average of $130.10 and a 200 day moving average of $129.92. The company has a debt-to-equity ratio of 3.71, a current ratio of 1.55 and a quick ratio of 0.54.

Dollarama (OTCMKTS:DLMAF) last posted its earnings results on Wednesday, September 16th. The company reported $0.92 EPS for the quarter, beating analysts’ consensus estimates of $0.91 by $0.01. The firm had revenue of $1.44 billion for the quarter, compared to analysts’ expectations of $1.44 billion. Dollarama had a return on equity of 96.41% and a net margin of 17.32%. On average, sell-side analysts anticipate that Dollarama Inc. will post 3.70 earnings per share for the current fiscal year.

Dollarama Company Profile

Dollarama Inc is a Canadian value retailer that operates stores offering general merchandise, consumable products and seasonal items at low, fixed price points. Its product selection typically includes household goods, kitchenware, hardware, stationery, party supplies, toys, health and beauty products, snacks and other everyday necessities.

The company traces its origins to 1992, when the first Dollarama store opened in Matane, Quebec. It has since expanded into a nationwide retail network serving communities across Canada, with stores located in urban, suburban and smaller markets.