Dollarama Inc.
Thesis
Dollarama is positioned for significant growth with a projected EPS increase to ~$10 over the next five years, driven by new store openings, same-store sales growth, and share buybacks. The market undervalues its potential, with a target price of C$225 based on a forward P/E of 19x, down from the current 26x.
Did it work?
The stock price has increased by 64.8% since the pitch, which aligns with the long thesis that Dollarama is positioned for significant growth. The projected EPS increase and the undervaluation of the stock have been validated by the positive price performance, indicating that the market is beginning to recognize its potential. Given that 64 months is well beyond the stated five-year horizon, this outcome supports a strong conclusion that the thesis has worked.
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