Canadian stock alert

CANA

CLOSING UPDATE: Dollarama decreases gains by 0.01% - outperforming 83% of stocks 18 October 2017 18:16 EDT

NEWS BITES - NORTH AMERICA

This is an end of day Alert, produced after today's Canadian market close. It concludes the BSS News Bites intra-day Alert series (summaries below).

Dollarama, Canada's 3rd largest defensive retailer company by market capitalisation, has increased 62.0c (or 0.4%) today to trade at CAD141.58 and has outperformed 83% of the market in the past week. A price rise combined with a high relative strength is a bullish signal. Compared with the S&P/TSX 60 Index which fell 2.0 points (or 0.2%) in the day, this represented a relative price increase of 0.7%.

Technical indicators complementing today's significant uptrend:

+ The positive 2.41 MACD (Moving Average Convergence Divergence) indicator suggests a bullish signal.

+ In the last three months the stock has hit a new 52-week high five times, pointing to an uptrend.

+ The price lifted 3.7% in the last week and 2.9% in the last month.

Fundamental measures by comparison with the sector average [in brackets] indicate:

Undervaluation:

+ Price/Earnings/Growth of 1.24 [4.2]

+ Return on Assets 23.9% [3.3%]

+ Return on Capital Employed 47.8% [8.0%]

+ Year-on-Year Earnings Growth of 23.7% [2.5%]

Other Bullish Signals include:

+ Interest cover is less leveraged at 19.5 times.

+ Total Liabilities/EBITDA of 2.5 is comfortably below the Joseph Piotroski benchmark of <5.

+ Net profit margin has averaged 14.1% in the last 3 years. This is better than the sector average of 1.5% and suggests a high margin of safety.

Note

Bearish Signals:

Tobin's Q Ratio is 8.5. Compared with the rest of the market the stock is overvalued and ranks in the bottom 9% of stocks by value of Q Ratio.

Overbought/Bearish:

The 0.6% discount to 12-month high of CAD142.40 against the 52.4% premium to 12-month low of CAD92.93 suggests the climb might be peaking.

Fundamental measures by comparison with the sector average [in brackets] indicate:

Overvaluation:

Price/Earnings of 38.2 [10.6]

Dividend yield of 0.3% [1.6%]

TODAY'S ALERT

Afternoon Alert: Dollarama increases 0.4% - outperforming 93% of stocks

18 October 2017 12:16 EDT

Dollarama Inc. (TSX:DOL) has increased 63.0c (or 0.4%) today to trade at CAD141.59 and has outperformed 93% of the market in the past week. A price rise combined with a high relative strength is a bullish signal.

Dollarama Inc. (T:DOL; TSE:DOL; N:DOL; CN:DOL)

ISIN: CA25675T1075

PermID: 5000063689

CIK: Dollarama Inc.

Source: www.BuySellSignals.com