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  "documentTitle": "Dollarama Inc. (DOL)",
  "authorId": "54_Spruce_Point_Capital",
  "authorName": "Ben Axler",
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  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2018-10-31 00:00:00",
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  "notes": "The slide uses a red box to highlight the specific data points (EBITDA Margin and Sales Growth) that the author finds contradictory.",
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      "kind": "callout",
      "text": "Though analysts project declining sales growth, they foresee margin expansion at the same time. This pair of estimates makes little sense to us and should make investors skeptical of consensus estimates. Our research will explain why we believe margins will be pressured going forward.",
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      "text": "Though analysts project declining sales growth, they foresee margin expansion at the same time. This pair of estimates makes little sense to us and should make investors skeptical of consensus estimates.",
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      "text": "EV / EBITDA: 16.7x",
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      "text": "At present, Dollarama demonstrates impressive margins and is not egregiously over-levered on a Net Debt-to-EBITDA basis. However, as competition increases, customers push back against recent price hikes, and operating costs creep upwards, we believe that management will have a difficult time maintaining current profitability levels – particularly while pursuing an aggressive growth strategy. Leverage will be less sustainable should the business’ performance decline or the economic environment turn, threatening management’s ability to support continued buybacks / dividends while growing store count.",
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      "text": "Source: Dollarama and Bloomberg Estimates. Note: Calendar Year Ended Jan 30th. Note: Operating Leases valued at 6x Operating Lease Expense",
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