PRICESMART INC (PSMT) Stock Fundamental Analysis
NASDAQ:PSMT - US7415111092 - Common Stock
107.26 USD
-0.8 (-0.74%)
107.26 USD
0 (0%)
Taking everything into account, PSMT scores 6 out of 10 in our fundamental rating. PSMT was compared to 41 industry peers in the Consumer Staples Distribution & Retail industry. PSMT has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. PSMT is quite expensive at the moment. It does show a decent growth rate. These ratings would make PSMT suitable for quality investing!
1. Profitability
1.1 Basic Checks
In the past year PSMT was profitable.
In the past year PSMT had a positive cash flow from operations.
Each year in the past 5 years PSMT has been profitable.
PSMT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
PSMT has a better Return On Assets (6.65%) than 70.73% of its industry peers.
PSMT has a Return On Equity of 11.74%. This is comparable to the rest of the industry: PSMT outperforms 53.66% of its industry peers.
The Return On Invested Capital of PSMT (10.59%) is better than 80.49% of its industry peers.
PSMT had an Average Return On Invested Capital over the past 3 years of 10.01%. This is in line with the industry average of 8.14%.
The 3 year average ROIC (10.01%) for PSMT is below the current ROIC(10.59%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.65% | ||
| ROE | 11.74% | ||
| ROIC | 10.59% |
ROA(3y)5.96%
ROA(5y)5.64%
ROE(3y)10.79%
ROE(5y)10.45%
ROIC(3y)10.01%
ROIC(5y)9.24%
1.3 Margins
PSMT has a better Profit Margin (2.76%) than 65.85% of its industry peers.
In the last couple of years the Profit Margin of PSMT has grown nicely.
With an excellent Operating Margin value of 4.49%, PSMT belongs to the best of the industry, outperforming 82.93% of the companies in the same industry.
PSMT's Operating Margin has improved in the last couple of years.
PSMT's Gross Margin of 17.31% is on the low side compared to the rest of the industry. PSMT is outperformed by 68.29% of its industry peers.
In the last couple of years the Gross Margin of PSMT has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.49% | ||
| PM (TTM) | 2.76% | ||
| GM | 17.31% |
OM growth 3Y1.11%
OM growth 5Y4.71%
PM growth 3Y1.46%
PM growth 5Y4.41%
GM growth 3Y-1.08%
GM growth 5Y1.02%
2. Health
2.1 Basic Checks
PSMT has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for PSMT has been reduced compared to 1 year ago.
The number of shares outstanding for PSMT has been increased compared to 5 years ago.
Compared to 1 year ago, PSMT has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 5.64 indicates that PSMT is not in any danger for bankruptcy at the moment.
PSMT has a better Altman-Z score (5.64) than 80.49% of its industry peers.
The Debt to FCF ratio of PSMT is 1.31, which is an excellent value as it means it would take PSMT, only 1.31 years of fcf income to pay off all of its debts.
PSMT has a better Debt to FCF ratio (1.31) than 85.37% of its industry peers.
PSMT has a Debt/Equity ratio of 0.09. This is a healthy value indicating a solid balance between debt and equity.
With a decent Debt to Equity ratio value of 0.09, PSMT is doing good in the industry, outperforming 75.61% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.09 | ||
| Debt/FCF | 1.31 | ||
| Altman-Z | 5.64 |
ROIC/WACC1.21
WACC8.76%
2.3 Liquidity
PSMT has a Current Ratio of 1.28. This is a normal value and indicates that PSMT is financially healthy and should not expect problems in meeting its short term obligations.
With a decent Current ratio value of 1.28, PSMT is doing good in the industry, outperforming 65.85% of the companies in the same industry.
PSMT has a Quick Ratio of 1.28. This is a bad value and indicates that PSMT is not financially healthy enough and could expect problems in meeting its short term obligations.
PSMT has a worse Quick ratio (0.50) than 60.98% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.28 | ||
| Quick Ratio | 0.5 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 10.75% over the past year.
The Earnings Per Share has been growing by 11.43% on average over the past years. This is quite good.
PSMT shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -13.52%.
The Revenue has been growing by 8.79% on average over the past years. This is quite good.
EPS 1Y (TTM)10.75%
EPS 3Y12.81%
EPS 5Y11.43%
EPS Q2Q%5.56%
Revenue 1Y (TTM)-13.52%
Revenue growth 3Y10.72%
Revenue growth 5Y8.79%
Sales Q2Q%7.15%
3.2 Future
PSMT is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.41% yearly.
PSMT is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.74% yearly.
EPS Next Y9.03%
EPS Next 2Y7.11%
EPS Next 3Y4.41%
EPS Next 5YN/A
Revenue Next Year8.04%
Revenue Next 2Y8.81%
Revenue Next 3Y9.74%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 22.63, the valuation of PSMT can be described as rather expensive.
The rest of the industry has a similar Price/Earnings ratio as PSMT.
PSMT's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.08.
A Price/Forward Earnings ratio of 20.46 indicates a rather expensive valuation of PSMT.
PSMT's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of PSMT to the average of the S&P500 Index (22.72), we can say PSMT is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.63 | ||
| Fwd PE | 20.46 |
4.2 Price Multiples
PSMT's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. PSMT is cheaper than 60.98% of the companies in the same industry.
PSMT's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.57 | ||
| EV/EBITDA | 9.55 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of PSMT may justify a higher PE ratio.
PEG (NY)2.51
PEG (5Y)1.98
EPS Next 2Y7.11%
EPS Next 3Y4.41%
5. Dividend
5.1 Amount
PSMT has a Yearly Dividend Yield of 1.17%. Purely for dividend investing, there may be better candidates out there.
PSMT's Dividend Yield is a higher than the industry average which is at 1.93.
Compared to an average S&P500 Dividend Yield of 2.35, PSMT's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.17% |
5.2 History
The dividend of PSMT is nicely growing with an annual growth rate of 24.72%!
PSMT has paid a dividend for at least 10 years, which is a reliable track record.
PSMT has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)24.72%
Div Incr Years3
Div Non Decr Years11
5.3 Sustainability
26.03% of the earnings are spent on dividend by PSMT. This is a low number and sustainable payout ratio.
The dividend of PSMT is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP26.03%
EPS Next 2Y7.11%
EPS Next 3Y4.41%
107.26
-0.8 (-0.74%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupConsumer Staples Distribution & Retail
GICS IndustryConsumer Staples Distribution & Retail
Earnings (Last)
Earnings (Next)
Inst Owners97.68%
Inst Owner Change-80.08%
Ins Owners7.32%
Ins Owner Change-1.78%
Market Cap3.30B
Analysts84.44
Price Target108.72 (1.36%)
Short Float %4.73%
Short Ratio5.94
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.17% |
Yearly Dividend2.15
Dividend Growth(5Y)24.72%
DP26.03%
Div Incr Years3
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)0.81%
Min EPS beat(2)0.09%
Max EPS beat(2)1.54%
EPS beat(4)2
Avg EPS beat(4)-4.6%
Min EPS beat(4)-10.82%
Max EPS beat(4)1.54%
EPS beat(8)5
Avg EPS beat(8)-2.95%
EPS beat(12)9
Avg EPS beat(12)3.42%
EPS beat(16)11
Avg EPS beat(16)0.31%
Revenue beat(2)0
Avg Revenue beat(2)-1.5%
Min Revenue beat(2)-1.6%
Max Revenue beat(2)-1.4%
Revenue beat(4)0
Avg Revenue beat(4)-1.19%
Min Revenue beat(4)-1.6%
Max Revenue beat(4)-0.48%
Revenue beat(8)1
Avg Revenue beat(8)-0.88%
Revenue beat(12)1
Avg Revenue beat(12)-1.3%
Revenue beat(16)3
Avg Revenue beat(16)-0.69%
PT rev (1m)-4.54%
PT rev (3m)7.31%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-4.42%
EPS NY rev (1m)0.24%
EPS NY rev (3m)0.24%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.65%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)0.2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.63 | ||
| Fwd PE | 20.46 | ||
| P/S | 0.64 | ||
| P/FCF | 35.57 | ||
| P/OCF | 14.92 | ||
| P/B | 2.72 | ||
| P/tB | 2.82 | ||
| EV/EBITDA | 9.55 |
EPS(TTM)4.74
EY4.42%
EPS(NY)5.24
Fwd EY4.89%
FCF(TTM)3.02
FCFY2.81%
OCF(TTM)7.19
OCFY6.7%
SpS167.97
BVpS39.49
TBVpS38.08
PEG (NY)2.51
PEG (5Y)1.98
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.65% | ||
| ROE | 11.74% | ||
| ROCE | 16.07% | ||
| ROIC | 10.59% | ||
| ROICexc | 12.9% | ||
| ROICexgc | 13.39% | ||
| OM | 4.49% | ||
| PM (TTM) | 2.76% | ||
| GM | 17.31% | ||
| FCFM | 1.8% |
ROA(3y)5.96%
ROA(5y)5.64%
ROE(3y)10.79%
ROE(5y)10.45%
ROIC(3y)10.01%
ROIC(5y)9.24%
ROICexc(3y)12.56%
ROICexc(5y)11.87%
ROICexgc(3y)13.1%
ROICexgc(5y)12.49%
ROCE(3y)15.11%
ROCE(5y)14.04%
ROICexcg growth 3Y3.99%
ROICexcg growth 5Y4.95%
ROICexc growth 3Y4.69%
ROICexc growth 5Y5.78%
OM growth 3Y1.11%
OM growth 5Y4.71%
PM growth 3Y1.46%
PM growth 5Y4.41%
GM growth 3Y-1.08%
GM growth 5Y1.02%
F-Score7
Asset Turnover2.41
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.09 | ||
| Debt/FCF | 1.31 | ||
| Debt/EBITDA | 0.33 | ||
| Cap/Depr | 147.62% | ||
| Cap/Sales | 2.48% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 69.34% | ||
| Profit Quality | 65.06% | ||
| Current Ratio | 1.28 | ||
| Quick Ratio | 0.5 | ||
| Altman-Z | 5.64 |
F-Score7
WACC8.76%
ROIC/WACC1.21
Cap/Depr(3y)192.6%
Cap/Depr(5y)183.17%
Cap/Sales(3y)3.21%
Cap/Sales(5y)3.15%
Profit Quality(3y)45.31%
Profit Quality(5y)71.22%
High Growth Momentum
Growth
EPS 1Y (TTM)10.75%
EPS 3Y12.81%
EPS 5Y11.43%
EPS Q2Q%5.56%
EPS Next Y9.03%
EPS Next 2Y7.11%
EPS Next 3Y4.41%
EPS Next 5YN/A
Revenue 1Y (TTM)-13.52%
Revenue growth 3Y10.72%
Revenue growth 5Y8.79%
Sales Q2Q%7.15%
Revenue Next Year8.04%
Revenue Next 2Y8.81%
Revenue Next 3Y9.74%
Revenue Next 5YN/A
EBIT growth 1Y-16.1%
EBIT growth 3Y11.95%
EBIT growth 5Y13.92%
EBIT Next Year47.87%
EBIT Next 3Y29.81%
EBIT Next 5YN/A
FCF growth 1Y-24.91%
FCF growth 3Y40.76%
FCF growth 5Y5.27%
OCF growth 1Y-8.76%
OCF growth 3Y17.74%
OCF growth 5Y4.04%