PRICESMART INC (PSMT) Stock Fundamental Analysis
NASDAQ:PSMT - Nasdaq - US7415111092 - Common Stock - Currency: USD
We assign a fundamental rating of 6 out of 10 to PSMT. PSMT was compared to 40 industry peers in the Consumer Staples Distribution & Retail industry. PSMT scores excellent on profitability, but there are some minor concerns on its financial health. While showing a medium growth rate, PSMT is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
PSMT had positive earnings in the past year.
In the past year PSMT had a positive cash flow from operations.
In the past 5 years PSMT has always been profitable.
PSMT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of PSMT (6.65%) is better than 75.00% of its industry peers.
PSMT has a Return On Equity (11.74%) which is in line with its industry peers.
The Return On Invested Capital of PSMT (10.59%) is better than 80.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for PSMT is in line with the industry average of 8.23%.
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
Looking at the Profit Margin, with a value of 2.76%, PSMT is in the better half of the industry, outperforming 72.50% of the companies in the same industry.
PSMT's Profit Margin has improved in the last couple of years.
PSMT has a better Operating Margin (4.49%) than 85.00% of its industry peers.
In the last couple of years the Operating Margin of PSMT has grown nicely.
PSMT has a Gross Margin of 17.31%. This is in the lower half of the industry: PSMT underperforms 72.50% of its industry peers.
PSMT's Gross Margin has been stable in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so PSMT is still creating some value.
Compared to 1 year ago, PSMT has less shares outstanding
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
PSMT has an Altman-Z score of 5.66. This indicates that PSMT is financially healthy and has little risk of bankruptcy at the moment.
PSMT's Altman-Z score of 5.66 is fine compared to the rest of the industry. PSMT outperforms 80.00% of its industry peers.
PSMT has a debt to FCF ratio of 1.31. This is a very positive value and a sign of high solvency as it would only need 1.31 years to pay back of all of its debts.
PSMT's Debt to FCF ratio of 1.31 is amongst the best of the industry. PSMT outperforms 85.00% 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.
PSMT's Debt to Equity ratio of 0.09 is fine compared to the rest of the industry. PSMT outperforms 77.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.09 | ||
| Debt/FCF | 1.31 | ||
| Altman-Z | 5.66 |
ROIC/WACC1.18
WACC8.98%
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.
Looking at the Current ratio, with a value of 1.28, PSMT is in the better half of the industry, outperforming 70.00% of the companies in the same industry.
A Quick Ratio of 0.50 indicates that PSMT may have some problems paying its short term obligations.
With a Quick ratio value of 0.50, PSMT is not doing good in the industry: 62.50% of the companies in the same industry are doing better.
| 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.
PSMT shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 11.43% yearly.
The Revenue for PSMT has decreased by -13.52% in the past year. This is quite bad
PSMT shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.79% yearly.
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 quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 14.95% yearly.
The Revenue is expected to grow by 11.16% on average over the next years. This is quite good.
EPS Next Y8.77%
EPS Next 2Y14.95%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year7.82%
Revenue Next 2Y8.46%
Revenue Next 3Y11.16%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 23.49 indicates a rather expensive valuation of PSMT.
PSMT's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of PSMT to the average of the S&P500 Index (27.48), we can say PSMT is valued inline with the index average.
With a Price/Forward Earnings ratio of 18.44, PSMT is valued on the expensive side.
Based on the Price/Forward Earnings ratio, PSMT is valued a bit cheaper than 67.50% of the companies in the same industry.
PSMT's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 36.52.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.49 | ||
| Fwd PE | 18.44 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as PSMT.
60.00% of the companies in the same industry are cheaper than PSMT, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 36.92 | ||
| EV/EBITDA | 9.66 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates PSMT does not grow enough to justify the current Price/Earnings ratio.
PSMT has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as PSMT's earnings are expected to grow with 14.95% in the coming years.
PEG (NY)2.68
PEG (5Y)2.06
EPS Next 2Y14.95%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.17%, PSMT has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.03, PSMT pays a bit more dividend than its industry peers.
With a Dividend Yield of 1.17, PSMT pays less dividend than the S&P500 average, which is at 2.34.
| 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
PSMT pays out 26.03% of its income as dividend. This is a sustainable payout ratio.
PSMT's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP26.03%
EPS Next 2Y14.95%
EPS Next 3YN/A
111.35
+2.99 (+2.76%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupConsumer Staples Distribution & Retail
GICS IndustryConsumer Staples Distribution & Retail
Earnings (Last)
Earnings (Next)
Inst Owners96.34%
Inst Owner Change-0.02%
Ins Owners7.36%
Ins Owner Change-1.62%
Market Cap3.42B
Analysts84.44
Price Target113.9 (2.29%)
Short Float %4.8%
Short Ratio6.29
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)0%
PT rev (3m)5.7%
EPS NQ rev (1m)0%
EPS NQ rev (3m)3.4%
EPS NY rev (1m)0%
EPS NY rev (3m)0.69%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.98%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.54%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.49 | ||
| Fwd PE | 18.44 | ||
| P/S | 0.66 | ||
| P/FCF | 36.92 | ||
| P/OCF | 15.49 | ||
| P/B | 2.82 | ||
| P/tB | 2.92 | ||
| EV/EBITDA | 9.66 |
EPS(TTM)4.74
EY4.26%
EPS(NY)6.04
Fwd EY5.42%
FCF(TTM)3.02
FCFY2.71%
OCF(TTM)7.19
OCFY6.45%
SpS167.97
BVpS39.49
TBVpS38.08
PEG (NY)2.68
PEG (5Y)2.06
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 | 5.66 |
F-Score7
WACC8.98%
ROIC/WACC1.18
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 Y8.77%
EPS Next 2Y14.95%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-13.52%
Revenue growth 3Y10.72%
Revenue growth 5Y8.79%
Sales Q2Q%7.15%
Revenue Next Year7.82%
Revenue Next 2Y8.46%
Revenue Next 3Y11.16%
Revenue Next 5YN/A
EBIT growth 1Y-16.1%
EBIT growth 3Y11.95%
EBIT growth 5Y13.92%
EBIT Next Year46.54%
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%