PRICESMART INC (PSMT) Stock Fundamental Analysis
NASDAQ:PSMT - Nasdaq - US7415111092 - Common Stock - Currency: USD
PSMT gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 40 industry peers in the Consumer Staples Distribution & Retail industry. PSMT has an excellent profitability rating, but there are some minor concerns on its financial health. PSMT is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
PSMT had positive earnings in the past year.
PSMT had a positive operating cash flow in the past year.
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 of 11.74%. This is comparable to the rest of the industry: PSMT outperforms 60.00% of 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 8.26%.
The last Return On Invested Capital (10.59%) for PSMT is above the 3 year average (10.01%), which is a sign of increasing profitability.
| 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
With a decent Profit Margin value of 2.76%, PSMT is doing good in the industry, outperforming 72.50% of the companies in the same industry.
PSMT's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 4.49%, PSMT belongs to the top of the industry, outperforming 85.00% 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 72.50% 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so PSMT is still creating some value.
The number of shares outstanding for PSMT has been reduced compared to 1 year ago.
Compared to 5 years ago, PSMT has more shares outstanding
The debt/assets ratio for PSMT has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 5.72 indicates that PSMT is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 5.72, PSMT is doing good in the industry, outperforming 80.00% of the companies in the same industry.
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 has a better Debt to FCF ratio (1.31) than 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.
The Debt to Equity ratio of PSMT (0.09) is better than 77.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.09 | ||
| Debt/FCF | 1.31 | ||
| Altman-Z | 5.72 |
ROIC/WACC1.21
WACC8.75%
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.
The Current ratio of PSMT (1.28) is better than 70.00% of its industry peers.
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 Quick ratio of 0.50. This is in the lower half of the industry: PSMT underperforms 62.50% 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.
Looking at the last year, PSMT shows a very negative growth in Revenue. The Revenue has decreased by -13.52% in the last year.
Measured over the past years, PSMT shows a quite strong growth in Revenue. The Revenue has been growing by 8.79% on average per year.
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
Based on estimates for the next years, PSMT will show a quite strong growth in Earnings Per Share. The EPS will grow by 14.95% on average per year.
Based on estimates for the next years, PSMT will show a quite strong growth in Revenue. The Revenue will grow by 11.16% on average per year.
EPS Next Y8.77%
EPS Next 2Y14.95%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year8%
Revenue Next 2Y8.79%
Revenue Next 3Y11.16%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 23.78 indicates a rather expensive valuation of PSMT.
Compared to the rest of the industry, the Price/Earnings ratio of PSMT is on the same level as its industry peers.
When comparing the Price/Earnings ratio of PSMT to the average of the S&P500 Index (26.54), we can say PSMT is valued inline with the index average.
With a Price/Forward Earnings ratio of 18.67, PSMT is valued on the expensive side.
Compared to the rest of the industry, the Price/Forward Earnings ratio of PSMT indicates a somewhat cheap valuation: PSMT is cheaper than 67.50% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 35.28. PSMT is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.78 | ||
| Fwd PE | 18.67 |
4.2 Price Multiples
PSMT's Enterprise Value to EBITDA ratio is in line with the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of PSMT indicates a slightly more expensive valuation: PSMT is more expensive than 60.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 37.38 | ||
| EV/EBITDA | 9.94 |
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.
The decent profitability rating of PSMT may justify a higher PE ratio.
PSMT's earnings are expected to grow with 14.95% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.71
PEG (5Y)2.08
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 2.10, 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 2.40.
| 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 been paying a dividend for at least 10 years, so it has a reliable track record.
PSMT has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
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
NASDAQ:PSMT (8/8/2025, 10:52:57 AM)
112.74
+1.45 (+1.3%)
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 Change0.94%
Ins Owners7.36%
Ins Owner Change-1.28%
Market Cap3.47B
Analysts84.44
Price Target113.9 (1.03%)
Short Float %5.23%
Short Ratio6.65
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)6.35%
PT rev (3m)12.42%
EPS NQ rev (1m)-2.99%
EPS NQ rev (3m)-4.42%
EPS NY rev (1m)0%
EPS NY rev (3m)0.48%
Revenue NQ rev (1m)1.42%
Revenue NQ rev (3m)1.65%
Revenue NY rev (1m)0.17%
Revenue NY rev (3m)0.5%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.78 | ||
| Fwd PE | 18.67 | ||
| P/S | 0.67 | ||
| P/FCF | 37.38 | ||
| P/OCF | 15.69 | ||
| P/B | 2.86 | ||
| P/tB | 2.96 | ||
| EV/EBITDA | 9.94 |
EPS(TTM)4.74
EY4.2%
EPS(NY)6.04
Fwd EY5.36%
FCF(TTM)3.02
FCFY2.68%
OCF(TTM)7.19
OCFY6.37%
SpS167.97
BVpS39.49
TBVpS38.08
PEG (NY)2.71
PEG (5Y)2.08
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 | 5.72 |
F-Score7
WACC8.75%
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 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 Year8%
Revenue Next 2Y8.79%
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%