PRICESMART INC (PSMT)
US7415111092 - Common Stock
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. While PSMT has a great profitability rating, there are some minor concerns on its financial health. PSMT has a correct valuation and a medium growth rate.
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.
PSMT had positive earnings in each of the past 5 years.
Each year in the past 5 years PSMT had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 5.93%, PSMT is in the better half of the industry, outperforming 77.50% of the companies in the same industry.
PSMT's Return On Equity of 11.04% is in line compared to the rest of the industry. PSMT outperforms 60.00% of its industry peers.
PSMT has a Return On Invested Capital of 10.38%. This is in the better half of the industry: PSMT outperforms 80.00% of its industry peers.
PSMT had an Average Return On Invested Capital over the past 3 years of 9.21%. This is in line with the industry average of 10.23%.
The 3 year average ROIC (9.21%) for PSMT is below the current ROIC(10.38%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.93% | ||
| ROE | 11.04% | ||
| ROIC | 10.38% |
ROA(3y)5.59%
ROA(5y)5.4%
ROE(3y)10.24%
ROE(5y)9.82%
ROIC(3y)9.21%
ROIC(5y)8.63%
1.3 Margins
PSMT has a better Profit Margin (2.58%) than 77.50% of its industry peers.
In the last couple of years the Profit Margin of PSMT has remained more or less at the same level.
PSMT's Operating Margin of 4.51% is amongst the best of the industry. PSMT outperforms 85.00% of its industry peers.
In the last couple of years the Operating Margin of PSMT has grown nicely.
PSMT has a worse Gross Margin (17.14%) than 72.50% of its industry peers.
PSMT's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.51% | ||
| PM (TTM) | 2.58% | ||
| GM | 17.14% |
OM growth 3Y8.11%
OM growth 5Y2.68%
PM growth 3Y1.75%
PM growth 5Y1.08%
GM growth 3Y1.1%
GM growth 5Y1.33%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), PSMT is creating some value.
PSMT has more shares outstanding than it did 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 4.91 indicates that PSMT is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 4.91, PSMT is doing good in the industry, outperforming 72.50% of the companies in the same industry.
PSMT has a debt to FCF ratio of 1.94. This is a very positive value and a sign of high solvency as it would only need 1.94 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 1.94, PSMT belongs to the best of the industry, outperforming 82.50% of the companies in the same industry.
A Debt/Equity ratio of 0.10 indicates that PSMT is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.10, PSMT belongs to the top of the industry, outperforming 85.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.1 | ||
| Debt/FCF | 1.94 | ||
| Altman-Z | 4.91 |
ROIC/WACC1.15
WACC9.01%
2.3 Liquidity
PSMT has a Current Ratio of 1.20. This is a normal value and indicates that PSMT is financially healthy and should not expect problems in meeting its short term obligations.
PSMT's Current ratio of 1.20 is in line compared to the rest of the industry. PSMT outperforms 50.00% of its industry peers.
PSMT has a Quick Ratio of 1.20. This is a bad value and indicates that PSMT is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.49, PSMT is in line with its industry, outperforming 42.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.2 | ||
| Quick Ratio | 0.49 |
3. Growth
3.1 Past
PSMT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 14.99%, which is quite good.
PSMT shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.69% yearly.
PSMT shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.98%.
PSMT shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.86% yearly.
EPS 1Y (TTM)14.99%
EPS 3Y15.9%
EPS 5Y5.69%
EPS growth Q2Q4.8%
Revenue 1Y (TTM)9.98%
Revenue growth 3Y9.84%
Revenue growth 5Y6.86%
Revenue growth Q2Q13.11%
3.2 Future
Based on estimates for the next years, PSMT will show a small growth in Earnings Per Share. The EPS will grow by 4.13% 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 11.08% on average per year.
EPS Next Y18.44%
EPS Next 2Y4.13%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year10%
Revenue Next 2Y8.94%
Revenue Next 3Y11%
Revenue Next 5Y11.08%
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 decreasing.
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
The Price/Earnings ratio is 19.10, which indicates a rather expensive current valuation of PSMT.
PSMT's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 24.67, PSMT is valued a bit cheaper.
The Price/Forward Earnings ratio is 18.72, which indicates a rather expensive current valuation of PSMT.
Compared to the rest of the industry, the Price/Forward Earnings ratio of PSMT indicates a somewhat cheap valuation: PSMT is cheaper than 62.50% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.02, PSMT is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.1 | ||
| Fwd PE | 18.72 |
4.2 Price Multiples
PSMT's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. PSMT is cheaper than 70.00% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as PSMT.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.81 | ||
| EV/EBITDA | 7.96 |
4.3 Compensation for Growth
PSMT's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PSMT has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.04
PEG (5Y)3.35
EPS Next 2Y4.13%
EPS Next 3YN/A
5. Dividend
5.1 Amount
PSMT has a Yearly Dividend Yield of 1.45%. 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 2.53.
PSMT's Dividend Yield is slightly below the S&P500 average, which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.45% |
5.2 History
The dividend of PSMT has a limited annual growth rate of 5.75%.
PSMT has been paying a dividend for at least 10 years, so it has a reliable track record.
PSMT has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)5.75%
Div Incr Years3
Div Non Decr Years11
5.3 Sustainability
26.49% of the earnings are spent on dividend by PSMT. This is a low number and sustainable payout ratio.
PSMT's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP26.49%
EPS Next 2Y4.13%
EPS Next 3YN/A
PRICESMART INC
NASDAQ:PSMT (4/30/2024, 4:24:53 PM)
After market: 80.59 0 (0%)80.59
-1.38 (-1.68%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupConsumer Staples Distribution & Retail
GICS IndustryConsumer Staples Distribution & Retail
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap2.47B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.45% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.1 | ||
| Fwd PE | 18.72 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.04
PEG (5Y)3.35
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.93% | ||
| ROE | 11.04% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 4.51% | ||
| PM (TTM) | 2.58% | ||
| GM | 17.14% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover2.29
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.1 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.2 | ||
| Quick Ratio | 0.49 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)14.99%
EPS 3Y15.9%
EPS 5Y
EPS growth Q2Q
EPS Next Y18.44%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)9.98%
Revenue growth 3Y9.84%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y