PRICESMART INC (PSMT) Stock Fundamental Analysis
USA - NASDAQ:PSMT - US7415111092 - Common Stock
121.86 USD
-1 (-0.81%)
121.86 USD
0 (0%)
PSMT gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 39 industry peers in the Consumer Staples Distribution & Retail industry. PSMT gets an excellent profitability rating and is at the same time showing great financial health properties. While showing a medium growth rate, PSMT is valued expensive at the moment. With these ratings, PSMT could be worth investigating further 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.
In the past 5 years PSMT has always been profitable.
Each year in the past 5 years PSMT had a positive operating cash flow.
1.2 Ratios
The Return On Assets of PSMT (6.65%) is better than 69.23% of its industry peers.
PSMT has a Return On Equity (11.74%) which is comparable to the rest of the industry.
The Return On Invested Capital of PSMT (10.59%) is better than 79.49% 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 8.75%.
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
With a decent Profit Margin value of 2.76%, PSMT is doing good in the industry, outperforming 66.67% of the companies in the same industry.
PSMT's Profit Margin has improved in the last couple of years.
PSMT has a Operating Margin of 4.49%. This is amongst the best in the industry. PSMT outperforms 82.05% of its industry peers.
In the last couple of years the Operating Margin of PSMT has grown nicely.
The Gross Margin of PSMT (17.31%) is worse than 71.79% 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.
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.
PSMT has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 5.95 indicates that PSMT is not in any danger for bankruptcy at the moment.
PSMT has a Altman-Z score of 5.95. This is amongst the best in the industry. PSMT outperforms 84.62% 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 87.18% 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 76.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.09 | ||
| Debt/FCF | 1.31 | ||
| Altman-Z | 5.95 |
ROIC/WACC1.24
WACC8.54%
2.3 Liquidity
A Current Ratio of 1.28 indicates that PSMT should not have too much problems paying its short term obligations.
The Current ratio of PSMT (1.28) is better than 66.67% of its industry peers.
A Quick Ratio of 0.50 indicates that PSMT may have some problems paying its short term obligations.
PSMT has a Quick ratio of 0.50. This is in the lower half of the industry: PSMT underperforms 64.10% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.28 | ||
| Quick Ratio | 0.5 |
3. Growth
3.1 Past
PSMT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 10.75%, which is quite good.
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.
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
The Earnings Per Share is expected to grow by 4.41% on average over the next years.
Based on estimates for the next years, PSMT will show a quite strong growth in Revenue. The Revenue will grow by 9.37% on average per year.
EPS Next Y9.03%
EPS Next 2Y7.11%
EPS Next 3Y4.41%
EPS Next 5YN/A
Revenue Next Year7.98%
Revenue Next 2Y8.42%
Revenue Next 3Y9.37%
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 decreasing.
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
A Price/Earnings ratio of 25.71 indicates a quite expensive valuation of PSMT.
The rest of the industry has a similar Price/Earnings ratio as PSMT.
When comparing the Price/Earnings ratio of PSMT to the average of the S&P500 Index (27.40), we can say PSMT is valued inline with the index average.
PSMT is valuated rather expensively with a Price/Forward Earnings ratio of 23.24.
PSMT's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of PSMT to the average of the S&P500 Index (22.94), we can say PSMT is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.71 | ||
| Fwd PE | 23.24 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as PSMT.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of PSMT is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 40.41 | ||
| EV/EBITDA | 11.06 |
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)2.85
PEG (5Y)2.25
EPS Next 2Y7.11%
EPS Next 3Y4.41%
5. Dividend
5.1 Amount
PSMT has a Yearly Dividend Yield of 1.06%. 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 2.00.
Compared to an average S&P500 Dividend Yield of 2.38, PSMT's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.06% |
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 2Y7.11%
EPS Next 3Y4.41%
121.86
-1 (-0.81%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupConsumer Staples Distribution & Retail
GICS IndustryConsumer Staples Distribution & Retail
Earnings (Last)
Earnings (Next)
Inst Owners99.24%
Inst Owner Change-0.1%
Ins Owners7.7%
Ins Owner Change-1.98%
Market Cap3.75B
Analysts82
Price Target112.55 (-7.64%)
Short Float %6.3%
Short Ratio8.39
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.06% |
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)3.52%
PT rev (3m)5.09%
EPS NQ rev (1m)-1.85%
EPS NQ rev (3m)-4.79%
EPS NY rev (1m)0%
EPS NY rev (3m)0.24%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.42%
Revenue NY rev (1m)-0.06%
Revenue NY rev (3m)0.15%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.71 | ||
| Fwd PE | 23.24 | ||
| P/S | 0.73 | ||
| P/FCF | 40.41 | ||
| P/OCF | 16.96 | ||
| P/B | 3.09 | ||
| P/tB | 3.2 | ||
| EV/EBITDA | 11.06 |
EPS(TTM)4.74
EY3.89%
EPS(NY)5.24
Fwd EY4.3%
FCF(TTM)3.02
FCFY2.47%
OCF(TTM)7.19
OCFY5.9%
SpS167.97
BVpS39.49
TBVpS38.08
PEG (NY)2.85
PEG (5Y)2.25
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 | 5.95 |
F-Score7
WACC8.54%
ROIC/WACC1.24
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 Year7.98%
Revenue Next 2Y8.42%
Revenue Next 3Y9.37%
Revenue Next 5YN/A
EBIT growth 1Y-16.1%
EBIT growth 3Y11.95%
EBIT growth 5Y13.92%
EBIT Next Year47.87%
EBIT Next 3Y22.76%
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%