PRICESMART INC (PSMT) Stock Fundamental Analysis
NASDAQ:PSMT - Nasdaq - US7415111092 - Common Stock - Currency: USD
Taking everything into account, PSMT scores 7 out of 10 in our fundamental rating. PSMT was compared to 41 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. PSMT is not valued too expensively and it also shows a decent growth rate. This makes PSMT very considerable for quality investing!
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
Looking at the Return On Assets, with a value of 6.73%, PSMT is in the better half of the industry, outperforming 78.05% of the companies in the same industry.
Looking at the Return On Equity, with a value of 12.00%, PSMT is in the better half of the industry, outperforming 65.85% of the companies in the same industry.
PSMT's Return On Invested Capital of 10.70% is amongst the best of the industry. PSMT outperforms 80.49% of its industry peers.
The Average Return On Invested Capital over the past 3 years for PSMT is above the industry average of 7.97%.
The 3 year average ROIC (10.01%) for PSMT is below the current ROIC(10.70%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.73% | ||
| ROE | 12% | ||
| ROIC | 10.7% |
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 2.77%, PSMT is in the better half of the industry, outperforming 75.61% 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 (4.44%) than 82.93% of its industry peers.
PSMT's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 17.22%, PSMT is doing worse than 73.17% of the companies in the same industry.
PSMT's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.44% | ||
| PM (TTM) | 2.77% | ||
| GM | 17.22% |
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.
PSMT has less shares outstanding than it did 1 year ago.
PSMT has more shares outstanding than it did 5 years ago.
PSMT has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 5.62 indicates that PSMT is not in any danger for bankruptcy at the moment.
PSMT's Altman-Z score of 5.62 is amongst the best of the industry. PSMT outperforms 80.49% of its industry peers.
PSMT has a debt to FCF ratio of 1.56. This is a very positive value and a sign of high solvency as it would only need 1.56 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 1.56, PSMT belongs to the best of the industry, outperforming 85.37% of the companies in the same industry.
A Debt/Equity ratio of 0.09 indicates that PSMT is not too dependend on debt financing.
The Debt to Equity ratio of PSMT (0.09) is better than 75.61% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.09 | ||
| Debt/FCF | 1.56 | ||
| Altman-Z | 5.62 |
ROIC/WACC1.2
WACC8.93%
2.3 Liquidity
A Current Ratio of 1.25 indicates that PSMT should not have too much problems paying its short term obligations.
The Current ratio of PSMT (1.25) is better than 63.41% of its industry peers.
PSMT has a Quick Ratio of 1.25. 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 0.46. This is in the lower half of the industry: PSMT underperforms 68.29% of its industry peers.
PSMT does not score too well on the current and quick ratio evaluation. However, as it has excellent solvency and profitability, these ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.25 | ||
| Quick Ratio | 0.46 |
3. Growth
3.1 Past
PSMT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 10.90%, which is quite good.
Measured over the past years, PSMT shows a quite strong growth in Earnings Per Share. The EPS has been growing by 11.43% on average per year.
The Revenue for PSMT has decreased by -13.06% in the past year. This is quite bad
The Revenue has been growing by 8.79% on average over the past years. This is quite good.
EPS 1Y (TTM)10.9%
EPS 3Y12.81%
EPS 5Y11.43%
EPS Q2Q%10.69%
Revenue 1Y (TTM)-13.06%
Revenue growth 3Y10.72%
Revenue growth 5Y8.79%
Sales Q2Q%5.57%
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 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 22.53 indicates a rather expensive valuation of PSMT.
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 26.32.
PSMT is valuated rather expensively with a Price/Forward Earnings ratio of 17.46.
Based on the Price/Forward Earnings ratio, PSMT is valued a bit cheaper than 65.85% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.13. PSMT is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.53 | ||
| Fwd PE | 17.46 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of PSMT indicates a somewhat cheap valuation: PSMT is cheaper than 60.98% of the companies listed in the same industry.
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 | 41.34 | ||
| EV/EBITDA | 9.61 |
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 excellent 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)2.57
PEG (5Y)1.97
EPS Next 2Y14.95%
EPS Next 3YN/A
5. Dividend
5.1 Amount
PSMT has a Yearly Dividend Yield of 1.17%.
Compared to an average industry Dividend Yield of 2.17, PSMT pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.40, PSMT's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.17% |
5.2 History
On average, the dividend of PSMT grows each year by 24.72%, which is quite nice.
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)24.72%
Div Incr Years3
Div Non Decr Years11
5.3 Sustainability
PSMT pays out 48.14% of its income as dividend. This is a bit on the high side, but may be sustainable.
PSMT's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP48.14%
EPS Next 2Y14.95%
EPS Next 3YN/A
105.45
-2.02 (-1.88%)
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 Change1.41%
Ins Owners7.36%
Ins Owner Change-1.61%
Market Cap3.24B
Analysts84.44
Price Target107.1 (1.56%)
Short Float %4.82%
Short Ratio5.19
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.17% |
Yearly Dividend2.15
Dividend Growth(5Y)24.72%
DP48.14%
Div Incr Years3
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-3.84%
Min EPS beat(2)-9.21%
Max EPS beat(2)1.54%
EPS beat(4)2
Avg EPS beat(4)-3.33%
Min EPS beat(4)-10.82%
Max EPS beat(4)5.18%
EPS beat(8)5
Avg EPS beat(8)-0.75%
EPS beat(12)8
Avg EPS beat(12)1.37%
EPS beat(16)11
Avg EPS beat(16)0.93%
Revenue beat(2)0
Avg Revenue beat(2)-1.04%
Min Revenue beat(2)-1.6%
Max Revenue beat(2)-0.48%
Revenue beat(4)0
Avg Revenue beat(4)-0.87%
Min Revenue beat(4)-1.6%
Max Revenue beat(4)-0.13%
Revenue beat(8)1
Avg Revenue beat(8)-1%
Revenue beat(12)2
Avg Revenue beat(12)-0.67%
Revenue beat(16)4
Avg Revenue beat(16)-0.39%
PT rev (1m)5.7%
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 | 22.53 | ||
| Fwd PE | 17.46 | ||
| P/S | 0.64 | ||
| P/FCF | 41.34 | ||
| P/OCF | 15.72 | ||
| P/B | 2.77 | ||
| P/tB | 2.87 | ||
| EV/EBITDA | 9.61 |
EPS(TTM)4.68
EY4.44%
EPS(NY)6.04
Fwd EY5.73%
FCF(TTM)2.55
FCFY2.42%
OCF(TTM)6.71
OCFY6.36%
SpS165.12
BVpS38.13
TBVpS36.73
PEG (NY)2.57
PEG (5Y)1.97
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.73% | ||
| ROE | 12% | ||
| ROCE | 16.22% | ||
| ROIC | 10.7% | ||
| ROICexc | 12.99% | ||
| ROICexgc | 13.49% | ||
| OM | 4.44% | ||
| PM (TTM) | 2.77% | ||
| GM | 17.22% | ||
| FCFM | 1.54% |
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 Turnover2.43
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.09 | ||
| Debt/FCF | 1.56 | ||
| Debt/EBITDA | 0.34 | ||
| Cap/Depr | 150% | ||
| Cap/Sales | 2.52% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 66.38% | ||
| Profit Quality | 55.72% | ||
| Current Ratio | 1.25 | ||
| Quick Ratio | 0.46 | ||
| Altman-Z | 5.62 |
F-Score7
WACC8.93%
ROIC/WACC1.2
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)10.9%
EPS 3Y12.81%
EPS 5Y11.43%
EPS Q2Q%10.69%
EPS Next Y8.77%
EPS Next 2Y14.95%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-13.06%
Revenue growth 3Y10.72%
Revenue growth 5Y8.79%
Sales Q2Q%5.57%
Revenue Next Year7.82%
Revenue Next 2Y8.46%
Revenue Next 3Y11.16%
Revenue Next 5YN/A
EBIT growth 1Y-16.2%
EBIT growth 3Y11.95%
EBIT growth 5Y13.92%
EBIT Next Year46.54%
EBIT Next 3Y29.81%
EBIT Next 5YN/A
FCF growth 1Y-41.12%
FCF growth 3Y40.76%
FCF growth 5Y5.27%
OCF growth 1Y-16.27%
OCF growth 3Y17.74%
OCF growth 5Y4.04%