Club Expansion And Rising Costs Will Pressure Margins And Limit Long Term Upside

AnalystLowTarget

Analyst Low Target compiles bearish analysts opinions to create narratives which represent one standard deviation below the consensus price target, using forecasted revenue and earnings figures, as well as the transcripts of earnings calls.

Published

12 Dec 25

Updated

07 Jul 26

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Not Invested

Shared on 07 Jul 26

Fair value Increased 35%

PSMT: Elevated Multiple And Downgrade Will Likely Pressure Shares

PriceSmart keeps adding new warehouse clubs across the Caribbean and Central America, but one investor group is getting more cautious about the shares. The latest outlook also assumes the market keeps paying a rich price for the business, which could leave the stock vulnerable if growth or profits disappoint.

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Fair Value vs Share Price

US$135

vs US$168.7625.0% overvalued

11%

Revenue growth

3.2%

Profit margin

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Company analysis

Flawless balance sheet with proven track record and pays a dividend.

Market capUS$5.1b

PB3.6x

Estimated Growth10.8%

Dividend Yield0.8%

Full analysis

CEO & management

David Price

CEO

8.1yrs

CEO Tenure

Owns and operates U.S.-style membership shopping warehouse clubs in the United States, Central America, the Caribbean, and Colombia.