PriceSmart
Market Cap
US$1.8b
Last Updated
2020/02/20 00:47 UTC
Data Sources
Company Financials +
Executive Summary
PriceSmart, Inc. owns and operates U.S. style membership shopping warehouse clubs in Central America, the Caribbean, and Colombia.
Rewards
Risk Analysis
No risks detected for PSMT from our risk checks.
Snowflake Analysis
Flawless balance sheet with proven track record.
Similar Companies
Share Price & News
How has PriceSmart's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: PSMT has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
-0.8%
PSMT
0.5%
US Consumer Retailing
0.5%
US Market
1 Year Return
-2.9%
PSMT
16.9%
US Consumer Retailing
20.3%
US Market
Return vs Industry: PSMT underperformed the US Consumer Retailing industry which returned 16.9% over the past year.
Return vs Market: PSMT underperformed the US Market which returned 20.3% over the past year.
Shareholder returns
| PSMT | Industry | Market | |
|---|---|---|---|
| 7 Day | -0.8% | 0.5% | 0.5% |
| 30 Day | -5.1% | 1.5% | 2.0% |
| 90 Day | -17.1% | -0.1% | 9.4% |
| 1 Year | -1.7%-2.9% | 19.1%16.9% | 22.8%20.3% |
| 3 Year | -30.2%-32.3% | 48.2%38.6% | 50.1%40.4% |
| 5 Year | -21.0%-24.6% | 47.8%32.4% | 73.1%54.1% |
Price Volatility Vs. Market
How volatile is PriceSmart's share price compared to the market and industry in the last 5 years?
Simply Wall St News
3 days ago | Simply Wall St
Are PriceSmart, Inc.’s (NASDAQ:PSMT) High Returns Really That Great?2 weeks ago | Simply Wall St
We Think PriceSmart (NASDAQ:PSMT) Can Stay On Top Of Its Debt3 weeks ago | Simply Wall St
Some PriceSmart (NASDAQ:PSMT) Shareholders Are Down 24%Valuation
Is PriceSmart undervalued compared to its fair value and its price relative to the market?
23.62x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: PSMT ($60.6) is trading above our estimate of fair value ($22.23)
Significantly Below Fair Value: PSMT is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: PSMT is poor value based on its PE Ratio (23.6x) compared to the Consumer Retailing industry average (22.2x).
PE vs Market: PSMT is poor value based on its PE Ratio (23.6x) compared to the US market (18.3x).
Price to Earnings Growth Ratio
PEG Ratio: PSMT is poor value based on its PEG Ratio (1.7x)
Price to Book Ratio
PB vs Industry: PSMT is overvalued based on its PB Ratio (2.2x) compared to the US Consumer Retailing industry average (2.1x).
Next Steps
Future Growth
How is PriceSmart forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?
14.1%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: PSMT's forecast earnings growth (14.1% per year) is above the savings rate (1.7%).
Earnings vs Market: PSMT's earnings (14.1% per year) are forecast to grow slower than the US market (14.2% per year).
High Growth Earnings: PSMT's earnings are forecast to grow, but not significantly.
Revenue vs Market: PSMT's revenue (5.7% per year) is forecast to grow slower than the US market (7.6% per year).
High Growth Revenue: PSMT's revenue (5.7% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: Insufficient data to determine if PSMT's Return on Equity is forecast to be high in 3 years time
Next Steps
Past Performance
How has PriceSmart performed over the past 5 years?
-5.2%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: PSMT has high quality earnings.
Growing Profit Margin: PSMT's current net profit margins (2.4%) are higher than last year (2.1%).
Past Earnings Growth Analysis
Earnings Trend: PSMT's earnings have declined by -5.2% per year over the past 5 years.
Accelerating Growth: PSMT's earnings growth over the past year (18.1%) exceeds its 5-year average (-5.2% per year).
Earnings vs Industry: PSMT earnings growth over the past year (18.1%) exceeded the Consumer Retailing industry -6.1%.
Return on Equity
High ROE: PSMT's Return on Equity (9.6%) is considered low.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is PriceSmart's financial position?
Financial Position Analysis
Short Term Liabilities: PSMT's short term assets ($571.9M) exceed its short term liabilities ($470.1M).
Long Term Liabilities: PSMT's short term assets ($571.9M) exceed its long term liabilities ($236.3M).
Debt to Equity History and Analysis
Debt Level: PSMT's debt to equity ratio (16.7%) is considered satisfactory.
Reducing Debt: PSMT's debt to equity ratio has reduced from 20.3% to 16.7% over the past 5 years.
Debt Coverage: PSMT's debt is well covered by operating cash flow (117.4%).
Interest Coverage: PSMT's interest payments on its debt are well covered by EBIT (51.3x coverage).
Balance Sheet
Inventory Level: PSMT has a high level of physical assets or inventory.
Debt Coverage by Assets: PSMT's debt is covered by short term assets (assets are 4.2x debt).
Next Steps
Dividend
What is PriceSmart's current dividend yield, its reliability and sustainability?
1.16%
Current Dividend Yield
Upcoming Dividend Payment
Purchase PriceSmart before the 'Buy Limit' to receive their next dividend payment.
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: PSMT's dividend (1.16%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.44%).
High Dividend: PSMT's dividend (1.16%) is low compared to the top 25% of dividend payers in the US market (3.73%).
Stability and Growth of Payments
Stable Dividend: PSMT's dividends per share have been stable in the past 10 years.
Growing Dividend: PSMT's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (27.3%), PSMT's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
10.9yrs
Average management tenure
CEO
Sherry Bahrambeygui (55yo)
1.3yrs
Tenure
US$6,014,559
Compensation
Ms. Sherry S. Bahrambeygui has been the Chief Executive Officer of PriceSmart Inc. since January 30, 2019 and has been its Director since November 2011. She is the Co-Owner of Hosey Family Trust. Ms. Bahra ...
CEO Compensation Analysis
Compensation vs Market: Sherry's total compensation ($USD6.01M) is above average for companies of similar size in the US market ($USD3.82M).
Compensation vs Earnings: Sherry's compensation has increased by more than 20% in the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Founder & Chairman | 23.1yrs | no data | 9.11% $167.0m | |
| CEO & Director | 1.3yrs | US$6.01m | 0.49% $8.9m | |
| Executive VP & COO | 18.1yrs | US$1.23m | 0.11% $2.1m | |
| Executive VP | 3.6yrs | US$667.84k | 0.052% $953.8k | |
| Executive Vice President of Operations | 18.6yrs | US$586.35k | 0.044% $798.7k | |
| Interim CFO | 0.2yrs | no data | 0.014% $260.9k | |
| Senior Vice President of Marketing & Member Services | 10.9yrs | no data | no data | |
| Senior Vice President of Human Resources | 2.5yrs | no data | no data | |
| Executive Vice President of Environmental Responsibility | 17.3yrs | US$192.92k | 0.098% $1.8m | |
| Senior VP & International Controller | 16.1yrs | no data | no data |
10.9yrs
Average Tenure
57yo
Average Age
Experienced Management: PSMT's management team is seasoned and experienced (10.9 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Founder & Chairman | 23.1yrs | no data | 9.11% $167.0m | |
| CEO & Director | 1.3yrs | US$6.01m | 0.49% $8.9m | |
| Independent Director | 2.1yrs | US$180.01k | 0.0074% $135.8k | |
| Independent Director | 3.8yrs | US$142.13k | 0.014% $257.4k | |
| Independent Director | 8.3yrs | US$128.57k | 0.026% $480.8k | |
| Lead Director | 1.3yrs | US$206.93k | 0.095% $1.7m | |
| Independent Director | 10.3yrs | US$120.65k | 0.024% $443.1k | |
| Independent Director | 0.3yrs | no data | 0.16% $2.8m | |
| Independent Director | 5.8yrs | US$126.68k | 0.0045% $82.9k |
5.8yrs
Average Tenure
65yo
Average Age
Experienced Board: PSMT's board of directors are considered experienced (5.8 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: PSMT insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
PriceSmart, Inc.'s company bio, employee growth, exchange listings and data sources
Key Information
- Name: PriceSmart, Inc.
- Ticker: PSMT
- Exchange: NasdaqGS
- Founded: 1994
- Industry: Hypermarkets and Super Centers
- Sector: Consumer Retailing
- Market Cap: US$1.833b
- Shares outstanding: 30.25m
- Website: https://www.pricesmart.com
Number of Employees
Location
- PriceSmart, Inc.
- 9740 Scranton Road
- San Diego
- California
- 92121
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| PSMT | NasdaqGS (Nasdaq Global Select) | Yes | Common Stock | US | USD | Aug 1997 |
| PS8 | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Aug 1997 |
Biography
PriceSmart, Inc. owns and operates U.S. style membership shopping warehouse clubs in Central America, the Caribbean, and Colombia. Its warehouse clubs sells brand name and private label consumer goods to individuals and businesses. As of December 6, 2019, the company operated 45 warehouse clubs. PriceSmart, Inc. was founded in 1994 and is headquartered in San Diego, California.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/20 00:47 |
| End of Day Share Price | 2020/02/19 00:00 |
| Earnings | 2019/11/30 |
| Annual Earnings | 2019/08/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.