company background image
PSMT

PriceSmartNasdaqGS:PSMT Stock Report

Market Cap

US$2.4b

7D

-2.6%

1Y

21.1%

Updated

26 Sep, 2021

Data

Company Financials +
PSMT fundamental analysis
Snowflake Score
Valuation0/6
Future Growth1/6
Past Performance3/6
Financial Health6/6
Dividends4/6

PSMT Overview

PriceSmart, Inc. owns and operates U.S. style membership shopping warehouse clubs in Central America, the Caribbean, and Colombia.

PriceSmart Competitors

Price History & Performance

Summary of all time highs, changes and price drops for PriceSmart
Historical stock prices
Current Share PriceUS$80.37
52 Week HighUS$64.95
52 Week LowUS$104.90
Beta0.87
1 Month Change-6.85%
3 Month Change-10.66%
1 Year Change21.11%
3 Year Change-0.72%
5 Year Change-4.05%
Change since IPO518.23%

Recent News & Updates

Shareholder Returns

PSMTUS Consumer RetailingUS Market
7D-2.6%0.1%0.1%
1Y21.1%17.3%35.3%

Return vs Industry: PSMT exceeded the US Consumer Retailing industry which returned 17.3% over the past year.

Return vs Market: PSMT underperformed the US Market which returned 35.3% over the past year.

Price Volatility

Is PSMT's price volatile compared to industry and market?
PSMT volatility
PSMT Beta0.87
Industry Beta0.61
Market Beta1

Stable Share Price: PSMT is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: PSMT's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19949,500Sherry Bahrambeyguihttps://www.pricesmart.com

PriceSmart, Inc. owns and operates U.S. style membership shopping warehouse clubs in Central America, the Caribbean, and Colombia. Its warehouse clubs sell brand name and private label consumer products and provide services, such as optical and tires to individuals and businesses. As of February 03, 2021, the company operated 47 warehouse clubs in 12 countries and one U.S. territory.

PriceSmart Fundamentals Summary

How do PriceSmart's earnings and revenue compare to its market cap?
PSMT fundamental statistics
Market CapUS$2.44b
Earnings (TTM)US$97.31m
Revenue (TTM)US$3.52b

25.1x

P/E Ratio

0.7x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
PSMT income statement (TTM)
RevenueUS$3.52b
Cost of RevenueUS$2.90b
Gross ProfitUS$623.08m
ExpensesUS$525.77m
EarningsUS$97.31m

Last Reported Earnings

May 31, 2021

Next Earnings Date

Oct 21, 2021

Earnings per share (EPS)3.20
Gross Margin17.70%
Net Profit Margin2.76%
Debt/Equity Ratio13.9%

How did PSMT perform over the long term?

See historical performance and comparison

Dividends

0.9%

Current Dividend Yield

22%

Payout Ratio

Valuation

Is PriceSmart undervalued compared to its fair value and its price relative to the market?

25.08x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: PSMT ($80.37) is trading above our estimate of fair value ($19.07)

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 (25.1x) compared to the US Consumer Retailing industry average (19.9x).

PE vs Market: PSMT is poor value based on its PE Ratio (25.1x) compared to the US market (17.9x).


Price to Earnings Growth Ratio

PEG Ratio: PSMT is poor value based on its PEG Ratio (2.7x)


Price to Book Ratio

PB vs Industry: PSMT is overvalued based on its PB Ratio (2.7x) compared to the US Consumer Retailing industry average (2.2x).


Future Growth

How is PriceSmart forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

9.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PSMT's forecast earnings growth (9.4% per year) is above the savings rate (2%).

Earnings vs Market: PSMT's earnings (9.4% per year) are forecast to grow slower than the US market (15% per year).

High Growth Earnings: PSMT's earnings are forecast to grow, but not significantly.

Revenue vs Market: PSMT's revenue (7.2% per year) is forecast to grow slower than the US market (9.8% per year).

High Growth Revenue: PSMT's revenue (7.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: PSMT's Return on Equity is forecast to be low in 3 years time (11.1%).


Past Performance

How has PriceSmart performed over the past 5 years?

-1.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PSMT has high quality earnings.

Growing Profit Margin: PSMT's current net profit margins (2.8%) are higher than last year (2.3%).


Past Earnings Growth Analysis

Earnings Trend: PSMT's earnings have declined by 1.3% per year over the past 5 years.

Accelerating Growth: PSMT's earnings growth over the past year (25%) exceeds its 5-year average (-1.3% per year).

Earnings vs Industry: PSMT earnings growth over the past year (25%) underperformed the Consumer Retailing industry 25%.


Return on Equity

High ROE: PSMT's Return on Equity (11%) is considered low.


Financial Health

How is PriceSmart's financial position?


Financial Position Analysis

Short Term Liabilities: PSMT's short term assets ($639.2M) exceed its short term liabilities ($483.0M).

Long Term Liabilities: PSMT's short term assets ($639.2M) exceed its long term liabilities ($249.2M).


Debt to Equity History and Analysis

Debt Level: PSMT's debt to equity ratio (13.9%) is considered satisfactory.

Reducing Debt: PSMT's debt to equity ratio has reduced from 16.2% to 13.9% over the past 5 years.

Debt Coverage: PSMT's debt is well covered by operating cash flow (132.1%).

Interest Coverage: PSMT's interest payments on its debt are well covered by EBIT (24.6x coverage).


Balance Sheet


Dividend

What is PriceSmart current dividend yield, its reliability and sustainability?

0.87%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: PSMT's dividend (0.87%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.33%).

High Dividend: PSMT's dividend (0.87%) is low compared to the top 25% of dividend payers in the US market (3.6%).


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 low payout ratio (21.8%), PSMT's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: PSMT's dividends in 3 years are forecast to be well covered by earnings (18.6% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

11.6yrs

Average management tenure


CEO

Sherry Bahrambeygui (57 yo)

2.83yrs

Tenure

US$6,246,076

Compensation

Ms. Sherry S. Bahrambeygui serves as the Chairman of the Board at Aeropost International Services, Inc. She has been the Chief Executive Officer of PriceSmart Inc. since January 30, 2019 and has been its D...


CEO Compensation Analysis

Compensation vs Market: Sherry's total compensation ($USD6.25M) is about average for companies of similar size in the US market ($USD5.28M).

Compensation vs Earnings: Sherry's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: PSMT's management team is seasoned and experienced (11.6 years average tenure).


Board Members

Experienced Board: PSMT's board of directors are considered experienced (5.5 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 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$2.441b
  • Shares outstanding: 30.37m
  • Website: https://www.pricesmart.com

Number of Employees


Location

  • PriceSmart, Inc.
  • 9740 Scranton Road
  • San Diego
  • California
  • 92121
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/26 22:17
End of Day Share Price2021/09/24 00:00
Earnings2021/05/31
Annual Earnings2020/08/31


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.