PriceSmart
Market Cap
US$2.9b
Last Updated
2021/01/17 00:37 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. More Details
Rewards
Risk Analysis
Snowflake Analysis
Excellent balance sheet with acceptable 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 is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 5% a week.
Volatility Over Time: PSMT's weekly volatility (5%) has been stable over the past year.
Market Performance
7 Day Return
-3.3%
PSMT
-0.4%
US Consumer Retailing
-1.0%
US Market
1 Year Return
48.9%
PSMT
19.8%
US Consumer Retailing
19.6%
US Market
Return vs Industry: PSMT exceeded the US Consumer Retailing industry which returned 19.8% over the past year.
Return vs Market: PSMT exceeded the US Market which returned 19.6% over the past year.
Shareholder returns
| PSMT | Industry | Market | |
|---|---|---|---|
| 7 Day | -3.3% | -0.4% | -1.0% |
| 30 Day | 2.9% | 0.6% | 2.2% |
| 90 Day | 33.1% | 1.1% | 11.5% |
| 1 Year | 50.5%48.9% | 22.5%19.8% | 22.3%19.6% |
| 3 Year | 17.1%13.5% | 42.1%33.6% | 45.3%35.7% |
| 5 Year | 37.3%30.8% | 100.0%79.0% | 124.8%99.8% |
Long-Term 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
20 hours ago | Simply Wall St
Jeffrey Fisher Is The Independent Director of PriceSmart, Inc. (NASDAQ:PSMT) And They Just Sold 25% Of Their Shares3 weeks ago | Simply Wall St
Update: PriceSmart (NASDAQ:PSMT) Stock Gained 26% In The Last Year1 month ago | Simply Wall St
Key Things To Consider Before Buying PriceSmart, Inc. (NASDAQ:PSMT) For Its DividendValuation
Is PriceSmart undervalued compared to its fair value and its price relative to the market?
>50%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: PSMT ($96.04) is trading below our estimate of fair value ($203.88)
Significantly Below Fair Value: PSMT is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: PSMT is poor value based on its PE Ratio (34.2x) compared to the US Consumer Retailing industry average (14.7x).
PE vs Market: PSMT is poor value based on its PE Ratio (34.2x) compared to the US market (21x).
Price to Earnings Growth Ratio
PEG Ratio: PSMT is poor value based on its PEG Ratio (1.9x)
Price to Book Ratio
PB vs Industry: PSMT is overvalued based on its PB Ratio (3.4x) compared to the US Consumer Retailing industry average (2.2x).
Next Steps
Future Growth
How is PriceSmart forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?
17.8%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: PSMT's forecast earnings growth (17.8% per year) is above the savings rate (2%).
Earnings vs Market: PSMT's earnings (17.8% per year) are forecast to grow slower than the US market (21.6% 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 (10.2% 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: 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?
-4.1%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: PSMT has high quality earnings.
Growing Profit Margin: PSMT's current net profit margins (2.5%) are higher than last year (2.4%).
Past Earnings Growth Analysis
Earnings Trend: PSMT's earnings have declined by 4.1% per year over the past 5 years.
Accelerating Growth: PSMT's earnings growth over the past year (9.7%) exceeds its 5-year average (-4.1% per year).
Earnings vs Industry: PSMT earnings growth over the past year (9.7%) underperformed the Consumer Retailing industry 57.8%.
Return on Equity
High ROE: PSMT's Return on Equity (9.9%) is considered low.
Next Steps
Financial Health
How is PriceSmart's financial position?
Financial Position Analysis
Short Term Liabilities: PSMT's short term assets ($710.6M) exceed its short term liabilities ($558.4M).
Long Term Liabilities: PSMT's short term assets ($710.6M) exceed its long term liabilities ($252.3M).
Debt to Equity History and Analysis
Debt Level: PSMT's debt to equity ratio (20.8%) is considered satisfactory.
Reducing Debt: PSMT's debt to equity ratio has increased from 16.5% to 20.8% over the past 5 years.
Debt Coverage: PSMT's debt is well covered by operating cash flow (124.8%).
Interest Coverage: PSMT's interest payments on its debt are well covered by EBIT (20.8x coverage).
Balance Sheet
Next Steps
Dividend
What is PriceSmart current dividend yield, its reliability and sustainability?
0.73%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: PSMT's dividend (0.73%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.39%).
High Dividend: PSMT's dividend (0.73%) is low compared to the top 25% of dividend payers in the US market (3.85%).
Stability and Growth of Payments
Stable Dividend: PSMT is not paying a notable dividend for the US market, therefore no need to check if payments are stable.
Growing Dividend: PSMT is not paying a notable dividend for the US market, therefore no need to check if payments are increasing.
Current Payout to Shareholders
Dividend Coverage: PSMT is not paying a notable dividend for the US market.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of PSMT's dividend in 3 years as they are not forecast to pay a notable one for the US market.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
10.9yrs
Average management tenure
CEO
Sherry Bahrambeygui (56 yo)
2.17yrs
Tenure
US$6,246,076
Compensation
Ms. Sherry S. Bahrambeygui has been the Chief Executive Officer of PriceSmart Inc. since January 30, 2019 and has been its Director since November 2011. She is the Co-Owner of Hosey Family Trust. Ms. Bahra...
CEO Compensation Analysis
Compensation vs Market: Sherry's total compensation ($USD6.25M) is about average for companies of similar size in the US market ($USD5.00M).
Compensation vs Earnings: Sherry's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Founder & Independent Chairman | 24yrs | no data | 8.7% $ 253.2m | |
| CEO & Director | 2.17yrs | US$6.25m | 0.51% $ 14.9m | |
| Executive VP | 1.08yrs | US$1.46m | 0.042% $ 1.2m | |
| Executive VP & COO | 19yrs | US$1.62m | 0.12% $ 3.4m | |
| Executive VP | 4.25yrs | US$1.38m | 0.068% $ 2.0m | |
| Executive Vice President of Operations | 19.5yrs | US$1.10m | 0.044% $ 1.3m | |
| Executive VP of Digital Experience & CTO | 0.33yr | no data | 0.0042% $ 122.3k | |
| Senior Vice President of Human Resources | 3.42yrs | no data | no data | |
| Executive Vice President of Environmental Responsibility | 18.17yrs | US$192.92k | 0.11% $ 3.2m | |
| Senior Vice President of Operational Controlling | 17yrs | no data | no data | |
| Executive Vice President of Real Estate | 11.92yrs | no data | 0.057% $ 1.7m | |
| Executive Vice President of Logistics & Distribution | 10.92yrs | no data | 0.044% $ 1.3m |
10.9yrs
Average Tenure
55.5yo
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 & Independent Chairman | 24yrs | no data | 8.7% $ 253.2m | |
| CEO & Director | 2.17yrs | US$6.25m | 0.51% $ 14.9m | |
| Independent Director | 3yrs | US$188.49k | 0.0074% $ 215.5k | |
| Independent Director | 4.75yrs | US$144.24k | 0.014% $ 407.7k | |
| Independent Vice Chairman | 0.92yr | US$139.04k | 0.026% $ 761.8k | |
| Independent Director | 23.5yrs | US$196.74k | 0.088% $ 2.6m | |
| Independent Director | 11.25yrs | US$127.73k | 0.024% $ 702.1k | |
| Independent Director | 1.17yrs | US$129.66k | 0.13% $ 3.8m | |
| Independent Director | 6.75yrs | US$134.48k | 0.0045% $ 131.3k |
6.8yrs
Average Tenure
66yo
Average Age
Experienced Board: PSMT's board of directors are considered experienced (6.8 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$2.912b
- Shares outstanding: 30.32m
- 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 sell brand name and private label consumer products an...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/01/17 00:37 |
| End of Day Share Price | 2021/01/15 00:00 |
| Earnings | 2020/11/30 |
| Annual Earnings | 2020/08/31 |
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.