NasdaqGS:PSMT

Stock Analysis Report

Executive Summary

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


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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-1.9%

PSMT

0.6%

US Consumer Retailing

-1.1%

US Market


1 Year Return

-7.2%

PSMT

17.6%

US Consumer Retailing

17.8%

US Market

Return vs Industry: PSMT underperformed the US Consumer Retailing industry which returned 17.6% over the past year.

Return vs Market: PSMT underperformed the US Market which returned 17.8% over the past year.


Shareholder returns

PSMTIndustryMarket
7 Day-1.9%0.6%-1.1%
30 Day-4.6%2.5%1.5%
90 Day-19.5%0.3%6.6%
1 Year-6.1%-7.2%19.8%17.6%20.2%17.8%
3 Year-32.2%-34.2%48.6%39.0%47.5%38.1%
5 Year-19.5%-23.2%48.3%32.9%71.2%52.4%

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

Valuation

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

23.34x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: PSMT ($59.86) 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 (23.3x) compared to the Consumer Retailing industry average (22.1x).

PE vs Market: PSMT is poor value based on its PE Ratio (23.3x) compared to the US market (18.2x).


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 (14.1% 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%.


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?

1.17%

Current Dividend Yield


Upcoming Dividend Payment

TodayFeb 24 2020Ex Dividend DateAug 13 2020Dividend Pay DateAug 31 202018 days from Ex DividendBuy in the next 170 days to receive upcoming dividend

Dividend Yield vs Market

Notable Dividend: PSMT's dividend (1.17%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: PSMT's dividend (1.17%) 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 ($USD6.01M) is above average for companies of similar size in the US market ($USD3.81M).

Compensation vs Earnings: Sherry's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Robert Price
Founder & Chairman23.1yrsno data9.08% $164.4m
Sherry Bahrambeygui
CEO & Director1.3yrsUS$6.01m0.49% $8.8m
William Naylon
Executive VP & COO18.1yrsUS$1.23m0.11% $2.1m
Francisco Velasco
Executive VP3.6yrsUS$667.84k0.052% $942.1k
John Hildebrandt
Executive Vice President of Operations18.6yrsUS$586.35k0.044% $788.9k
Michael McCleary
Interim CFO0.2yrsno data0.014% $257.7k
Jose Marin
Senior Vice President of Marketing & Member Services10.9yrsno datano data
Alberto Morales
Senior Vice President of Human Resources2.5yrsno datano data
Brud Drachman
Executive Vice President of Environmental Responsibility17.3yrsUS$192.92k0.098% $1.8m
Catherine Alvarez-Smith
Senior VP & International Controller16.1yrsno datano 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

NamePositionTenureCompensationOwnership
Robert Price
Founder & Chairman23.1yrsno data9.08% $164.4m
Sherry Bahrambeygui
CEO & Director1.3yrsUS$6.01m0.49% $8.8m
Beatriz Infante
Independent Director2.1yrsUS$180.01k0.0074% $134.2k
Gary Malino
Independent Director3.8yrsUS$142.13k0.014% $254.2k
Mitchell Lynn
Independent Director8.3yrsUS$128.57k0.026% $475.0k
Leon Janks
Lead Director1.3yrsUS$206.93k0.095% $1.7m
Edgar A. Zurcher
Independent Director10.3yrsUS$120.65k0.024% $437.7k
Jeffrey Fisher
Independent Director0.3yrsno data0.16% $2.8m
Gordon Hanson
Independent Director5.8yrsUS$126.68k0.0045% $81.8k

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$1.811b
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PSMTNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDAug 1997
PS8DB (Deutsche Boerse AG)YesCommon StockDEEURAug 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/24 01:44
End of Day Share Price2020/02/21 00:00
Earnings2019/11/30
Annual Earnings2019/08/31


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.