NasdaqGS:PSMT

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Excellent balance sheet average dividend payer.


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

-0.6%

PSMT

0.3%

US Consumer Retailing

0.5%

US Market


1 Year Return

13.9%

PSMT

14.5%

US Consumer Retailing

18.0%

US Market

Return vs Industry: PSMT matched the US Consumer Retailing industry which returned 14.5% over the past year.

Return vs Market: PSMT underperformed the US Market which returned 18% over the past year.


Shareholder returns

PSMTIndustryMarket
7 Day-0.6%0.3%0.5%
30 Day1.8%1.1%4.5%
90 Day29.4%7.4%19.7%
1 Year15.2%13.9%16.4%14.5%20.5%18.0%
3 Year-15.7%-18.3%58.0%49.3%46.3%36.8%
5 Year-21.8%-25.5%76.9%59.1%87.2%66.8%

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?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: PSMT ($66.2) is trading below our estimate of fair value ($460.31)

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 (25.7x) compared to the US Consumer Retailing industry average (16.5x).

PE vs Market: PSMT is poor value based on its PE Ratio (25.7x) compared to the US market (19.3x).


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 (2.4x) compared to the US Consumer Retailing industry average (1.8x).


Next Steps

Future Growth

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

9.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PSMT's forecast earnings growth (9.5% per year) is above the savings rate (2.2%).

Earnings vs Market: PSMT's earnings (9.5% per year) are forecast to grow slower than the US market (24.2% per year).

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

Revenue vs Market: PSMT's revenue (4% per year) is forecast to grow slower than the US market (9.5% per year).

High Growth Revenue: PSMT's revenue (4% 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 (9.8%).


Next Steps

Past Performance

How has PriceSmart performed over the past 5 years?

-4.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PSMT has high quality earnings.

Growing Profit Margin: PSMT's current net profit margins (2.3%) are higher than last year (2.2%).


Past Earnings Growth Analysis

Earnings Trend: PSMT's earnings have declined by 4.9% per year over the past 5 years.

Accelerating Growth: PSMT's earnings growth over the past year (9.9%) exceeds its 5-year average (-4.9% per year).

Earnings vs Industry: PSMT earnings growth over the past year (9.9%) underperformed the Consumer Retailing industry 52.6%.


Return on Equity

High ROE: PSMT's Return on Equity (9.6%) is considered low.


Next Steps

Financial Health

How is PriceSmart's financial position?


Financial Position Analysis

Short Term Liabilities: PSMT's short term assets ($606.5M) exceed its short term liabilities ($493.2M).

Long Term Liabilities: PSMT's short term assets ($606.5M) exceed its long term liabilities ($261.6M).


Debt to Equity History and Analysis

Debt Level: PSMT's debt to equity ratio (26.4%) is considered satisfactory.

Reducing Debt: PSMT's debt to equity ratio has increased from 18% to 26.4% over the past 5 years.

Debt Coverage: PSMT's debt is well covered by operating cash flow (107%).

Interest Coverage: PSMT's interest payments on its debt are well covered by EBIT (29.2x coverage).


Balance Sheet


Next Steps

Dividend

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

1.06%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: PSMT's dividend (1.06%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.59%).

High Dividend: PSMT's dividend (1.06%) is low compared to the top 25% of dividend payers in the US market (4.32%).


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 (27.2%), 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 (25.3% payout ratio).


Next Steps

Management

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

11.4yrs

Average management tenure


CEO

Sherry Bahrambeygui (56 yo)

1.75yrs

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 ($USD6.01M) is above average for companies of similar size in the US market ($USD4.55M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Robert Price
Founder & Chairman23.58yrsno data8.9%
$ 178.5m
Sherry Bahrambeygui
CEO & Director1.75yrsUS$6.01m0.48%
$ 9.7m
William Naylon
Executive VP & COO18.58yrsUS$1.23m0.12%
$ 2.5m
Francisco Velasco
Executive VP4.08yrsUS$667.84k0.062%
$ 1.2m
John Hildebrandt
Executive Vice President of Operations19.08yrsUS$586.35k0.047%
$ 950.1k
Michael McCleary
Executive VP0.67yrno data0.045%
$ 893.4k
Jose Marin
Senior Vice President of Marketing & Member Services11.42yrsno datano data
Alberto Morales
Senior Vice President of Human Resources3yrsno datano data
Brud Drachman
Executive Vice President of Environmental Responsibility17.75yrsUS$192.92k0.11%
$ 2.1m
Catherine Alvarez-Smith
Senior VP & International Controller16.58yrsno datano data
Rodrigo Calvo
Executive Vice President of Real Estate11.5yrsno data0.055%
$ 1.1m
Frank Diaz
Executive Vice President of Logistics & Distribution10.5yrsno data0.043%
$ 856.7k

11.4yrs

Average Tenure

56yo

Average Age

Experienced Management: PSMT's management team is seasoned and experienced (11.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Robert Price
Founder & Chairman23.58yrsno data8.9%
$ 178.5m
Sherry Bahrambeygui
CEO & Director1.75yrsUS$6.01m0.48%
$ 9.7m
Beatriz Infante
Independent Director2.58yrsUS$180.01k0.0074%
$ 148.6k
Gary Malino
Independent Director4.33yrsUS$142.13k0.014%
$ 281.1k
Mitchell Lynn
Independent Director8.75yrsUS$128.57k0.026%
$ 525.1k
Leon Janks
Independent Lead Director1.83yrsUS$206.93k0.094%
$ 1.9m
Edgar A. Zurcher
Independent Director10.83yrsUS$120.65k0.024%
$ 484.0k
Jeffrey Fisher
Independent Director0.75yrno data0.16%
$ 3.1m
Gordon Hanson
Independent Director6.33yrsUS$126.68k0.0045%
$ 90.4k

6.3yrs

Average Tenure

66yo

Average Age

Experienced Board: PSMT's board of directors are considered experienced (6.3 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$2.005b
  • Shares outstanding: 30.29m
  • 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 i ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/15 05:42
End of Day Share Price2020/08/14 00:00
Earnings2020/05/31
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.