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

Fundamentals

Flawless balance sheet second-rate 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

-1.7%

PSMT

0.3%

US Consumer Retailing

0.5%

US Market


1 Year Return

12.6%

PSMT

11.2%

US Consumer Retailing

12.8%

US Market

Return vs Industry: PSMT exceeded the US Consumer Retailing industry which returned 11.2% over the past year.

Return vs Market: PSMT matched the US Market which returned 12.8% over the past year.


Shareholder returns

PSMTIndustryMarket
7 Day-1.7%0.3%0.5%
30 Day11.6%1.6%4.3%
90 Day31.9%12.8%8.0%
1 Year13.9%12.6%13.3%11.2%15.3%12.8%
3 Year-12.5%-15.0%52.4%42.8%48.3%38.7%
5 Year-17.7%-21.3%58.4%41.3%62.6%44.5%

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 ($75.14) is trading below our estimate of fair value ($190.31)

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 (31.3x) compared to the Consumer Retailing industry average (21.1x).

PE vs Market: PSMT is poor value based on its PE Ratio (31.3x) compared to the US market (18.2x).


Price to Earnings Growth Ratio

PEG Ratio: PSMT is poor value based on its PEG Ratio (2.1x)


Price to Book Ratio

PB vs Industry: PSMT is overvalued based on its PB Ratio (2.8x) compared to the US Consumer Retailing industry average (2.4x).


Next Steps

Future Growth

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

14.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PSMT's forecast earnings growth (14.8% per year) is above the savings rate (2.7%).

Earnings vs Market: PSMT's earnings (14.8% per year) are forecast to grow faster than the US market (14.3% 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 (7.3% 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: PSMT's Return on Equity is forecast to be low in 3 years time (10.4%).


Next Steps

Past Performance

How has PriceSmart performed over the past 5 years?

-5.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PSMT has high quality earnings.

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


Past Earnings Growth Analysis

Earnings Trend: PSMT's earnings have declined by -5.3% per year over the past 5 years.

Accelerating Growth: PSMT's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: PSMT had negative earnings growth (-1.3%) over the past year, making it difficult to compare to the Consumer Retailing industry average (-16.9%).


Return on Equity

High ROE: PSMT's Return on Equity (9.2%) 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 ($491.9M) exceeds its short term liabilities ($407.5M)

Long Term Liabilities: PSMT's short term assets (491.9M) exceeds its long term liabilities (90.7M)


Debt to Equity History and Analysis

Debt Level: PSMT's debt to equity ratio (12.5%) is considered satisfactory

Reducing Debt: PSMT's debt to equity ratio has reduced from 16.7% to 12.5% over the past 5 years.

Debt Coverage: PSMT's debt is well covered by operating cash flow (170.3%).

Interest Coverage: PSMT's interest payments on its debt are well covered by EBIT (48.9x 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 4.9x debt).


Next Steps

Dividend

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

0.93%

Current Dividend Yield


Dividend Yield vs Market

company0.9%marketbottom25%1.4%markettop25%3.7%industryaverage1.7%forecastin3Years1.0%

Current dividend yield vs market & industry

Notable Dividend: PSMT's dividend (0.93%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.43%).

High Dividend: PSMT's dividend (0.93%) is low compared to the top 25% of dividend payers in the US market (3.67%).


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 (29.2%), 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

What is the CEO of PriceSmart's salary, the management and board of directors tenure and is there insider trading?

3.3yrs

Average management tenure


CEO

Sherry Bahrambeygui (55yo)

1yrs

Tenure

US$126,994

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 ...


Management Age and Tenure

3.3yrs

Average Tenure

56yo

Average Age

Experienced Management: PSMT's management team is considered experienced (3.3 years average tenure).


Board Age and Tenure

6.8yrs

Average Tenure

66.5yo

Average Age

Experienced Board: PSMT's board of directors are considered experienced (6.8 years average tenure).


Insider Trading

Insider Buying: PSMT insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$215,18308 Nov 19
William Naylon
EntityIndividual
Role
Chief Operating Officer
Executive VP & COO
Shares2,852
Max PriceUS$75.45
SellUS$120,62608 Nov 19
Jesus Von Chong
EntityIndividual
Role
Senior Key Executive
Executive Vice President of Local/Regional Merchandising
Shares1,580
Max PriceUS$76.35
SellUS$73,94607 Nov 19
Frank Diaz
EntityIndividual
Shares961
Max PriceUS$76.95
SellUS$11,97706 Nov 19
John Hildebrandt
EntityIndividual
Role
Senior Key Executive
Executive Vice President of Operations
Shares155
Max PriceUS$77.27
SellUS$748,39904 Nov 19
Robert Price
EntityIndividual
Role
Chairman of the Board
Founder & Executive Chairman
Shares10,000
Max PriceUS$75.68
SellUS$512,96004 Nov 19
William Naylon
EntityIndividual
Role
Chief Operating Officer
Executive VP & COO
Shares7,000
Max PriceUS$73.28
SellUS$234,12904 Nov 19
Rodrigo Calvo
EntityIndividual
Shares3,129
Max PriceUS$74.83
SellUS$329,76004 Nov 19
John Hildebrandt
EntityIndividual
Role
Senior Key Executive
Executive Vice President of Operations
Shares4,500
Max PriceUS$73.28
SellUS$738,59604 Nov 19
Jeffrey Fisher
EntityIndividual
Shares10,000
Max PriceUS$73.86
SellUS$61,68422 Jul 19
Frank Diaz
EntityIndividual
Shares1,000
Max PriceUS$61.68
SellUS$51,05419 Jul 19
Jesus Von Chong
EntityIndividual
Role
Senior Key Executive
Executive Vice President of Local/Regional Merchandising
Shares818
Max PriceUS$62.41
SellUS$2,807,70124 May 19
Sherry Bahrambeygui
EntityIndividual
Role
Chief Executive Officer
CEO & Director
Shares50,000
Max PriceUS$57.16
SellUS$190,89023 Apr 19
Gordon Hanson
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares3,137
Max PriceUS$60.85
SellUS$54,00817 Apr 19
John Hildebrandt
EntityIndividual
Role
Senior Key Executive
Executive Vice President of Operations
Shares870
Max PriceUS$62.08
SellUS$36,05901 Feb 19
Mitchell Lynn
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares592
Max PriceUS$60.91
SellUS$139,49528 Jan 19
Rodrigo Calvo
EntityIndividual
Shares2,117
Max PriceUS$65.89
SellUS$38,91417 Jan 19
Frank Diaz
EntityIndividual
Shares600
Max PriceUS$64.86
SellUS$1,038,68016 Nov 18
Jose Laparte
EntityIndividual
Shares15,995
Max PriceUS$64.94

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Robert Price (77yo)

    Founder & Executive Chairman

    • Tenure: 22.8yrs
  • William Naylon (57yo)

    Executive VP & COO

    • Tenure: 17.8yrs
    • Compensation: US$578.80k
  • John Hildebrandt (61yo)

    Executive Vice President of Operations

    • Tenure: 18.3yrs
    • Compensation: US$1.37m
  • Brud Drachman (64yo)

    Executive Vice President of Construction & Facilities

    • Tenure: 17yrs
    • Compensation: US$192.92k
  • Jose Marin

    Senior Vice President of Marketing & Member Services

    • Tenure: 10.7yrs
  • Jesus Von Chong (53yo)

    Executive Vice President of Local/Regional Merchandising

    • Tenure: 1.3yrs
    • Compensation: US$470.76k
  • Sherry Bahrambeygui (55yo)

    CEO & Director

    • Tenure: 1yrs
    • Compensation: US$126.99k
  • Maarten Jager (53yo)

    CFO, Executive VP & Principal Accounting Officer

    • Tenure: 1.6yrs
    • Compensation: US$2.77m
  • Francisco Velasco (48yo)

    Executive VP

    • Tenure: 3.3yrs
    • Compensation: US$866.37k
  • Alberto Morales

    Senior Vice President of Human Resources

    • Tenure: 2.3yrs

Board Members

  • Beatriz Infante (65yo)

    Independent Director

    • Tenure: 1.8yrs
    • Compensation: US$157.43k
  • Gary Malino (61yo)

    Independent Director

    • Tenure: 3.6yrs
    • Compensation: US$99.78k
  • Robert Price (77yo)

    Founder & Executive Chairman

    • Tenure: 22.8yrs
  • Mitchell Lynn (70yo)

    Independent Director

    • Tenure: 8yrs
    • Compensation: US$96.99k
  • Leon Janks (70yo)

    Lead Director

    • Tenure: 1.1yrs
    • Compensation: US$165.99k
  • Edgar A. Zurcher (68yo)

    Independent Director

    • Tenure: 10.1yrs
    • Compensation: US$86.99k
  • Pierre Mignault (71yo)

    Independent Director

    • Tenure: 4.3yrs
    • Compensation: US$146.98k
  • Gonzalo Barrutieta Losada (53yo)

    Independent Director

    • Tenure: 11.8yrs
    • Compensation: US$91.99k
  • Sherry Bahrambeygui (55yo)

    CEO & Director

    • Tenure: 1yrs
    • Compensation: US$126.99k
  • Gordon Hanson (55yo)

    Independent Director

    • Tenure: 5.6yrs
    • Compensation: US$91.99k

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$2.267b
  • Shares outstanding: 30.17m
  • 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 Analysis2019/11/12 23:42
End of Day Share Price2019/11/12 00:00
Earnings2019/08/31
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.