Loading...

PriceSmart

Nasdaq:PSMT
Snowflake Description

Flawless balance sheet with reasonable growth potential.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
PSMT
Nasdaq
$2B
Market Cap
  1. Home
  2. US
  3. Consumer Retailing
Company description

PriceSmart, Inc. owns and operates U.S. style membership shopping warehouse clubs in Central America, the Caribbean, and Colombia. The last earnings update was 7 days ago. More info.


Add to Portfolio Compare Print
PSMT Share Price and Events
7 Day Returns
11.2%
NasdaqGS:PSMT
2%
US Consumer Retailing
0.6%
US Market
1 Year Returns
-21.9%
NasdaqGS:PSMT
17.7%
US Consumer Retailing
4.1%
US Market
PSMT Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
PriceSmart (PSMT) 11.2% 19.5% 2.5% -21.9% -23.7% -25%
US Consumer Retailing 2% 4.8% 8.9% 17.7% 29.8% 42.3%
US Market 0.6% 3.8% 2.8% 4.1% 37.3% 42.5%
1 Year Return vs Industry and Market
  • PSMT underperformed the Consumer Retailing industry which returned 17.7% over the past year.
  • PSMT underperformed the Market in United States of America which returned 4.1% over the past year.
Price Volatility
PSMT
Industry
5yr Volatility vs Market

PSMT Value

 Is PriceSmart undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of PriceSmart to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for PriceSmart.

NasdaqGS:PSMT Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 2 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 7.5%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NasdaqGS:PSMT
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Consumer Retailing Unlevered Beta Simply Wall St/ S&P Global 0.5
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.503 (1 + (1- 21%) (5.17%))
0.68
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.8
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (0.8 * 5.96%)
7.5%

Discounted Cash Flow Calculation for NasdaqGS:PSMT using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for PriceSmart is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NasdaqGS:PSMT DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 7.5%)
2020 33.02 Est @ 46.76% 30.71
2021 44.10 Est @ 33.55% 38.16
2022 54.81 Est @ 24.31% 44.13
2023 64.59 Est @ 17.83% 48.37
2024 73.18 Est @ 13.3% 50.98
2025 80.59 Est @ 10.13% 52.23
2026 86.97 Est @ 7.91% 52.43
2027 92.50 Est @ 6.36% 51.87
2028 97.37 Est @ 5.27% 50.80
2029 101.76 Est @ 4.51% 49.38
Present value of next 10 years cash flows $469.05
NasdaqGS:PSMT DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $101.76 × (1 + 2.73%) ÷ (7.5% – 2.73%)
$2,192.46
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $2,192.46 ÷ (1 + 7.5%)10
$1,063.97
NasdaqGS:PSMT Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $469.05 + $1,063.97
$1,533.01
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $1,533.01 / 30.15
$50.85
NasdaqGS:PSMT Discount to Share Price
Calculation Result
Value per share (USD) From above. $50.85
Current discount Discount to share price of $61.70
= -1 x ($61.70 - $50.85) / $50.85
-21.3%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of PriceSmart is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for PriceSmart's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are PriceSmart's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqGS:PSMT PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-05-31) in USD $2.35
NasdaqGS:PSMT Share Price ** NasdaqGS (2019-07-17) in USD $61.7
United States of America Consumer Retailing Industry PE Ratio Median Figure of 23 Publicly-Listed Consumer Retailing Companies 21.93x
United States of America Market PE Ratio Median Figure of 3,082 Publicly-Listed Companies 17.98x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of PriceSmart.

NasdaqGS:PSMT PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGS:PSMT Share Price ÷ EPS (both in USD)

= 61.7 ÷ 2.35

26.28x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • PriceSmart is overvalued based on earnings compared to the US Consumer Retailing industry average.
  • PriceSmart is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does PriceSmart's expected growth come at a high price?
Raw Data
NasdaqGS:PSMT PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 26.28x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 2 Analysts
24.6%per year
United States of America Consumer Retailing Industry PEG Ratio Median Figure of 14 Publicly-Listed Consumer Retailing Companies 3.24x
United States of America Market PEG Ratio Median Figure of 2,122 Publicly-Listed Companies 1.59x

*Line of best fit is calculated by linear regression .

NasdaqGS:PSMT PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 26.28x ÷ 24.6%

1.07x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • PriceSmart is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on PriceSmart's assets?
Raw Data
NasdaqGS:PSMT PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-05-31) in USD $25.78
NasdaqGS:PSMT Share Price * NasdaqGS (2019-07-17) in USD $61.7
United States of America Consumer Retailing Industry PB Ratio Median Figure of 32 Publicly-Listed Consumer Retailing Companies 2.07x
United States of America Market PB Ratio Median Figure of 5,241 Publicly-Listed Companies 1.81x
NasdaqGS:PSMT PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGS:PSMT Share Price ÷ Book Value per Share (both in USD)

= 61.7 ÷ 25.78

2.39x

* Primary Listing of PriceSmart.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • PriceSmart is overvalued based on assets compared to the US Consumer Retailing industry average.
X
Value checks
We assess PriceSmart's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Consumer Retailing industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Consumer Retailing industry average (and greater than 0)? (1 check)
  5. PriceSmart has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

PSMT Future Performance

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

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
24.6%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is PriceSmart expected to grow at an attractive rate?
  • PriceSmart's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • PriceSmart's earnings growth is expected to exceed the United States of America market average.
  • PriceSmart's revenue growth is expected to exceed the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NasdaqGS:PSMT Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqGS:PSMT Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 2 Analysts 24.6%
NasdaqGS:PSMT Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 2 Analysts 7.5%
United States of America Consumer Retailing Industry Earnings Growth Rate Market Cap Weighted Average 5.8%
United States of America Consumer Retailing Industry Revenue Growth Rate Market Cap Weighted Average 3.9%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14.1%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.4%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NasdaqGS:PSMT Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 2 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqGS:PSMT Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2020-08-31 3,501 91 2
2019-08-31 3,235 68 1
NasdaqGS:PSMT Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-05-31 3,200 142 71
2019-02-28 3,194 137 75
2018-11-30 3,179 155 66
2018-08-31 3,167 119 73
2018-05-31 3,122 127 74
2018-02-28 3,070 117 74
2017-11-30 3,024 111 87
2017-08-31 2,997 123 89
2017-05-31 2,974 116 92
2017-02-28 2,948 137 90
2016-11-30 2,933 142 88
2016-08-31 2,905 142 87

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • PriceSmart's earnings are expected to grow significantly at over 20% yearly.
  • PriceSmart's revenue is expected to grow by 7.5% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NasdaqGS:PSMT Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 2 Analyst Estimates (S&P Global) See Below

All data from PriceSmart Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:PSMT Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2020-08-31 3.01 3.43 2.59 2.00
2019-08-31 2.23 2.23 2.23 1.00
NasdaqGS:PSMT Past Financials Data
Date (Data in USD Millions) EPS *
2019-05-31 2.35
2019-02-28 2.50
2018-11-30 2.18
2018-08-31 2.44
2018-05-31 2.47
2018-02-28 2.47
2017-11-30 2.90
2017-08-31 2.98
2017-05-31 3.06
2017-02-28 2.99
2016-11-30 2.95
2016-08-31 2.92

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if PriceSmart will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess PriceSmart's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
PriceSmart has a total score of 4/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

PSMT Past Performance

  How has PriceSmart performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare PriceSmart's growth in the last year to its industry (Consumer Retailing).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • PriceSmart's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.
  • PriceSmart's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • PriceSmart's 1-year earnings growth is negative, it can't be compared to the US Consumer Retailing industry average.
Earnings and Revenue History
PriceSmart's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from PriceSmart Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:PSMT Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-05-31 3,200.48 70.85 401.41
2019-02-28 3,194.13 75.39 397.69
2018-11-30 3,179.27 65.66 389.27
2018-08-31 3,166.70 73.43 380.19
2018-05-31 3,122.34 74.20 367.65
2018-02-28 3,070.40 74.31 351.63
2017-11-30 3,024.13 87.14 345.33
2017-08-31 2,996.63 89.40 338.69
2017-05-31 2,974.38 91.77 333.62
2017-02-28 2,948.38 89.75 328.15
2016-11-30 2,933.02 88.40 323.17
2016-08-31 2,905.18 87.29 317.67
2016-05-31 2,893.10 87.58 314.12
2016-02-29 2,885.95 91.96 309.92
2015-11-30 2,858.31 91.01 305.29
2015-08-31 2,802.60 87.99 301.39
2015-05-31 2,725.98 87.32 292.25
2015-02-28 2,643.91 87.36 284.60
2014-11-30 2,567.99 90.56 275.03
2014-08-31 2,517.57 91.23 265.75
2014-05-31 2,480.41 90.14 260.71
2014-02-28 2,437.09 87.34 254.71
2013-11-30 2,370.13 83.88 248.14
2013-08-31 2,299.81 82.49 242.45
2013-05-31 2,228.40 79.41 236.58
2013-02-28 2,162.00 76.64 231.81
2012-11-30 2,103.00 72.12 227.83
2012-08-31 2,045.16 66.31 221.26

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • PriceSmart has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • PriceSmart used its assets more efficiently than the US Consumer Retailing industry average last year based on Return on Assets.
  • PriceSmart's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess PriceSmart's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Consumer Retailing industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
PriceSmart has a total score of 1/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

PSMT Health

 How is PriceSmart's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up PriceSmart's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • PriceSmart is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • PriceSmart's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of PriceSmart's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 5.2x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from PriceSmart Company Filings, last reported 1 month ago.

NasdaqGS:PSMT Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-05-31 779.06 96.27 123.47
2019-02-28 773.59 96.60 113.76
2018-11-30 766.08 99.65 107.03
2018-08-31 758.64 103.08 125.76
2018-05-31 750.70 106.72 141.16
2018-02-28 731.23 97.34 152.13
2017-11-30 732.31 101.43 129.18
2017-08-31 708.77 106.98 162.43
2017-05-31 689.39 125.31 192.11
2017-02-28 671.69 123.79 181.99
2016-11-30 655.00 97.69 175.40
2016-08-31 638.07 106.16 199.52
2016-05-31 612.23 99.37 202.62
2016-02-29 586.97 93.04 173.01
2015-11-30 591.76 98.01 140.01
2015-08-31 566.58 98.84 157.07
2015-05-31 574.44 103.31 150.02
2015-02-28 553.91 110.18 119.24
2014-11-30 561.05 113.91 120.71
2014-08-31 548.27 91.44 137.59
2014-05-31 523.93 94.20 124.14
2014-02-28 498.39 60.20 76.23
2013-11-30 505.06 76.29 77.23
2013-08-31 481.05 73.03 121.87
2013-05-31 463.70 76.06 92.41
2013-02-28 443.18 80.96 101.20
2012-11-30 421.01 82.35 84.35
2012-08-31 418.91 79.86 91.25
  • PriceSmart's level of debt (12.4%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (18% vs 12.4% today).
  • Debt is well covered by operating cash flow (147.1%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 39x coverage).
X
Financial health checks
We assess PriceSmart's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. PriceSmart has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

PSMT Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
1.13%
Current annual income from PriceSmart dividends. Estimated to be 1.3% next year.
If you bought $2,000 of PriceSmart shares you are expected to receive $23 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • PriceSmart's pays a lower dividend yield than the bottom 25% of dividend payers in United States of America (1.43%).
  • PriceSmart's dividend is below the markets top 25% of dividend payers in United States of America (3.72%).
Upcoming dividend payment

Purchase PriceSmart before the 'Buy Limit' to receive their next dividend payment.

Dividends are usually paid every 3 or 6 months, you can time your share purchase to take advantage of upcoming dividend payments.
Dividend payment calendar
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NasdaqGS:PSMT Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 2 Analyst Estimates (S&P Global) See Below
United States of America Consumer Retailing Industry Average Dividend Yield Market Cap Weighted Average of 12 Stocks 1.8%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2017 Stocks 2.4%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NasdaqGS:PSMT Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2020-08-31 0.84 1.00
2019-08-31 0.77 1.00
NasdaqGS:PSMT Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-01-31 0.700 1.216
2018-01-25 0.700 0.902
2017-02-02 0.700 0.813
2016-02-04 0.700 0.830
2015-02-04 0.700 0.830
2014-01-23 0.700 0.769
2012-11-27 0.600 0.677
2012-01-26 0.600 0.832
2011-01-20 0.600 1.188
2010-11-09 0.500 1.387
2010-07-09 0.500 1.799
2010-01-28 0.500 2.148
2009-01-29 0.500 2.778
2008-11-12 0.320 1.982
2008-11-07 0.320 2.251

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of PriceSmart's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (3.4x coverage).
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess PriceSmart's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can PriceSmart afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. PriceSmart has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

PSMT Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Sherry Bahrambeygui
COMPENSATION $126,994
AGE 55
TENURE AS CEO 0.7 years
CEO Bio

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. Ms. Bahrambeygui served as Interim Chief Executive Officer of PriceSmart Inc. from November 16, 2018 to January 30, 2019. Ms. Bahrambeygui served as Vice Chairman of the Board at PriceSmart from October 2016 to October 2017. Ms. Bahrambeygui joined The Price Group, LLC in September 2006 and has served as its Senior Executive and Managing Member since 2006. Additionally, Ms. Bahrambeygui serves as Executive Vice President, Secretary and Vice Chairman of the Boards of Price Charities (fka San Diego Revitalization Corp.) and Price Philanthropies Foundation, and is the Chief Executive Officer of PS Ivanhoe, LLC, a commercial real estate company. Ms. Bahrambeygui was a licensed stockbroker and a Founding Partner of the law firm of Hosey & Bahrambeygui, LLP. She has practiced law with an emphasis in employment, compensation, business and corporate matters since 1993 and had provided consultation and legal representation to PriceSmart from time-to-time between 2001 and 2008. Ms. Bahrambeygui was admitted in August 2015 to the Bar of the Supreme Court of the United States. Ms. Bahrambeygui studied at Columbia University and graduated with a B.A. from the University of California San Diego and a J.D. from California Western School of Law.

CEO Compensation
  • Sherry's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Sherry's remuneration is lower than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the PriceSmart management team in years:

3
Average Tenure
56
Average Age
  • The tenure for the PriceSmart management team is about average.
Management Team

Robert Price

TITLE
Founder & Executive Chairman
AGE
77

Sherry Bahrambeygui

TITLE
CEO & Director
COMPENSATION
$127K
AGE
55
TENURE
0.7 yrs

Maarten Jager

TITLE
CFO, Executive VP & Principal Accounting Officer
COMPENSATION
$3M
AGE
54
TENURE
1.3 yrs

William Naylon

TITLE
Executive VP & COO
COMPENSATION
$579K
AGE
57
TENURE
17.5 yrs

Francisco Velasco

TITLE
Executive VP
COMPENSATION
$866K
AGE
48
TENURE
3 yrs

Jesus Von Chong

TITLE
Executive Vice President of Local/Regional Merchandising
COMPENSATION
$471K
AGE
53
TENURE
0.9 yrs

Jose Marin

TITLE
Senior Vice President of Marketing & Member Services
TENURE
10.3 yrs

Alberto Morales

TITLE
Senior Vice President of Human Resources
TENURE
1.9 yrs

John Hildebrandt

TITLE
Executive Vice President of Operations
COMPENSATION
$1M
AGE
61
TENURE
18 yrs

Brud Drachman

TITLE
Executive Vice President of Construction & Facilities
COMPENSATION
$193K
AGE
64
TENURE
16.7 yrs
Board of Directors Tenure

Average tenure and age of the PriceSmart board of directors in years:

6.5
Average Tenure
66.5
Average Age
  • The tenure for the PriceSmart board of directors is about average.
Board of Directors

Sherry Bahrambeygui

TITLE
CEO & Director
COMPENSATION
$127K
AGE
55
TENURE
7.7 yrs

Leon Janks

TITLE
Lead Director
COMPENSATION
$166K
AGE
70
TENURE
0.8 yrs

Robert Price

TITLE
Founder & Executive Chairman
AGE
77
TENURE
22.5 yrs

Beatriz Infante

TITLE
Director
COMPENSATION
$157K
AGE
65
TENURE
1.5 yrs

Edgar Zurcher

TITLE
Director
COMPENSATION
$87K
AGE
68
TENURE
9.8 yrs

Gonzalo Losada

TITLE
Director
COMPENSATION
$92K
AGE
53
TENURE
11.4 yrs

Mitchell Lynn

TITLE
Director
COMPENSATION
$97K
AGE
70
TENURE
7.7 yrs

Gordon Hanson

TITLE
Director
COMPENSATION
$92K
AGE
55
TENURE
5.3 yrs

Pierre Mignault

TITLE
Director
COMPENSATION
$147K
AGE
71
TENURE
3.9 yrs

Gary Malino

TITLE
Director
COMPENSATION
$100K
AGE
61
TENURE
3.3 yrs
Who owns this company?
Recent Insider Trading
  • PriceSmart individual insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
24. May 19 Sell Sherry Bahrambeygui Individual 10. May 19 14. May 19 -50,000 $57.16 $-2,807,701
23. Apr 19 Sell Gordon Hanson Individual 18. Apr 19 18. Apr 19 -3,137 $60.85 $-190,890
17. Apr 19 Sell John Hildebrandt Individual 16. Apr 19 16. Apr 19 -870 $62.08 $-54,008
01. Feb 19 Sell Mitchell Lynn Individual 01. Feb 19 01. Feb 19 -592 $60.91 $-36,059
28. Jan 19 Sell Rodrigo Calvo Individual 24. Jan 19 24. Jan 19 -2,117 $65.89 $-139,495
17. Jan 19 Sell Frank Diaz Individual 15. Jan 19 15. Jan 19 -600 $64.86 $-38,914
16. Nov 18 Sell Jose Laparte Individual 14. Nov 18 14. Nov 18 -15,995 $64.94 $-1,038,680
09. Nov 18 Sell Jose Laparte Individual 07. Nov 18 08. Nov 18 -22,058 $69.99 $-1,526,225
X
Management checks
We assess PriceSmart's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. PriceSmart has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

PSMT News

Simply Wall St News

Some PriceSmart (NASDAQ:PSMT) Shareholders Are Down 34%

And we doubt long term believers are the only worried holders, since the stock price has declined 30% over the last twelve months. … Looking back five years, both PriceSmart's share price and EPS declined; the latter at a rate of 3.2% per year. … Generally speaking long term share price weakness can be a bad sign, though contrarian investors might want to research the stock in hope of a turnaround.

Simply Wall St -

Here's Why PriceSmart (NASDAQ:PSMT) Can Manage Its Debt Responsibly

Debt assists a business until the business has trouble paying it off, either with new capital or with free cash flow. … But ultimately the future profitability of the business will decide if PriceSmart can strengthen its balance sheet over time. … PriceSmart may have net cash on the balance sheet, but it is still interesting to look at how well the business converts its earnings before interest and tax (EBIT) to free cash flow, because that will influence both its need for, and its capacity to manage debt.

Simply Wall St -

PriceSmart, Inc. (NASDAQ:PSMT): Commentary On Fundamentals

In the case of PSMT, it is a company with strong financial health as well as an optimistic future outlook. … This indicates that PSMT has sufficient cash flows and proper cash management in place, which is an important determinant of the company’s health. … The intrinsic value infographic in our free research report helps visualize whether PSMT is currently mispriced by the market.

Simply Wall St -

How Did PriceSmart, Inc.'s (NASDAQ:PSMT) 9.9% ROE Fare Against The Industry?

The formula for ROE is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for PriceSmart: 9.9% = US$75m ÷ US$774m (Based on the trailing twelve months to February 2019.) Most know that net profit is the total earnings after all expenses, but the concept of shareholders' equity is a little more complicated. … One simple way to determine if a company has a good return on equity is to compare it to the average for its industry. … If you would prefer check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.

Simply Wall St -

Who Has Been Selling PriceSmart, Inc. (NASDAQ:PSMT) Shares?

In the last twelve months, the biggest single sale by an insider was when the , Jose Laparte, sold US$1.5m worth of shares at a price of US$69.99 per share … That means that an insider was selling shares at around the current price of US$59.69 … We generally don't like to see insider selling, but the lower the sale price, the more it concerns us

Simply Wall St -

Is PriceSmart, Inc. (NASDAQ:PSMT) A Great Dividend Stock?

Yet sometimes, investors buy a popular dividend stock because of its yield, and then lose money if the company's dividend doesn't live up to expectations. … While PriceSmart's 1.2% dividend yield is not the highest, we think its lengthy payment history is quite interesting. … NasdaqGS:PSMT Historical Dividend Yield, April 22nd 2019

Simply Wall St -

Before You Buy PriceSmart, Inc. (NASDAQ:PSMT), Consider Its Volatility

(NASDAQ:PSMT), then you might want to consider its beta (a measure of share price volatility) in order to understand how the stock could impact your portfolio. … Some investors use beta as a measure of how much a certain stock is impacted by market risk (volatility). … A stock with a beta below one is either less volatile than the market, or more volatile but not corellated with the overall market.

Simply Wall St -

At US$60.31, Is PriceSmart, Inc. (NASDAQ:PSMT) Worth Looking At Closely?

saw significant share price movement during recent months on the NASDAQGS, rising to highs of $66.29 and falling to the lows of $55.78. … Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price? … Let’s take a look at PriceSmart’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change

Simply Wall St -

Some PriceSmart Shareholders Are Down 37%

One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement. … Looking back five years, both PriceSmart's share price and EPS declined; the latter at a rate of 4.8% per year. … Readers should note that the share price has fallen faster than the EPS, at a rate of 8.7% per year, over the period.

Simply Wall St -

Is PriceSmart, Inc.'s (NASDAQ:PSMT) High P/E Ratio A Problem For Investors?

The goal of this article is to teach you how to use price to earnings ratios (P/E ratios). … We'll look at PriceSmart, Inc.'s (NASDAQ:PSMT) P/E ratio and reflect on what it tells us about the company's share price. … PriceSmart has a price to earnings ratio of 28, based on the last twelve months.

Simply Wall St -

PSMT Company Info

Description

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 November 30, 2018, the company operated 41 warehouse clubs comprising 7 each in Colombia and Costa Rica; 5 in Panama; 4 each in Trinidad and Dominican Republic; 3 each in Guatemala and Honduras; 2 each in El Salvador and Nicaragua; and 1 each in Aruba, Barbados, Jamaica, and the United States Virgin Islands. PriceSmart, Inc. was founded in 1994 and is headquartered in San Diego, California.

Details
Name: PriceSmart, Inc.
PSMT
Exchange: NasdaqGS
Founded: 1994
$1,860,286,035
30,150,503
Website: http://www.pricesmart.com
Address: PriceSmart, Inc.
9740 Scranton Road,
San Diego,
California, 92121,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGS PSMT Common Stock Nasdaq Global Select US USD 28. Aug 1997
DB PS8 Common Stock Deutsche Boerse AG DE EUR 28. Aug 1997
Number of employees
Current staff
Staff numbers
8,680
PriceSmart employees.
Industry
Hypermarkets and Super Centers
Consumer Retailing
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/07/17 23:42
End of day share price update: 2019/07/17 00:00
Last estimates confirmation: 2019/07/12
Last earnings filing: 2019/07/10
Last earnings reported: 2019/05/31
Last annual earnings reported: 2018/08/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.