PRICESMART INC (PSMT) Stock Fundamental Analysis
USA - NASDAQ:PSMT - US7415111092 - Common Stock
115.91 USD
-1.28 (-1.09%)
We assign a fundamental rating of 5 out of 10 to PSMT. PSMT was compared to 39 industry peers in the Consumer Staples Distribution & Retail industry. PSMT has only an average score on both its financial health and profitability. PSMT is valued expensive and it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year PSMT was profitable.
In the past year PSMT had a positive cash flow from operations.
PSMT had positive earnings in 4 of the past 5 years.
PSMT had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 6.65%, PSMT is in the better half of the industry, outperforming 71.79% of the companies in the same industry.
Looking at the Return On Equity, with a value of 11.74%, PSMT is in line with its industry, outperforming 53.85% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 10.59%, PSMT is in the better half of the industry, outperforming 79.49% of the companies in the same industry.
PSMT had an Average Return On Invested Capital over the past 3 years of 10.01%. This is in line with the industry average of 8.75%.
The 3 year average ROIC (10.01%) for PSMT is below the current ROIC(10.59%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.65% | ||
| ROE | 11.74% | ||
| ROIC | 10.59% |
ROA(3y)5.96%
ROA(5y)5.64%
ROE(3y)10.79%
ROE(5y)10.45%
ROIC(3y)10.01%
ROIC(5y)9.24%
1.3 Margins
With a decent Profit Margin value of 2.76%, PSMT is doing good in the industry, outperforming 69.23% of the companies in the same industry.
PSMT's Profit Margin has improved in the last couple of years.
The Operating Margin of PSMT (4.49%) is better than 82.05% of its industry peers.
PSMT's Operating Margin has improved in the last couple of years.
PSMT has a worse Gross Margin (17.31%) than 71.79% of its industry peers.
In the last couple of years the Gross Margin of PSMT has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.49% | ||
| PM (TTM) | 2.76% | ||
| GM | 17.31% |
OM growth 3Y1.11%
OM growth 5Y4.71%
PM growth 3Y1.46%
PM growth 5Y4.41%
GM growth 3Y-1.08%
GM growth 5Y1.02%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), PSMT is creating some value.
There is no outstanding debt for PSMT. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
PSMT has an Altman-Z score of 5.83. This indicates that PSMT is financially healthy and has little risk of bankruptcy at the moment.
PSMT has a better Altman-Z score (5.83) than 84.62% of its industry peers.
The Debt to FCF ratio of PSMT is 1.31, which is an excellent value as it means it would take PSMT, only 1.31 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.31, PSMT belongs to the top of the industry, outperforming 87.18% of the companies in the same industry.
PSMT has a Debt/Equity ratio of 0.09. This is a healthy value indicating a solid balance between debt and equity.
PSMT has a better Debt to Equity ratio (0.09) than 79.49% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.09 | ||
| Debt/FCF | 1.31 | ||
| Altman-Z | 5.83 |
ROIC/WACC1.22
WACC8.65%
2.3 Liquidity
PSMT has a Current Ratio of 1.28. This is a normal value and indicates that PSMT is financially healthy and should not expect problems in meeting its short term obligations.
PSMT has a Current ratio of 1.28. This is in the better half of the industry: PSMT outperforms 69.23% of its industry peers.
A Quick Ratio of 0.50 indicates that PSMT may have some problems paying its short term obligations.
PSMT has a worse Quick ratio (0.50) than 61.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.28 | ||
| Quick Ratio | 0.5 |
3. Growth
3.1 Past
PSMT shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 5.47%.
The Earnings Per Share has been growing by 13.58% on average over the past years. This is quite good.
EPS 1Y (TTM)5.47%
EPS 3Y12.56%
EPS 5Y13.58%
EPS Q2Q%8.51%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%8.56%
3.2 Future
Based on estimates for the next years, PSMT will show a quite strong growth in Earnings Per Share. The EPS will grow by 16.02% on average per year.
PSMT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.14% yearly.
EPS Next Y14.13%
EPS Next 2Y11.31%
EPS Next 3Y16.02%
EPS Next 5YN/A
Revenue Next Year8.42%
Revenue Next 2Y9.11%
Revenue Next 3Y7.14%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 24.05, the valuation of PSMT can be described as rather expensive.
PSMT's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of PSMT to the average of the S&P500 Index (26.51), we can say PSMT is valued inline with the index average.
PSMT is valuated rather expensively with a Price/Forward Earnings ratio of 21.07.
The rest of the industry has a similar Price/Forward Earnings ratio as PSMT.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.53, PSMT is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.05 | ||
| Fwd PE | 21.07 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as PSMT.
PSMT's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 38.43 | ||
| EV/EBITDA | 10.51 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of PSMT may justify a higher PE ratio.
PSMT's earnings are expected to grow with 16.02% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.7
PEG (5Y)1.77
EPS Next 2Y11.31%
EPS Next 3Y16.02%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.10%, PSMT has a reasonable but not impressive dividend return.
PSMT's Dividend Yield is a higher than the industry average which is at 2.00.
Compared to an average S&P500 Dividend Yield of 2.38, PSMT's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.1% |
5.2 History
The dividend of PSMT is nicely growing with an annual growth rate of 24.72%!
PSMT has paid a dividend for at least 10 years, which is a reliable track record.
PSMT has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)24.72%
Div Incr Years3
Div Non Decr Years11
5.3 Sustainability
PSMT pays out 26.03% of its income as dividend. This is a sustainable payout ratio.
PSMT's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP26.03%
EPS Next 2Y11.31%
EPS Next 3Y16.02%
NASDAQ:PSMT (11/4/2025, 3:02:07 PM)
115.91
-1.28 (-1.09%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupConsumer Staples Distribution & Retail
GICS IndustryConsumer Staples Distribution & Retail
Earnings (Last)
Earnings (Next)
Inst Owners99.24%
Inst Owner Change-0.95%
Ins Owners7.7%
Ins Owner Change-2.42%
Market Cap3.56B
Revenue(TTM)N/A
Net Income(TTM)142.53M
Analysts82
Price Target112.55 (-2.9%)
Short Float %6.39%
Short Ratio8.53
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.1% |
Yearly Dividend2.15
Dividend Growth(5Y)24.72%
DP26.03%
Div Incr Years3
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)0.81%
Min EPS beat(2)0.09%
Max EPS beat(2)1.54%
EPS beat(4)2
Avg EPS beat(4)-4.6%
Min EPS beat(4)-10.82%
Max EPS beat(4)1.54%
EPS beat(8)5
Avg EPS beat(8)-2.95%
EPS beat(12)9
Avg EPS beat(12)3.42%
EPS beat(16)11
Avg EPS beat(16)0.31%
Revenue beat(2)0
Avg Revenue beat(2)-1.5%
Min Revenue beat(2)-1.6%
Max Revenue beat(2)-1.4%
Revenue beat(4)0
Avg Revenue beat(4)-1.19%
Min Revenue beat(4)-1.6%
Max Revenue beat(4)-0.48%
Revenue beat(8)1
Avg Revenue beat(8)-0.88%
Revenue beat(12)1
Avg Revenue beat(12)-1.3%
Revenue beat(16)3
Avg Revenue beat(16)-0.69%
PT rev (1m)3.52%
PT rev (3m)-1.19%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.85%
EPS NY rev (1m)-0.2%
EPS NY rev (3m)0.03%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.15%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.05 | ||
| Fwd PE | 21.07 | ||
| P/S | 0.69 | ||
| P/FCF | 38.43 | ||
| P/OCF | 16.13 | ||
| P/B | 2.94 | ||
| P/tB | 3.04 | ||
| EV/EBITDA | 10.51 |
EPS(TTM)4.82
EY4.16%
EPS(NY)5.5
Fwd EY4.75%
FCF(TTM)3.02
FCFY2.6%
OCF(TTM)7.19
OCFY6.2%
SpS167.97
BVpS39.49
TBVpS38.08
PEG (NY)1.7
PEG (5Y)1.77
Graham Number65.44
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.65% | ||
| ROE | 11.74% | ||
| ROCE | 16.07% | ||
| ROIC | 10.59% | ||
| ROICexc | 12.9% | ||
| ROICexgc | 13.39% | ||
| OM | 4.49% | ||
| PM (TTM) | 2.76% | ||
| GM | 17.31% | ||
| FCFM | 1.8% |
ROA(3y)5.96%
ROA(5y)5.64%
ROE(3y)10.79%
ROE(5y)10.45%
ROIC(3y)10.01%
ROIC(5y)9.24%
ROICexc(3y)12.56%
ROICexc(5y)11.87%
ROICexgc(3y)13.1%
ROICexgc(5y)12.49%
ROCE(3y)15.11%
ROCE(5y)14.04%
ROICexgc growth 3Y3.99%
ROICexgc growth 5Y4.95%
ROICexc growth 3Y4.69%
ROICexc growth 5Y5.78%
OM growth 3Y1.11%
OM growth 5Y4.71%
PM growth 3Y1.46%
PM growth 5Y4.41%
GM growth 3Y-1.08%
GM growth 5Y1.02%
F-Score7
Asset Turnover2.41
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.09 | ||
| Debt/FCF | 1.31 | ||
| Debt/EBITDA | 0.33 | ||
| Cap/Depr | 147.62% | ||
| Cap/Sales | 2.48% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 69.34% | ||
| Profit Quality | 65.06% | ||
| Current Ratio | 1.28 | ||
| Quick Ratio | 0.5 | ||
| Altman-Z | 5.83 |
F-Score7
WACC8.65%
ROIC/WACC1.22
Cap/Depr(3y)192.6%
Cap/Depr(5y)183.17%
Cap/Sales(3y)3.21%
Cap/Sales(5y)3.15%
Profit Quality(3y)45.31%
Profit Quality(5y)71.22%
High Growth Momentum
Growth
EPS 1Y (TTM)5.47%
EPS 3Y12.56%
EPS 5Y13.58%
EPS Q2Q%8.51%
EPS Next Y14.13%
EPS Next 2Y11.31%
EPS Next 3Y16.02%
EPS Next 5YN/A
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%8.56%
Revenue Next Year8.42%
Revenue Next 2Y9.11%
Revenue Next 3Y7.14%
Revenue Next 5YN/A
EBIT growth 1Y-16.1%
EBIT growth 3Y11.95%
EBIT growth 5Y13.92%
EBIT Next Year47.87%
EBIT Next 3Y22.76%
EBIT Next 5YN/A
FCF growth 1Y-24.91%
FCF growth 3Y40.76%
FCF growth 5Y5.27%
OCF growth 1Y-8.76%
OCF growth 3Y17.74%
OCF growth 5Y4.04%
PRICESMART INC / PSMT FAQ
Can you provide the ChartMill fundamental rating for PRICESMART INC?
ChartMill assigns a fundamental rating of 5 / 10 to PSMT.
What is the valuation status for PSMT stock?
ChartMill assigns a valuation rating of 3 / 10 to PRICESMART INC (PSMT). This can be considered as Overvalued.
How profitable is PRICESMART INC (PSMT) stock?
PRICESMART INC (PSMT) has a profitability rating of 6 / 10.
What are the PE and PB ratios of PRICESMART INC (PSMT) stock?
The Price/Earnings (PE) ratio for PRICESMART INC (PSMT) is 24.05 and the Price/Book (PB) ratio is 2.94.
What is the earnings growth outlook for PRICESMART INC?
The Earnings per Share (EPS) of PRICESMART INC (PSMT) is expected to grow by 14.13% in the next year.