PRICESMART INC (PSMT) Stock Fundamental Analysis
NASDAQ:PSMT - Nasdaq - US7415111092 - Common Stock - Currency: USD
We assign a fundamental rating of 6 out of 10 to PSMT. PSMT was compared to 40 industry peers in the Consumer Staples Distribution & Retail industry. While PSMT belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. PSMT is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year PSMT was profitable.
PSMT had a positive operating cash flow in the past year.
PSMT had positive earnings in each of the past 5 years.
PSMT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
PSMT has a Return On Assets of 6.73%. This is in the better half of the industry: PSMT outperforms 77.50% of its industry peers.
The Return On Equity of PSMT (12.00%) is better than 65.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 10.70%, PSMT is in the better half of the industry, outperforming 80.00% 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 8.15%.
The last Return On Invested Capital (10.70%) for PSMT is above the 3 year average (10.01%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.73% | ||
| ROE | 12% | ||
| ROIC | 10.7% |
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 2.77%, PSMT is doing good in the industry, outperforming 80.00% of the companies in the same industry.
In the last couple of years the Profit Margin of PSMT has grown nicely.
The Operating Margin of PSMT (4.44%) is better than 85.00% of its industry peers.
In the last couple of years the Operating Margin of PSMT has grown nicely.
Looking at the Gross Margin, with a value of 17.22%, PSMT is doing worse than 75.00% of the companies in the same industry.
PSMT's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.44% | ||
| PM (TTM) | 2.77% | ||
| GM | 17.22% |
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
PSMT has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, PSMT has less shares outstanding
PSMT has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, PSMT has an improved debt to assets ratio.
2.2 Solvency
PSMT has an Altman-Z score of 5.43. This indicates that PSMT is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 5.43, PSMT is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
PSMT has a debt to FCF ratio of 1.56. This is a very positive value and a sign of high solvency as it would only need 1.56 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.56, PSMT belongs to the top of the industry, outperforming 85.00% of the companies in the same industry.
A Debt/Equity ratio of 0.09 indicates that PSMT is not too dependend on debt financing.
PSMT has a better Debt to Equity ratio (0.09) than 77.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.09 | ||
| Debt/FCF | 1.56 | ||
| Altman-Z | 5.43 |
ROIC/WACC1.2
WACC8.92%
2.3 Liquidity
A Current Ratio of 1.25 indicates that PSMT should not have too much problems paying its short term obligations.
The Current ratio of PSMT (1.25) is better than 67.50% of its industry peers.
PSMT has a Quick Ratio of 1.25. This is a bad value and indicates that PSMT is not financially healthy enough and could expect problems in meeting its short term obligations.
PSMT has a Quick ratio of 0.46. This is in the lower half of the industry: PSMT underperforms 65.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.25 | ||
| Quick Ratio | 0.46 |
3. Growth
3.1 Past
PSMT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 10.90%, which is quite good.
PSMT shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 11.43% yearly.
Looking at the last year, PSMT shows a very negative growth in Revenue. The Revenue has decreased by -13.06% in the last year.
The Revenue has been growing by 8.79% on average over the past years. This is quite good.
EPS 1Y (TTM)10.9%
EPS 3Y12.81%
EPS 5Y11.43%
EPS Q2Q%10.69%
Revenue 1Y (TTM)-13.06%
Revenue growth 3Y10.72%
Revenue growth 5Y8.79%
Sales Q2Q%5.57%
3.2 Future
The Earnings Per Share is expected to grow by 14.95% on average over the next years. This is quite good.
PSMT is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 11.16% yearly.
EPS Next Y8.25%
EPS Next 2Y14.95%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year7.24%
Revenue Next 2Y8.46%
Revenue Next 3Y11.16%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
PSMT is valuated rather expensively with a Price/Earnings ratio of 20.51.
PSMT's Price/Earnings is on the same level as the industry average.
PSMT's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.33.
The Price/Forward Earnings ratio is 15.90, which indicates a correct valuation of PSMT.
PSMT's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. PSMT is cheaper than 72.50% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of PSMT to the average of the S&P500 Index (21.37), we can say PSMT is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.51 | ||
| Fwd PE | 15.9 |
4.2 Price Multiples
70.00% of the companies in the same industry are more expensive than PSMT, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of PSMT is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 37.64 | ||
| EV/EBITDA | 8.67 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates PSMT does not grow enough to justify the current Price/Earnings ratio.
PSMT has a very decent profitability rating, which may justify a higher PE ratio.
PSMT's earnings are expected to grow with 14.95% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.49
PEG (5Y)1.79
EPS Next 2Y14.95%
EPS Next 3YN/A
5. Dividend
5.1 Amount
PSMT has a Yearly Dividend Yield of 1.35%.
Compared to an average industry Dividend Yield of 2.32, PSMT pays a bit more dividend than its industry peers.
With a Dividend Yield of 1.35, PSMT pays less dividend than the S&P500 average, which is at 2.51.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.35% |
5.2 History
On average, the dividend of PSMT grows each year by 24.72%, which is quite nice.
PSMT has been paying a dividend for at least 10 years, so it has a reliable track record.
PSMT has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)24.72%
Div Incr Years3
Div Non Decr Years11
5.3 Sustainability
PSMT pays out 48.14% of its income as dividend. This is a bit on the high side, but may be sustainable.
PSMT's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP48.14%
EPS Next 2Y14.95%
EPS Next 3YN/A
96.01
+2.25 (+2.4%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupConsumer Staples Distribution & Retail
GICS IndustryConsumer Staples Distribution & Retail
Earnings (Last)
Earnings (Next)
Inst Owners93.26%
Inst Owner Change0.5%
Ins Owners7.45%
Ins Owner Change-1.89%
Market Cap2.95B
Analysts84.44
Price Target101.32 (5.53%)
Short Float %3.07%
Short Ratio3.8
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.35% |
Yearly Dividend2.15
Dividend Growth(5Y)24.72%
DP48.14%
Div Incr Years3
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-3.84%
Min EPS beat(2)-9.21%
Max EPS beat(2)1.54%
EPS beat(4)2
Avg EPS beat(4)-3.33%
Min EPS beat(4)-10.82%
Max EPS beat(4)5.18%
EPS beat(8)5
Avg EPS beat(8)-0.75%
EPS beat(12)8
Avg EPS beat(12)1.37%
EPS beat(16)11
Avg EPS beat(16)0.93%
Revenue beat(2)0
Avg Revenue beat(2)-1.04%
Min Revenue beat(2)-1.6%
Max Revenue beat(2)-0.48%
Revenue beat(4)0
Avg Revenue beat(4)-0.87%
Min Revenue beat(4)-1.6%
Max Revenue beat(4)-0.13%
Revenue beat(8)1
Avg Revenue beat(8)-1%
Revenue beat(12)2
Avg Revenue beat(12)-0.67%
Revenue beat(16)4
Avg Revenue beat(16)-0.39%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)1.39%
EPS NQ rev (3m)-1.65%
EPS NY rev (1m)0.21%
EPS NY rev (3m)-3.71%
Revenue NQ rev (1m)0.98%
Revenue NQ rev (3m)2.93%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.51 | ||
| Fwd PE | 15.9 | ||
| P/S | 0.58 | ||
| P/FCF | 37.64 | ||
| P/OCF | 14.31 | ||
| P/B | 2.52 | ||
| P/tB | 2.61 | ||
| EV/EBITDA | 8.67 |
EPS(TTM)4.68
EY4.87%
EPS(NY)6.04
Fwd EY6.29%
FCF(TTM)2.55
FCFY2.66%
OCF(TTM)6.71
OCFY6.99%
SpS165.12
BVpS38.13
TBVpS36.73
PEG (NY)2.49
PEG (5Y)1.79
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.73% | ||
| ROE | 12% | ||
| ROCE | 16.22% | ||
| ROIC | 10.7% | ||
| ROICexc | 12.99% | ||
| ROICexgc | 13.49% | ||
| OM | 4.44% | ||
| PM (TTM) | 2.77% | ||
| GM | 17.22% | ||
| FCFM | 1.54% |
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%
ROICexcg growth 3Y3.99%
ROICexcg 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 Turnover2.43
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.09 | ||
| Debt/FCF | 1.56 | ||
| Debt/EBITDA | 0.34 | ||
| Cap/Depr | 150% | ||
| Cap/Sales | 2.52% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 66.38% | ||
| Profit Quality | 55.72% | ||
| Current Ratio | 1.25 | ||
| Quick Ratio | 0.46 | ||
| Altman-Z | 5.43 |
F-Score7
WACC8.92%
ROIC/WACC1.2
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)10.9%
EPS 3Y12.81%
EPS 5Y11.43%
EPS Q2Q%10.69%
EPS Next Y8.25%
EPS Next 2Y14.95%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-13.06%
Revenue growth 3Y10.72%
Revenue growth 5Y8.79%
Sales Q2Q%5.57%
Revenue Next Year7.24%
Revenue Next 2Y8.46%
Revenue Next 3Y11.16%
Revenue Next 5YN/A
EBIT growth 1Y-16.2%
EBIT growth 3Y11.95%
EBIT growth 5Y13.92%
EBIT Next Year46.46%
EBIT Next 3Y29.81%
EBIT Next 5YN/A
FCF growth 1Y-41.12%
FCF growth 3Y40.76%
FCF growth 5Y5.27%
OCF growth 1Y-16.27%
OCF growth 3Y17.74%
OCF growth 5Y4.04%