PRICESMART INC (PSMT) Stock Fundamental Analysis
NASDAQ:PSMT - Nasdaq - US7415111092 - Common Stock
Overall PSMT gets a fundamental rating of 7 out of 10. We evaluated PSMT against 41 industry peers in the Consumer Staples Distribution & Retail industry. PSMT scores excellent points on both the profitability and health parts. This is a solid base for a good stock. PSMT is growing strongly while it is still valued neutral. This is a good combination! This makes PSMT very considerable for growth and quality investing!
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.
In the past 5 years PSMT has always been profitable.
In the past 5 years PSMT always reported a positive cash flow from operatings.
1.2 Ratios
PSMT has a Return On Assets of 8.31%. This is amongst the best in the industry. PSMT outperforms 87.50% of its industry peers.
With a decent Return On Equity value of 14.98%, PSMT is doing good in the industry, outperforming 67.50% of the companies in the same industry.
The Return On Invested Capital of PSMT (13.54%) is better than 92.50% of its industry peers.
The Average Return On Invested Capital over the past 3 years for PSMT is in line with the industry average of 8.38%.
The 3 year average ROIC (10.01%) for PSMT is below the current ROIC(13.54%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.31% | ||
| ROE | 14.98% | ||
| ROIC | 13.54% |
ROA(3y)5.96%
ROA(5y)5.64%
ROE(3y)10.79%
ROE(5y)10.45%
ROIC(3y)10.01%
ROIC(5y)9.24%
1.3 Margins
The Profit Margin of PSMT (2.81%) is better than 80.00% of its industry peers.
PSMT's Profit Margin has improved in the last couple of years.
The Operating Margin of PSMT (4.56%) is better than 82.50% 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 17.27%, PSMT is doing worse than 77.50% 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 | 4.56% | ||
| PM (TTM) | 2.81% | ||
| GM | 17.27% |
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.
Compared to 1 year ago, PSMT has less shares outstanding
Compared to 5 years ago, PSMT has more shares outstanding
Compared to 1 year ago, PSMT has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 5.86 indicates that PSMT is not in any danger for bankruptcy at the moment.
PSMT has a Altman-Z score of 5.86. This is amongst the best in the industry. PSMT outperforms 82.50% of its industry peers.
The Debt to FCF ratio of PSMT is 2.97, which is a good value as it means it would take PSMT, 2.97 years of fcf income to pay off all of its debts.
PSMT's Debt to FCF ratio of 2.97 is fine compared to the rest of the industry. PSMT outperforms 75.00% of its industry peers.
A Debt/Equity ratio of 0.09 indicates that PSMT is not too dependend on debt financing.
PSMT's Debt to Equity ratio of 0.09 is fine compared to the rest of the industry. PSMT outperforms 77.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.09 | ||
| Debt/FCF | 2.97 | ||
| Altman-Z | 5.86 |
ROIC/WACC1.49
WACC9.09%
2.3 Liquidity
A Current Ratio of 1.26 indicates that PSMT should not have too much problems paying its short term obligations.
PSMT's Current ratio of 1.26 is fine compared to the rest of the industry. PSMT outperforms 62.50% of its industry peers.
PSMT has a Quick Ratio of 1.26. 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's Quick ratio of 0.43 is on the low side compared to the rest of the industry. PSMT is outperformed by 60.00% of its industry peers.
PSMT does not score too well on the current and quick ratio evaluation. However, as it has excellent solvency and profitability, these ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.26 | ||
| Quick Ratio | 0.43 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 9.13% over the past year.
Measured over the past years, PSMT shows a quite strong growth in Earnings Per Share. The EPS has been growing by 11.43% on average per year.
PSMT shows a strong growth in Revenue. In the last year, the Revenue has grown by 36.44%.
PSMT shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.79% yearly.
EPS 1Y (TTM)9.13%
EPS 3Y12.81%
EPS 5Y11.43%
EPS Q2Q%-2.42%
Revenue 1Y (TTM)36.44%
Revenue growth 3Y10.72%
Revenue growth 5Y8.79%
Sales Q2Q%7.84%
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 Y12.42%
EPS Next 2Y14.95%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year7.1%
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
The Price/Earnings ratio is 19.23, which indicates a rather expensive current valuation of PSMT.
62.50% of the companies in the same industry are more expensive than PSMT, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 27.94, PSMT is valued a bit cheaper.
PSMT is valuated correctly with a Price/Forward Earnings ratio of 14.46.
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 (24.11), we can say PSMT is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.23 | ||
| Fwd PE | 14.46 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PSMT is valued a bit cheaper than 77.50% of the companies in the same industry.
PSMT's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 64.35 | ||
| EV/EBITDA | 6.75 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of PSMT 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)1.55
PEG (5Y)1.68
EPS Next 2Y14.95%
EPS Next 3YN/A
5. Dividend
5.1 Amount
PSMT has a Yearly Dividend Yield of 1.33%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.47, PSMT pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.28, PSMT's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.33% |
5.2 History
On average, the dividend of PSMT grows each year by 24.72%, which is quite nice.
PSMT has paid a dividend for at least 10 years, which is 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
38.13% of the earnings are spent on dividend by PSMT. This is a low number and sustainable payout ratio.
The dividend of PSMT is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP38.13%
EPS Next 2Y14.95%
EPS Next 3YN/A
PRICESMART INC
NASDAQ:PSMT (1/17/2025, 8:22:35 PM)
After market: 87.3 0 (0%)87.3
+0.18 (+0.21%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupConsumer Staples Distribution & Retail
GICS IndustryConsumer Staples Distribution & Retail
Earnings (Last)
Earnings (Next)
Inst Owners91.89%
Inst Owner Change0.31%
Ins Owners8.37%
Ins Owner Change-5.78%
Market Cap2.68B
Analysts84.44
Price Target101.32 (16.06%)
Short Float %2.87%
Short Ratio4.29
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.33% |
Yearly Dividend2.15
Dividend Growth(5Y)24.72%
DP38.13%
Div Incr Years3
Div Non Decr Years11
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-8.08%
Min EPS beat(2)-10.82%
Max EPS beat(2)-5.35%
EPS beat(4)2
Avg EPS beat(4)-1.96%
Min EPS beat(4)-10.82%
Max EPS beat(4)5.18%
EPS beat(8)5
Avg EPS beat(8)4.45%
EPS beat(12)8
Avg EPS beat(12)1.65%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-0.88%
Min Revenue beat(2)-1.28%
Max Revenue beat(2)-0.48%
Revenue beat(4)0
Avg Revenue beat(4)-0.68%
Min Revenue beat(4)-1.28%
Max Revenue beat(4)-0.13%
Revenue beat(8)1
Avg Revenue beat(8)-0.86%
Revenue beat(12)2
Avg Revenue beat(12)-0.69%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)12.88%
EPS NQ rev (1m)0%
EPS NQ rev (3m)19.47%
EPS NY rev (1m)0%
EPS NY rev (3m)4.5%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.48%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.23 | ||
| Fwd PE | 14.46 | ||
| P/S | 0.43 | ||
| P/FCF | 64.35 | ||
| P/OCF | 13.06 | ||
| P/B | 2.31 | ||
| P/tB | 2.4 | ||
| EV/EBITDA | 6.75 |
EPS(TTM)4.54
EY5.2%
EPS(NY)6.04
Fwd EY6.92%
FCF(TTM)1.36
FCFY1.55%
OCF(TTM)6.69
OCFY7.66%
SpS201.3
BVpS37.79
TBVpS36.38
PEG (NY)1.55
PEG (5Y)1.68
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.31% | ||
| ROE | 14.98% | ||
| ROCE | 20.41% | ||
| ROIC | 13.54% | ||
| ROICexc | 16.13% | ||
| ROICexgc | 16.75% | ||
| OM | 4.56% | ||
| PM (TTM) | 2.81% | ||
| GM | 17.27% | ||
| FCFM | 0.67% |
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-Score9
Asset Turnover2.96
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.09 | ||
| Debt/FCF | 2.97 | ||
| Debt/EBITDA | 0.28 | ||
| Cap/Depr | 194.6% | ||
| Cap/Sales | 2.65% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 56.06% | ||
| Profit Quality | 23.97% | ||
| Current Ratio | 1.26 | ||
| Quick Ratio | 0.43 | ||
| Altman-Z | 5.86 |
F-Score9
WACC9.09%
ROIC/WACC1.49
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)9.13%
EPS 3Y12.81%
EPS 5Y11.43%
EPS Q2Q%-2.42%
EPS Next Y12.42%
EPS Next 2Y14.95%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)36.44%
Revenue growth 3Y10.72%
Revenue growth 5Y8.79%
Sales Q2Q%7.84%
Revenue Next Year7.1%
Revenue Next 2Y8.46%
Revenue Next 3Y11.16%
Revenue Next 5YN/A
EBIT growth 1Y35.12%
EBIT growth 3Y11.95%
EBIT growth 5Y13.92%
EBIT Next Year48.52%
EBIT Next 3Y29.81%
EBIT Next 5YN/A
FCF growth 1Y-17.96%
FCF growth 3Y40.76%
FCF growth 5Y5.27%
OCF growth 1Y23.81%
OCF growth 3Y17.74%
OCF growth 5Y4.04%