PRICESMART INC (PSMT) Stock Fundamental Analysis
NASDAQ:PSMT - Nasdaq - US7415111092 - Common Stock - Currency: USD
We assign a fundamental rating of 7 out of 10 to PSMT. PSMT was compared to 40 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 showing excellent growth while it is valued at reasonable prices. Keep and eye on this one! With these ratings, PSMT could be worth investigating further for growth and quality investing!.
1. Profitability
1.1 Basic Checks
PSMT had positive earnings in the past year.
PSMT had a positive operating cash flow in the past year.
Each year in the past 5 years PSMT has 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 87.18% of its industry peers.
With a decent Return On Equity value of 14.98%, PSMT is doing good in the industry, outperforming 66.67% of the companies in the same industry.
The Return On Invested Capital of PSMT (13.54%) is better than 92.31% 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 8.35%.
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
PSMT's Profit Margin of 2.81% is fine compared to the rest of the industry. PSMT outperforms 76.92% of its industry peers.
In the last couple of years the Profit Margin of PSMT has grown nicely.
With an excellent Operating Margin value of 4.56%, PSMT belongs to the best of the industry, outperforming 82.05% of the companies in the same industry.
In the last couple of years the Operating Margin of PSMT has grown nicely.
The Gross Margin of PSMT (17.27%) is worse than 76.92% 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 | 4.56% | ||
| 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
PSMT has an Altman-Z score of 5.90. 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 5.90, PSMT belongs to the top of the industry, outperforming 82.05% of the companies in the same industry.
PSMT has a debt to FCF ratio of 2.97. This is a good value and a sign of high solvency as PSMT would need 2.97 years to pay back of all of its debts.
PSMT's Debt to FCF ratio of 2.97 is fine compared to the rest of the industry. PSMT outperforms 74.36% of its industry peers.
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 | 2.97 | ||
| Altman-Z | 5.9 |
ROIC/WACC1.52
WACC8.92%
2.3 Liquidity
PSMT has a Current Ratio of 1.26. This is a normal value and indicates that PSMT is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of PSMT (1.26) is better than 64.10% 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 has a Quick ratio (0.43) which is comparable to the rest of the industry.
The current and quick ratio evaluation for PSMT is rather negative, while it does have 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.
The Earnings Per Share has been growing by 11.43% on average over the past years. This is quite good.
Looking at the last year, PSMT shows a very strong growth in Revenue. The Revenue has grown by 36.44%.
The Revenue has been growing by 8.79% on average over the past years. This is quite good.
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.
The Revenue is expected to grow by 11.16% on average over the next years. This is quite good.
EPS Next Y8.03%
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
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
PSMT is valuated rather expensively with a Price/Earnings ratio of 19.75.
61.54% of the companies in the same industry are more expensive than PSMT, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 29.63. PSMT is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 14.85 indicates a correct valuation of PSMT.
71.79% of the companies in the same industry are more expensive than PSMT, based on the Price/Forward Earnings ratio.
PSMT's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.68.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.75 | ||
| Fwd PE | 14.85 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PSMT is valued a bit cheaper than the industry average as 76.92% of the companies are valued more expensively.
PSMT's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 66.1 | ||
| EV/EBITDA | 6.94 |
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 an outstanding 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)2.46
PEG (5Y)1.73
EPS Next 2Y14.95%
EPS Next 3YN/A
5. Dividend
5.1 Amount
PSMT has a Yearly Dividend Yield of 1.34%.
Compared to an average industry Dividend Yield of 2.53, PSMT pays a bit more dividend than its industry peers.
With a Dividend Yield of 1.34, PSMT pays less dividend than the S&P500 average, which is at 2.29.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.34% |
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 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 38.13% 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.
DP38.13%
EPS Next 2Y14.95%
EPS Next 3YN/A
89.68
+0.12 (+0.13%)
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 Change-0.46%
Ins Owners8.37%
Ins Owner Change-1.18%
Market Cap2.75B
Analysts84.44
Price Target101.32 (12.98%)
Short Float %2.9%
Short Ratio3.86
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.34% |
Yearly Dividend2.15
Dividend Growth(5Y)24.72%
DP38.13%
Div Incr Years3
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-10.01%
Min EPS beat(2)-10.82%
Max EPS beat(2)-9.21%
EPS beat(4)2
Avg EPS beat(4)-2.92%
Min EPS beat(4)-10.82%
Max EPS beat(4)5.18%
EPS beat(8)5
Avg EPS beat(8)3.96%
EPS beat(12)8
Avg EPS beat(12)1.33%
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)8.36%
EPS NQ rev (1m)3.7%
EPS NQ rev (3m)23.89%
EPS NY rev (1m)-3.9%
EPS NY rev (3m)0.55%
Revenue NQ rev (1m)1.24%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.13%
Revenue NY rev (3m)0.3%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.75 | ||
| Fwd PE | 14.85 | ||
| P/S | 0.45 | ||
| P/FCF | 66.1 | ||
| P/OCF | 13.41 | ||
| P/B | 2.37 | ||
| P/tB | 2.47 | ||
| EV/EBITDA | 6.94 |
EPS(TTM)4.54
EY5.06%
EPS(NY)6.04
Fwd EY6.73%
FCF(TTM)1.36
FCFY1.51%
OCF(TTM)6.69
OCFY7.46%
SpS201.3
BVpS37.79
TBVpS36.38
PEG (NY)2.46
PEG (5Y)1.73
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 | 5.9 |
F-Score9
WACC8.92%
ROIC/WACC1.52
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 Y8.03%
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 Year7.24%
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 Year46.46%
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%