PRICESMART INC (PSMT) Stock Fundamental Analysis
NASDAQ:PSMT - Nasdaq - US7415111092 - Common Stock - Currency: USD
PSMT gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 40 industry peers in the Consumer Staples Distribution & Retail industry. PSMT scores excellent on profitability, but there are some minor concerns on its financial health. PSMT is valied quite expensively at the moment, while it does show 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.
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's Return On Assets of 6.73% is fine compared to the rest of the industry. PSMT outperforms 77.50% of its industry peers.
Looking at the Return On Equity, with a value of 12.00%, PSMT is in the better half of the industry, outperforming 65.00% of the companies in the same industry.
PSMT has a Return On Invested Capital of 10.70%. This is in the better half of the industry: PSMT outperforms 80.00% of its industry peers.
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 8.23%.
The 3 year average ROIC (10.01%) for PSMT is below the current ROIC(10.70%), indicating increased profibility in the last year.
| 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
The Profit Margin of PSMT (2.77%) is better than 75.00% of its industry peers.
In the last couple of years the Profit Margin of PSMT has grown nicely.
Looking at the Operating Margin, with a value of 4.44%, PSMT belongs to the top of the industry, outperforming 82.50% of the companies in the same industry.
In the last couple of years the Operating Margin of PSMT has grown nicely.
PSMT has a Gross Margin of 17.22%. This is in the lower half of the industry: PSMT underperforms 72.50% of its industry peers.
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), PSMT is creating some value.
The number of shares outstanding for PSMT has been reduced compared to 1 year ago.
Compared to 5 years ago, PSMT has more shares outstanding
PSMT has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 5.63 indicates that PSMT is not in any danger for bankruptcy at the moment.
PSMT has a better Altman-Z score (5.63) than 80.00% of its industry peers.
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.
PSMT has a Debt to FCF ratio of 1.56. This is amongst the best in the industry. PSMT outperforms 85.00% 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.
The Debt to Equity ratio of PSMT (0.09) is better than 77.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.09 | ||
| Debt/FCF | 1.56 | ||
| Altman-Z | 5.63 |
ROIC/WACC1.21
WACC8.81%
2.3 Liquidity
PSMT has a Current Ratio of 1.25. 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 better Current ratio (1.25) than 65.00% of its industry peers.
A Quick Ratio of 0.46 indicates that PSMT may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.46, PSMT is doing worse than 67.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.25 | ||
| Quick Ratio | 0.46 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 10.90% 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.
The Revenue for PSMT has decreased by -13.06% in the past year. This is quite bad
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)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
PSMT is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 14.95% yearly.
The Revenue is expected to grow by 11.16% on average over the next years. This is quite good.
EPS Next Y8.77%
EPS Next 2Y14.95%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year7.82%
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.
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
With a Price/Earnings ratio of 22.77, PSMT is valued on the expensive side.
PSMT's Price/Earnings ratio is in line with the industry average.
PSMT's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.28.
PSMT is valuated rather expensively with a Price/Forward Earnings ratio of 17.65.
Based on the Price/Forward Earnings ratio, PSMT is valued a bit cheaper than 65.00% of the companies in the same industry.
PSMT is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 21.76, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.77 | ||
| Fwd PE | 17.65 |
4.2 Price Multiples
PSMT's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, PSMT is valued a bit more expensive than the industry average as 60.00% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 41.78 | ||
| EV/EBITDA | 9.64 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
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)2.6
PEG (5Y)1.99
EPS Next 2Y14.95%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.19%, PSMT has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.08, PSMT pays a bit more dividend than its industry peers.
With a Dividend Yield of 1.19, PSMT pays less dividend than the S&P500 average, which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.19% |
5.2 History
The dividend of PSMT is nicely growing with an annual growth rate of 24.72%!
PSMT has been paying a dividend for at least 10 years, so it has 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 48.14% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of PSMT is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP48.14%
EPS Next 2Y14.95%
EPS Next 3YN/A
106.55
+0.76 (+0.72%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupConsumer Staples Distribution & Retail
GICS IndustryConsumer Staples Distribution & Retail
Earnings (Last)
Earnings (Next)
Inst Owners96.34%
Inst Owner Change1.41%
Ins Owners7.36%
Ins Owner Change-1.61%
Market Cap3.28B
Analysts84.44
Price Target107.1 (0.52%)
Short Float %4.85%
Short Ratio6.18
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.19% |
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)5.7%
PT rev (3m)5.7%
EPS NQ rev (1m)0%
EPS NQ rev (3m)3.4%
EPS NY rev (1m)0%
EPS NY rev (3m)0.69%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.98%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.54%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.77 | ||
| Fwd PE | 17.65 | ||
| P/S | 0.65 | ||
| P/FCF | 41.78 | ||
| P/OCF | 15.88 | ||
| P/B | 2.79 | ||
| P/tB | 2.9 | ||
| EV/EBITDA | 9.64 |
EPS(TTM)4.68
EY4.39%
EPS(NY)6.04
Fwd EY5.67%
FCF(TTM)2.55
FCFY2.39%
OCF(TTM)6.71
OCFY6.3%
SpS165.12
BVpS38.13
TBVpS36.73
PEG (NY)2.6
PEG (5Y)1.99
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 | 5.63 |
F-Score7
WACC8.81%
ROIC/WACC1.21
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 Y8.77%
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 Year7.82%
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 Year46.54%
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%