142 USD
-0.73 (-0.51%)
142 USD
0 (0%)
Overall PSMT gets a fundamental rating of 6 out of 10. We evaluated PSMT against 38 industry peers in the Consumer Staples Distribution & Retail industry. Both the profitability and the financial health of PSMT get a neutral evaluation. Nothing too spectacular is happening here. While showing a medium growth rate, PSMT is valued expensive at the moment.
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.
- In the past 5 years PSMT has always been profitable.
- PSMT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- PSMT's Return On Assets of 6.16% is fine compared to the rest of the industry. PSMT outperforms 65.79% of its industry peers.
- PSMT's Return On Equity of 11.30% is in line compared to the rest of the industry. PSMT outperforms 52.63% of its industry peers.
- With a decent Return On Invested Capital value of 10.44%, PSMT is doing good in the industry, outperforming 76.32% of the companies in the same industry.
- PSMT had an Average Return On Invested Capital over the past 3 years of 10.90%. This is significantly below the industry average of 28.30%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.16% | ||
| ROE | 11.3% | ||
| ROIC | 10.44% |
ROA(3y)6.18%
ROA(5y)5.99%
ROE(3y)11.19%
ROE(5y)10.91%
ROIC(3y)10.9%
ROIC(5y)10.36%
1.3 Margins
- PSMT has a better Profit Margin (2.73%) than 68.42% of its industry peers.
- PSMT's Profit Margin has improved in the last couple of years.
- PSMT has a better Operating Margin (4.44%) than 76.32% of its industry peers.
- In the last couple of years the Operating Margin of PSMT has grown nicely.
- PSMT has a worse Gross Margin (17.42%) than 65.79% 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) | 2.73% | ||
| GM | 17.42% |
OM growth 3Y2.49%
OM growth 5Y3.85%
PM growth 3Y2.67%
PM growth 5Y3.44%
GM growth 3Y1.18%
GM growth 5Y0.82%
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.
- PSMT has more shares outstanding than it did 1 year ago.
- Compared to 5 years ago, PSMT has about the same amount of shares outstanding.
- The debt/assets ratio for PSMT is higher compared to a year ago.
2.2 Solvency
- An Altman-Z score of 5.75 indicates that PSMT is not in any danger for bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 5.75, PSMT belongs to the top of the industry, outperforming 84.21% of the companies in the same industry.
- The Debt to FCF ratio of PSMT is 1.50, which is an excellent value as it means it would take PSMT, only 1.50 years of fcf income to pay off all of its debts.
- The Debt to FCF ratio of PSMT (1.50) is better than 89.47% of its industry peers.
- A Debt/Equity ratio of 0.12 indicates that PSMT is not too dependend on debt financing.
- PSMT's Debt to Equity ratio of 0.12 is amongst the best of the industry. PSMT outperforms 84.21% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.12 | ||
| Debt/FCF | 1.5 | ||
| Altman-Z | 5.75 |
ROIC/WACC1.2
WACC8.7%
2.3 Liquidity
- PSMT has a Current Ratio of 1.33. 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 (1.33) is better than 68.42% of its industry peers.
- PSMT has a Quick Ratio of 1.33. This is a bad value and indicates that PSMT is not financially healthy enough and could expect problems in meeting its short term obligations.
- The Quick ratio of PSMT (0.55) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.33 | ||
| Quick Ratio | 0.55 |
3. Growth
3.1 Past
- PSMT shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.93%.
- PSMT shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 13.58% yearly.
- PSMT shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -12.59%.
- PSMT shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.62% yearly.
EPS 1Y (TTM)7.93%
EPS 3Y12.56%
EPS 5Y13.58%
EPS Q2Q%6.61%
Revenue 1Y (TTM)-12.59%
Revenue growth 3Y9.03%
Revenue growth 5Y9.62%
Sales Q2Q%9.92%
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 18.28% yearly.
- The Revenue is expected to grow by 10.11% on average over the next years. This is quite good.
EPS Next Y13.85%
EPS Next 2Y19.07%
EPS Next 3Y18.28%
EPS Next 5YN/A
Revenue Next Year9.4%
Revenue Next 2Y10.21%
Revenue Next 3Y10.11%
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 stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- PSMT is valuated quite expensively with a Price/Earnings ratio of 28.98.
- PSMT's Price/Earnings is on the same level as the industry average.
- Compared to an average S&P500 Price/Earnings ratio of 28.87, PSMT is valued at the same level.
- The Price/Forward Earnings ratio is 20.78, which indicates a rather expensive current valuation of PSMT.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of PSMT is on the same level as its industry peers.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.96, PSMT is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.98 | ||
| Fwd PE | 20.78 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of PSMT is on the same level as its industry peers.
- PSMT's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 34.96 | ||
| EV/EBITDA | 12.56 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- The decent profitability rating of PSMT may justify a higher PE ratio.
- A more expensive valuation may be justified as PSMT's earnings are expected to grow with 18.28% in the coming years.
PEG (NY)2.09
PEG (5Y)2.13
EPS Next 2Y19.07%
EPS Next 3Y18.28%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.89%, PSMT is not a good candidate for dividend investing.
- PSMT's Dividend Yield is a higher than the industry average which is at 0.73.
- Compared to an average S&P500 Dividend Yield of 1.82, PSMT's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.89% |
5.2 History
- The dividend of PSMT is nicely growing with an annual growth rate of 12.53%!
- 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)12.53%
Div Incr Years3
Div Non Decr Years11
5.3 Sustainability
- 26.27% 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 earnings are growing more, so the dividend growth is sustainable.
DP26.27%
EPS Next 2Y19.07%
EPS Next 3Y18.28%
PRICESMART INC / PSMT FAQ
Can you provide the ChartMill fundamental rating for PRICESMART INC?
ChartMill assigns a fundamental rating of 6 / 10 to PSMT.
What is the valuation status of PRICESMART INC (PSMT) stock?
ChartMill assigns a valuation rating of 3 / 10 to PRICESMART INC (PSMT). This can be considered as Overvalued.
What is the profitability of PSMT stock?
PRICESMART INC (PSMT) has a profitability rating of 6 / 10.
Can you provide the financial health for PSMT stock?
The financial health rating of PRICESMART INC (PSMT) is 6 / 10.
What is the earnings growth outlook for PRICESMART INC?
The Earnings per Share (EPS) of PRICESMART INC (PSMT) is expected to grow by 13.85% in the next year.