Pricesmart (PSMT)
NASDAQ:PSMT
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Pricesmart
(NASDAQ:PSMT)
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Rating:75Outperform
Price Target:
$176.00
▲(44.29% Upside)
Action:ReiteratedDate:04/09/26
PSMT scores well on financial stability (low leverage, healthy ROE) and a constructive price trend, supported by a strong and upbeat earnings update (sales/comps growth and margin expansion). The score is held back by weaker recent free-cash-flow conversion and a valuation that looks only average relative to moderated TTM growth and a low dividend yield.
Positive Factors
Conservative balance sheet / low leverage
Low leverage and steady returns provide durable financial flexibility to fund club expansion, supply‑chain projects and dividends without relying heavily on external credit. This conservatism reduces solvency risk in emerging‑market exposures and supports multi‑year growth investments.
Negative Factors
Weakened free cash flow conversion
Material deterioration in free cash flow conversion indicates working‑capital buildup or elevated reinvestment needs. Over time, weak FCF relative to earnings can constrain dividend flexibility, slow expansion pacing and force higher external financing during adverse cycles.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet / low leverage
Low leverage and steady returns provide durable financial flexibility to fund club expansion, supply‑chain projects and dividends without relying heavily on external credit. This conservatism reduces solvency risk in emerging‑market exposures and supports multi‑year growth investments.
Read all positive factors
Pricesmart (PSMT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.85B
Dividend Yield1.02%
Average Volume (3M)242.13K
Price to Earnings (P/E)23.8
Beta (1Y)0.56
Revenue Growth7.25%
EPS Growth5.42%
CountryUS
Employees12,000
SectorConsumer Defensive
Sector Strength42
IndustryDiscount Stores
Share Statistics
EPS (TTM)1.62
Shares Outstanding30,895,880
10 Day Avg. Volume264,564
30 Day Avg. Volume242,132
Financial Highlights & Ratios
PEG Ratio4.07
Price to Book (P/B)2.58
Price to Sales (P/S)0.61
P/FCF Ratio31.25
Enterprise Value/Market Cap1.03
Enterprise Value/Revenue0.90
Enterprise Value/Gross Profit5.15
Enterprise Value/Ebitda15.08
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)5.38
Revenue Forecast (FY)$5.77B
Pricesmart Business Overview & Revenue Model
Company Description
PriceSmart, Inc. owns and operates U.S. style membership shopping warehouse clubs in the United States, Central America, the Caribbean, and Colombia. Its warehouse clubs sell brand name and private label consumer products, essential goods, fresh p...
How the Company Makes Money
PriceSmart primarily generates revenue from (1) net merchandise sales and (2) membership fees. Merchandise sales come from selling bulk and value-priced goods through its warehouse clubs, including food and consumables and general merchandise; the...
Pricesmart Earnings Call Summary
Earnings Call Date:Apr 08, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Jul 09, 2026
Earnings Call Sentiment Positive
The call communicated broad-based revenue and profitability growth, notable execution on membership expansion, private label initiatives, digital momentum, margin improvement and planned real estate and supply chain investments. The company also flagged manageable near-term headwinds — primarily foreign-exchange volatility (unrealized FX losses), modest SG&A pressure from investments and some working capital/cash constraints (including restricted cash in Trinidad) — and noted monitoring of geopolitical and tariff-related risks. Overall the positives in sales, margins, membership metrics, EBITDA and expansion plans materially outweigh the challenges called out, which management characterizes as monitored and non-material to date.Positive Updates
Strong Revenue and Comparable Sales Growth
Second quarter net merchandise sales and total revenue reached almost $1.5 billion. Net merchandise sales increased 9.9% (7.8% in constant currency) and comparable net merchandise sales increased 7.6% (5.5% in constant currency). For the first half, net merchandise sales exceeded $2.8 billion, up 10.2% (8.6% CC) with comparable net merchandise sales up 7.8% (6.2% CC).
Negative Updates
Foreign Currency Losses and FX Volatility
Recorded $8.7 million net other expense in Q2 (vs $5.1M loss prior year), primarily due to unrealized noncash foreign currency revaluation losses (notably Costa Rica) tied to currency appreciation; management is evaluating expanding hedging in select markets.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Revenue and Comparable Sales Growth
Second quarter net merchandise sales and total revenue reached almost $1.5 billion. Net merchandise sales increased 9.9% (7.8% in constant currency) and comparable net merchandise sales increased 7.6% (5.5% in constant currency). For the first half, net merchandise sales exceeded $2.8 billion, up 10.2% (8.6% CC) with comparable net merchandise sales up 7.8% (6.2% CC).
Read all positive updates
Company Guidance
Management's near‑term guidance emphasized continued network and supply‑chain expansion and technology rollouts to drive availability, lower landed costs and faster replenishment: they expect five new clubs to bring total clubs to 61 (DR club opening next month; two Jamaica clubs in summer and winter 2026; Costa Rica this summer; Guatemala spring 2027), Trinidad DC is live and DCs in Colombia and Jamaica are planned for FY2026 (Dominican Republic FY2027), completion of the Relax forecasting/replenishment implementation in FY2026 and Workday HCM go‑live by end of Q3, and ongoing POS rollout; they said these moves should improve product availability, reduce lead times and lower costs. Management also previewed strong near‑term demand with comparable net merchandise sales for the 4 weeks ended March 29 up 12.3% in U.S. dollars (9.2% in constant currency), reiterated that recent U.S. tariff rulings have not materially impacted costs but noted geopolitical/fuel risks and that they are exploring expanded hedging, and highlighted membership/digital strength (≈2.1M membership accounts, 12‑month renewal rate 90.2%, Platinum 19.5% of members vs. 14.5% a year ago, membership income 1.6% of revenue, private‑label penetration 26.6%, digital sales $94.1M or 6.4% of net merchandise sales, +23.4% y/y). For context they anchored this outlook to Q2 results of ~ $1.5B net merchandise sales (+9.9% / +7.8% cc), comparable NMS +7.6% (+5.5% cc), operating income $75.4M, net income $49.1M ($1.62 EPS), adjusted EBITDA $99.7M, cash & equivalents $195.1M plus $149.7M short‑term investments, and an increased annual dividend of $1.40 per share (+11.1%).Pricesmart Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
84
Very Positive
Cash Flow
62
Positive
| Breakdown | TTM | Aug 2025 | Aug 2024 | Aug 2023 | Aug 2022 | Aug 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 5.53B | 5.27B | 4.91B | 4.41B | 4.07B | 3.62B |
| Gross Profit | 971.02M | 914.37M | 846.92M | 758.57M | 679.53M | 642.13M |
| EBITDA | 331.45M | 306.17M | 297.00M | 252.93M | 233.90M | 219.38M |
| Net Income | 152.92M | 144.90M | 137.12M | 107.89M | 103.29M | 96.68M |
Balance Sheet | ||||||
| Total Assets | 2.44B | 2.27B | 2.02B | 2.01B | 1.81B | 1.71B |
| Cash, Cash Equivalents and Short-Term Investments | 314.52M | 325.27M | 225.53M | 331.06M | 248.87M | 252.29M |
| Total Debt | 310.10M | 329.06M | 249.63M | 278.18M | 281.36M | 267.29M |
| Total Liabilities | 1.10B | 1.02B | 899.73M | 898.57M | 817.33M | 789.58M |
| Stockholders Equity | 1.33B | 1.25B | 1.12B | 1.11B | 991.07M | 915.35M |
Cash Flow | ||||||
| Free Cash Flow | 84.54M | 103.17M | 39.04M | 114.82M | 1.17M | 13.99M |
| Operating Cash Flow | 268.21M | 261.31M | 207.59M | 257.33M | 121.83M | 127.17M |
| Investing Cash Flow | -218.75M | -128.88M | -175.45M | -222.08M | -74.76M | -116.72M |
| Financing Cash Flow | -7.50M | 14.20M | -150.03M | -41.05M | -12.21M | -95.14M |
Pricesmart Technical Analysis
Positive
121.98
Price Trends
150.41
Positive
139.14
Positive
125.96
Positive
Market Momentum
2.34
Negative
58.79
Neutral
72.08
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PSMT, the sentiment is Positive. The current price of 121.98 is below the 20-day moving average (MA) of 149.66, below the 50-day MA of 150.41, and below the 200-day MA of 125.96, indicating a bullish trend. The MACD of 2.34 indicates Negative momentum. The RSI at 58.79 is Neutral, neither overbought nor oversold. The STOCH value of 72.08 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PSMT.
Pricesmart Risk Analysis
Pricesmart disclosed 30 risk factors in its most recent earnings report. Pricesmart reported the most risks in the "Ability to Sell" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Pricesmart Peers Comparison
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $442.97B | 55.55 | 28.81% | 0.59% | 8.34% | 9.58% | |
75 Outperform | $4.85B | 23.80 | 12.00% | 1.02% | 7.25% | 5.42% | |
68 Neutral | $12.02B | 20.97 | 27.41% | ― | 2.82% | 3.77% | |
67 Neutral | $1.01T | 43.44 | 23.69% | 0.85% | 4.34% | 17.27% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
56 Neutral | $19.64B | 11.56 | 34.83% | ― | -39.27% | -182.36% | |
55 Neutral | $25.49B | 20.87 | 18.66% | 1.88% | 4.86% | -4.51% |
* Consumer Defensive Sector Average
PSMT
Pricesmart
157.03
63.71
68.26%
COST
Costco
998.47
24.49
2.51%
DG
Dollar General
115.73
27.22
30.75%
DLTR
Dollar Tree
99.55
25.84
35.06%
WMT
Walmart
126.77
32.87
35.01%
BJ
Bj's Wholesale Club Holdings
92.71
-27.23
-22.70%
Pricesmart Corporate Events
DividendsShareholder Meetings
PriceSmart Shareholders Reelect Board and Declare Annual Dividend
Positive
Feb 6, 2026
At its February 5, 2026 annual meeting, PriceSmart stockholders re-elected all director nominees to the board, approved on an advisory basis the compensation of the company’s named executive officers for fiscal 2025, and ratified Ernst Youn...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.