Pricesmart (PSMT) AI Stock Analysis

• Market Cap: $3.52B
• Dividend Yield: 1.1%
• Average Volume (3M): 199.30K
• Price to Earnings (P/E): 24.1
• Beta (1Y): 0.47
• Revenue Growth: 7.47%
• EPS Growth: 15.20%
• Country: US
• Employees: 12,000
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Discount Stores
• EPS (TTM): 1.14
• Shares Outstanding: 30,753,891
• 10 Day Avg. Volume: 231,087
• 30 Day Avg. Volume: 199,304
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.92
• Enterprise Value/Revenue: 0.63
• Enterprise Value/Gross Profit: 1.67
• Enterprise Value/Ebitda: 11.46
• 1Y Price Target: $110.00
• Price Target Upside: -4.00% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 78 Outperform
• Price Target: $128.00 ▲(11.71% Upside)

Pricesmart's overall stock score is driven by its strong financial performance and positive earnings call, highlighting robust sales growth and strategic expansion plans. Technical analysis supports a positive trend, though valuation metrics suggest moderate pricing. Challenges such as currency conversion issues and increased expenses slightly temper the outlook.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective sales strategies, supporting long-term business expansion and stability.

Membership Growth

Growing membership base with high renewal rates enhances recurring revenue streams and customer loyalty, strengthening long-term business prospects.

Digital Channel Growth

Significant growth in digital sales reflects successful adaptation to e-commerce trends, expanding market reach and improving customer engagement.

Negative Factors

Currency Conversion Challenges

Currency issues in Trinidad could impact liquidity and financial operations, posing risks to profitability and cash flow management.

Increased SG&A Expenses

Rising SG&A expenses may pressure margins and profitability, potentially limiting investment capacity and operational efficiency.

Unrealized Losses

Unrealized losses on monetary assets can affect financial stability and investor confidence, impacting long-term financial health.

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 produce, prepared foods, and fresh-baked goods, as well as provides services, such as optical, tire center, and other ancillary services. The company also operates Click & Go, an e-commerce platform for online ordering, curbside pickup, and delivery services. As of March 29, 2022, it operated 49 warehouse clubs in 12 countries and one U.S. territory. PriceSmart, Inc. was incorporated in 1994 and is headquartered in San Diego, California.

How the Company Makes Money

PriceSmart generates revenue primarily through membership fees and the sale of merchandise. Customers pay an annual fee to become members, which grants them access to the club's discounted pricing on a wide array of products. The bulk purchasing model allows PriceSmart to negotiate favorable terms with suppliers, leading to lower costs that can be passed on to members. Additionally, the company benefits from high volume sales, which enhance its purchasing power and margin efficiency. Significant partnerships with various manufacturers and suppliers contribute to its ability to maintain a diverse inventory and competitive pricing. Furthermore, PriceSmart's expansion into new markets and its focus on enhancing the shopping experience through improved store layouts and online services also play a crucial role in driving sales and sustaining revenue growth.

Pricesmart Financial Statement Overview

Summary

Pricesmart exhibits a solid financial position with consistent revenue growth, strong profitability margins, and a stable balance sheet with low leverage. The significant improvement in cash flow metrics further strengthens its financial health, making it well-positioned to capitalize on future opportunities in the discount retail sector.

Income Statement

Pricesmart demonstrates strong revenue growth with a 5.1% increase in TTM compared to the previous period. Gross Profit Margin stands at 37.43%, showing a well-maintained level of profitability. Net Profit Margin improved slightly to 2.82%. EBIT Margin is stable at 4.43%, and EBITDA Margin is robust at 5.46%. Overall, Pricesmart's income statement reflects consistent growth and solid profitability margins.

Balance Sheet

The company maintains a conservative Debt-to-Equity Ratio of 0.13, indicating low leverage. Return on Equity is modest at 11.98%, highlighting effective use of equity in generating profits. The Equity Ratio is strong at 56.61%, suggesting a solid equity base compared to total assets. Pricesmart's balance sheet demonstrates financial stability with low debt levels and ample equity.

Cash Flow

Free Cash Flow grew significantly by 137.54% in the TTM, reflecting improved cash generation. Operating Cash Flow to Net Income Ratio is strong at 1.52, indicating healthy cash flow relative to net income. Free Cash Flow to Net Income Ratio also improved to 0.64, showcasing effective cash management. Pricesmart's cash flow position highlights its capability to generate and manage cash effectively.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.17B	4.91B	4.41B	4.07B	3.62B	3.33B
Gross Profit	1.93B	846.92M	759.33M	681.15M	644.53M	554.41M
EBITDA	281.76M	297.00M	278.25M	235.94M	223.80M	183.94M
Net Income	145.41M	138.88M	109.20M	104.53M	97.96M	78.11M
Balance Sheet
Total Assets	2.14B	2.02B	2.01B	1.81B	1.71B	1.66B
Cash, Cash Equivalents and Short-Term Investments	262.37M	225.53M	331.06M	248.87M	252.29M	345.99M
Total Debt	161.90M	249.63M	278.18M	273.87M	267.29M	329.96M
Total Liabilities	930.25M	899.73M	898.57M	817.33M	789.58M	824.09M
Stockholders Equity	1.21B	1.12B	1.11B	991.07M	915.35M	831.72M
Cash Flow
Free Cash Flow	92.74M	39.04M	114.82M	1.17M	13.99M	158.95M
Operating Cash Flow	221.00M	207.59M	257.33M	121.83M	127.17M	259.27M
Investing Cash Flow	-121.86M	-175.45M	-222.08M	-74.76M	-116.72M	-131.21M
Financing Cash Flow	-67.64M	-150.03M	-41.05M	-12.21M	-95.14M	75.56M

Pricesmart Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 114.58
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 114.58 is above the 20-day moving average (MA) of 110.12, above the 50-day MA of 108.61, and above the 200-day MA of 97.70, indicating a bullish trend. The MACD of 1.37 indicates Negative momentum. The RSI at 59.35 is Neutral, neither overbought nor oversold. The STOCH value of 71.21 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PSMT.

Pricesmart Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
COST	79 Outperform	$429.24B	54.90	32.08%	0.51%	5.94%	9.31%
PSMT	78 Outperform	$3.52B	24.15	12.34%	1.10%	7.47%	15.20%
WMT	75 Outperform	$825.11B	39.04	24.46%	0.88%	4.23%	38.05%
DG	69 Neutral	$22.98B	19.31	15.60%	2.26%	4.98%	-15.98%
BJ	66 Neutral	$12.97B	22.61	30.84%	―	2.48%	9.41%
Sector *	62 Neutral	$20.51B	14.76	-3.31%	3.19%	1.94%	-10.37%
DLTR	53 Neutral	$19.88B	―	20.07%	―	-29.67%	-178.03%

Pricesmart Corporate Events

PriceSmart Appoints New CFO Amid Leadership Transition

PriceSmart announced the appointment of Gualberto Hernandez as Executive Vice President and Chief Financial Officer, effective June 1, 2025, following the resignation of Michael McCleary, who will continue as an Executive Vice President until September 30, 2025, and then provide consulting support. Hernandez, with a strong background in finance and strategy from his tenure at Estée Lauder and Sephora, is expected to bring valuable expertise to PriceSmart. The transition is part of a broader strategy to maintain growth and operational efficiency, with McCleary expressing confidence in the company’s future under new leadership.