Pricesmart (PSMT) AI Stock Analysis

• Market Cap: $3.95B
• Dividend Yield: 1.01%
• Average Volume (3M): 189.17K
• Price to Earnings (P/E): 26.6
• Beta (1Y): 0.59
• Revenue Growth: 7.25%
• EPS Growth: 5.42%
• Country: US
• Employees: 12,000
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Discount Stores
• EPS (TTM): 1.02
• Shares Outstanding: 30,888,771
• 10 Day Avg. Volume: 164,429
• 30 Day Avg. Volume: 189,169
• PEG Ratio: 3.98
• Price to Book (P/B): 2.58
• Price to Sales (P/S): 0.61
• P/FCF Ratio: 12.34
• Enterprise Value/Market Cap: 0.82
• Enterprise Value/Revenue: 0.61
• Enterprise Value/Gross Profit: 1.65
• Enterprise Value/Ebitda: 11.40
• 1Y Price Target: $117.50
• Price Target Upside: -3.67% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 77 Outperform
• Price Target: $141.00 ▲(15.59% Upside)

Pricesmart's overall stock score is driven by strong financial performance and positive earnings call highlights, including significant sales growth and expansion plans. Technical analysis supports a bullish trend, although valuation metrics suggest the stock may be overvalued. Challenges such as increased expenses and currency issues are noted but do not significantly detract from the overall positive outlook.

Positive Factors

Revenue Growth

The consistent increase in revenue indicates strong demand and effective market penetration, supporting long-term growth prospects.

Membership Growth

Growing membership base enhances recurring revenue streams and customer loyalty, contributing to sustained business stability.

Digital Channel Expansion

Expansion in digital sales channels diversifies revenue sources and aligns with consumer trends, bolstering future growth.

Negative Factors

Currency Challenges

Currency conversion issues can restrict cash flow and limit financial flexibility, posing a risk to international operations.

Increased SG&A Expenses

Rising SG&A expenses may pressure profit margins, affecting overall profitability and requiring careful cost management.

Impact of Natural Disasters

Natural disasters can disrupt operations and lead to financial losses, highlighting the vulnerability of geographically concentrated assets.

Pricesmart Business Overview & Revenue Model

Company Description

PriceSmart, Inc. operates membership-based warehouse clubs in Central America and the Caribbean. Founded in 1997 and headquartered in San Diego, California, the company provides a broad range of products including groceries, electronics, home goods, and apparel at discounted prices. PriceSmart primarily serves the middle-income markets in its regions, offering a shopping experience that emphasizes bulk purchasing and value for its members.

How the Company Makes Money

PriceSmart generates revenue primarily through membership fees and sales of merchandise. Customers pay an annual membership fee to gain access to the warehouse clubs, which creates a steady stream of income. The company then sells a variety of products, including food, household items, and electronics, often at lower prices than traditional retailers due to its bulk purchasing model. Additionally, PriceSmart benefits from private label products, which typically have higher margins. The company's strategic partnerships with suppliers and manufacturers also enhance its ability to offer competitive pricing while maintaining profitability. Seasonal promotions and limited-time offers further drive sales and increase customer traffic, contributing to its overall earnings.

Pricesmart Financial Statement Overview

Summary

Pricesmart exhibits a strong financial position with consistent revenue growth and a solid balance sheet. The company effectively manages its debt levels, ensuring financial stability. While profitability margins are moderate, the significant improvement in cash flow generation is a positive indicator for future growth. Continued focus on enhancing net profit margins could further strengthen the company's financial performance.

Income Statement

Pricesmart has demonstrated consistent revenue growth over the years, with a 2.03% increase in the latest year. The gross profit margin has remained stable, indicating efficient cost management. However, the net profit margin is relatively low at 2.81%, suggesting room for improvement in profitability. The EBIT and EBITDA margins are moderate, reflecting steady operational performance.

Balance Sheet

The company maintains a strong balance sheet with a low debt-to-equity ratio of 0.15, indicating prudent financial leverage. The return on equity is healthy at 11.86%, showcasing effective use of shareholder funds. The equity ratio is robust, highlighting a solid capital structure and financial stability.

Cash Flow

Pricesmart's cash flow performance has improved significantly, with a remarkable 181.77% growth in free cash flow. The operating cash flow to net income ratio is 0.36, indicating good cash generation relative to earnings. However, the free cash flow to net income ratio of 1.0 suggests that all net income is being converted into free cash flow, which may limit reinvestment opportunities.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	5.27B	5.27B	4.91B	4.41B	4.07B	3.62B
Gross Profit	1.95B	914.37M	846.92M	759.33M	681.15M	644.53M
EBITDA	283.40M	218.01M	297.00M	278.25M	235.94M	223.80M
Net Income	147.89M	147.89M	138.88M	109.20M	104.53M	97.96M
Balance Sheet
Total Assets	2.27B	2.27B	2.02B	2.01B	1.81B	1.71B
Cash, Cash Equivalents and Short-Term Investments	314.21M	314.21M	225.53M	331.06M	248.87M	252.29M
Total Debt	181.13M	181.13M	249.63M	278.18M	281.36M	267.29M
Total Liabilities	1.02B	1.02B	899.73M	898.57M	817.33M	789.58M
Stockholders Equity	1.25B	1.25B	1.12B	1.11B	991.07M	915.35M
Cash Flow
Free Cash Flow	103.17M	261.31M	39.04M	114.82M	1.17M	13.99M
Operating Cash Flow	261.31M	261.31M	207.59M	257.33M	121.83M	127.17M
Investing Cash Flow	-128.88M	-128.88M	-175.45M	-222.08M	-74.76M	-116.72M
Financing Cash Flow	14.20M	14.20M	-150.03M	-41.05M	-12.21M	-95.14M

Pricesmart Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 121.98
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 above the 20-day moving average (MA) of 120.51, above the 50-day MA of 120.82, and above the 200-day MA of 106.58, indicating a bullish trend. The MACD of 2.08 indicates Negative momentum. The RSI at 56.66 is Neutral, neither overbought nor oversold. The STOCH value of 80.06 is Negative, 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
WMT	78 Outperform	$917.45B	40.37	24.87%	0.79%	4.34%	17.27%
PSMT	77 Outperform	$3.95B	26.56	12.22%	1.01%	7.25%	5.42%
DG	73 Outperform	$29.14B	22.86	16.45%	1.88%	4.86%	-4.51%
BJ	71 Outperform	$11.95B	21.08	29.24%	―	2.82%	3.77%
COST	68 Neutral	$396.50B	49.14	30.69%	0.57%	8.17%	9.92%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
DLTR	61 Neutral	$24.35B	―	20.07%	―	-39.27%	-182.36%

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.