0.07 | 0.08%
PRICESMART INC's gross profit margin for the second quarter of its fiscal year 2013 is essentially unchanged when compared to the same period a year ago. The company managed to grow both sales and net income at a faster pace than the average competitor in its industry this quarter as compared to the same quarter a year ago. PRICESMART INC has very weak liquidity. Currently, the Quick Ratio is 0.41 which clearly shows a lack of ability to cover short-term cash needs. The company's liquidity decreased from the same period a year ago, despite already having very weak liquidity to begin with. This would indicate deteriorating cash flow.
During the same period, stockholders' equity ("net worth") has increased by 16.24% from the same quarter last year. The key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the near future.
| Income Statement | Q2 FY13 | Q2 FY12 |
|---|---|---|
| Net Sales ($mil) | 607.41 | 548.41 |
| EBITDA ($mil) | 42.48 | 36.08 |
| EBIT ($mil) | 36.45 | 30.34 |
| Net Income ($mil) | 24.88 | 20.22 |
| Balance Sheet | Q2 FY13 | Q2 FY12 |
|---|---|---|
| Cash & Equiv. ($mil) | 105.57 | 92.09 |
| Total Assets ($mil) | 792.73 | 697.53 |
| Total Debt ($mil) | 79.18 | 83.81 |
| Equity ($mil) | 443.18 | 381.25 |
| Profitability | Q2 FY13 | Q2 FY12 |
|---|---|---|
| Gross Profit Margin | 16.91 | 16.84 |
| EBITDA Margin | 6.99 | 6.57 |
| Operating Margin | 6.0 | 5.53 |
| Sales Turnover | 2.73 | 2.73 |
| Return on Assets | 9.87 | 9.05 |
| Return on Equity | 17.67 | 16.57 |
| Debt | Q2 FY13 | Q2 FY12 |
|---|---|---|
| Current Ratio | 1.38 | 1.37 |
| Debt/Capital | 0.15 | 0.18 |
| Interest Expense | 1.42 | 1.33 |
| Interest Coverage | 25.76 | 22.78 |
| Share Data | Q2 FY13 | Q2 FY12 |
|---|---|---|
| Shares outstanding (mil) | 30.18 | 30.2 |
| Div / share | 0.3 | 0.3 |
| EPS | 0.82 | 0.67 |
| Book value / share | 14.68 | 12.62 |
| Institutional Own % | n/a | n/a |
| Avg Daily Volume | 130821.0 | 147360.0 |
BUY. PRICESMART INC's P/E ratio indicates a significant premium compared to an average of 18.81 for the Food & Staples Retailing industry and a significant premium compared to the S&P 500 average of 19.08. For additional comparison, its price-to-book ratio of 6.03 indicates a significant premium versus the S&P 500 average of 2.44 and a significant premium versus the industry average of 3.51. The price-to-sales ratio is below the S&P 500 average, but well above the industry average. Upon assessment of these and other key valuation criteria, PRICESMART INC proves to trade at a premium to investment alternatives within the industry.
| Price/Earnings |
|
Price/Cash Flow |
| |||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| PSMT 34.31 | Peers 18.81 | PSMT 25.85 | Peers 12.05 | |||||||||||||||||||||
|
Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations. PSMT is trading at a significant premium to its peers. |
Premium. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures. PSMT is trading at a significant premium to its peers. |
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| Price/Projected Earnings |
|
Price to Earnings/Growth |
|
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| PSMT 27.23 | Peers 16.87 | PSMT 1.45 | Peers 1.82 | |||||||||||||||||||||
|
Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations. PSMT is trading at a significant premium to its peers. |
Discount. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples. PSMT trades at a discount to its peers. |
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| Price/Book |
|
Earnings Growth |
|
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| PSMT 6.03 | Peers 3.51 | PSMT 22.27 | Peers 15.74 | |||||||||||||||||||||
|
Premium. A higher price-to-book ratio makes a stock less attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet. PSMT is trading at a significant premium to its peers. |
Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. PSMT is expected to have an earnings growth rate that significantly exceeds its peers. |
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| Price/Sales |
|
Sales Growth |
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| PSMT 1.24 | Peers 0.58 | PSMT 13.52 | Peers 4.69 | |||||||||||||||||||||
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Premium. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales. PSMT is trading at a significant premium to its industry. |
Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share. PSMT has a sales growth rate that significantly exceeds its peers. |
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