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Pricesmart Inc
PSMT : NASDAQ : Services
$87.88 | %
Today's Range: 0.00 - 0.00
Avg. Daily Volume: 151,200
05/02/16 - 4:00 PM ET

Financial Analysis


PRICESMART INC's gross profit margin for the second quarter of its fiscal year 2016 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 weak liquidity. Currently, the Quick Ratio is 0.57 which shows a lack of ability to cover short-term cash needs. The company's liquidity has increased from the same period last year, indicating improving cash flow.

During the same period, stockholders' equity ("net worth") has increased by 5.96% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.

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Income Statement Q2 FY16 Q2 FY15
Net Sales ($mil)777.93750.3
EBITDA ($mil)48.7250.74
EBIT ($mil)39.1942.1
Net Income ($mil)25.9424.84


Balance Sheet Q2 FY16 Q2 FY15
Cash & Equiv. ($mil)173.14120.74
Total Assets ($mil)1008.84986.37
Total Debt ($mil)91.07109.59
Equity ($mil)586.97553.91


Profitability Q2 FY16 Q2 FY15
Gross Profit Margin16.6816.94
EBITDA Margin6.266.76
Operating Margin5.045.61
Sales Turnover2.862.68
Return on Assets9.248.98
Return on Equity15.8816.0
Debt Q2 FY16 Q2 FY15
Current Ratio1.411.34
Debt/Capital0.130.17
Interest Expense1.682.12
Interest Coverage23.3819.89


Share Data Q2 FY16 Q2 FY15
Shares outstanding (mil)30.3730.18
Div / share0.350.35
EPS0.850.82
Book value / share19.3318.35
Institutional Own % n/a n/a
Avg Daily Volume151797.0164058.0

Valuation


BUY. PRICESMART INC's P/E ratio indicates a premium compared to an average of 21.88 for the Food & Staples Retailing industry and a premium compared to the S&P 500 average of 23.99. Conducting a second comparison, its price-to-book ratio of 4.54 indicates a significant premium versus the S&P 500 average of 2.74 and a premium versus the industry average of 3.62. The current price-to-sales ratio is well below the S&P 500 average, but 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
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
PSMT 28.51 Peers 21.88   PSMT 15.81 Peers 11.28

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.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
PSMT 25.16 Peers 19.73   PSMT 5.61 Peers 1.43

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.

 

Premium. 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 significant premium to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
PSMT 4.54 Peers 3.62   PSMT 5.11 Peers 4.22

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 exceeds its peers.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
PSMT 0.92 Peers 0.55   PSMT 9.15 Peers 8.13

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 exceeds its peers.

 

 

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