Pricesmart Inc

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PSMT : NASDAQ : Services
$84.05 | %
Today's Range: 83.45 - 84.25
Avg. Daily Volume: 167600.0
01/13/17 - 4:00 PM ET

Financial Analysis


PRICESMART INC's gross profit margin for the first quarter of its fiscal year 2017 is essentially unchanged when compared to the same period a year ago. The company has grown sales and net income during the past quarter when compared with the same quarter a year ago, however, it was unable to keep up with the growth of the average competitor within its industry. PRICESMART INC has weak liquidity. Currently, the Quick Ratio is 0.51 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 10.68% 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 Q1 FY17 Q1 FY16
Net Sales ($mil)739.57711.73
EBITDA ($mil)49.946.31
EBIT ($mil)38.7937.11
Net Income ($mil)24.8723.67


Balance Sheet Q1 FY17 Q1 FY16
Cash & Equiv. ($mil)175.92140.07
Total Assets ($mil)1117.871047.59
Total Debt ($mil)96.6696.36
Equity ($mil)655.0591.76


Profitability Q1 FY17 Q1 FY16
Gross Profit Margin17.8517.27
EBITDA Margin6.746.5
Operating Margin5.245.21
Sales Turnover2.622.73
Return on Assets8.048.79
Return on Equity13.7215.57
Debt Q1 FY17 Q1 FY16
Current Ratio1.421.4
Debt/Capital0.130.14
Interest Expense1.841.67
Interest Coverage21.0622.26


Share Data Q1 FY17 Q1 FY16
Shares outstanding (mil)30.4130.37
Div / share0.00.0
EPS0.820.78
Book value / share21.5419.48
Institutional Own % n/a n/a
Avg Daily Volume167168.0121498.0

Valuation


BUY. PRICESMART INC's P/E ratio indicates a premium compared to an average of 23.24 for the Food & Staples Retailing industry and a premium compared to the S&P 500 average of 25.49. For additional comparison, its price-to-book ratio of 3.87 indicates a premium versus the S&P 500 average of 2.84 and a premium versus the industry average of 3.78. 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 28.19 Peers 23.24   PSMT 18.12 Peers 9.29

Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations.

PSMT is trading at a 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 22.88 Peers 18.78   PSMT 2.37 Peers 2.09

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 premium to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
PSMT 3.87 Peers 3.78   PSMT -2.96 Peers 0.18

Average. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

PSMT is trading at a valuation on par with its peers.

 

Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

However, PSMT is expected to significantly trail its peers on the basis of its earnings growth rate.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
PSMT 0.87 Peers 0.54   PSMT 2.59 Peers 1.37

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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