Pricesmart Inc

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PSMT : NASDAQ : Services
$83.91 | %
Today's Range: 83.53 - 85.23
Avg. Daily Volume: 133,300
08/26/16 - 4:00 PM ET

Financial Analysis


PRICESMART INC's gross profit margin for the third quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. Even though sales increased, the net income has decreased. PRICESMART INC has weak liquidity. Currently, the Quick Ratio is 0.61 which shows a lack of ability to cover short-term cash needs. The company's liquidity has increased from the same period last year.

During the same period, stockholders' equity ("net worth") has increased by 6.57% 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 Q3 FY16 Q3 FY15
Net Sales ($mil)704.04697.1
EBITDA ($mil)37.8742.98
EBIT ($mil)27.634.24
Net Income ($mil)16.8421.2


Balance Sheet Q3 FY16 Q3 FY15
Cash & Equiv. ($mil)203.13161.84
Total Assets ($mil)1049.821016.18
Total Debt ($mil)97.69101.81
Equity ($mil)612.23574.44


Profitability Q3 FY16 Q3 FY15
Gross Profit Margin16.6316.92
EBITDA Margin5.376.16
Operating Margin3.924.91
Sales Turnover2.762.68
Return on Assets8.468.71
Return on Equity14.5215.41
Debt Q3 FY16 Q3 FY15
Current Ratio1.381.34
Debt/Capital0.140.15
Interest Expense1.721.76
Interest Coverage16.0719.42


Share Data Q3 FY16 Q3 FY15
Shares outstanding (mil)30.430.18
Div / share0.00.0
EPS0.550.7
Book value / share20.1419.03
Institutional Own % n/a n/a
Avg Daily Volume135110.0143622.0

Valuation


BUY. PRICESMART INC's P/E ratio indicates a premium compared to an average of 22.61 for the Food & Staples Retailing industry and a premium compared to the S&P 500 average of 25.30. For additional comparison, its price-to-book ratio of 4.19 indicates a premium versus the S&P 500 average of 2.83 and a premium versus the industry average of 3.87. 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 28.84 Peers 22.61   PSMT 16.33 Peers 10.56

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 26.24 Peers 19.97   PSMT NM Peers 1.73

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.

 

Neutral. 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's negative PEG ratio makes this valuation measure meaningless.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
PSMT 4.19 Peers 3.87   PSMT 0.00 Peers -1.92

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.

 

Neutral. Higher earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

The growth rate for PSMT is not available.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
PSMT 0.89 Peers 0.55   PSMT 6.12 Peers 6.58

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.

 

Average. Comparing a company's sales growth to its industry helps to determine if the company is adding or losing market share.

PSMT is keeping pace with its peers on the basis of sales growth.

 

 

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