Pricesmart Inc

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PSMT : NASDAQ : Services
$77.96 -0.78 | -0.99%
Today's Range: 77.87 - 79.44
Avg. Daily Volume: 138,200
07/28/16 - 11:03 AM 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
Interest Expense1.721.76
Interest Coverage16.0719.42

Share Data Q3 FY16 Q3 FY15
Shares outstanding (mil)30.430.18
Div / share0.00.0
Book value / share20.1419.03
Institutional Own % n/a n/a
Avg Daily Volume139523.0151254.0


BUY. The current P/E ratio indicates a premium compared to an average of 22.60 for the Food & Staples Retailing industry and a value on par with the S&P 500 average of 25.09. For additional comparison, its price-to-book ratio of 3.90 indicates a premium versus the S&P 500 average of 2.81 and a premium versus the industry average of 3.84. 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.

1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
PSMT 26.82 Peers 22.60   PSMT 15.19 Peers 10.96

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.

1 2 3 4 5
premium   discount
  Price to
1 2 3 4 5
premium   discount
PSMT 24.41 Peers 20.03   PSMT NM Peers 2.29

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.

1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
PSMT 3.90 Peers 3.84   PSMT 0.00 Peers -3.17

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.

1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
PSMT 0.83 Peers 0.56   PSMT 6.12 Peers 6.21

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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