Pricesmart Inc

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PSMT : NASDAQ : Services
$81.05 | %
Today's Range: 79.95 - 81.45
Avg. Daily Volume: 138900.0
08/18/17 - 4:00 PM ET

Financial Analysis


PRICESMART INC's gross profit margin for the third quarter of its fiscal year 2017 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 0.62 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 12.60% 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 FY17 Q3 FY16
Net Sales ($mil)730.26704.04
EBITDA ($mil)39.8737.87
EBIT ($mil)27.9927.6
Net Income ($mil)18.8416.84


Balance Sheet Q3 FY17 Q3 FY16
Cash & Equiv. ($mil)192.92203.13
Total Assets ($mil)1143.881049.82
Total Debt ($mil)124.7197.69
Equity ($mil)689.39612.23


Profitability Q3 FY17 Q3 FY16
Gross Profit Margin17.0516.63
EBITDA Margin5.465.37
Operating Margin3.833.92
Sales Turnover2.62.76
Return on Assets8.148.46
Return on Equity13.5114.52
Debt Q3 FY17 Q3 FY16
Current Ratio1.51.38
Debt/Capital0.150.14
Interest Expense1.881.72
Interest Coverage14.8916.07


Share Data Q3 FY17 Q3 FY16
Shares outstanding (mil)30.430.4
Div / share0.00.0
EPS0.620.55
Book value / share22.6820.14
Institutional Own % n/a n/a
Avg Daily Volume140076.0107949.0

Valuation


HOLD. PRICESMART INC's P/E ratio indicates a premium compared to an average of 20.32 for the Food & Staples Retailing industry and a premium compared to the S&P 500 average of 24.31. To use another comparison, its price-to-book ratio of 3.62 indicates a premium versus the S&P 500 average of 3.03 and a discount versus the industry average of 3.93. The current price-to-sales ratio is well below the S&P 500 average, but above the industry average. The valuation analysis reveals that, PRICESMART INC seems to be trading 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 26.69 Peers 20.32   PSMT 21.93 Peers 9.37

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 24.57 Peers 18.89   PSMT 4.46 Peers 2.18

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 3.62 Peers 3.93   PSMT 5.11 Peers 14.97

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 0.84 Peers 0.52   PSMT 2.81 Peers 6.46

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.

 

Lower. A sales growth rate that trails the industry implies that a company is losing market share.

PSMT significantly trails its peers on the basis of sales growth

 

 

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