One-glance verdict
Overvalued
$100.89 our estimate vs market $169.81
Wall Street consensus: $181.50 (79.9% higher than our fair-value estimate)
68% above our estimate, beyond the bull case
Fundamentals snapshot
PriceSmart, Inc.
PSMT · NMS · Consumer Defensive · Discount Stores
Current price
$169.81
52-week range
$111.68 - $199.84
Market cap
$5.24B
Balance sheet
Healthy
20.50x Strong cushion
Net debt $11.82M. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
1 Risk
3 rewards · 1 risks
- Reward Revenue grew 8.0% last year.
- Reward Returns 12.3% on equity, ahead of 33% of its peers.
- Reward Free cash flow was positive in 9/10 years.
- Risk Stock trades 56.8% above its 5-year average P/E.
What this company does
PriceSmart, Inc.
PriceSmart operates warehouse clubs that sell a wide variety of everyday items like groceries and cleaning supplies, plus larger items like appliances, all under a membership model, meaning their main income comes from membership fees and product sales. This business model is important because it creates a steady stream of income from members renewing their memberships, much like a subscription service. They also sell their own branded products, which can help them maintain better profit margins (the percentage of each sales dollar left after covering the costs of the goods sold).
How the company got here
PriceSmart was founded in 1994 by Sol and Robert Price, who were pioneers in the warehouse club concept, having previously founded Price Club [1, 2]. The company was established shortly after Price Club began merging with Costco [2]. PriceSmart went public in 1997 and has since expanded primarily by opening new clubs rather than through acquisitions [1]. The company's strategy has involved methodical geographic rollout and adapting its operations to local markets [1]. Over the years, PriceSmart has built a strong presence across Central America, the Caribbean, and Colombia, and has also added digital capabilities to its offerings [1].
What it actually does
PriceSmart operates membership warehouse clubs, similar to a U.S. style of shopping where customers pay an annual fee for the privilege of shopping there [1, 8]. These clubs offer a wide variety of products, including groceries, electronics, appliances, clothing, and household goods, often in bulk sizes and at value prices [1, 6]. The company sources merchandise both globally and locally, aiming to provide members with exciting products at compelling prices [5, 12]. In addition to merchandise, PriceSmart also offers services like optical, pharmacy, and audiology [5, 11].
Membership Warehouse Club Operations
PriceSmart's primary business is its membership warehouse club operations, which is its only reportable segment [1]. This means the company doesn't break down its results by different types of products or services in its public reporting, but rather by the overall performance of its club stores [1]. Members pay an annual fee to shop at these clubs, which offer a curated selection of merchandise, often in larger pack sizes, at competitive prices [1, 10]. The company focuses on providing value through this model, encouraging members to consolidate their shopping at PriceSmart due to the savings and convenience [10].
What management is betting on now
PriceSmart's current strategy focuses on three key areas to drive growth and enhance member value [7]. First, the company is investing in new locations, remodeling existing clubs, and expanding its distribution centers to increase its physical footprint [7]. Second, PriceSmart is working to increase the value proposition for its members, both for individual shoppers and business customers, by expanding services and private label offerings like the Member's Selection brand [5, 7]. Third, the company is driving sales through its digital channels, including its e-commerce platform and mobile app, aiming to create a seamless omni-channel shopping experience [5, 7]. This digital push is showing results, with digital sales growing significantly and omni-channel members spending more than in-club only members [7].
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q4
$14.86M
FY2025 Q1
$10.35M
FY2025 Q2
$53.22M
FY2025 Q3
$14.00M
FY2025 Q4
$25.60M
FY2026 Q1
$32.63M
FY2026 Q2
$12.31M
FY2026 Q3
$3.20M
Revenue
$1.48B
Net income
$39.69M
Diluted EPS
1.28
Operating cash flow
$58.92M
Free cash flow
$3.20M
Fetching…
Sources
Revenue
$1.50B
Net income
$49.09M
Diluted EPS
1.62
Operating cash flow
$62.04M
Free cash flow
$12.31M
Fetching…
Sources
Revenue
$1.38B
Net income
$40.17M
Diluted EPS
1.29
Operating cash flow
$71.25M
Free cash flow
$32.63M
Fetching…
Sources
Revenue
$1.33B
Net income
$31.54M
Diluted EPS
1.02
Operating cash flow
$82.15M
Free cash flow
$25.60M
Fetching…
Sources
Revenue
$1.32B
Net income
$35.16M
Diluted EPS
1.14
Operating cash flow
$52.77M
Free cash flow
$14.00M
Fetching…
Sources
Revenue
$1.36B
Net income
$43.76M
Diluted EPS
1.45
Operating cash flow
$87.86M
Free cash flow
$53.22M
Fetching…
Sources
Revenue
$1.26B
Net income
$37.43M
Diluted EPS
1.21
Operating cash flow
$38.53M
Free cash flow
$10.35M
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Sources
Revenue
$1.23B
Net income
$29.07M
Diluted EPS
0.94
Operating cash flow
$41.84M
Free cash flow
$14.86M
Fetching…
Sources
Is it cheap or expensive?
Fair value $100.89 vs current price $169.81
Wall Street consensus is the average analyst price target: $181.50 (79.9% higher than our fair-value estimate).
Our most-likely fair value is $100.89 a share — about 40.6% below today's price of $169.81, so the stock currently looks expensive (overvalued).
Is it drowning in debt?
Healthy
Net debt $11.8M. Interest coverage 20.5x.
Net debt
$11.82M
Interest coverage
20.50x
PriceSmart, Inc.'s profit covers its interest bill about 20.5 times over. which is stronger than most peers shown here and 1 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Healthy
Worse cushion
Baseline
Better cushion
PSMT
BASELINE
PriceSmart, Inc.
Total debt $334.41M Interest coverage 20.50x This is the baseline the peer rows are being compared against.
Total debt $10.18B Interest coverage 67.42x +229% vs PSMT Carries about 3.3x more debt cushion than PSMT.
Total debt $2.77B Interest coverage 20.40x -1% vs PSMT Has roughly the same debt cushion as PSMT.
Total debt $725.65M Interest coverage 17.25x -16% vs PSMT Carries about 1.2x less debt cushion than PSMT.
Total debt $861.59M Interest coverage -0.45x -100% vs PSMT This peer has almost no interest-payment cushion compared with PSMT.
Total debt $1.85B Interest coverage 2.76x -87% vs PSMT Carries about 7.4x less debt cushion than PSMT.
What you should know
The case for and against PSMT
3 Rewards
1 Risk
Rewards
-
Revenue grew 8.0% last year.
-
Returns 12.3% on equity, ahead of 33% of its peers.
-
Free cash flow was positive in 9/10 years.
Risks
-
Stock trades 56.8% above its 5-year average P/E.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
32.66x
Forward P/E
26.47x
P/B
3.67x
P/S
0.92x
EV/EBITDA
14.34x
PEG ratio
1.83x
Profitability
How much profit each dollar creates
Gross margin
17.6%
Operating margin
4.5%
Net margin
2.8%
ROE
12.3%
ROA
7.0%
Health
Liquidity and balance-sheet strength
Debt / equity
0.24x
Current ratio
1.28x
Quick ratio
0.46x
Total debt
$334.41M
Total cash
$322.59M
Growth
How the business has been compounding
Revenue TTM
$5.69B
Revenue 5Y CAGR
9.8%
EPS TTM
5.20
EPS 5Y CAGR
12.6%
Cash flow
How much cash the business throws off
Operating CF TTM
$274.36M
Free CF TTM
$103.17M
FCF margin
1.8%
Dividend
Shareholder payout
Yield
0.8%
Payout ratio
25.6%
Last ex-div date
2026-08-17