📊 PSMT Key Takeaways
Is Pricesmart Inc. (PSMT) a Good Investment?
PriceSmart demonstrates solid revenue growth of 7.2% and maintains a conservative balance sheet with strong interest coverage, but fundamentals are weakened by significant margin compression where net income growth (2.1%) substantially lags revenue expansion. Weak profitability metrics (3.1% net margin, 4.8% operating margin), poor returns on capital (6.7% ROE, 3.7% ROA), and thin free cash flow conversion (1.6% FCF margin) suggest operational challenges that require resolution before becoming an attractive investment.
Why Buy Pricesmart Inc. Stock? PSMT Key Strengths
- Strong balance sheet with low leverage (0.12x Debt/Equity) and exceptional interest coverage (22.6x)
- Solid revenue growth of 7.2% YoY demonstrates market demand in retail segment
- Consistent operating cash flow generation ($133.3M) indicates core business viability
PSMT Stock Risks: Pricesmart Inc. Investment Risks
- Severe margin compression: net income growth (2.1%) significantly lags revenue growth (7.2%), indicating operational deterioration
- Weak liquidity position with quick ratio of 0.52x raises working capital management concerns for retail operations
- Poor capital efficiency with low returns: 6.7% ROE and 3.7% ROA well below typical cost of capital expectations
- Anemic free cash flow margin of 1.6% limits strategic flexibility and shareholder returns
Key Metrics to Watch
- Net profit margin trend and year-over-year comparison to identify if margin compression continues
- Free cash flow generation and CapEx efficiency to assess whether capital intensity can be reduced
- Quick ratio improvement and working capital management metrics
Pricesmart Inc. (PSMT) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The relatively thin 1.6% FCF margin may limit capital allocation flexibility.
PSMT Profit Margin, ROE & Profitability Analysis
PSMT vs Consumer Sector: How Pricesmart Inc. Compares
How Pricesmart Inc. compares to Consumer sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Pricesmart Inc. Stock Overvalued? PSMT Valuation Analysis 2026
Based on fundamental analysis, Pricesmart Inc. has mixed fundamental signals relative to the Consumer sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Pricesmart Inc. Balance Sheet: PSMT Debt, Cash & Liquidity
PSMT Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Pricesmart Inc.'s revenue has grown significantly by 52% over the 5-year period, indicating strong business expansion. The most recent EPS of $3.50 reflects profitable operations.
PSMT Revenue Growth, EPS Growth & YoY Performance
PSMT Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q2 2026 | $1.4B | $43.8M | $1.45 |
| Q1 2026 | $1.3B | $37.4M | $1.21 |
| Q3 2025 | $1.2B | $32.5M | $1.08 |
| Q2 2025 | $1.3B | $39.3M | $1.31 |
| Q1 2025 | $1.2B | $37.4M | $1.21 |
| Q3 2024 | $1.1B | $29.6M | $0.94 |
| Q2 2024 | $1.1B | $31.3M | $1.02 |
| Q1 2024 | $1.1B | $32.9M | $1.05 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Pricesmart Inc. Dividends, Buybacks & Capital Allocation
PSMT SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Pricesmart Inc. (CIK: 0001041803)
📋 Recent SEC Filings
❓ Frequently Asked Questions about PSMT
What is the AI rating for PSMT?
Pricesmart Inc. (PSMT) has an AI rating of HOLD with 62% confidence, based on fundamental analysis of SEC EDGAR filings.
What are PSMT's key strengths?
Claude: Strong balance sheet with low leverage (0.12x Debt/Equity) and exceptional interest coverage (22.6x). Solid revenue growth of 7.2% YoY demonstrates market demand in retail segment.
What are the risks of investing in PSMT?
Claude: Severe margin compression: net income growth (2.1%) significantly lags revenue growth (7.2%), indicating operational deterioration. Weak liquidity position with quick ratio of 0.52x raises working capital management concerns for retail operations.
What is PSMT's revenue and growth?
Pricesmart Inc. reported revenue of $2.9B.
Does PSMT pay dividends?
Pricesmart Inc. pays dividends, with $21.6M distributed to shareholders in the trailing twelve months.
Where can I find PSMT SEC filings?
Official SEC filings for Pricesmart Inc. (CIK: 0001041803) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is PSMT's EPS?
Pricesmart Inc. has a diluted EPS of $2.91.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is PSMT a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Pricesmart Inc. has a HOLD rating with 62% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is PSMT stock overvalued or undervalued?
Valuation metrics for PSMT: ROE of 6.7% (sector avg: 18%), net margin of 3.1% (sector avg: 8%). Compare these metrics with sector averages to assess valuation.
Should I buy PSMT stock in 2026?
Our dual AI analysis gives Pricesmart Inc. a combined HOLD rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is PSMT's free cash flow?
Pricesmart Inc.'s operating cash flow is $133.3M, with capital expenditures of $88.3M. FCF margin is 1.6%.
How does PSMT compare to other Consumer stocks?
Vs Consumer sector averages: Net margin 3.1% (avg: 8%), ROE 6.7% (avg: 18%), current ratio 1.29 (avg: 1.5).