📊 PSMT Key Takeaways
Is Pricesmart Inc. (PSMT) a Good Investment?
PriceSmart demonstrates solid revenue growth (7.2% YoY) and maintains a fortress balance sheet with minimal leverage, but deteriorating profitability is concerning—net income growth of only 2.1% YoY significantly lags revenue expansion, indicating margin compression and rising operational costs. Extremely thin net margins (3.0%) and low free cash flow generation (1.1% of revenue) leave minimal financial flexibility for growth or weathering downturns.
Pricesmart Inc. Key Strengths (PSMT)
- Fortress balance sheet with very low leverage (0.13x Debt/Equity) and exceptional interest coverage (33.4x), providing financial stability and flexibility
- Solid revenue growth of 7.2% YoY in competitive retail sector demonstrates market traction
- Positive free cash flow generation ($48.1M) shows underlying cash generation despite thin margins
PSMT Stock Risks: Pricesmart Inc. Investment Risks
- Severe margin compression—revenue growth of 7.2% far exceeds net income growth of 2.1%, signaling rising costs and operational headwinds
- Critically thin profitability margins (3.0% net, 4.7% operating) leave insufficient cushion for error or unexpected challenges
- Weak free cash flow margin (1.1%) and low quick ratio (0.53x) indicate tight working capital and inventory-heavy operations with limited liquidity buffer
Key Metrics to Watch
- Gross margin and operating margin trends—essential to identifying whether compression continues or stabilizes
- Net income growth rate versus revenue growth rate—divergence must close or fundamentals deteriorate further
- Free cash flow margin and quick ratio improvement—indicators of working capital efficiency and operational health
Pricesmart Inc. (PSMT) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The relatively thin 1.1% 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 |
|---|---|---|---|
| Q3 2026 | $1.3B | $35.2M | $1.14 |
| 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 |
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 grade of B with 58% confidence, based on fundamental analysis of SEC EDGAR filings.
What are PSMT's key strengths?
Claude: Fortress balance sheet with very low leverage (0.13x Debt/Equity) and exceptional interest coverage (33.4x), providing financial stability and flexibility. Solid revenue growth of 7.2% YoY in competitive retail sector demonstrates market traction.
What are the risks of investing in PSMT?
Claude: Severe margin compression—revenue growth of 7.2% far exceeds net income growth of 2.1%, signaling rising costs and operational headwinds. Critically thin profitability margins (3.0% net, 4.7% operating) leave insufficient cushion for error or unexpected challenges.
What is PSMT's revenue and growth?
Pricesmart Inc. reported revenue of $4.4B.
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 $4.18.
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 grade reflects both perspectives for balanced insights.
What is PSMT's fundamental grade?
Based on our AI fundamental analysis in August 2026, Pricesmart Inc. has a B grade with 58% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is PSMT stock overvalued or undervalued?
Valuation metrics for PSMT: ROE of 9.3% (sector avg: 18%), net margin of 3.0% (sector avg: 8%). Compare these metrics with sector averages to assess valuation.
What is PSMT's AI grade for 2026?
Our dual AI analysis gives Pricesmart Inc. a combined B grade 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 $192.2M, with capital expenditures of $144.1M. FCF margin is 1.1%.
How does PSMT compare to other Consumer stocks?
Vs Consumer sector averages: Net margin 3.0% (avg: 8%), ROE 9.3% (avg: 18%), current ratio 1.28 (avg: 1.5).