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1. Company Snapshot

1.a. Company Description

PriceSmart, Inc.owns and operates U.S. style membership shopping warehouse clubs in the United States, Central America, the Caribbean, and Colombia.Its warehouse clubs sell brand name and private label consumer products, essential goods, fresh produce, prepared foods, and fresh-baked goods, as well as provides services, such as optical, tire center, and other ancillary services.


The company also operates Click & Go, an e-commerce platform for online ordering, curbside pickup, and delivery services.As of March 29, 2022, it operated 49 warehouse clubs in 12 countries and one U.S. territory.PriceSmart, Inc.


was incorporated in 1994 and is headquartered in San Diego, California.

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1.b. Last Insights on PSMT

PriceSmart's recent performance was driven by steady revenue and profitability growth through new store openings and membership gains. The company's comparable store sales rose 7.5%, and membership accounts hit a record 2.01 million, with high renewal rates and increased premium memberships boosting margins. Q1 2026 earnings revealed $1.29 EPS and 10.6% net merchandise sales growth. Expansion plans continue, including a tenth club in Costa Rica. Insiders' transactions include EVP Paul Kovaleski selling 4,255 shares and COO John Hildebrandt selling 7,421 shares.

1.c. Company Highlights

2. PriceSmart's Q1 FY2026 Earnings: A Strong Start

PriceSmart's first quarter fiscal year 2026 financial performance was robust, with net merchandise sales reaching almost $1.4 billion, a 10.6% increase, or 9.5% in constant currency. Comparable net merchandise sales grew 8%, or 6.9% in constant currency. The company's gross margin remained strong at 15.9% of net merchandise sales. Earnings per share (EPS) came in at $1.29, slightly beating estimates of $1.28. Net income for the quarter was $40.2 million, up from $37.4 million in the same period last year.

Publication Date: Jan -09

📋 Highlights
  • Sales Growth:: Net merchandise sales hit $1.4B, up 10.6% YoY, with Colombia leading at 27.8% growth.
  • Membership Expansion:: Accounts surpassed 2M, +6.7% YoY, with Platinum tier rising to 19.3% (vs. 14% prior year).
  • Digital Channel Surge:: Online sales soared 29.4% to $89.8M, reflecting e-commerce momentum.
  • Profitability Strength:: Operating income rose 8% to $62.9M, and adjusted EBITDA grew 9.8% to $86.9M.
  • Liquidity Position:: Ended with $249.6M cash/cash equivalents and $114.2M short-term investments, up from prior year.

Regional Performance

The company's regional performance was mixed, with Central America sales increasing 9.6%, or 9.2% in constant currency; the Caribbean, 5.7%, or 7.8% in constant currency; and Colombia, 27.8%, or 15% in constant currency. Colombia's strength was attributed to a combination of internal and external factors, according to management. The company's membership accounts grew 6.7% year-over-year to over 2 million accounts, with a 12-month renewal rate of 89.3%.

Operational Highlights

The company is advancing on its real estate expansion, supply chain transformation, and technology investments, including new club openings in the Dominican Republic, Jamaica, and Costa Rica, and distribution centers in Colombia, Dominican Republic, and Trinidad. Digital channel sales reached $89.8 million, up 29.4% year-over-year. Management noted that investments in real estate, supply chain infrastructure, and technology are positioning the company for sustained growth.

Valuation and Outlook

With a P/E Ratio of 26.73 and an EV/EBITDA of 13.9, the company's valuation appears reasonable, considering its growth prospects. Analysts estimate next year's revenue growth at 10.7%. The company's strong cash position, with cash, cash equivalents, and restricted cash totaling $249.6 million, plus approximately $114.2 million of short-term investments, provides a solid foundation for future investments. As management noted, the team is focused on delivering value to members and driving long-term performance.

Cash Flow and Balance Sheet

Net cash provided by operating activities reached $71.2 million for the first 3 months of fiscal year 2026, an increase of $32.7 million versus the prior year period. The increase is primarily due to $18.7 million of overall net positive changes in operating assets and liabilities. The company's net debt to EBITDA ratio is negative, indicating a healthy balance sheet.

3. NewsRoom

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Maryland State Retirement & Pension System Lowers Stock Holdings in PriceSmart, Inc. $PSMT

Jan -24

Source: defenseworld.net

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Paul Kovaleski Sells 4,255 Shares of PriceSmart (NASDAQ:PSMT) Stock

Jan -16

Source: defenseworld.net

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John Hildebrandt Sells 7,421 Shares of PriceSmart (NASDAQ:PSMT) Stock

Jan -16

Source: defenseworld.net

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PriceSmart's Base-Case Calls for $45 in Upside—Bull-Case Is Better

Jan -12

Source: marketbeat.com

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PriceSmart, Inc. (PSMT) Q1 2026 Earnings Call Transcript

Jan -08

Source: seekingalpha.com

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PriceSmart Q1 Results - Can 'Donroe Doctrine' Further Propel Stock After Its Nearly 40% Gain?

Jan -08

Source: seekingalpha.com

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Market Today: Trump Housing Ban, Apple Card Shift, ISM Jump

Jan -07

Source: gurufocus.com

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PRICESMART ANNOUNCES FISCAL 2026 FIRST QUARTER OPERATING RESULTS AND PLANS FOR TENTH CLUB IN COSTA RICA

Jan -07

Source: prnewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.99%)

6. Segments

Foods & Sundries

Expected Growth: 5.2%

Growing demand for affordable household essentials and packaged foods, increasing popularity of discount stores, and expansion of PriceSmart's warehouse club format in Latin America and the Caribbean drive segment growth.

Fresh Foods

Expected Growth: 4.5%

Growing demand for discounted high-quality fresh foods, increasing popularity of warehouse clubs, and expansion of PriceSmart's operations in Latin America and the Caribbean drive growth in this segment.

Hardlines

Expected Growth: 5.2%

Growing demand for electronics, home appliances, and furniture, driven by increasing consumer spending, urbanization, and rising middle-class population, will fuel the growth of Hardlines segment in PriceSmart, Inc.'s warehouse clubs.

Softlines

Expected Growth: 5.2%

Increasing demand for affordable and trendy apparel, footwear, and home textiles, driven by growing middle-class population and urbanization in Latin America and the Caribbean, where PriceSmart operates.

Other

Expected Growth: 5.2%

Growing demand for insurance and travel services, increasing adoption of digital payment systems, and expansion into new markets drive revenue growth in this segment.

7. Detailed Products

Warehouse Club Membership

Membership program that offers access to discounted prices on a wide range of products, including groceries, electronics, and home goods.

Grocery and Food Products

Wide selection of fresh produce, meat, dairy products, and packaged goods at discounted prices.

Electronics and Appliances

Discounted prices on a wide range of electronics, including TVs, laptops, smartphones, and home appliances.

Home and Bedding Products

Discounted prices on home decor, bedding, kitchenware, and other household items.

Health and Beauty Products

Discounted prices on health supplements, beauty products, and personal care items.

Tires and Auto Services

Discounted prices on tires, batteries, and auto services, including oil changes and maintenance.

Pharmacy Services

Discounted prices on prescription medications and health services, including flu shots and health screenings.

Optical Services

Discounted prices on eye exams, glasses, and contact lenses.

8. PriceSmart, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

PriceSmart, Inc. faces moderate threat from substitutes due to the presence of alternative warehouse clubs and retailers offering similar products and services.

Bargaining Power Of Customers

PriceSmart, Inc. has a large customer base, but customers have significant bargaining power due to the availability of alternative shopping options and the ability to negotiate prices.

Bargaining Power Of Suppliers

PriceSmart, Inc. has a diverse supplier base, and suppliers have limited bargaining power due to the company's large scale of operations and ability to negotiate prices.

Threat Of New Entrants

The threat of new entrants is low for PriceSmart, Inc. due to the high barriers to entry, including significant capital requirements and the need for a large scale of operations to achieve economies of scale.

Intensity Of Rivalry

The warehouse club and retail industry is highly competitive, with several established players competing for market share, resulting in a high intensity of rivalry for PriceSmart, Inc.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 20.08%
Debt Cost 6.14%
Equity Weight 79.92%
Equity Cost 8.57%
WACC 8.08%
Leverage 25.13%

11. Quality Control: PriceSmart, Inc. passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Cal-Maine Foods

A-Score: 7.5/10

Value: 8.5

Growth: 9.4

Quality: 7.8

Yield: 10.0

Momentum: 3.0

Volatility: 6.0

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Bunge

A-Score: 6.3/10

Value: 8.6

Growth: 5.6

Quality: 3.9

Yield: 6.0

Momentum: 7.0

Volatility: 7.0

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Ingredion

A-Score: 6.2/10

Value: 7.2

Growth: 6.6

Quality: 6.1

Yield: 6.0

Momentum: 1.5

Volatility: 10.0

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Laureate Education

A-Score: 6.2/10

Value: 2.9

Growth: 5.6

Quality: 6.0

Yield: 5.0

Momentum: 10.0

Volatility: 7.7

1-Year Total Return ->

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PriceSmart

A-Score: 5.8/10

Value: 3.9

Growth: 6.0

Quality: 5.7

Yield: 2.0

Momentum: 9.0

Volatility: 8.0

1-Year Total Return ->

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Ollie's Bargain Outlet

A-Score: 5.1/10

Value: 2.6

Growth: 7.6

Quality: 6.1

Yield: 0.0

Momentum: 8.5

Volatility: 6.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

148.09$

Current Price

148.09$

Potential

-0.00%

Expected Cash-Flows