PriceSmart Inc. Common Stock (PSMT)

FairStock Score: 48/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I approach PriceSmart as a Graham-style bargain hunter: the business first, then the price. The company runs membership warehouse clubs in Central America, the Caribbean, and Colombia. The filed numbers show steady progress: FY2023 revenue $4.4B, FY2024 $4.9B, FY2025 $5.3B; net income rose from $109.2M to $147.9M, and diluted EPS from $3.50 to $4.82. In fiscal Q3 2026, the quarter ended 2026-05-31, revenue was $1.5B, net income $39.7M, and EPS $1.28, versus revenue $1.3B, net income $35.2M, and EPS $1.14 in fiscal Q3 2025. That is a respectable stalwart profile: steady, defensive, low beta of 0.77, debt-to-equity of 0.24, and an Altman Z-score of 4.21. The membership warehouse model and private label can support repeat business, though returns are only moderate: ROE 12.31% and ROCE 7.00%. The main issue is price. At the 2026-10-13 close of $171.72, FairStock calculations show P/E 33.09, P/B 3.71, PEG 2.57, EV/EBITDA 16.15, and FCF yield 1.4%. Trailing free cash flow is $73.7M against a $5.3B market cap, and the FairStock Score is 48/100. The Graham Number is $72.59, implying a -136.56% margin of safety—no margin of safety at all. Piotroski is 4/9, suggesting only average financial momentum. I like the business; I do not like paying a premium multiple for modest returns and thin retail margins.

In plain English: PriceSmart runs membership warehouse stores in Latin America and the Caribbean and sells everyday goods. The business looks steady: sales and profits have grown, debt is low, and it sells things people need. But the stock price looks high compared with its profits and the cash it generates, so it does not look cheap by the numbers shown.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q3 2026 10-Q (period ended 2026-05-31) · fiscal Q2 2026 10-Q (period ended 2026-02-28) · fiscal Q1 2026 10-Q (period ended 2025-11-30) · fiscal Q3 2025 10-Q (period ended 2025-05-31) · FY2025 10-K (period ended 2025-08-31) · FY2024 10-K (period ended 2024-08-31) · FY2023 10-K (period ended 2023-08-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer