PriceSmart, Inc. (PSMT) AI Stock Analysis

PriceSmart, Inc. operates a network of U.S.-style membership shopping warehouse clubs in the United States, Central America, the Caribbean, and Colombia. Its clubs offer locally sourced goods, essential items, fresh produce, and private-label products under the Member's Selection brand, alongside prepared foods and fresh-baked goods. PriceSmart also provides wellness services such as optical, pharmacy, and audiology care. Digital offerings include PriceSmart.com and Click & Go delivery or contactless curbside pickup. Founded in 1994 and based in San Diego, California, PriceSmart operated 50 warehouse clubs across 12 countries and one U.S. territory as of August 2022.

Between FY2021 and FY2025, PriceSmart expanded revenue from $3.62B to $5.27B, registering a 5-year revenue CAGR of 9.6%. Annual net income grew from $96.7M (EPS of $3.18) in FY2021 to $144.9M (EPS of $4.82) in FY2025. Operating margin remained consistent, finishing FY2025 at 4.5% on a gross margin of 17.4%. Over the trailing twelve months, revenue reached $5.69B with a net profit margin of 2.8%. In the latest quarter ended May 31, 2026, quarterly revenue grew 12.5% year-over-year while quarterly earnings expanded 12.3% year-over-year.

As of May 31, 2026, PriceSmart held $322.2M in cash and short-term investments against total debt of $325.5M, leaving net debt at $3.3M. The company maintains a current ratio of 1.21, debt-to-equity of 0.23, and total assets of $2.60B against shareholders' equity of $1.39B. In FY2025, operating cash flow stood at $261.3M, funding capital expenditures of $158.1M and producing free cash flow of $103.2M. Capital allocation in FY2025 included $38.7M in dividends paid and $6.7M in share buybacks, with the 5-year share count down 1.1%.

PriceSmart trades at a trailing P/E of 32.7x and a forward P/E of 27.5x, above the median of its US-listed Consumer Defensive peers, which stand at 18.6x and 14.3x respectively. Its EV/EBITDA of 15.9x also exceeds the peer median of 11.7x, while its price-to-sales multiple of 0.9x is slightly above the peer median of 0.7x. The company's PEG ratio sits at 1.83. Over the past year, PSMT rose 39.4% compared to a 16.8% gain for the S&P 500, and its 5-year return of 134.3% outperformed the index return of 83.0%.

PriceSmart pays a semiannual dividend with an annualized forward payout of $1.40 per share, representing a dividend yield of 0.82%. The company has paid dividends for 20 consecutive years, achieving a 5-year annualized dividend growth rate of 12.5%. The payout ratio is 33.4%, and the last ex-dividend date was August 17, 2026.

Wall Street coverage includes 3 analysts with 1 Strong Buy and 2 Hold ratings. The mean price target is $181.50, reflecting an upside of 6.9% from the last close of $169.81. For the fiscal year ending August 31, 2026, consensus expectations project revenue of $5.82B and EPS of $5.53, representing 14.7% EPS growth. In the following fiscal year, 2 analysts project revenue of $6.50B and EPS of $6.42. PriceSmart beat EPS estimates in 3 of the last 4 quarters, with next earnings scheduled for October 26, 2026.

This page is an AI-written research summary of PriceSmart, Inc. (PSMT). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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