* Note: Prices are in Million (M) USD.
Description:
PriceSmart, Inc. owns and operates American-style membership shopping warehouse clubs in Central America, the Caribbean and Colombia. The company is headquartered in San Diego, California.
These criteria used Company's Cash, EBITDA and Debt balance to determines its fair value:
Cash : $168 M
Debt : $129 M
EBITDA : $282 M
Since Cash is greater than Total Debt, 5 points assigned.
This criteria used industry in which company operates:
Sector: Consumer staples
Industry: Discount stores
Based on industry, 3 points assigned.
This criteria used Company's Price To Earning (P/E) Ratio to determines its fair value:
Message: Cannot calculate PE Ratio since EPS is either 0 or negative.
Using default values for calculation.
Forward PE Ratio (using default values): 20.00
Since Forward PE Ratio is between 20 - 25, 2 points assigned.
This criteria used Company's ability to convert Sales into free cash flow to determine fair value:
Using last 20 overlapping fiscal years (max 20).Average Free Cash Flow: $32 M
Average Revenue: $2,501 M
Revenue Converted To Free Cash Flow (%): 1.3%
Since Free Cash Flow (FCF) to Revenue percentage is less than 15, 1 point assigned.
This criteria used company's growth potential to calculate its fair value:
Latest Revenue (2024-08-31): $4,914 M
Revenue 5 Years Ago (2019-08-31): $3,224 M
Total Growth over 5 Years: 52.4%
5-Year Revenue CAGR (Historical): 8.8%
Forward 5-Year CAGR (Tapered): 7.0%
Since historical Revenue CAGR is between 5 - 10, 2 points assigned.
This criteria used Company's ability to buy back its own share:
Latest Share Count (2024-08-31): $30 M
Share Count 5 Years Ago (2020-08-31): $30 M
Company is buying back its own shares, 3 points assigned.
This criteria used Company's dividend payout ratio to determine its fair value:
Message: Cannot calculate payout ratio because EPS is either 0 or negative.
Using default values for calculation.
Based on default values, 1 points assigned.
This criteria used Company's Return On Equity (ROE%) to determine its fair value:
Using last 20 valid ROE years (max 20).Average ROE: 10.6%
Since Average ROE is between 10 - 20, 3 points assigned.
This criteria used Company's current price to its 52 week low price to determines its fair value:
Current Price: $117
52-Week Low: $81
Threshold Price (15% Above 52-Week Low): $93
Since Current price is not within 15% threshold, 0 point assigned.
This criteria used Company's Market Cap to determines its fair value:
Market Capitalization: $3,344 M
Since Market Cap is less than 10B, 1 point assigned.
% Exposure to Total Portfolio
Based on the market cap, we recommend do not exceed 2% exposure of Total Portfolio.
Warren Buffet's Owners' Earnings:
Latest Positive Owners' Earnings (FCF/Share) (2024-08-31): $1.30
Note: Many highly growing companies reinvest heavily back into the business,
so their Owners' Earnings may appear very low. In such cases, other criteria should
be considered to assess the company’s true worth.
Value-Trade has assigned 21 points to above PriceSmart Inc (PSMT) stock.
Last 18 Years Avg PE 23.75, Fair Value PE 15, Industry Based PE 20, Growth Based PE 15, RCFC Based PE 1.26, ROE Based PE 10.65, Risk-Free Anchored PE (25% MoS) 17.61. Based on these 7 values, average assigned is 14.75. The fair value of PriceSmart Inc (PSMT) stock cannot be calculated since EBITDA and EPS are either 0 or negative.
