Pricesmart (PSMT) Fundamental Analysis: Revenue, Earnings & Valuation

8.52 / 10

Outperform

Fundamental scrutiny reveals a solid profile: key metrics such as Net cash flow from operating activities to Operating revenue (4.96%) and to Total liabilities (0.256%) are in higher performance groups, while Interest coverage ratio (151.08%) is exceptionally strong. Although Asset-liability ratio (45.03%) and Equity ratio (0.819) are in lower groups, their negative weights in the score summation mitigate impact, resulting in a high overall fundamental score of 8.52 and an Outperform rating.

Analysis Checks(6/10)

Asset-liability ratio (%)

Value45.03

Score0/3

Weight-7.41%

1M Return-2.52%

Equity ratio (Total liabilities / Shareholders’ equity attributable to parent company) (%)

Value0.82

Score0/3

Weight-3.70%

1M Return-1.29%

Net cash flow from operating activities / Operating revenue (%)

Value4.96

Score2/3

Weight7.69%

1M Return2.24%

Total profit (YoY growth rate %)

Value2.49

Score3/3

Weight26.74%

1M Return8.28%

Current assets turnover ratio

Value5.83

Score2/3

Weight13.30%

1M Return4.03%

Net cash flow from operating activities / Total liabilities (%)

Value0.26

Score3/3

Weight19.55%

1M Return5.64%

Cash-UP

Value0.14

Score1/3

Weight-7.65%

1M Return-3.70%

Interest coverage ratio (EBIT / Interest expense) (%)

Value151.08

Score3/3

Weight39.72%

1M Return9.03%

ROE (diluted) (%)

Value11.86

Score2/3

Weight12.91%

1M Return3.53%

EBIT / Total operating revenue (%)

Value3.94

Score1/3

Weight-1.15%

1M Return-0.38%

Is PSMT fundamentally strong?

PSMT scores 8.52/10 on fundamentals and holds a Discounted valuation at present. Backed by its 3.15% ROE, 2.79% net margin, 32.08 P/E ratio, 3.70 P/B ratio, and 7.93% earnings growth, these metrics solidify its Outperform investment rating.