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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 strong Q4 2025 results, with total revenues increasing 8.6% to $1.33 billion and net merchandise sales growing 9.2%. The company's expansion plans, including potential entry into Chile and new warehouse clubs in Jamaica, are driving long-term growth opportunities. Additionally, partnerships, such as the one with Edible Garden to offer sports nutrition products, are enhancing its offerings. According to a recent note, PriceSmart remains a "Buy" due to its consistent financial performance and growth prospects.

1.c. Company Highlights

2. PriceSmart's Q4 FY2025 Earnings: Solid Sales Growth and Margin Stability

PriceSmart reported a strong fourth quarter with net merchandise sales and total revenue reaching over $1.3 billion, representing a 9.2% increase or 9.1% in constant currency. The company's net merchandise sales for the fiscal year ended August 31, 2025, stood at almost $5.2 billion, with total revenues of almost $5.3 billion, driven by a 7.7% or 8.5% increase in constant currency. Earnings per diluted share came in at $1.02, slightly below estimates of $1.16, with actual EPS for the quarter being reported at '1.14' in a subsequent clarification, still marginally short of expectations. The gross margin remained stable at 15.7% of net merchandise sales, while operating income rose 7.2% to $52.8 million. Adjusted EBITDA for the quarter was $75.5 million, up from $70.7 million in the same period last year.

Publication Date: Nov -09

📋 Highlights
  • Q4 Net Merchandise Sales:: Exceeded $1.3B, up 9.2% YoY (9.1% in constant currency), with comparable sales rising 7.5%.
  • Fiscal Year Revenue:: Total net merchandise sales hit $5.2B, reflecting 7.7% growth (8.5% in constant currency) for the year.
  • New Market Expansion:: Opened 7th warehouse in Guatemala (Aug 2025) and plans for Dominican Republic, Jamaica, and Chile.
  • Membership Growth:: Surpassed 2 million members (+6.2% YoY) with Platinum accounts at 17.9% and membership income at $22.6M (+14.9% YoY).
  • Profitability Metrics:: Operating income rose 7.2% to $52.8M, and adjusted EBITDA reached $75.5M in Q4, up from $70.7M YoY.

Operational Highlights and Growth Initiatives

The company continued its expansion with the opening of its seventh warehouse club in Guatemala in August 2025 and has plans to open new clubs in the Dominican Republic, Jamaica, and Chile. David Price highlighted the company's focus on its supply chain transformation strategy, including adapting its Panama facility to handle cold merchandise and beginning operations at a new dry distribution center in Guatemala. This strategic focus is expected to drive growth and improve operational efficiency.

Membership Growth and Income

Membership saw significant growth, with a 6.2% year-over-year increase to over 2 million members, and Platinum membership representing 17.9% of the total base as of August 31, 2025. Membership income reached $22.6 million, a 14.9% increase over the same period last year, demonstrating the success of the company's membership programs.

Valuation and Outlook

With a P/E Ratio of 23.74 and an EV/EBITDA of 12.39, the market appears to have priced in a certain level of growth. Analysts estimate next year's revenue growth at 7.9%, which is slightly higher than the company's historical performance. Given the current valuation multiples and the company's commitment to initiatives that drive growth, particularly in technology, it remains to be seen whether PriceSmart can meet or exceed these expectations in FY2026. The company's comparable net merchandise sales for the 8 weeks ended October 26, 2025, were up 7.2%, or 6.5% in constant currency, providing a positive start to the new fiscal year.

3. NewsRoom

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PriceSmart Announces Earnings Release and Conference Call Details for the First Quarter of Fiscal 2026

Dec -04

Source: prnewswire.com

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Bank of New York Mellon Corp Has $23.89 Million Holdings in PriceSmart, Inc. $PSMT

Nov -16

Source: defenseworld.net

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PriceSmart, Inc. (PSMT) Q4 2025 Earnings Call Transcript

Oct -31

Source: seekingalpha.com

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PRICESMART ANNOUNCES FISCAL 2025 FOURTH QUARTER OPERATING RESULTS AND PLANS FOR THIRD AND FOURTH WAREHOUSE CLUBS IN JAMAICA

Oct -30

Source: prnewswire.com

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Edible Garden Ships Kick. Sports Nutrition to PriceSmart Club Stores

Oct -07

Source: globenewswire.com

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Top 3 Defensive Stocks That May Fall Off A Cliff This Quarter

Sep -29

Source: benzinga.com

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PriceSmart Remains A Good Prospect, Especially As It Looks To Expand

Sep -23

Source: seekingalpha.com

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PriceSmart Announces Earnings Release and Conference Call Details for the Fourth Quarter of Fiscal 2025 and Opening of Seventh Warehouse Club in Guatemala

Sep -08

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: 7.9/10

Value: 8.1

Growth: 9.4

Quality: 8.1

Yield: 10.0

Momentum: 6.5

Volatility: 5.3

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Laureate Education

A-Score: 6.5/10

Value: 3.9

Growth: 5.6

Quality: 7.1

Yield: 5.0

Momentum: 10.0

Volatility: 7.7

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Ingredion

A-Score: 6.5/10

Value: 6.8

Growth: 6.6

Quality: 5.9

Yield: 6.0

Momentum: 3.5

Volatility: 10.0

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PriceSmart

A-Score: 5.7/10

Value: 4.1

Growth: 5.7

Quality: 5.6

Yield: 2.0

Momentum: 8.5

Volatility: 8.3

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Bunge

A-Score: 5.4/10

Value: 8.0

Growth: 5.6

Quality: 3.8

Yield: 6.0

Momentum: 2.5

Volatility: 6.7

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Ollie's Bargain Outlet

A-Score: 5.0/10

Value: 1.8

Growth: 7.7

Quality: 6.0

Yield: 0.0

Momentum: 9.0

Volatility: 5.7

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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

127.74$

Current Price

127.74$

Potential

-0.00%

Expected Cash-Flows