Pricesmart Stock Fair Value – PRICESMART Reports Third Quarter Earnings for Fiscal Year 2023
July 14, 2023
🌥️Earnings Overview
PRICESMART ($NASDAQ:PSMT) announced its financial results for the third quarter of fiscal year 2023, which ended on July 10, 2023, with total revenue of USD 1096.7 million, an increase of 6.4% compared to the same quarter in the previous year. Net income was reported at USD 29.6 million, seeing an impressive rise of 53.5% year-on-year.
Price History
The report showed strong financial results as the company stock opened at $75.9 and closed at $76.9, up by 1.9% from prior closing price of 75.5. The impressive earnings can be accredited to the company’s successful strategies for the third quarter, which included increasing customer loyalty programs and bolstering online and in-store promotions. This impressive growth was a result of the company’s strategy to increase revenues by leveraging its data-powered analytics platform and expanding its customer base across different markets.
In addition, the company has placed an emphasis on cost-saving initiatives, such as streamlining its supply chain and reducing operating costs. Overall, this strong third quarter report from PRICESMART reaffirms the company’s commitment to delivering consistent growth and long-term profitability. Further, the company’s stock performance suggests that investors remain confident in the business and its prospects for continued success. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Pricesmart. More…
| Total Revenues | Net Income | Net Margin |
| 4.32k | 115.65 | 2.8% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Pricesmart. More…
| Operations | Investing | Financing |
| 242.2 | -211.17 | -36.62 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Pricesmart. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 1.93k | 843.65 | 35.08 |
Key Ratios Snapshot
Some of the financial key ratios for Pricesmart are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 9.1% | 16.6% | 4.3% |
| FCF Margin | ROE | ROA |
| 2.9% | 10.8% | 6.0% |
Analysis – Pricesmart Stock Fair Value
GoodWhale’s analysis of PRICESMART‘s wellbeing reveals a fair price of $86.2 for the stock, calculated using our proprietary Valuation Line. Currently, the stock is trading at $76.9, which is 10.8% undervalued. This presents investors with an attractive opportunity to purchase PRICESMART’s stock at a relatively lower price. We recommend investors take advantage of this opportunity to purchase the stock before the price increases in the future. More…
Peers
The company was founded in 1976 and is headquartered in San Diego, California. As of 2018, it had 29 locations. Pricesmart‘s main competitors are Walmart Inc, Sprouts Farmers Market Inc, and Costco Wholesale Corp. Pricesmart is a much smaller company than its competitors, but it has been growing rapidly in recent years. Pricesmart’s competitive advantage lies in its low prices and convenience. The company has been able to keep its prices low by operating on a smaller scale than its competitors and by sourcing its products directly from manufacturers. Pricesmart’s convenience comes from its membership model, which allows customers to shop online or in-store without having to pay a membership fee.
– Walmart Inc ($NYSE:WMT)
As of 2022, Walmart Inc has a market cap of 386.32B and a Return on Equity of 16.44%. Walmart Inc is an American multinational retail corporation that operates a chain of hypermarkets, discount department stores, and grocery stores. Headquartered in Bentonville, Arkansas, the company was founded by Sam Walton in 1962 and incorporated on October 31, 1969. As of January 31, 2020, Walmart has 11,484 stores and clubs in 27 countries, operating under 59 different names. The company operates under the name Walmart in the United States and Canada, as Walmart de México y Centroamérica in Mexico and Central America, as Asda in the United Kingdom, as the Seiyu Group in Japan, and as Best Price in India. It has wholly owned operations in Argentina, Chile, Canada, and South Africa. Since August 2018, Walmart holds only a minority stake in Walmart Brasil, with 20% of the company’s shares, and private equity firm Advent International holding 80% ownership of the company.
– Sprouts Farmers Market Inc ($NASDAQ:SFM)
Sprouts Farmers Market Inc is a grocery store chain that specializes in selling fresh, natural, and organic foods. The company has a market cap of 3.17B as of 2022 and a Return on Equity of 21.14%. Sprouts Farmers Market Inc was founded in 2002 and is headquartered in Phoenix, Arizona.
– Costco Wholesale Corp ($NASDAQ:COST)
Costco Wholesale Corp is a publicly traded company with a market cap of 221.97B as of 2022. The company has a return on equity of 24.62%. Costco is a membership-only warehouse club that offers a wide selection of merchandise, including food, electronics, and home goods.
Summary
Investors are encouraged by the financial performance of PRICESMART, as it reported total revenue of USD 1096.7 million for the third quarter of fiscal year 2023, up 6.4% year-on-year. Moreover, net income rose 53.5% to USD 29.6 million, indicating strong growth in the company’s profitability. This is especially encouraging given the challenging economic environment in recent months. With such promising results, PRICESMART is well placed to capitalize on further opportunities and continue its strong financial performance into the future.
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