Pricesmart (PSMT) AI Stock Analysis

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Pricesmart

(NASDAQ:PSMT)

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Rating:67Neutral

Price Target:$188.00▲(12.91% Upside)

Action:downgraded

Date:10/27/26

The score is driven primarily by solid fundamentals—steady growth, stable profitability, and a conservatively leveraged balance sheet—reinforced by a generally upbeat earnings call focused on continued expansion and strong membership/digital trends. The main constraints are a relatively expensive valuation (high P/E with low yield) and only mixed technical signals that do not indicate a strong, sustained uptrend.

Positive Factors

Sustained Revenue GrowthBroad-based sales growth across merchandise and regions indicates sustained member demand rather than reliance on a single category. Continued comparable growth can improve operating leverage, support new-club investments, and strengthen PriceSmart’s position in its Latin American and Caribbean markets.

Negative Factors

Elevated Operating Expense PressureHigher technology investment, executive compensation, and general operating costs are absorbing part of the benefit from sales growth. If SG&A remains above management’s desired level, the company may struggle to expand already modest retail margins and convert revenue growth into proportionate earnings.

Pricesmart (PSMT) vs. SPDR S&P 500 ETF (SPY)

Market Cap: $5.15B
Dividend Yield: 0.84%
Average Volume (3M): 235.17K
Price to Earnings (P/E): 30.8
Beta (1Y): 0.45
Revenue Growth: 11.50%
EPS Growth: 11.98%
Country: US
Employees: 13,000
Sector: Consumer Defensive
Sector Strength: 62
Industry: Discount Stores

Pricesmart Business Overview & Revenue Model

Company Description

PriceSmart, Inc. owns and operates U.S.-style membership shopping warehouse clubs in the United States, Central America, the Caribbean, and Colombia. The company provides basic and private label merchandise and consumable and non-consumable products...

How the Company Makes Money

PriceSmart generates revenue primarily through (1) sales of merchandise to members in its warehouse club stores and (2) membership fees. Merchandise sales are the largest component of revenue and come from selling goods across key categories such as...

Pricesmart Earnings Call Summary

Earnings Call Date:Oct 26, 2026(Q4-2026)|% Change Since:-3.82%|Next Earnings Date:Jan 13, 2027

Earnings Call SentimentPositive

The call was broadly positive, supported by double-digit sales and earnings growth, higher membership engagement and renewal rates, strong digital performance, expanding club infrastructure, improved gross margins, and solid operating cash flow. The main concerns were the delayed RELEX implementation, higher SG&A and technology costs, Colombia margin pressures, Chile and other club-opening expenses, Trinidad liquidity constraints, and external cost and supply-chain risks. Highlights significantly outweighed the lowlights.

Positive Updates

Strong Quarterly and Full-Year Sales Growth

Fourth-quarter net merchandise sales reached almost $1.5 billion and total revenue exceeded $1.5 billion. Net merchandise sales increased 13.8%, or 7.8% in constant currency, while comparable net merchandise sales increased 12.2% in U.S. dollars and 6.2% in constant currency. For fiscal year 2026, net merchandise sales reached almost $5.8 billion and total revenues were almost $5.9 billion, with net merchandise sales up 11.7%, or 8.4% in constant currency, and comparable sales up 9.6%, or 6.4% in constant currency.

Negative Updates

RELEX Implementation Delayed

The company will not complete the RELEX forecasting and replenishment implementation by the second quarter of fiscal 2027 as previously communicated. Setting up local vendors and merchandise-management processes is taking longer than expected, and management did not provide a specific new completion date.

Company Guidance

Management said it does not give guidance on store openings or specific numbers, but intends to keep growing the business at a sustainable pace; four warehouse clubs are anticipated to open—Jamaica in December 2026, Guatemala in late winter of 2027, Costa Rica in spring of 2027, and Chile in spring of 2027—bringing the total to 63 warehouse clubs. The company plans to open three more distribution centers in Jamaica, in the Dominican Republic, and in Chile in fiscal year 2027, while the Chile distribution center is expected to be third-party operated; it also expects to complete the first phase of Workday, continue Elera’s rollout, and finish the RELEX implementation as soon as practicable, but intentionally did not provide a specific closure date. Management said it does not guide on future effective tax rates and expects technology investments to continue, while Chile startup costs were about $4.2 million in FY 2026.

Pricesmart Financial Statement Overview

Summary

Solid operating profile supported by steady multi-year revenue growth and stable profitability for a discount retailer, plus a notably strong and improving balance sheet with low leverage (debt-to-equity down to ~0.15). The main offset is uneven free cash flow consistency despite a strong 2026 rebound, and limited visibility into the latest-year margin detail due to missing/zeroed gross/EBIT margin fields in the dataset.

Income Statement

74Positive

Balance Sheet

82Very Positive

Cash Flow

67Positive

Financial statement breakdown
Breakdown	TTM	Aug 2026	Aug 2025	Aug 2024	Aug 2023	Aug 2022
Income Statement
Total Revenue	5.88B	5.88B	5.27B	4.91B	4.41B	4.07B
Gross Profit	1.04B	1.04B	914.37M	846.92M	758.57M	679.53M
EBITDA	350.62M	343.97M	306.17M	297.00M	252.93M	233.90M
Net Income	165.36M	166.59M	144.90M	137.12M	107.89M	103.29M
Balance Sheet
Total Assets	2.60B	2.60B	2.27B	2.02B	2.01B	1.81B
Cash, Cash Equivalents and Short-Term Investments	332.20M	332.20M	325.27M	225.53M	331.06M	248.87M
Total Debt	316.07M	316.07M	329.06M	249.63M	278.18M	281.36M
Total Liabilities	1.15B	1.15B	1.02B	899.73M	898.57M	817.33M
Stockholders Equity	1.46B	1.46B	1.25B	1.12B	1.11B	991.07M
Cash Flow
Free Cash Flow	96.39M	96.39M	103.17M	39.04M	114.82M	1.17M
Operating Cash Flow	307.74M	307.74M	261.31M	207.59M	257.33M	121.83M
Investing Cash Flow	-253.73M	-253.73M	-128.88M	-175.45M	-222.08M	-74.76M
Financing Cash Flow	-81.99M	-82.00M	14.20M	-150.03M	-41.05M	-12.21M

Pricesmart Technical Analysis

Technical Analysis SentimentNegative

Last Price166.50

Price Trends

50DMA169.30Negative

100DMA176.79Negative

200DMA166.88Negative

Market Momentum

MACD-1.53Negative

RSI48.34Neutral

STOCH58.47Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PSMT, the sentiment is Negative. The current price of 166.50 is below the 20-day moving average (MA) of 167.30, below the 50-day MA of 169.30, and below the 200-day MA of 166.88, indicating a bearish trend. The MACD of -1.53 indicates Negative momentum. The RSI at 48.34 is Neutral, neither overbought nor oversold. The STOCH value of 58.47 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PSMT.

Pricesmart Risk Analysis

Pricesmart disclosed 30 risk factors in its most recent earnings report. Pricesmart reported the most risks in the "Ability to Sell" category.

Ability to Sell - Risks related to the company’s ability to sell goods and services

Latest Risks Added

3 New Risks

1.Any significant interruption in the operations of our distribution centers or supply chain network could disrupt our ability to provide adequate supplies of merchandise to our warehouse clubs.Q3, 2025

2.We are vulnerable to changes in political and economic conditions, including the effects of tariffs and/or international trade wars and disruptions to remittances.Q3, 2025

3.We are vulnerable to changes in political and economic conditions, including the effects of tariffs and/or international trade wars and disruptions to remittances.Q2, 2025

Pricesmart Peers Comparison

Overall Rating

UnderperformOutperform

Sector (62)

Financial Indicators

PSMT against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BJ	80Outperform	$13.95B	24.02	27.35%	―	9.09%	4.77%
COST	80Outperform	$472.44B	52.34	28.02%	0.53%	10.14%	13.92%
WMT	79Outperform	$996.08B	45.37	22.74%	0.78%	6.16%	4.00%
TGT	68Neutral	$73.50B	16.81	26.66%	2.83%	1.95%	12.49%
PSMT	67Neutral	$5.16B	30.83	12.06%	0.84%	11.50%	11.98%
Sector *	62Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
TBBB	57Neutral	$8.58B	-75.15	-37.14%	―	52.50%	-11.43%

* Consumer Defensive Sector Average

Performance Comparison

PSMT and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
PSMT	Pricesmart	166.50	51.36	44.61%
COST	Costco Wholesale Corp.	1087.61	167.95	18.26%
TGT	Target Corp	162.70	75.13	85.79%
WMT	Walmart Inc.	125.67	23.98	23.59%
BJ	Bj's Wholesale Club Holdings	110.71	16.72	17.79%
TBBB	BBB Foods, Inc. Class A	67.49	41.19	156.62%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Oct 27, 2026

Pricesmart AI Stock Analysis