PriceSmart trades as part of the consumer defensive sector and is in the retail defensive industry. The company CEO is Sherry S. Bahrambeygui. Pricesmart Inc through its subsidiaries is engaged in the ownership and operation of membership shopping warehouse clubs under the trade name PriceSmart in Central America and the Caribbean.



Previous Intraday Performance:

The PSMT shares had a previous change of 1.00% which opened at 63.37 and closed at 63.73. It moved to an intraday high of 64.33 and a low of 63.22.

PR Newswire:  PriceSmart Announces February Merchandise Sales; also Announces Earnings Release and Conference Call Dates for Second Quarter Fiscal Year 2019 Financial Results

Historical Performance:

Over the last five trading days, PSMT shares returned 3.17% and in the past 30 trading days it returned 2.07%. Over three months, it changed 2.57%. In one year it has changed -20.78% and within that year its 52-week high was 94.45 and its 52-week low was 55.53. PSMT stock is 14.77% above its 52 Week Low.

Our calculations result in a 200 day moving average of 74.29 and a 50 day moving average of 62.55. Right now, PSMT stock is trading -14.21% below its 200 day moving average and may not be a great opportunity to buy as it may continue to trend down.

PR Newswire:  PriceSmart Announces February Merchandise Sales; also Announces Earnings Release and Conference Call Dates for Second Quarter Fiscal Year 2019 Financial Results

Liquidity:

The company has a market cap of $1.9b with 30.5m shares outstanding and a float of 27.3m shares. Trading volume was 133,733 shares and has experienced an average volume of 123,862 shares. Our calculation, using the current average volume and close price, leads me to believe that the liquidity is bad, highly speculative and an investor may want to avoid this stock.

Earnings:

The last annual reported EPS for PriceSmart was 2.44 which ended on 31st of August 2018, which according to the previous close, that is a PE of 26.12. Based on 1 analyst estimate, the estimated EPS for the next quarter is 0.68. The trailing twelve month EPS is 2.95, which comes to a trailing twelve month PE of 21.60. Historically, the PE high was 45.60 and the PE low was 21.60. PSMT stock has set a new PE low record!

Below was the last reported quarterly earnings per share:
11-30-2018:  0.69
08-31-2018:  0.71
05-31-2018:  0.61
02-28-2018:  0.89

The dividend per share is currently 0.70, which is a dividend yield of 1.10%. Also, the payout ratio is 23.73%, therefore the dividend is safe according to our calculations.

Base on our calculations, the intrinsic value per share is 33.09, which means it might overvalued by -92.60%



The next earnings report will be: 04-17-2019

The growth of the EPS is critical in understanding the current valuation of PriceSmart; the EPS growth rate, as it is usually called, is typically displayed as a percentage, which at this time is hard to estimate, but revenue growth has been 4.80% over the last twelve months.

Indicators Also to Watch:

Based on the latest filings, there is 110.10% of institutional ownership.

I calculated the beta to be 0.88

SeekingAlpha:  Retail sales winners and losers

Fundamental Numbers:

Based on last reported financials, the company’s return on equity is 8.98%, return on assets is 5.38%, profit margin is 2.27%, price-to-sales is 0.83 and price-to-book is 2.51.

Company Score Card:

Results are out of six:
 3  : Growth Expectations Result
 6  : Financial Safety Result
 0  : Past Performance Result
 0  : Valuation Result
 3  : Dividend Safety Result
 2  : Overall Result

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Jake McWilliams
I am an independent trader, analyst and algorithmic trading expert, having worked both for the sell side (brokerage) and the buy side (fund administration). I have been trading professionally for about 20 years. I trade stocks and forex and I play both long and short positions in underlying asset or through options. I have experience with discretionary and fully automated systems (Metatrader and Quantshare).

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