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what it is
PriceSmart runs membership warehouse clubs that sell groceries and household goods across Latin America and the Caribbean.
how it gets paid
Last year Pricesmart made $5.3B in revenue. Food and perishables was the main engine at $2.20B, or 42% of sales.
why it's growing
Revenue grew 7.2% last year. Sales grew. Earnings did too, but not enough to clear the bar.
what just happened
PriceSmart missed EPS at $1.29 while revenue still climbed 10% to $1.4B.
At a glance
B++ balance sheet — above average — nothing keeping you up at night
100/100 earnings predictability — you can trust these numbers
26.4x trailing p/e — priced about right
1.1% dividend yield — cash in your pocket every quarter
14.5% return on capital — nothing to write home about
xvary composite: 61/100 — average
What they do
PriceSmart runs membership warehouse clubs that sell groceries and household goods across Latin America and the Caribbean.
You pay an annual fee, then keep shopping. That habit is backed by 54 warehouses across 12 countries, so leaving is annoying and buying is routine. The company also has a 100 earnings predictability score, which means profits have been very steady.
How they make money
$5.3B
annual revenue · their business grew +7.2% last year
Food and perishables
$2.20B
General merchandise
$1.85B
Private-label goods
$0.55B
Membership fees
$0.32B
Other revenue and income
$0.38B
The products that matter
membership warehouse retail
Food & Beverage
$5.3B revenue · entire business
it's the whole company today: $5.3B in annual revenue generated on a 2.9% net profit margin, so execution matters more than storytelling.
core engine
Key numbers
$5.50
fy2026 eps est
$6B
fy2026 rev est
26.4x
trailing p/e
1.1%
dividend yield
Financial health
B++
strength
- balance sheet grade B++ — above average financial health
- risk rank 3 — safer than 50% of stocks
- price stability 85 / 100
- long-term debt $148M (4% of capital)
- net profit margin 3.1% — keeps 3 cents of every dollar in revenue
- return on equity 14% — $0.14 profit for every $1 investors have put in
B++ — functional but not a standout on the balance sheet.
Total return vs. market
You invested $10,000 in PSMT 3 years ago → it's now worth $22,130.
The index would have given you $14,770.
source: institutional data · total return
What just happened
missed estimates
PriceSmart missed EPS at $1.29 while revenue still climbed 10% to $1.4B.
Sales grew. Earnings did too, but not enough to clear the bar. EPS came in 7.86% below the $1.40 estimate.
$1.4B
revenue
$1.29
eps
10%
revenue growth
the number that mattered
EPS of $1.29 missed the $1.40 estimate by 7.86%, which says cost control, not demand, is the issue.
-
pricesmart started fiscal year 2026 on solid footing (year ends august 31st).
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the company reported comparable net merchandise sales up 7.2% (6.5% in constant currency) through the first eight weeks of the november quarter.during that period, the elera point-of-sale system rollout was completed across englishspeaking caribbean markets, and the initial implementation of workday’s human capital management platform began. operations have already started at a new dry distribution center in guatemala, and the panama facility has been adapted to handle cold merchandise. management’s anticipated ‘‘year of growth’’ for fiscal 2026 hinges on aggressive physical and operational expansion. three new clubs are scheduled to open: la romana, dominican republic, in spring 2026, montego bay, jamaica, in summer 2026, and kingston, jamaica, in fall 2026. the company is also advancing its entry into chile, having hired a general manager and secured a club site. supply chain investments include new companyrun distribution centers in trinidad and the dominican republic.
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these should reduce lead times and lower total ‘‘door-todoor’’ product sourcing costs.
-
further, the migration to the relex forecasting system should improve in-stock availability.
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digital enhancements include an upgraded mobile app for better performance on iphone and android devices, along with expanded benefits for high-value platinum membership offerings.several financial headwinds temper this optimistic outlook and warrant monitoring throughout the fiscal year. general and administrative expenses will rise as the company resumes ceo compensation following an interim period without such costs. currency liquidity remains challenging, particularly in honduras, due to strict controls and in trinidad, where the company held nearly $60 million in local currency as of august 31, 2025. management also acknowledges potential risks from changes in u.s. remittance flows to key central american markets, though consumption impacts have not yet materialized.
source: company earnings report, 2026
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What could go wrong
the #1 risk here is currency controls and trapped cash in trinidad and honduras.
high
currency controls and liquidity friction
Management flagged tighter currency liquidity in honduras, and the company held nearly $60M in trinidad local currency as of august 31, 2025.
that cash matters more when your entire business runs at a 2.9% net margin
med
expansion execution risk
Three new clubs are scheduled in 2026, chile is being prepared, and multiple distribution projects are rolling out at the same time.
more moving parts can lift revenue — or create a very expensive to-do list
med
expense growth outrunning sales
Management already warned that general and administrative expense will rise as CEO compensation returns and new infrastructure ramps.
with only 2.9 cents kept per revenue dollar, small cost increases hit earnings fast
low
remittance-linked consumer softness
Management acknowledged potential risk from changes in U.S. remittance flows into key central american markets.
if that spending pressure shows up, it can touch the whole $5.3B retail engine
Nearly $60M held in trinidad local currency and rising operating costs are not abstract risks. in a business earning 2.9% on $5.3B of sales, they go straight to the investment case.
source: institutional data · regulatory filings · risk analysis
Pay attention to
the number
7.2% comparable sales growth
If that number holds or improves, the expansion story has demand behind it. if it fades, you're left paying 26.4x trailing earnings for a low-margin retailer.
calendar
the three club openings scheduled for 2026
La romana, montego bay, and kingston are the visible milestones. on-time openings matter because the market is already looking for revenue to move toward $6B.
risk
currency liquidity in trinidad and honduras
Nearly $60M trapped in trinidad local currency is not a footnote. it is a reminder that this company operates where finance is part of operations.
trend
whether new systems actually widen the margin
Elera, Workday, RELEX, and new distribution centers all promise cleaner execution. the real test is simple: does net margin move meaningfully above 2.9%.
Analyst rankings
short-term outlook
average
momentum score 3. in human-speak, analysts see a steady stock, not a near-term breakout.
risk profile
average
stability score 3 means typical stock risk. the business is stable, but the operating environment is not sleepy.
chart momentum
average
technical score 3 says the chart is behaving normally. no panic. no obvious euphoria either.
earnings predictability
100 / 100
predictability this high is unusual in retail. you usually know what kind of quarter you're getting here.
source: institutional data
Institutional activity
145 buyers vs. 149 sellers in 3q2025. total institutional holdings: 27.3M shares.
source: institutional data
Price targets
3-5 year target range
$83
$151
$127
current price
$117
target midpoint · 8% from current · 3-5yr high: $190 (+50% · 13% ann'l return)
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