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Stocks
PriceSmart, Inc.
PSMT

PSMT PriceSmart, Inc.

PriceSmart, Inc. · NASDAQ
Market Closed
170.81
▲ ⁦+0.77%⁩ (+1.30)
Market Cap$5.3B
Beta0.79
52w Low52w High
108.60199.84
Last Week
⁦-0.73%⁩
Last Month
⁦-1.19%⁩
Last 3 Months
⁦-2.25%⁩
Last Year
⁦+54.17%⁩
EL7 Factor Analysis
How we score this
Overall63
Balanced — near the middle of the marketMomentum TrapF 6/9SafeBetter than 63% of Market stocks, per EL7's model
FactorScoreDistributionValueAvgRank
▸
Valuation
42
32.8x▼17.8xAround median
▸
Growth
55
10.2%▲7.1%Around median
▸
Quality
45
11.9%▲4.5%Around median
▸
Safety
83
0.2x▲2.6xTop tier
▸
Capital Return
33
0.74%▼2.12%Bottom tier
▸
Momentum
80
50.8%▲2.9%Top tier
▸
Sentiment
22
2▼3Bottom tier
Fair Value
Low confidenceCurrent price$171
Analyst target · 1 analysts
$198
⁦+16%⁩
See it undervalued
Range ⁦$198–$198⁩
vs
DCF (estimate)
$66
⁦-61%⁩
Sees it clearly overvalued
⁦7.9⁩% discount · ⁦8⁩% growth
Bottom lineThe two methods disagree — estimate range ⁦$66–$198⁩.

Estimates — analyst targets and a simplified DCF, not investment advice.

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Analyst Consensus

This section combines price targets, revision history, analyst coverage changes, and an AI summary of what changed on the Street.

Price Target· 1 analysts setting price target
$198.00
⁦+15.9%⁩
Current Price $170.81·Median $198.00
Low
$198.00
High
$198.00
Street summary

PriceSmart (PSMT) Price Target Revision Analysis

Bullish tilt

PriceSmart stock saw a sharp upward revision in its price target over the past thirty days, with the average forecast jumping from $83.5 to $198, an increase of 137.13%. This adjustment reflects significant optimism, especially with the maintenance of a "Buy" rating by Jefferies in August 2026, placing the current price target 12.7% above the current trading price of $175.61.

As of 2026-08-19
Revisions momentum · 30d
⁦0.0%⁩
Average rating
★ 3.33
Hold
Analyst coverage
3
Buy conviction
33%
Target dispersion
0%
Analyst ratings over time3 analysts rating
1
2
Strong BuyBuyHoldSellStrong Sell
Rating trend — last 12 months3.67 → 3.33
Recent analyst moves
  • = Reiterate2026-08-12
    Jefferies
    Buy
  • ⬇ Downgrade2026-04-13
    Kansas City Capital
    Perform
  • = Reiterate2024-04-17
    Jefferies
    Buy· $90.00
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Key Financials

Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.

StockSector medianSector averagetypical sector range
MetricValuePosition within sectorVerdict
  • P/E (TTM)
    32.79x
    4.61x36.85x
    Above average
  • Forward P/E
    25.34x
    3.86x30.86x
    Expensive
  • EV / EBITDA
    15.46x
    2.86x22.90x
    Near median
  • FCF Yield
    1.4%
    -37.4%14.9%
    Strong
  • Revenue Growth YoY
    10.2%
    -16.7%29.2%
    Above average
  • EPS Growth YoY
    9.7%
    -135.4%136.3%
    Above average
  • Gross Margin
    17.6%
    9.2%67.5%
    Below average
  • ROIC
    11.9%
    -29.3%20.8%
    Strong
  • Net Debt / EBITDA
    0.18x
    0.61x4.86x
    Low debt
  • Dividend Yield
    0.7%
    0.9%8.3%
    Low
  • Payout Ratio
    24.2%
    15.9%176.6%
    Low
  • Altman Z-Score
    6.12
    -4.825.90
    Exceptional
Financial Analysis
|

Stock Analysis

AI-generated
Based on 2026-07-09 data

Company Overview

PriceSmart operates a membership-based warehouse club network in 14 countries and generates most of its revenue from the sale of food and non-food merchandise, along with pharmacy, optical, audiology, food service, bakery, and tire center services. In the third quarter of fiscal 2026, it had 57 clubs, comprising 32 in Central America, 15 in the Caribbean, and 10 in Colombia, while membership income represented 1.7% of revenue; membership accounts exceeded 2.1 million, of which 21.3% were Platinum accounts.

In the third quarter of fiscal 2026, ended May 31, 2026, total revenue and net merchandise sales approached $1.5 billion, and net merchandise sales increased 12.5%, or 8.5% in constant currency. Gross profit according to EDGAR data was approximately $262.2 million, net income reached $39.7 million, and diluted earnings per share reached $1.28; operating income also increased 16.7% to $65.6 million, equivalent to an operating margin of 4.4% compared with 4.3% in the third quarter of fiscal 2025.

The total revenue margin improved by 30 basis points to 17.7% in the third quarter of fiscal 2026, and the merchandise gross margin increased 20 basis points to 16%, supported by non-food merchandise. Food sales grew 12.5% and non-food merchandise sales grew 12.3%, while food service and bakery sales increased 12.6% and health services increased 14.3%. By region, Colombia recorded the strongest net sales growth at 35.3%, or 18.6% in constant currency, compared with 10.6% in Central America and 6.8% in the Caribbean.

What's Driving the Stock

  • Comparable merchandise sales increased 10.7% in the third quarter of fiscal 2026, or 6.9% in constant currency, driven by 7.1% growth in transaction count and a 5% increase in average basket value, despite a 1% decline in the number of items per basket.
Earnings callEDGAR filings30-day newsInsider activity

Automated analysis for informational purposes only — not investment advice.

Membership became an increasingly important driver; membership income increased 17.6% in the third quarter of fiscal 2026, accounts grew 8.6% to more than 2.1 million, and the 12-month renewal rate reached a record 90.5% as of May 31, 2026.
  • Digital channel sales reached $99.6 million in the third quarter of fiscal 2026, up 26.2%, and accounted for 6.9% of net merchandise sales. Direct orders through the website and app also grew 20.3%, and the average digital transaction value increased 4.4%.
  • The network is expanding from 57 to 63 clubs following the opening of six announced clubs, including the first club in Chile inside Mallplaza Los Dominicos in spring 2027. The company plans to spend approximately $100 million on its first three clubs and central offices in Chile over several fiscal years, in addition to opening a location in Santo Tomás de Santo Domingo in Costa Rica in spring 2027.
  • Colombia contributed approximately 420 basis points to consolidated comparable sales growth in the third quarter of fiscal 2026, with its comparable sales growing 35.7%, or 18.9% in constant currency. The new distribution center in Bogotá began operations during the same quarter to capitalize on the concentration of local production and improve logistics.
  • The beginning of the fourth quarter of fiscal 2026 showed continued demand; comparable merchandise sales increased 11.2%, or 6.5% in constant currency, during the four weeks ended June 28, 2026.
  • Buying & Selling Case

    ▲ Buying Case4 pts

    • +The membership model combines sales growth with higher customer retention; the renewal rate reached 90.5%, and the share of Platinum accounts increased from 16.1% to 21.3% between May 31, 2025 and May 31, 2026, supporting repeat visits and higher spending.
    • +Profit improved at a pace consistent with sales in the third quarter of fiscal 2026; net income increased 12.3% to $39.7 million, adjusted earnings before interest, taxes, depreciation, and amortization rose 14.5% to $90.4 million, and the operating margin improved to 4.4%.
    • +Geographic expansion provides an additional growth path, with six announced clubs increasing the total to 63, a significant initial investment in Chile, and encouraging early performance from the La Romana club, which opened in May 2026.
    • +Nontraditional growth channels are advancing faster than total sales; digital sales grew 26.2%, health services grew 14.3%, and membership income increased 17.6% in the third quarter of fiscal 2026, while private-label products represented 26.7% of merchandise sales under the updated methodology.

    ▼ Selling Case6 pts

    • −Results are exposed to currency risks across several markets; net other expenses increased to a loss of $10.5 million in the third quarter of fiscal 2026 from $7.2 million in the comparable quarter, and the company attributed the increase primarily to additional foreign currency transaction costs.
    • −U.S. dollar liquidity in Trinidad remained constrained through May 31, 2026, with 44.1 million Trinidad dollars in cash and local investments that could not readily be converted. Management confirmed that it did not see a material change in market conditions or in the long-term trend, leaving the premium on the cost of obtaining U.S. dollars in place and volatile between quarters.
    • −Operating income in Colombia declined despite strong sales growth because of higher warehouse operating costs and labor market changes, including a reduction in the permitted workweek from 44 to 42 hours before overtime applies. Colombia represents a strategic, fast-growing market, so continued cost pressure could limit the conversion of sales growth into profit.
    • −Entering Chile increases execution risk and spending before achieving economic scale; the company expects to invest approximately $100 million in its first three clubs and central offices over several fiscal years, and preopening expenses contributed approximately 10 basis points to selling, general, and administrative expenses in the third quarter of fiscal 2026.
    • −Trade policy volatility and tensions in the Middle East are pressuring fuel, freight, and energy, while inflation affects purchasing power and consumers' price sensitivity in PriceSmart's markets. Inventories also increased under a policy of improving merchandise availability, and the related working capital movements consumed $9 million of operating cash flow during the first nine months of fiscal 2026.
    • −The analyst consensus reflects a neutral rating, while the $198 target nearly matches the 52-week range high of $199.84, with no difference between the highest and lowest targets. Insiders also recorded net sales of $5.9 million through 18 sales and no purchases during the three months ended with the latest transaction on August 17, 2026; this is a weak signal on its own because insider sales may be prearranged unless the context proves otherwise.

    Valuation

    The analyst consensus is neutral, with an average price target of $198 and identical high and low targets of $198; therefore, the consensus does not reflect an independent range of views that can be used to gauge uncertainty. The target is very close to the 52-week range high of $199.84, compared with a low of $106.87, while the provided data does not include a valid comparable price-to-earnings multiple; accordingly, the stock's valuation remains tied to whether membership growth and expansion in Chile can offset currency risks and cost pressure.

    HoldAnalyst target: $198(+15.9%)

    Figures in the text are as of 2026-08-30; the live price is shown at the top of the page.

    FAQ

    What drove PSMT's growth in the third quarter of fiscal 2026?

    Revenue and net merchandise sales approached $1.5 billion, and net merchandise sales increased 12.5%, or 8.5% in constant currency. Transactions grew 7.1% and average basket value increased 5%, while the average price per item rose 6% and the number of items per basket declined 1%. Colombia recorded the fastest growth, with comparable sales increasing 35.7%, or 18.9% in constant currency.

    How important are membership and Platinum to PriceSmart's earnings?

    The number of accounts exceeded 2.1 million as of May 31, 2026, representing annual growth of 8.6%. Membership income increased 17.6% in the third quarter of fiscal 2026 and remained equivalent to 1.7% of revenue. The share of Platinum accounts also reached 21.3%, compared with 16.1% a year earlier, and the 12-month renewal rate reached a record 90.5%.

    How is PriceSmart's digital business growing?

    Digital channel sales reached $99.6 million in the third quarter of fiscal 2026, the highest dollar amount recorded by the company in the provided context. These sales increased 26.2% and represented 6.9% of net merchandise sales, while direct orders through the website and app grew 20.3%. As of May 31, 2026, 75.8% of members had created an online profile, and 27.1% of them had made a purchase through pricesmart.com or the app.

    What does PriceSmart's expansion into Chile mean for shareholders?

    During the third quarter of fiscal 2026, the company signed a lease for its first club in Chile inside Mallplaza Los Dominicos in Santiago, with an expected opening in spring 2027. It also entered into executory agreements to purchase land for two additional potential locations and estimates capital spending of approximately $100 million for its first three clubs and central offices over several fiscal years. This represents an opportunity to build a multi-club market, but it requires early startup costs that amounted to approximately 10 basis points of selling, general, and administrative expenses in the third quarter of fiscal 2026.

    What are the main currency and cost risks facing PSMT?

    The company recorded net other expenses of $10.5 million in the third quarter of fiscal 2026, compared with $7.2 million a year earlier, with foreign currency transaction costs being the primary reason for the increase. As of May 31, 2026, it held 44.1 million Trinidad dollars in cash and local investments in Trinidad that could not readily be converted into U.S. dollars. Management also indicated that global trade volatility and tensions in the Middle East are pressuring fuel, freight, and energy and increasing consumers' price sensitivity.

    Did PriceSmart's profitability improve in the third quarter of fiscal 2026?

    Operating income increased 16.7% to $65.6 million, and its margin improved to 4.4% of revenue from 4.3% in the third quarter of fiscal 2025. Net income rose 12.3% to $39.7 million, or $1.28 per diluted share, while adjusted earnings before interest, taxes, depreciation, and amortization increased 14.5% to $90.4 million. In contrast, selling, general, and administrative expenses increased to 13.3% of revenue from 13.2%, partly because of costs supporting the launch in Chile.