This firm currently holds 270.3
M in liabilities with Debt to Equity (D/E) ratio of 0.3, which may suggest the firm is not taking enough advantage from borrowing. The company has a current ratio of 1.28, suggesting that it may have difficulties to pay its financial obligations when due.
The company holds a Beta of 1.098, which implies a somewhat significant risk relative to the market. Let's try to break down what Pricesmart's beta means in this case. Pricesmart returns are very sensitive to returns on the market. As the market goes up or down, Pricesmart is expected to follow. Even though it is essential to pay attention to
Pricesmart current trending patterns, it is always good to be careful when utilizing equity existing
price patterns. Our philosophy towards forecasting any stock's
future performance is to check both, its past performance charts as well as the business as a whole, including all available
technical indicators. Pricesmart exposes twenty-eight different technical indicators, which can help you to evaluate its performance.
Pricesmart has an expected return of -0.12%. Please be advised to check Pricesmart
treynor ratio, as well as the
relationship between the expected short fall and
day median price to decide if
Pricesmart performance from the past will be repeated at some point in the near future.
We determine the current worth of PriceSmart using both absolute as well as relative valuation methodologies to arrive at its intrinsic value. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of PriceSmart based exclusively on its
fundamental and basic
technical indicators. By analyzing PriceSmart's
financials, quarterly and monthly indicators, and related drivers such as
dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of
PriceSmart's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of PriceSmart. We calculate exposure to PriceSmart's
market risk, different
technical and
fundamental indicators, relevant financial multiples and ratios, and then
comparing them to PriceSmart's related companies.
PriceSmart Investment Alerts
PriceSmart investment alerts and warnings help investors to get more proficient at understanding not only critical technical and fundamental signals but also the significant portfolio-centered indicators. These indicators include beta, alpha, and other risk-related measures that will help you in monitoring PriceSmart performance across your portfolios.Please check all
investment alerts for PriceSmart
PriceSmart Valuation Ratios as Compared to Competition
Our valuation model uses many indicators to compare PriceSmart value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across PriceSmart competition to find
correlations between indicators driving the intrinsic value of PriceSmart.
PriceSmart Gross Profit
PriceSmart Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing PriceSmart previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show PriceSmart Gross Profit growth over the last 10 years. Please check PriceSmart's
gross profit and other
fundamental indicators for more details.
Breaking it down
Pricesmart reported the previous year's revenue of 3.62
B. Net Income was 96.68
M with profit before overhead, payroll, taxes, and interest of 644.53
M.
Margins Breakdown
Pricesmart profit margins show the degree to which it makes money. Margin indicators are used not only by investors but also by creditors or Pricesmart itself as indicators of financial health and management effectiveness. Please look more closely at the different varieties of Pricesmart profit margins.
| Operating Margin | 5.43 |
| EBITDA Margin | 7.13 |
| Gross Margin | 15.32 |
| Profit Margin | 3.41 |
Pricesmart Average Assets is comparatively stable at the moment. Further, Pricesmart Earnings Before Interest Taxes and Depreciation Amortization EBITDA is comparatively stable at the moment.
Will Pricesmart continue to gain?
Newest Risk Adjusted Performance is up to -0.04. Price may drop again. Pricesmart exhibits very low volatility with skewness of -0.49 and kurtosis of 3.48. However, we advise investors to further study Pricesmart technical indicators to make sure all market info is available and is reliable. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Pricesmart's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Pricesmart's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.
Pricesmart Implied Volatility
Pricesmart's implied volatility exposes the market's sentiment of Pricesmart stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Pricesmart's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Pricesmart stock will not fluctuate a lot when Pricesmart's options are near their expiration.
Our Final Take On Pricesmart
Whereas other entities within the discount stores industry are still a little expensive, even after the recent corrections, Pricesmart may offer a potential longer-term growth to private investors. With an impartial outlook on the current market volatility, it may be better to hold off any inventment activity and neither take over nor drop any shares of Pricesmart at this time. The Pricesmart risk-reward trade off is not appealing enough to do any trading. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Pricesmart.
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Gabriel Shpitalnik is a Member of Macroaxis Editorial Board. Gabriel is a young entrepreneur and writes predominantly on the business, technology, and finance sector. He likes to analyze different equity instruments across a wide range of industries focusing primarily on consumer products and evolving technologies.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Gabriel Shpitalnik do not own shares of PriceSmart. Please refer to our
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