PSMT Financial Analysis

Analysis Date: 1/27/2025

Business Model

PriceSmart generates revenue primarily through membership warehouse club operations selling merchandise and services across Latin America and Caribbean markets

Revenue Sources

• Net merchandise sales (97.3% of Q1 2025 revenue): $1.22 billion
• Membership income (1.6% of Q1 2025 revenue): $20.2 million
• Export sales and other revenue (1.1% of Q1 2025 revenue): $13.9 million

Revenue Distribution by Channel

• 54 warehouse clubs across 12 countries and one U.S. territory
• Omni-channel sales represent 5.7% of total net merchandise sales

Income Statement Analysis

• Total revenues increased 7.8% to $1.26 billion
• Net merchandise sales grew 7.8% to $1.22 billion
• Membership income increased 13.8% to $20.2 million

Balance Sheet Analysis

• Strong current ratio of 1.3x
• Low debt-to-equity ratio of 10%

Cash Flow Analysis

• Capital expenditures of $28.4 million in Q1 2025

Capital Allocation

Company maintains disciplined capital allocation focused on new club openings, remodels, and technology investments. Plans to open new clubs in Costa Rica and Guatemala in 2025.

Management Commentary

Strong comparable sales growth of 5.7%

Membership income grew 13.8% year-over-year

Maintained strong margins despite currency headwinds

Overall Sentiment: Positive with continued focus on execution and growth initiatives

Recommendation

Rating: Buy

Reason for Rating: Strong fundamental performance and attractive growth prospects

Disclaimer: This analysis is based on company filings and public information. It is for informational purposes only and not financial advice. Past performance does not guarantee future results.

Generated on: 1/27/2025, 2:21:25 PM