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PriceSmart (PSMT) Earnings Put Fair Value Back In Focus

Simply Wall St · 3d ago

PriceSmart earnings: what the latest figures tell investors

PriceSmart (PSMT) recently reported third quarter and nine month results that showed higher revenue and net income compared with the same periods a year earlier, putting fresh focus on the stock after the filing.

For the third quarter ended May 31, 2026, PriceSmart reported revenue of US$1,481.79 million and net income of US$39.69 million, with basic and diluted earnings per share from continuing operations of US$1.28.

See our latest analysis for PriceSmart.

PriceSmart's recent earnings update comes after a strong run in the stock, with a 51.21% year to date share price return and a 76.89% total shareholder return over the past year suggesting momentum has been building rather than fading.

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PriceSmart appears to be a solid warehouse club business with growing revenue and earnings. After a rapid share price move and a market value above US$5b, the key issue now is how that strength lines up with today’s valuation.

Most Popular Narrative: 21.6% Overvalued

Compared with the latest fair value estimate of $153.33, PriceSmart’s last close at $186.49 reflects a clear premium that the prevailing narrative tries to explain using detailed growth and profitability assumptions, all discounted at 7.11%.

The analysts have a consensus price target of $153.33 for PriceSmart based on their expectations of its future earnings growth, profit margins and other risk factors.

However, there is a degree of disagreement amongst analysts, with the most bullish reporting a price target of $165.0, and the most bearish reporting a price target of just $135.0.

Read the complete narrative.

Want to see what kind of revenue path and margin uplift needs to materialise to support that fair value, along with a richer future P/E than the broader consumer retail group, all based on a steady discount rate assumption and expanding club footprint projections?

Result: Fair Value of $153.33 (OVERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, PriceSmart still faces FX pressures and higher logistics and technology expenses that, if not well managed, could weigh on margins and investor confidence.

Find out about the key risks to this PriceSmart narrative.

Next Steps

With PriceSmart balancing both risks and rewards, this is a moment to move quickly, review the data yourself, and shape your own stance by weighing the 2 key rewards and 1 important warning sign.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.