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Category: PriceSmart (PSMT)
Date: 11 January 2021 Stock price of PriceSmart (PSMT): $99.27 We take a look at the 1st quarter 2021 earnings report of Nasdaq listed PriceSmart (PSMT), a U.S.-style ad based membership shopping warehouse with clubs in the United States, Latin America and the Caribbean, selling high quality merchandise and services at low prices to PriceSmart Members. For the quarter the group reported revenues of $838 million and net income of $27.8 million
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PriceSmart delivered solid results for the first quarter of fiscal year 2021. In November, mobility restrictions were reduced in many of our markets. We meanwhile expanded our Click and Go™ contactless shopping program, which provides for ordering online and curbside pickup, and as of Q1, includes delivery options in all of our markets. "
More About PriceSmart
PriceSmart, headquartered in San Diego, owns and operates U.S.-style membership shopping warehouse clubs in Latin America and the Caribbean, selling high quality merchandise and services at low prices to PriceSmart Members. PriceSmart operates 47 warehouse clubs in 12 countries and one U.S. territory (eight in Costa Rica and Colombia; seven in Panama; five in the Dominican Republic, four in Trinidad and Guatemala; three in Honduras; two each in El Salvador and Nicaragua; and one each in Aruba, Barbados, Jamaica and the United States Virgin Islands). The Company also plans to open new warehouse clubs in Guatemala City, Guatemala and Portmore, Jamaica in the fall of 2021 and the spring of 2022, respectively. Once these two new clubs are open, the Company will operate 49 warehouse clubs.
Overview of PriceSmart 1st quarter 2021 earnings report
Total revenues for the first quarter of fiscal year 2021 increased 8.1% to $877.4 million compared to $811.9 million in the comparable period of the prior year. For the first quarter of fiscal year 2021, net merchandise sales increased 7.7% to $838.4 million from $778.7 million in the first quarter of fiscal year 2020. Foreign currency exchange rate fluctuations impacted net merchandise sales negatively by $27.4 million, or 3.5%, versus the same period in the prior year.
The Company had 46 warehouse clubs in operation as of November 30, 2020 compared to 45 warehouse clubs in operation as of November 30, 2019.
Comparable net merchandise sales for the 43 warehouse clubs that have been open for greater than 13 ½ calendar months increased 3.6% for the 13-week period ended November 29, 2020 compared to the comparable period of the prior year. Foreign currency exchange rate fluctuations impacted comparable net merchandise sales negatively by $27.0 million or 3.5% versus the same period in the prior year.
The Company recorded operating income during the fiscal first quarter of $44.5 million compared to operating income of $30.7 million in the prior year period. Net income attributable to PriceSmart was $27.7 million, or $0.90 per diluted share, in the first quarter of fiscal year 2021 as compared to $19.7 million, or $0.64 per diluted share, in the first quarter of fiscal year 2020.
The data below refers to the latest quarter unless specified otherwise:
The Company had 46 warehouse clubs in operation as of November 30, 2020 compared to 45 warehouse clubs in operation as of November 30, 2019.
Comparable net merchandise sales for the 43 warehouse clubs that have been open for greater than 13 ½ calendar months increased 3.6% for the 13-week period ended November 29, 2020 compared to the comparable period of the prior year. Foreign currency exchange rate fluctuations impacted comparable net merchandise sales negatively by $27.0 million or 3.5% versus the same period in the prior year.
The Company recorded operating income during the fiscal first quarter of $44.5 million compared to operating income of $30.7 million in the prior year period. Net income attributable to PriceSmart was $27.7 million, or $0.90 per diluted share, in the first quarter of fiscal year 2021 as compared to $19.7 million, or $0.64 per diluted share, in the first quarter of fiscal year 2020.
The data below refers to the latest quarter unless specified otherwise:
- Net merchandise sales: $838.4 million (up from $778.7 million from the same quarter of the previous year)
- Merchandise sales increased by 7.6% over the last 12 months
- Total operating expenses: $832.982 million (up from $781.2 million for the same quarter of the previous year)
- Total operating expenses increased by 6.6% over the last 12 months
- Some margin gain for BJ's wholesale as revenues outpaced the growth in their cost of sales.
- Net income: $27.817 million (up from $19.7 million loss for the same quarter of the previous year)
- Diluted earnings per share: $0.90 (up from $0.64 for the same quarter of the previous year)
- PE ratio of PriceSmart: 27.6
- Diluted weighted-average shares outstanding: 30.4 million (up from 30.28 million for the same quarter of the previous year)
- Cash and cash equivalents: $207.955 million
- Cash and cash equivalents per share: $6.84
- Cash and cash equivalents makes up 6.8% of PriceSmart market capital
- Cash and cash equivalents makes up 12.3% of PriceSmart total assets
- Receivables: $15.15 million
- Receivables makes up 0.9% of PriceSmart total assets
- Inventories: $373.2 million
- Inventories makes up 22.2% of PriceSmart total assets
- Stockholders equity in PriceSmart: $867.3 million
- Stockholders equity per share of PriceSmart: $28.5
- So PriceSmart is trading at 3.5 times its stockholders equity per share which is within the expected range of between 2 and 5 times that most firms tend to trade at
- Cash generated from operations for 6 months: $733.692 million
- Cash generated from operations per share for 6 months: $5.25
PriceSmart management commentary on their 1st quarter 2021 earnings report
SAN DIEGO, Jan. 7, 2021 /PRNewswire/ -- PriceSmart, Inc. (NASDAQ: PSMT), operator of 47 warehouse clubs in 12 countries and one U.S. territory, today announced its results of operations for the fiscal first quarter of 2021 which ended on November 30, 2020.
"PriceSmart delivered solid results for the first quarter of fiscal year 2021. In November, mobility restrictions were reduced in many of our markets. We meanwhile expanded our Click and Go™ contactless shopping program, which provides for ordering online and curbside pickup, and as of Q1, includes delivery options in all of our markets.
We continue to improve operating efficiencies while making appropriate investments. Together, these initiatives have contributed to an increase in our operating income of 45.0% to $44.5 million and an earnings increase of 40.6% to $0.90 per diluted share in the first quarter of 2021 compared to the prior-year period.
"PriceSmart delivered solid results for the first quarter of fiscal year 2021. In November, mobility restrictions were reduced in many of our markets. We meanwhile expanded our Click and Go™ contactless shopping program, which provides for ordering online and curbside pickup, and as of Q1, includes delivery options in all of our markets.
We continue to improve operating efficiencies while making appropriate investments. Together, these initiatives have contributed to an increase in our operating income of 45.0% to $44.5 million and an earnings increase of 40.6% to $0.90 per diluted share in the first quarter of 2021 compared to the prior-year period.
Although varying pandemic-related restrictions throughout our markets were on the rise again in December and continue to impact the business in early January, thanks to our tremendous team, we are becoming increasingly adept at early monitoring and quickly adjusting to challenges as they arise, as well as anticipating the needs and preferences of our Members."
PriceSmart (PSMT) stock price history over the last 5 years
The image below, shows the stock price history of PriceSmart (PSMT) for the last 5 years and it's been a ok time for PriceSmart stockholders over the last 5 years. Over the last 5 years the stock of PriceSmart has increased by 37%
The stock of PriceSmart (PSMT) is trading at a lot closer to its 52 week high than it is to its 52 week low which is a clear indication that the short term sentiment and momentum of PriceSmart stock is positive at this point in time.
The stock of PriceSmart (PSMT) is trading at a lot closer to its 52 week high than it is to its 52 week low which is a clear indication that the short term sentiment and momentum of PriceSmart stock is positive at this point in time.
Latest stock valuation of PriceSmart (PSMT)
So what is PriceSmart stock worth based on their 1st quarter 2021 earnings report? Based on their earnings report our valuation model provides a target price (full value price) for PriceSmart at $99.80 a stock
We therefore believe the stock of PriceSmart is fully valued at its current price of $99.27
We usually recommend long term fundamental or value investors look to enter a stock at least 10% below our target price (full value price), which in this case is $99.80, thus a good entry point into The BrightView would be at $89.30 or below.
Since the stock of PriceSmart is trading at very close to our target price we rate the stock of PriceSmart as a hold
We therefore believe the stock of PriceSmart is fully valued at its current price of $99.27
We usually recommend long term fundamental or value investors look to enter a stock at least 10% below our target price (full value price), which in this case is $99.80, thus a good entry point into The BrightView would be at $89.30 or below.
Since the stock of PriceSmart is trading at very close to our target price we rate the stock of PriceSmart as a hold
Next earnings release of PriceSmart (PSMT)
It is expected that PriceSmart will release their 2nd quarter 2021 earnings report in early April 2021
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