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Is this Large Market Cap Stock target price reasonable for PriceSmart Inc. (NASDAQ:PSMT)?

The company in question is, PriceSmart Inc. (NASDAQ:PSMT) currently with a stock price of 85.85 (0.69% today). The market cap for PriceSmart Inc. is 2507.5, and is in the sector Services, and Discount, Variety Stores industry. The target price for PriceSmart Inc. is 95. Currently PriceSmart Inc. is trading with a P/E of 29.14, and a forward P/E of 26.58. Average volume for PriceSmart Inc. is 121.36 and so far today it is 93436.

Performance in the last year for PriceSmart Inc. has been 6.47%. For EPS growth, PriceSmart Inc. has seen a growth of -3.90%, and is looking to grow in the next year to 11.66%. More long term stats show that EPS growth has been 12.20% over the last five years and could be 15.00% for the next five years. PriceSmart Inc. has seen sales growth quarter over quarter at 1.00%, with EPS growth quarter over quarter at -21.10%. The 20-day simple moving average is 3.77%, with the 200-day simple moving average coming to 4.51%.

Since the IPO date for PriceSmart Inc. on the 09/02/1997, PriceSmart Inc. has seen performance year to date to be 3.66%. With PriceSmart Inc. trading at 85.85, the dividend yield is 0.82%, and the EPS is 2.93.

So could PriceSmart Inc., be undervalued? Well as said before P/E is 29.14. The PEG is 1.94, P/S is 0.87 and the P/B is at 4.17. The P/cash is 12.38, with P/free cash flow at 73.1.

PriceSmart Inc. ability to deal with debt shows that the current ratio is 1.4, and the quick ratio is 0.7. This is with long term debt/equity at 0.12, and total debt/equity at 0.16.

In terms of margins, PriceSmart Inc. has a gross margin of 15.70%, an operating margin of 4.90% and a profit margin of 3.10%.Payout ratio for PriceSmart Inc. is 23.60%. Return on assets come to 8.70% with return on investment coming to 14.90%.

Insider ownership for PriceSmart Inc., is at 2.20% and institutional ownership comes to 83.20%. Outstanding shares are at 29.41. While shares float is 21.91. The float short is currently 6.27%, and short ratio is 11.32.

Disclaimer: Remember there is a risk to your investment, this is not a recommendation, nor personal advice, never invest more than you are able too loose.

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Tony Dabbs

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