PriceSmart Inc
NASDAQ:PSMT

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PriceSmart Inc
NASDAQ:PSMT
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Price: 94 USD 0.07% Market Closed
Market Cap: 2.9B USD
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Gross Margin
PriceSmart Inc

17.2%
Current
17%
Average
32.9%
Industry

Gross Margin is the amount of money a company retains after incurring the direct costs associated with producing the goods it sells and the services it provides. The higher the gross margin, the more capital a company retains, which it can then use to pay other costs or satisfy debt obligations.

Gross Margin
17.2%
=
Gross Profit
846.9m
/
Revenue
4.9B

Gross Margin Across Competitors

Country US
Market Cap 2.9B USD
Gross Margin
17%
Country US
Market Cap 741.1B USD
Gross Margin
25%
Country US
Market Cap 423.6B USD
Gross Margin
13%
Country MX
Market Cap 1T MXN
Gross Margin
24%
Country JP
Market Cap 3.2T JPY
Gross Margin
37%
Country AU
Market Cap 25B AUD
Gross Margin
26%
Country US
Market Cap 12.4B USD
Gross Margin
18%
Country TH
Market Cap 380.9B THB
Gross Margin
16%
Country FR
Market Cap 8.9B EUR
Gross Margin
19%
Country CN
Market Cap 24.2B HKD
Gross Margin
25%
Country TH
Market Cap 93.4B THB
Gross Margin
20%
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PriceSmart Inc
Glance View

Market Cap
2.9B USD
Industry
Retail

PriceSmart Inc. is a unique player in the retail landscape, weaving its narrative through a business model reminiscent of the famed American warehouse club style retailing, but with a specialized focus on Latin America and the Caribbean. Founded in 1993 by Robert Price, PriceSmart has developed a distinct identity, capitalizing on the expanding middle-class population in these regions, and catering to their growing appetite for bulk shopping. The company's strategy revolves around its membership-only model, which not only provides a steady stream of revenue but also fosters customer loyalty. By requiring an annual membership fee, PriceSmart creates a sense of exclusivity and a commitment to value-seeking customers who benefit from cost savings on a wide array of products, from groceries to electronics. The company's operational prowess lies in its efficient supply chain management and strategic selection of sites that tap into underpenetrated markets. PriceSmart tends to emphasize private-label products, allowing them to maintain control over pricing and margins. It marries this approach with an inventory strategy centered around limited stock-keeping units, driving purchasing value through large-scale ordering and supplier negotiations. The result is a compelling value proposition that appeals to consumers seeking quality and affordability. By continually reinvesting in its infrastructure and member experience, PriceSmart has carved out a profitable niche, illustrating how regional focus and operational efficiency can lead to success outside the traditional realms dominated by retail giants.

PSMT Intrinsic Value
106.05 USD
Undervaluation 11%
Intrinsic Value
Price

See Also

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What is Gross Margin?

Gross Margin is the amount of money a company retains after incurring the direct costs associated with producing the goods it sells and the services it provides. The higher the gross margin, the more capital a company retains, which it can then use to pay other costs or satisfy debt obligations.

Gross Margin
17.2%
=
Gross Profit
846.9m
/
Revenue
4.9B
What is the Gross Margin of PriceSmart Inc?

Based on PriceSmart Inc's most recent financial statements, the company has Gross Margin of 17.2%.