PriceSmart Inc
NASDAQ:PSMT

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PriceSmart Inc
NASDAQ:PSMT
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Price: 101.49 USD -0.27% Market Closed
Market Cap: 3.1B USD

Operating Margin
PriceSmart Inc

4.4%
Current
4%
Average
3.1%
Industry

Operating Margin represents how efficiently a company is able to generate profit through its core operations.

Higher ratios are generally better, illustrating the company is efficient in its operations and is good at turning sales into profits.

Operating Margin
4.4%
=
Operating Profit
225.6m
/
Revenue
5.1B

Operating Margin Across Competitors

PriceSmart Inc
Glance View

Economic Moat
None
Market Cap
3.1B 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
110.63 USD
Undervaluation 8%
Intrinsic Value
Price
What is Operating Margin?

Operating Margin represents how efficiently a company is able to generate profit through its core operations.

Higher ratios are generally better, illustrating the company is efficient in its operations and is good at turning sales into profits.

Operating Margin
4.4%
=
Operating Profit
225.6m
/
Revenue
5.1B
What is the Operating Margin of PriceSmart Inc?

Based on PriceSmart Inc's most recent financial statements, the company has Operating Margin of 4.4%.

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