Assessing PriceSmart (PSMT) Valuation After Q1 2026 Growth, EPS Miss And Expansion Plans

PriceSmart (PSMT) just reported its fiscal first quarter results, with revenue of US$1.38b, net income of US$40.17m and earnings per share of US$1.29. The update put costs and growth plans in sharper focus for investors. See our latest analysis for PriceSmart. At a share price of US$134.45, PriceSmart has seen momentum build recently, with a 7 day share price return of 9.0% and a 1 year total shareholder return of 52.6%, alongside expansion plans in Central and South America. If this earnings update has you rethinking your watchlist, it could be a good moment to broaden your search with the fast growing stocks with high insider ownership. With the stock up 52.6% over the past year and trading around US$134, while sitting above the average analyst price target and intrinsic value estimate, is there still a buying opportunity here or is potential future performance already reflected in the price? Most Popular Narrative: 12% Overvalued With PriceSmart last closing at US$134.45 versus a widely followed fair value anchor of about US$120, the current price sits above that narrative line in the sand and puts its long term growth story under the microscope. The recently opened clubs in high-growth regions and concrete plans for new locations in untapped cities within existing markets, as well as exploration of Chile, a country with a strong, stable middle class, signal an accelerating club rollout strategy poised to widen PriceSmart's addressable market, supporting sustained revenue growth and geographical diversification. Read the complete narrative. Read the complete narrative. Want to see what kind of revenue path and profit margin profile needs to line up for that price tag to make sense? The narrative leans on a specific blend of membership growth, club expansion and a carefully chosen earnings multiple. Curious how those ingredients combine to justify a fair value below where the stock trades today? The full breakdown connects each assumption to that US$120 mark. Result: Fair Value of $120 (OVERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, foreign exchange headwinds in markets like Trinidad and Honduras, along with rising technology and logistics expenses, could pressure margins and make that US$120 narrative harder to support. Find out about the key risks to this PriceSmart narrative. Build Your Own PriceSmart Narrative If the data behind this story points you in a different direction, you can quickly test your own assumptions and build a personalised narrative: Do it your way. A great starting point for your PriceSmart research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision. Ready For Your Next Investment Idea? If PriceSmart has sharpened your thinking, do not stop here. Use this momentum to scan other opportunities that match your style before the crowd catches on. Target reliable cash generators by reviewing these 12 dividend stocks with yields > 3% that may suit an income focused portfolio. Position yourself early in structural shifts by examining these 28 AI penny stocks pushing the boundaries of applied artificial intelligence. Hunt for mispriced opportunities by screening these 879 undervalued stocks based on cash flows where current prices differ from underlying cash flow strength. 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.