PriceSmart, Inc.
PSMT Consumer Defensive Discount Stores
PriceSmart, Inc.’s revenue for fiscal 2025 (year ended August 2025) was $5.3 billion, up 7.25% from fiscal 2024. In the quarter to May 2026, revenue grew 12.5%, EPS grew 12.3%, free cash flow fell 76.4% and total debt rose 50.4%, each against the same quarter a year earlier. Revenue growth for ten consecutive years.
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PriceSmart, Inc. (PSMT) Altman Z-score
PriceSmart, Inc.'s Altman Z-score for fiscal 2025 is 5.30, in the safe zone (above 2.99).
Altman Z-score, annual
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Annual newest first
| Period | Altman Z-score | Change (points) |
|---|---|---|
| FY2025 | 5.30 | 0.01 |
| FY2024 | 5.29 | 0.44 |
| FY2023 | 4.85 | 0.18 |
| FY2022 | 4.67 | (0.37) |
| FY2021 | 5.04 | 0.75 |
| FY2020 | 4.29 | (1.34) |
| FY2019 | 5.62 | (1.43) |
| FY2018 | 7.06 | 0.36 |
| FY2017 | 6.70 | (0.24) |
| FY2016 | 6.94 | (0.51) |
How fiscal 2025’s score is made up
| Component | This year | Year before | Result | Points |
|---|---|---|---|---|
| Working capital / total assets | 0.11 | — | 0.13 | |
| Retained earnings / total assets | 0.44 | — | 0.62 | |
| EBIT / total assets | 0.10 | — | 0.34 | |
| Market value of equity / total liabilities | 3.16 | — | 1.89 | |
| Sales / total assets | 2.32 | — | 2.32 | |
| Altman Z-score | Safe zone | 5.30 | ||
| Z″ Variant for non-manufacturing and asset-light companies (drops the sales/assets term, uses book equity) | Safe zone | 4.12 | ||
How the Altman Z-score works
Z = 1.2 × working capital ÷ total assets + 1.4 × retained earnings ÷ total assets + 3.3 × EBIT ÷ total assets + 0.6 × market value of equity ÷ total liabilities + 1.0 × revenue ÷ total assets (Altman, 1968). The market value of equity is the close on the last trading day of the fiscal year times weighted basic shares.
Z″ = 6.56 × working capital ÷ total assets + 3.26 × retained earnings ÷ total assets + 6.72 × EBIT ÷ total assets + 1.05 × book equity ÷ total liabilities (Altman, Hartzell and Peck, 1995), the variant for non-manufacturing and asset-light companies.
| Zone | Z | Z″ |
|---|---|---|
| Safe zone | above 2.99 | above 2.60 |
| Grey zone | 1.81–2.99 | 1.10–2.60 |
| Distress zone | below 1.81 | below 1.10 |
Not worked out for banks, insurers and REITs, whose balance sheets the model does not describe, nor when a figure is missing or there is no share price in the week to the fiscal year end.
Altman Z-score against peers
| Company | Altman Z-score |
|---|---|
| COST Costco Wholesale Corporation compare | 9.0× |
| WMT Walmart Inc. compare | 6.5× |
| OLLI Ollie's Bargain Outlet Holdings, Inc. compare | 6.0× |
| PSMT PriceSmart, Inc. | 5.3× |
| BJ BJ's Wholesale Club Holdings, Inc. compare | 4.7× |
| DLTR Dollar Tree, Inc. compare | 3.8× |
| TBBB BBB Foods Inc. compare | 3.5× |
| TGT Target Corporation compare | 2.9× |
| DG Dollar General Corporation compare | 2.7× |
What Altman Z-score is
The Altman Z-Score weighs working capital, retained earnings, operating profit, market value and sales against assets and debts to gauge the risk of distress.
1.2 × working capital ÷ total assets + 1.4 × retained earnings ÷ total assets + 3.3 × EBIT ÷ total assets + 0.6 × market value of equity ÷ total liabilities + 1.0 × revenue ÷ total assets