PriceSmart, Inc. (PSMT) vs BBB Foods Inc. (TBBB)

PriceSmart, Inc. and BBB Foods Inc. are both Discount Stores companies. PriceSmart, Inc. and BBB Foods Inc. are of similar size ($5.8B and $5.3B). BBB Foods Inc. has negative trailing earnings, so its P/E is not meaningful; PriceSmart, Inc. trades at 33.5×. BBB Foods Inc. grew revenue faster over the last twelve months: 48.3% against 10.2%. PriceSmart, Inc. has the higher net margin (2.77% vs −3.61%) and the higher return on invested capital (12.9% vs −3.83%). Across the 19 metrics below, PriceSmart, Inc. leads on 15 and BBB Foods Inc. on 4.

Valuation

Metric PSMT TBBB Discount Stores median
P/E 33.54 n/m 19.55
P/S 0.93 1.25 1.08
P/B 3.79 18.42 5.43
Price to free cash flow 64.15 34.94 33.31
EV/EBITDA 14.56 1,115.12 12.17
EV/Sales 0.90 1.35 1.06
Earnings yield 2.98% (3.01%) 3.95%
Free cash flow yield 1.56% 2.86% 2.93%

Profitability

Metric PSMT TBBB Discount Stores median
Gross margin 17.63% 16.37% 27.27%
Operating margin 4.51% (1.00%) 4.45%
Net margin 2.77% (3.61%) 3.01%
Free cash flow margin 1.45% 3.59% 3.30%
Return on equity 12.08% (65.81%) 20.83%
Return on assets 6.75% (10.76%) 7.60%
Return on invested capital 12.91% (3.83%) 13.21%

Growth

Metric PSMT TBBB Discount Stores median
Revenue growth (TTM) 10.18% 48.34% 8.64%
EPS growth (last fiscal year) 5.47% (1,092.31%) —
Revenue growth, 5-year CAGR 9.62% — 4.99%
Net income growth, 5-year CAGR 13.15% — 0.00%

Health

Metric PSMT TBBB Discount Stores median
Debt to equity 0.13 2.42 0.39
Current ratio 1.28 0.68 1.03
Net debt to EBITDA (0.39) 44.29 0.59

Dividend

Metric PSMT TBBB Discount Stores median
Dividend yield 1.26% — 2.12%
Payout ratio 0.24 — 0.24

Size

Metric PSMT TBBB Discount Stores median
Market cap 5.34b 5.77b 16.44b

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