PriceSmart: Membership Income Momentum Is Valuable

Caffital Research2K FollowersFollow5ShareSavePlay(7min)CommentsSummaryPriceSmart, Inc. reported a good growth story continuation in Q2 as the existing club footprint's financial momentum stood strong.Membership income rose by 16.9%, providing an increasingly important high-margin revenue stream as platinum penetration continues to increase.PSMT continues to invest in new locations at a good pace and with good capital returns.A good amount of earnings growth is already priced into PSMT stock. I estimate a fair value of $152.8. Gianfranco Vivi/iStock Editorial via Getty Images PriceSmart, Inc. (PSMT) reported the company’s fiscal Q2 results from the December-February quarter on the 8th of April. The warehouse club operator’s momentum remains strong in existing club warehouses, and the companyThis article was written byCaffital Research2K FollowersFollowI am an avid investor with a major focus on small cap companies with experience in investing in US, Canadian, and European markets. My investment philosophy to generating great returns on the stock market revolves around identifying mispriced securities by understanding the drivers behind a company's financials, and ultimately, most often revealed by a DCF model valuation. This methodology doesn't limit an investor into rigid traditional value, dividend, or growth investing, but rather accounts for all of a stock's prospects to determine the risk-to-reward.Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.