PricesmartPSMT +1.43%85 Gross Margin % is 17.72% as of Feb. 2026, which is 6% above its 10-year median of 16.70. GuruFocus rates PSMT with a GF Score™ of 85/100 and a GF Value™ of $104.29 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 305 Retail - Defensive companies, Pricesmart ranks worse than 69.51% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. Pricesmart's Gross Profit for the
three
months ended in Feb. 2026 was $265 Mil. Pricesmart's Revenue for the
three
months ended in Feb. 2026 was $1,496 Mil. Therefore, Pricesmart's Gross Margin % for the quarter that ended in Feb. 2026 was 17.72%.
The historical rank and industry rank for Pricesmart's Gross Margin % or its related term are showing as below:
PSMT'
s Gross Margin % Range Over the Past 10 Years
Min: 15.68 Med: 16.7 Max: 17.81
Current: 17.57
During the past 13 years, the highestGross Margin % of Pricesmart was 17.81%. The lowest was 15.68%. And the median was 16.70%.
PSMT's Gross Margin % is ranked worse than 69.51% of 305
companies
in the Retail - Defensive industry
Industry Median: 24.14
vs PSMT: 17.57
Pricesmart had a gross margin of 17.72% for the quarter that ended in Feb. 2026 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Pricesmart was 0.40% per year.
Pricesmart (NAS:PSMT) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Pricesmart had a gross margin of 17.72% for the quarter that ended in Feb. 2026 => No sustainable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Pricesmart Gross Margin % Related Terms
Pricesmart Gross Margin % Historical Data
* Premium members only.
The historical data trend for Pricesmart's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Discount Stores subindustry, Pricesmart's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Pricesmart Gross Margin % vs Retail - Defensive Industry
For the Retail - Defensive industry and Consumer Defensive sector, Pricesmart's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Pricesmart's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Pricesmart (PSMT) has a Gross Margin % of 17.72% as of Feb. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Pricesmart and its competitors. This is near median its historical median of 16.70. Over the past decade, Pricesmart's Gross Margin % has ranged from 15.68 to 17.81. According to the industry distribution chart, Pricesmart ranks #212 out of 305 companies in the Retail - Defensive industry, placing it in the top 69.5%.
Is Pricesmart's Gross Margin % too high?
Pricesmart's current Gross Margin % of 17.72% is near median its 10-year median of 16.70. Over the past 10 years, this metric has ranged from a low of 15.68 to a high of 17.81. The Retail - Defensive industry median Gross Margin % is 24.14. Pricesmart's value of 17.72% is 26.6% below this industry median. Based on the distribution chart, Pricesmart ranks #212 out of 305 companies in the Retail - Defensive industry, which is below the industry midpoint. Overall, Pricesmart has a GF Score™ of 85/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Pricesmart's Gross Margin % compare to OLLI and TBBB?
According to the Retail - Defensive industry distribution chart, Pricesmart ranks #212 out of 305 companies for Gross Margin %. This places Pricesmart in the lower half of its industry. The industry median Gross Margin % is 24.14. Pricesmart's value of 17.72% is 26.6% below this benchmark. Historically, Pricesmart's own Gross Margin % has ranged from 15.68 to 17.81 over the past decade. While the company's 10-year median is 16.70 vs. the industry median of 24.14, Pricesmart has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Retail - Defensive company?
The median Gross Margin % among Retail - Defensive companies is 24.14, based on 305 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Pricesmart's current Gross Margin % of 17.72% is 26.6% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Pricesmart and its competitors. For the Retail - Defensive industry, the median Gross Margin % is 24.14 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Pricesmart's current Gross Margin % is 17.72%, which is near median its own 10-year median of 16.70. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Pricesmart stock overvalued right now?
Based on GuruFocus' analysis, Pricesmart (PSMT) is currently considered Significantly Overvalued. The stock's GF Value™ is $104.29, compared to a current price of $188.47 — trading 80.7% above its estimated fair value. The current Gross Margin % is 17.72%, which is near median its 10-year median of 16.70 and 26.6% below the Retail - Defensive industry median of 24.14. Pricesmart's overall GF Score™ is 85/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Pricesmart (PSMT), the current Gross Margin % is 17.72% as of Feb. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Pricesmart (PSMT) Overvalued in 2026?
Based on GuruFocus' analysis, Pricesmart stock appears to be overvalued.
The current stock price of $188.47 is trading 80.7% above its estimated GF Value™ of $104.29.
GuruFocus considers Pricesmart to be Significantly Overvalued.
Key valuation signals for PSMT:
Gross Margin %: 17.72% (near median its 10-year median of 16.70)
GF Value™: $104.29 vs. price of $188.47 (80.7% above fair value)
Industry Position: 26.6% below the Retail - Defensive median (#212 of 305)
No single metric tells the full story. See the PSMT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Pricesmart Inc is principally engaged in operating U.S.-style membership shopping warehouse clubs that offer consumer goods at low prices. The company is headquartered in San Diego, California, United States, and operates stores in the Caribbean, Costa Rica, Panama, and other regions. The company's revenue consists of net warehouse club sales from merchandise sales, membership income from annual membership fees, export sales, and other income. Its operations consist of four reportable segments; Central America, the Caribbean, Colombia, and the United States. A majority of the company's revenue is derived from Central America.
85GF Score
Get the complete analysis for PSMT
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