PricesmartPSMT +0.53%85 Interest Coverage is 19.16 as of Feb. 2026, which is 6% below its 10-year median of 20.45. 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 254 Retail - Defensive companies, Pricesmart ranks better than 62.6% on this metric.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. Pricesmart's
Operating Income
for the
three
months ended in Feb. 2026 was $76 Mil. Pricesmart's Interest Expense for the
three
months ended in Feb. 2026 was $-4 Mil.
Pricesmart's interest coverage for the quarter that ended in Feb. 2026 was 19.16.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Pricesmart's Interest Coverage or its related term are showing as below:
PSMT'
s Interest Coverage Range Over the Past 10 Years
Min: 16.32 Med: 20.45 Max: 30.2
Current: 17.06
PSMT's Interest Coverage is ranked better than 62.6% of 254
companies
in the Retail - Defensive industry
Industry Median: 9.065
vs PSMT: 17.06
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
Pricesmart Interest Coverage Related Terms
Pricesmart Interest Coverage Historical Data
* Premium members only.
The historical data trend for Pricesmart's Interest Coverage 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.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
PSMT vs OLLI, TBBB, BJ: Interest Coverage Comparison
For the Discount Stores subindustry, Pricesmart's Interest Coverage, along with its competitors' market caps and Interest Coverage 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 Interest Coverage vs Retail - Defensive Industry
For the Retail - Defensive industry and Consumer Defensive sector, Pricesmart's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Pricesmart's Interest Coverage falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* 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.
Pricesmart (PSMT) has a Interest Coverage of 19.16 as of Feb. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Pricesmart and its competitors. This is near median its historical median of 20.45. Over the past decade, Pricesmart's Interest Coverage has ranged from 16.32 to 30.20. According to the industry distribution chart, Pricesmart ranks #95 out of 254 companies in the Retail - Defensive industry, placing it in the top 37.4%.
Is Pricesmart's Interest Coverage too high?
Pricesmart's current Interest Coverage of 19.16 is near median its 10-year median of 20.45. Over the past 10 years, this metric has ranged from a low of 16.32 to a high of 30.20. The Retail - Defensive industry median Interest Coverage is 9.07. Pricesmart's value of 19.16 is 111.4% above this industry median. Based on the distribution chart, Pricesmart ranks #95 out of 254 companies in the Retail - Defensive industry, which is above 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 Interest Coverage compare to OLLI and TBBB?
According to the Retail - Defensive industry distribution chart, Pricesmart ranks #95 out of 254 companies for Interest Coverage. This puts Pricesmart in the upper half of its industry. The industry median Interest Coverage is 9.07. Pricesmart's value of 19.16 is 111.4% above this benchmark. Historically, Pricesmart's own Interest Coverage has ranged from 16.32 to 30.20 over the past decade. While the company's 10-year median is 20.45 vs. the industry median of 9.07, Pricesmart has consistently been above 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 Interest Coverage for a Retail - Defensive company?
The median Interest Coverage among Retail - Defensive companies is 9.07, based on 254 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Pricesmart's current Interest Coverage of 19.16 is 111.4% above 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 Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Pricesmart and its competitors. For the Retail - Defensive industry, the median Interest Coverage is 9.07 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Pricesmart's current Interest Coverage is 19.16, which is near median its own 10-year median of 20.45. 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 $186.65 — trading 79% above its estimated fair value. The current Interest Coverage is 19.16, which is near median its 10-year median of 20.45 and 111.4% above the Retail - Defensive industry median of 9.07. 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 Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Pricesmart (PSMT), the current Interest Coverage is 19.16 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 $186.65 is trading 79% above its estimated GF Value™ of $104.29.
GuruFocus considers Pricesmart to be Significantly Overvalued.
Key valuation signals for PSMT:
Interest Coverage: 19.16 (near median its 10-year median of 20.45)
GF Value™: $104.29 vs. price of $186.65 (79% above fair value)
Industry Position: 111.4% above the Retail - Defensive median (#95 of 254)
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
Interest Coverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
PSMT has been successfully added to your 
