PricesmartPSMT +1.26%78 Return-on-Tangible-Equity is 15.39% as of Feb. 2026, which is 31% above its 10-year median of 11.76. GuruFocus rates PSMT with a GF Score™ of 78/100 and a GF Value™ of $104.53 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 298 Retail - Defensive companies, Pricesmart ranks better than 54.7% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Pricesmart's annualized net income for the quarter that ended in Feb. 2026 was $196 Mil. Pricesmart's average shareholder tangible equity for the quarter that ended in Feb. 2026 was $1,276 Mil. Therefore, Pricesmart's annualized Return-on-Tangible-Equity for the quarter that ended in Feb. 2026 was 15.39%.
The historical rank and industry rank for Pricesmart's Return-on-Tangible-Equity or its related term are showing as below:
PSMT'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 10.2 Med: 11.76 Max: 15.66
Current: 12.88
During the past 13 years, Pricesmart's highest Return-on-Tangible-Equity was 15.66%. The lowest was 10.20%. And the median was 11.76%.
PSMT's Return-on-Tangible-Equity is ranked better than 54.7% of 298
companies
in the Retail - Defensive industry
Industry Median: 11.085
vs PSMT: 12.88
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Pricesmart Return-on-Tangible-Equity Related Terms
Pricesmart Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Pricesmart's Return-on-Tangible-Equity 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.
PSMT vs TBBB, OLLI, BJ: Return-on-Tangible-Equity Comparison
For the Discount Stores subindustry, Pricesmart's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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 Return-on-Tangible-Equity vs Retail - Defensive Industry
For the Retail - Defensive industry and Consumer Defensive sector, Pricesmart's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Pricesmart's Return-on-Tangible-Equity 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.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Feb. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 15.39% mean?
Pricesmart (PSMT) has a Return-on-Tangible-Equity of 15.39% as of Feb. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Pricesmart and its competitors. This is 31% above median its historical median of 11.76. Over the past decade, Pricesmart's Return-on-Tangible-Equity has ranged from 10.20 to 15.66. According to the industry distribution chart, Pricesmart ranks #135 out of 298 companies in the Retail - Defensive industry, placing it in the top 45.3%.
Is Pricesmart's Return-on-Tangible-Equity too high?
Pricesmart's current Return-on-Tangible-Equity of 15.39% is 31% above median its 10-year median of 11.76. Over the past 10 years, this metric has ranged from a low of 10.20 to a high of 15.66. The Retail - Defensive industry median Return-on-Tangible-Equity is 11.09. Pricesmart's value of 15.39% is 38.8% above this industry median. Based on the distribution chart, Pricesmart ranks #135 out of 298 companies in the Retail - Defensive industry, which is above the industry midpoint. Overall, Pricesmart has a GF Score™ of 78/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Pricesmart's Return-on-Tangible-Equity compare to TBBB and OLLI?
According to the Retail - Defensive industry distribution chart, Pricesmart ranks #135 out of 298 companies for Return-on-Tangible-Equity. This puts Pricesmart in the upper half of its industry. The industry median Return-on-Tangible-Equity is 11.09. Pricesmart's value of 15.39% is 38.8% above this benchmark. Historically, Pricesmart's own Return-on-Tangible-Equity has ranged from 10.20 to 15.66 over the past decade. While the company's 10-year median is 11.76 vs. the industry median of 11.09, 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 Return-on-Tangible-Equity for a Retail - Defensive company?
The median Return-on-Tangible-Equity among Retail - Defensive companies is 11.09, based on 298 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Pricesmart's current Return-on-Tangible-Equity of 15.39% is 38.8% 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 Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Pricesmart and its competitors. For the Retail - Defensive industry, the median Return-on-Tangible-Equity is 11.09 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Pricesmart's current Return-on-Tangible-Equity is 15.39%, which is 31% above median its own 10-year median of 11.76. 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 $104.53, compared to a current price of $197.90 — trading 89.3% above its estimated fair value. The current Return-on-Tangible-Equity is 15.39%, which is 31% above median its 10-year median of 11.76 and 38.8% above the Retail - Defensive industry median of 11.09. Pricesmart's overall GF Score™ is 78/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Pricesmart (PSMT), the current Return-on-Tangible-Equity is 15.39% 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 $197.90 is trading 89.3% above its estimated GF Value™ of $104.53.
GuruFocus considers Pricesmart to be Significantly Overvalued.
Key valuation signals for PSMT:
Return-on-Tangible-Equity: 15.39% (31% above median its 10-year median of 11.76)
GF Value™: $104.53 vs. price of $197.90 (89.3% above fair value)
Industry Position: 38.8% above the Retail - Defensive median (#135 of 298)
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.
78GF Score
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