PricesmartPSMT +0.61%85 ROE % is 14.89% as of Feb. 2026, which is 34% above its 10-year median of 11.09. 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 306 Retail - Defensive companies, Pricesmart ranks better than 62.75% on this metric.
ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Pricesmart's annualized net income for the quarter that ended in Feb. 2026 was $196 Mil. Pricesmart's average Total Stockholders Equity over the quarter that ended in Feb. 2026 was $1,319 Mil. Therefore, Pricesmart's annualized ROE % for the quarter that ended in Feb. 2026 was 14.89%.
The historical rank and industry rank for Pricesmart's ROE % or its related term are showing as below:
PSMT'
s ROE % Range Over the Past 10 Years
Min: 9.41 Med: 11.09 Max: 14.73
Current: 12.43
During the past 13 years, Pricesmart's highest ROE % was 14.73%. The lowest was 9.41%. And the median was 11.09%.
PSMT's ROE % is ranked better than 62.75% of 306
companies
in the Retail - Defensive industry
Industry Median: 8.53
vs PSMT: 12.43
Pricesmart (NAS:PSMT) ROE % Explanation
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
Note:
The net income data used here is four times the quarterly (Feb. 2026) net income data. The Revenue data used here is four times the quarterly (Feb. 2026) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* 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.
Be Aware
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % 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 ROE %s can be extremely high.
Pricesmart ROE % Related Terms
Pricesmart ROE % Historical Data
* Premium members only.
The historical data trend for Pricesmart's ROE % 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 ROE %, along with its competitors' market caps and ROE % 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 ROE % vs Retail - Defensive Industry
For the Retail - Defensive industry and Consumer Defensive sector, Pricesmart's ROE % distribution charts can be found below:
* The bar in red indicates where Pricesmart's ROE % 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 ROE %, the net income of the last fiscal year and the average total shareholder 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.
ROE % is displayed in the 30-year financial page.
Pricesmart (PSMT) has a ROE % of 14.89% as of Feb. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Pricesmart and its competitors. This is 34% above median its historical median of 11.09. Over the past decade, Pricesmart's ROE % has ranged from 9.41 to 14.73. According to the industry distribution chart, Pricesmart ranks #114 out of 306 companies in the Retail - Defensive industry, placing it in the top 37.3%.
Is Pricesmart's ROE % too high?
Pricesmart's current ROE % of 14.89% is 34% above median its 10-year median of 11.09. Over the past 10 years, this metric has ranged from a low of 9.41 to a high of 14.73. The Retail - Defensive industry median ROE % is 8.53. Pricesmart's value of 14.89% is 74.6% above this industry median. Based on the distribution chart, Pricesmart ranks #114 out of 306 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 ROE % compare to OLLI and TBBB?
According to the Retail - Defensive industry distribution chart, Pricesmart ranks #114 out of 306 companies for ROE %. This puts Pricesmart in the upper half of its industry. The industry median ROE % is 8.53. Pricesmart's value of 14.89% is 74.6% above this benchmark. Historically, Pricesmart's own ROE % has ranged from 9.41 to 14.73 over the past decade. While the company's 10-year median is 11.09 vs. the industry median of 8.53, 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 ROE % for a Retail - Defensive company?
The median ROE % among Retail - Defensive companies is 8.53, based on 306 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Pricesmart's current ROE % of 14.89% is 74.6% 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 ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Pricesmart and its competitors. For the Retail - Defensive industry, the median ROE % is 8.53 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Pricesmart's current ROE % is 14.89%, which is 34% above median its own 10-year median of 11.09. 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 $186.80 — trading 79.1% above its estimated fair value. The current ROE % is 14.89%, which is 34% above median its 10-year median of 11.09 and 74.6% above the Retail - Defensive industry median of 8.53. 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 ROE % calculated?
ROE % is calculated from a company's financial statements. For Pricesmart (PSMT), the current ROE % is 14.89% 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 $186.80 is trading 79.1% above its estimated GF Value™ of $104.29.
GuruFocus considers Pricesmart to be Significantly Overvalued.
Key valuation signals for PSMT:
ROE %: 14.89% (34% above median its 10-year median of 11.09)
GF Value™: $104.29 vs. price of $186.80 (79.1% above fair value)
Industry Position: 74.6% above the Retail - Defensive median (#114 of 306)
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
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