MERCADOLIBRE INC (1MELI.MI) Stock Fundamental Analysis
BIT:1MELI - US58733R1023 - Common Stock
2043.5 EUR
-237 (-10.39%)
Overall 1MELI gets a fundamental rating of 6 out of 10. We evaluated 1MELI against 10 industry peers in the Broadline Retail industry. While 1MELI has a great profitability rating, there are some minor concerns on its financial health. 1MELI shows excellent growth, but is valued quite expensive already. These ratings would make 1MELI suitable for growth investing!
1. Profitability
1.1 Basic Checks
1MELI had positive earnings in the past year.
In the past year 1MELI had a positive cash flow from operations.
1MELI had positive earnings in 4 of the past 5 years.
1MELI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
1MELI has a Return On Assets (7.45%) which is in line with its industry peers.
1MELI has a Return On Equity of 41.19%. This is amongst the best in the industry. 1MELI outperforms 90.00% of its industry peers.
With an excellent Return On Invested Capital value of 21.15%, 1MELI belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
1MELI had an Average Return On Invested Capital over the past 3 years of 18.86%. This is significantly above the industry average of 10.69%.
The 3 year average ROIC (18.86%) for 1MELI is below the current ROIC(21.15%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.45% | ||
| ROE | 41.19% | ||
| ROIC | 21.15% |
ROA(3y)5.57%
ROA(5y)3.5%
ROE(3y)34.15%
ROE(5y)21.57%
ROIC(3y)18.86%
ROIC(5y)13.44%
1.3 Margins
1MELI has a Profit Margin of 9.21%. This is in the lower half of the industry: 1MELI underperforms 60.00% of its industry peers.
In the last couple of years the Profit Margin of 1MELI has grown nicely.
1MELI has a better Operating Margin (12.81%) than 80.00% of its industry peers.
In the last couple of years the Operating Margin of 1MELI has grown nicely.
1MELI's Gross Margin of 46.13% is in line compared to the rest of the industry. 1MELI outperforms 60.00% of its industry peers.
In the last couple of years the Gross Margin of 1MELI has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.81% | ||
| PM (TTM) | 9.21% | ||
| GM | 46.13% |
OM growth 3Y25.83%
OM growth 5YN/A
PM growth 3Y98.37%
PM growth 5YN/A
GM growth 3Y2.74%
GM growth 5Y-0.81%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so 1MELI is creating value.
The number of shares outstanding for 1MELI remains at a similar level compared to 1 year ago.
1MELI has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, 1MELI has an improved debt to assets ratio.
2.2 Solvency
1MELI has an Altman-Z score of 4.70. This indicates that 1MELI is financially healthy and has little risk of bankruptcy at the moment.
1MELI has a Altman-Z score of 4.70. This is comparable to the rest of the industry: 1MELI outperforms 50.00% of its industry peers.
1MELI has a debt to FCF ratio of 1.00. This is a very positive value and a sign of high solvency as it would only need 1.00 years to pay back of all of its debts.
1MELI's Debt to FCF ratio of 1.00 is amongst the best of the industry. 1MELI outperforms 90.00% of its industry peers.
A Debt/Equity ratio of 0.57 indicates that 1MELI is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.57, 1MELI is doing worse than 60.00% of the companies in the same industry.
Although 1MELI does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.57 | ||
| Debt/FCF | 1 | ||
| Altman-Z | 4.7 |
ROIC/WACC2.38
WACC8.88%
2.3 Liquidity
A Current Ratio of 1.20 indicates that 1MELI should not have too much problems paying its short term obligations.
1MELI's Current ratio of 1.20 is in line compared to the rest of the industry. 1MELI outperforms 60.00% of its industry peers.
A Quick Ratio of 1.18 indicates that 1MELI should not have too much problems paying its short term obligations.
The Quick ratio of 1MELI (1.18) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.2 | ||
| Quick Ratio | 1.18 |
3. Growth
3.1 Past
1MELI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 81.92%, which is quite impressive.
The Earnings Per Share has been growing by 172.65% on average over the past years. This is a very strong growth
The Revenue has grown by 37.68% in the past year. This is a very strong growth!
Measured over the past years, 1MELI shows a very strong growth in Revenue. The Revenue has been growing by 55.35% on average per year.
EPS 1Y (TTM)81.92%
EPS 3Y172.65%
EPS 5YN/A
EPS Q2Q%43.66%
Revenue 1Y (TTM)37.68%
Revenue growth 3Y43.24%
Revenue growth 5Y55.35%
Sales Q2Q%36.97%
3.2 Future
Based on estimates for the next years, 1MELI will show a very strong growth in Earnings Per Share. The EPS will grow by 30.31% on average per year.
The Revenue is expected to grow by 19.86% on average over the next years. This is quite good.
EPS Next Y32.21%
EPS Next 2Y35.68%
EPS Next 3Y35.73%
EPS Next 5Y30.31%
Revenue Next Year27.17%
Revenue Next 2Y25.38%
Revenue Next 3Y24.43%
Revenue Next 5Y19.86%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 58.27, which means the current valuation is very expensive for 1MELI.
1MELI's Price/Earnings ratio is rather expensive when compared to the industry. 1MELI is more expensive than 80.00% of the companies in the same industry.
When comparing the Price/Earnings ratio of 1MELI to the average of the S&P500 Index (27.14), we can say 1MELI is valued expensively.
A Price/Forward Earnings ratio of 34.13 indicates a quite expensive valuation of 1MELI.
70.00% of the companies in the same industry are cheaper than 1MELI, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.80, 1MELI is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 58.27 | ||
| Fwd PE | 34.13 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, 1MELI is valued a bit more expensive than 70.00% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, 1MELI is valued a bit cheaper than the industry average as 80.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.61 | ||
| EV/EBITDA | 32.39 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates 1MELI does not grow enough to justify the current Price/Earnings ratio.
1MELI has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as 1MELI's earnings are expected to grow with 35.73% in the coming years.
PEG (NY)1.81
PEG (5Y)N/A
EPS Next 2Y35.68%
EPS Next 3Y35.73%
5. Dividend
5.1 Amount
No dividends for 1MELI!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
BIT:1MELI (8/18/2025, 7:00:00 PM)
2043.5
-237 (-10.39%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)
Earnings (Next)
Inst Owners83.73%
Inst Owner ChangeN/A
Ins Owners0.09%
Ins Owner ChangeN/A
Market Cap103.61B
Analysts84.14
Price TargetN/A
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP0%
Div Incr YearsN/A
Div Non Decr YearsN/A
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)35.43%
Min EPS beat(2)14.99%
Max EPS beat(2)55.87%
EPS beat(4)3
Avg EPS beat(4)17.01%
Min EPS beat(4)-23.22%
Max EPS beat(4)55.87%
EPS beat(8)6
Avg EPS beat(8)6.84%
EPS beat(12)10
Avg EPS beat(12)12.5%
EPS beat(16)12
Avg EPS beat(16)38.42%
Revenue beat(2)2
Avg Revenue beat(2)3.28%
Min Revenue beat(2)0.98%
Max Revenue beat(2)5.59%
Revenue beat(4)3
Avg Revenue beat(4)2.93%
Min Revenue beat(4)-1.12%
Max Revenue beat(4)6.26%
Revenue beat(8)7
Avg Revenue beat(8)5.17%
Revenue beat(12)10
Avg Revenue beat(12)4.86%
Revenue beat(16)13
Avg Revenue beat(16)5.16%
PT rev (1m)N/A
PT rev (3m)N/A
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)N/A
EPS NY rev (3m)N/A
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)N/A
Revenue NY rev (3m)N/A
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 58.27 | ||
| Fwd PE | 34.13 | ||
| P/S | 5.37 | ||
| P/FCF | 18.61 | ||
| P/OCF | 16.15 | ||
| P/B | 24 | ||
| P/tB | 25.25 | ||
| EV/EBITDA | 32.39 |
EPS(TTM)35.07
EY1.72%
EPS(NY)59.87
Fwd EY2.93%
FCF(TTM)109.79
FCFY5.37%
OCF(TTM)126.53
OCFY6.19%
SpS380.75
BVpS85.14
TBVpS80.93
PEG (NY)1.81
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.45% | ||
| ROE | 41.19% | ||
| ROCE | 29.8% | ||
| ROIC | 21.15% | ||
| ROICexc | 130.55% | ||
| ROICexgc | 155.15% | ||
| OM | 12.81% | ||
| PM (TTM) | 9.21% | ||
| GM | 46.13% | ||
| FCFM | 28.84% |
ROA(3y)5.57%
ROA(5y)3.5%
ROE(3y)34.15%
ROE(5y)21.57%
ROIC(3y)18.86%
ROIC(5y)13.44%
ROICexc(3y)207.02%
ROICexc(5y)N/A
ROICexgc(3y)457.7%
ROICexgc(5y)N/A
ROCE(3y)26.57%
ROCE(5y)18.94%
ROICexcg growth 3Y46.42%
ROICexcg growth 5YN/A
ROICexc growth 3Y51.24%
ROICexc growth 5YN/A
OM growth 3Y25.83%
OM growth 5YN/A
PM growth 3Y98.37%
PM growth 5YN/A
GM growth 3Y2.74%
GM growth 5Y-0.81%
F-Score5
Asset Turnover0.81
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.57 | ||
| Debt/FCF | 1 | ||
| Debt/EBITDA | 0.82 | ||
| Cap/Depr | 154.96% | ||
| Cap/Sales | 4.4% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 212.43% | ||
| Profit Quality | 313.1% | ||
| Current Ratio | 1.2 | ||
| Quick Ratio | 1.18 | ||
| Altman-Z | 4.7 |
F-Score5
WACC8.88%
ROIC/WACC2.38
Cap/Depr(3y)116.48%
Cap/Depr(5y)176.74%
Cap/Sales(3y)3.99%
Cap/Sales(5y)5.36%
Profit Quality(3y)451.37%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)81.92%
EPS 3Y172.65%
EPS 5YN/A
EPS Q2Q%43.66%
EPS Next Y32.21%
EPS Next 2Y35.68%
EPS Next 3Y35.73%
EPS Next 5Y30.31%
Revenue 1Y (TTM)37.68%
Revenue growth 3Y43.24%
Revenue growth 5Y55.35%
Sales Q2Q%36.97%
Revenue Next Year27.17%
Revenue Next 2Y25.38%
Revenue Next 3Y24.43%
Revenue Next 5Y19.86%
EBIT growth 1Y23.69%
EBIT growth 3Y80.24%
EBIT growth 5YN/A
EBIT Next Year76.57%
EBIT Next 3Y44.13%
EBIT Next 5Y33.61%
FCF growth 1Y78.01%
FCF growth 3Y170.77%
FCF growth 5Y86.33%
OCF growth 1Y84.45%
OCF growth 3Y101.69%
OCF growth 5Y77.37%