MERCADOLIBRE INC (1MELI.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1MELI - US58733R1023 - Common Stock
1773.2 EUR
+3.2 (+0.18%)
We assign a fundamental rating of 6 out of 10 to 1MELI. 1MELI was compared to 14 industry peers in the Broadline Retail industry. 1MELI has an excellent financial health rating, but there are some minor concerns on its profitability. 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
In the past year 1MELI was profitable.
1MELI had a positive operating cash flow in the past year.
1MELI had positive earnings in 4 of the past 5 years.
Each year in the past 5 years 1MELI had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 5.66%, 1MELI is doing worse than 78.57% of the companies in the same industry.
With a decent Return On Equity value of 33.40%, 1MELI is doing good in the industry, outperforming 78.57% of the companies in the same industry.
1MELI has a Return On Invested Capital of 18.27%. This is amongst the best in the industry. 1MELI outperforms 92.86% of its industry peers.
1MELI had an Average Return On Invested Capital over the past 3 years of 20.35%. This is significantly above the industry average of 10.45%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.66% | ||
| ROE | 33.4% | ||
| ROIC | 18.27% |
ROA(3y)5.57%
ROA(5y)3.5%
ROE(3y)34.15%
ROE(5y)21.57%
ROIC(3y)20.35%
ROIC(5y)14.34%
1.3 Margins
Looking at the Profit Margin, with a value of 7.93%, 1MELI is in line with its industry, outperforming 42.86% of the companies in the same industry.
In the last couple of years the Profit Margin of 1MELI has grown nicely.
With a decent Operating Margin value of 11.96%, 1MELI is doing good in the industry, outperforming 64.29% of the companies in the same industry.
1MELI's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 45.14%, 1MELI perfoms like the industry average, outperforming 42.86% of the companies in the same industry.
1MELI's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.96% | ||
| PM (TTM) | 7.93% | ||
| GM | 45.14% |
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.
1MELI has about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for 1MELI has been increased compared to 5 years ago.
1MELI has a better debt/assets ratio than last year.
2.2 Solvency
1MELI has an Altman-Z score of 3.37. This indicates that 1MELI is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of 1MELI (3.37) is better than 71.43% of its industry peers.
1MELI has a debt to FCF ratio of 0.91. This is a very positive value and a sign of high solvency as it would only need 0.91 years to pay back of all of its debts.
1MELI has a better Debt to FCF ratio (0.91) than 92.86% of its industry peers.
1MELI has a Debt/Equity ratio of 0.55. This is a neutral value indicating 1MELI is somewhat dependend on debt financing.
1MELI has a Debt to Equity ratio of 0.55. This is comparable to the rest of the industry: 1MELI outperforms 50.00% of its industry peers.
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 | 0.55 | ||
| Debt/FCF | 0.91 | ||
| Altman-Z | 3.37 |
ROIC/WACC2.09
WACC8.72%
2.3 Liquidity
1MELI has a Current Ratio of 1.17. This is a normal value and indicates that 1MELI is financially healthy and should not expect problems in meeting its short term obligations.
1MELI has a Current ratio of 1.17. This is comparable to the rest of the industry: 1MELI outperforms 57.14% of its industry peers.
A Quick Ratio of 1.15 indicates that 1MELI should not have too much problems paying its short term obligations.
1MELI has a Quick ratio (1.15) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.17 | ||
| Quick Ratio | 1.15 |
3. Growth
3.1 Past
1MELI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 44.60%, which is quite impressive.
Measured over the past years, 1MELI shows a very strong growth in Earnings Per Share. The EPS has been growing by 172.65% on average per year.
The Revenue has grown by 36.94% in the past year. This is a very strong growth!
The Revenue has been growing by 55.35% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)44.6%
EPS 3Y172.65%
EPS 5YN/A
EPS Q2Q%6.26%
Revenue 1Y (TTM)36.94%
Revenue growth 3Y43.24%
Revenue growth 5Y55.35%
Sales Q2Q%39.48%
3.2 Future
The Earnings Per Share is expected to grow by 32.92% on average over the next years. This is a very strong growth
Based on estimates for the next years, 1MELI will show a very strong growth in Revenue. The Revenue will grow by 24.13% on average per year.
EPS Next Y18.34%
EPS Next 2Y31.82%
EPS Next 3Y33.53%
EPS Next 5Y32.92%
Revenue Next Year37.28%
Revenue Next 2Y32%
Revenue Next 3Y28.44%
Revenue Next 5Y24.13%
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
A Price/Earnings ratio of 49.85 indicates a quite expensive valuation of 1MELI.
Compared to the rest of the industry, the Price/Earnings ratio of 1MELI indicates a slightly more expensive valuation: 1MELI is more expensive than 78.57% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 25.45, 1MELI is valued quite expensively.
1MELI is valuated quite expensively with a Price/Forward Earnings ratio of 31.18.
Compared to the rest of the industry, the Price/Forward Earnings ratio of 1MELI indicates a slightly more expensive valuation: 1MELI is more expensive than 71.43% of the companies listed in the same industry.
1MELI is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 34.46, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 49.85 | ||
| Fwd PE | 31.18 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, 1MELI is valued a bit more expensive than the industry average as 71.43% of the companies are valued more cheaply.
71.43% of the companies in the same industry are more expensive than 1MELI, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.03 | ||
| EV/EBITDA | 26.24 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of 1MELI may justify a higher PE ratio.
1MELI's earnings are expected to grow with 33.53% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.72
PEG (5Y)N/A
EPS Next 2Y31.82%
EPS Next 3Y33.53%
5. Dividend
5.1 Amount
1MELI does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
BIT:1MELI (11/18/2025, 7:00:00 PM)
1773.2
+3.2 (+0.18%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)
Earnings (Next)
Inst Owners84.47%
Inst Owner ChangeN/A
Ins Owners0.26%
Ins Owner ChangeN/A
Market Cap89.90B
Revenue(TTM)26.19B
Net Income(TTM)2.08B
Analysts83.87
Price Target2471.94 (39.41%)
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)0
Avg EPS beat(2)-13.97%
Min EPS beat(2)-15.3%
Max EPS beat(2)-12.64%
EPS beat(4)2
Avg EPS beat(4)10.73%
Min EPS beat(4)-15.3%
Max EPS beat(4)55.87%
EPS beat(8)4
Avg EPS beat(8)-0.57%
EPS beat(12)8
Avg EPS beat(12)7.16%
EPS beat(16)10
Avg EPS beat(16)-3.69%
Revenue beat(2)1
Avg Revenue beat(2)0.25%
Min Revenue beat(2)-0.1%
Max Revenue beat(2)0.61%
Revenue beat(4)3
Avg Revenue beat(4)1.77%
Min Revenue beat(4)-0.1%
Max Revenue beat(4)5.59%
Revenue beat(8)6
Avg Revenue beat(8)3.43%
Revenue beat(12)10
Avg Revenue beat(12)4.87%
Revenue beat(16)13
Avg Revenue beat(16)4.53%
PT rev (1m)N/A
PT rev (3m)N/A
EPS NQ rev (1m)-16.51%
EPS NQ rev (3m)-15.45%
EPS NY rev (1m)-2.88%
EPS NY rev (3m)-10.48%
Revenue NQ rev (1m)1.11%
Revenue NQ rev (3m)8.73%
Revenue NY rev (1m)0.45%
Revenue NY rev (3m)7.95%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 49.85 | ||
| Fwd PE | 31.18 | ||
| P/S | 3.95 | ||
| P/FCF | 12.03 | ||
| P/OCF | 10.53 | ||
| P/B | 16.66 | ||
| P/tB | 17.43 | ||
| EV/EBITDA | 26.24 |
EPS(TTM)35.57
EY2.01%
EPS(NY)56.87
Fwd EY3.21%
FCF(TTM)147.42
FCFY8.31%
OCF(TTM)168.32
OCFY9.49%
SpS448.46
BVpS106.46
TBVpS101.72
PEG (NY)2.72
PEG (5Y)N/A
Graham Number291.9
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.66% | ||
| ROE | 33.4% | ||
| ROCE | 25.74% | ||
| ROIC | 18.27% | ||
| ROICexc | 37.85% | ||
| ROICexgc | 39.73% | ||
| OM | 11.96% | ||
| PM (TTM) | 7.93% | ||
| GM | 45.14% | ||
| FCFM | 32.87% |
ROA(3y)5.57%
ROA(5y)3.5%
ROE(3y)34.15%
ROE(5y)21.57%
ROIC(3y)20.35%
ROIC(5y)14.34%
ROICexc(3y)236.4%
ROICexc(5y)N/A
ROICexgc(3y)537.13%
ROICexgc(5y)N/A
ROCE(3y)28.68%
ROCE(5y)20.2%
ROICexgc growth 3Y46.42%
ROICexgc 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 Turnover0.71
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.55 | ||
| Debt/FCF | 0.91 | ||
| Debt/EBITDA | 0.88 | ||
| Cap/Depr | 166.8% | ||
| Cap/Sales | 4.66% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 254.43% | ||
| Profit Quality | 414.54% | ||
| Current Ratio | 1.17 | ||
| Quick Ratio | 1.15 | ||
| Altman-Z | 3.37 |
F-Score5
WACC8.72%
ROIC/WACC2.09
Cap/Depr(3y)116.48%
Cap/Depr(5y)176.74%
Cap/Sales(3y)3.91%
Cap/Sales(5y)5.31%
Profit Quality(3y)451.37%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)44.6%
EPS 3Y172.65%
EPS 5YN/A
EPS Q2Q%6.26%
EPS Next Y18.34%
EPS Next 2Y31.82%
EPS Next 3Y33.53%
EPS Next 5Y32.92%
Revenue 1Y (TTM)36.94%
Revenue growth 3Y43.24%
Revenue growth 5Y55.35%
Sales Q2Q%39.48%
Revenue Next Year37.28%
Revenue Next 2Y32%
Revenue Next 3Y28.44%
Revenue Next 5Y24.13%
EBIT growth 1Y45.95%
EBIT growth 3Y80.24%
EBIT growth 5YN/A
EBIT Next Year73.75%
EBIT Next 3Y44.79%
EBIT Next 5Y36.21%
FCF growth 1Y99.63%
FCF growth 3Y170.77%
FCF growth 5Y86.33%
OCF growth 1Y106.79%
OCF growth 3Y101.69%
OCF growth 5Y77.37%
MERCADOLIBRE INC / 1MELI.MI FAQ
What is the fundamental rating for 1MELI stock?
ChartMill assigns a fundamental rating of 6 / 10 to 1MELI.MI.
Can you provide the valuation status for MERCADOLIBRE INC?
ChartMill assigns a valuation rating of 3 / 10 to MERCADOLIBRE INC (1MELI.MI). This can be considered as Overvalued.
How profitable is MERCADOLIBRE INC (1MELI.MI) stock?
MERCADOLIBRE INC (1MELI.MI) has a profitability rating of 6 / 10.
What is the earnings growth outlook for MERCADOLIBRE INC?
The Earnings per Share (EPS) of MERCADOLIBRE INC (1MELI.MI) is expected to grow by 18.34% in the next year.
Can you provide the dividend sustainability for 1MELI stock?
The dividend rating of MERCADOLIBRE INC (1MELI.MI) is 0 / 10 and the dividend payout ratio is 0%.