MERCADOLIBRE INC (1MELI.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1MELI - US58733R1023 - Common Stock
1631.2 EUR
-89.4 (-5.2%)
1MELI gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 13 industry peers in the Broadline Retail industry. 1MELI is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. 1MELI is valued quite expensive, but it does show an excellent growth. With these ratings, 1MELI could be worth investigating further for growth investing!.
1. Profitability
1.1 Basic Checks
1MELI had positive earnings in the past year.
1MELI had a positive operating cash flow in the past year.
1MELI had positive earnings in 4 of the past 5 years.
In the past 5 years 1MELI always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 5.66%, 1MELI is doing worse than 76.92% of the companies in the same industry.
1MELI's Return On Equity of 33.40% is amongst the best of the industry. 1MELI outperforms 84.62% of its industry peers.
The Return On Invested Capital of 1MELI (18.27%) is better than 92.31% 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 9.76%.
| 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
1MELI has a Profit Margin of 7.93%. This is comparable to the rest of the industry: 1MELI outperforms 46.15% of its industry peers.
1MELI's Profit Margin has improved in the last couple of years.
1MELI's Operating Margin of 11.96% is fine compared to the rest of the industry. 1MELI outperforms 76.92% of its industry peers.
In the last couple of years the Operating Margin of 1MELI has grown nicely.
1MELI has a worse Gross Margin (45.14%) than 69.23% 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 | 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
1MELI has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it 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.
The debt/assets ratio for 1MELI has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.24 indicates that 1MELI is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 3.24, 1MELI is doing good in the industry, outperforming 61.54% of the companies in the same industry.
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.
Looking at the Debt to FCF ratio, with a value of 0.91, 1MELI belongs to the top of the industry, outperforming 92.31% of the companies in the same industry.
A Debt/Equity ratio of 0.55 indicates that 1MELI is somewhat dependend on debt financing.
1MELI has a Debt to Equity ratio (0.55) which is in line with its industry peers.
Even though the debt/equity ratio score it not favorable for 1MELI, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.55 | ||
| Debt/FCF | 0.91 | ||
| Altman-Z | 3.24 |
ROIC/WACC2.08
WACC8.77%
2.3 Liquidity
A Current Ratio of 1.17 indicates that 1MELI should not have too much problems paying its short term obligations.
With a Current ratio value of 1.17, 1MELI perfoms like the industry average, outperforming 53.85% of the companies in the same industry.
A Quick Ratio of 1.15 indicates that 1MELI should not have too much problems paying its short term obligations.
1MELI's Quick ratio of 1.15 is in line compared to the rest of the industry. 1MELI outperforms 53.85% of its industry peers.
| 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.
1MELI shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 172.65% yearly.
Looking at the last year, 1MELI shows a very strong growth in Revenue. The Revenue has grown by 36.94%.
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 32.67% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 24.21% on average over the next years. This is a very strong growth
EPS Next Y12.33%
EPS Next 2Y28.76%
EPS Next 3Y31.82%
EPS Next 5Y32.67%
Revenue Next Year38.51%
Revenue Next 2Y33.27%
Revenue Next 3Y29.29%
Revenue Next 5Y24.21%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 46.66, the valuation of 1MELI can be described as expensive.
76.92% of the companies in the same industry are cheaper than 1MELI, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of 1MELI to the average of the S&P500 Index (26.22), we can say 1MELI is valued expensively.
Based on the Price/Forward Earnings ratio of 30.59, the valuation of 1MELI can be described as expensive.
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 69.23% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of 1MELI to the average of the S&P500 Index (23.58), we can say 1MELI is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 46.66 | ||
| Fwd PE | 30.59 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of 1MELI indicates a slightly more expensive valuation: 1MELI is more expensive than 69.23% of the companies listed in the same industry.
76.92% 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 | 11.26 | ||
| EV/EBITDA | 24.53 |
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 31.82% in the coming years. This may justify a more expensive valuation.
PEG (NY)3.78
PEG (5Y)N/A
EPS Next 2Y28.76%
EPS Next 3Y31.82%
5. Dividend
5.1 Amount
1MELI does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
BIT:1MELI (12/17/2025, 7:00:00 PM)
1631.2
-89.4 (-5.2%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)
Earnings (Next)
Inst Owners84.1%
Inst Owner ChangeN/A
Ins Owners0.26%
Ins Owner ChangeN/A
Market Cap82.70B
Revenue(TTM)26.19B
Net Income(TTM)2.08B
Analysts83.87
Price Target2450.16 (50.21%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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)-0.79%
PT rev (3m)N/A
EPS NQ rev (1m)0.93%
EPS NQ rev (3m)-17.82%
EPS NY rev (1m)-5.08%
EPS NY rev (3m)-7.12%
Revenue NQ rev (1m)0.18%
Revenue NQ rev (3m)1.85%
Revenue NY rev (1m)0.89%
Revenue NY rev (3m)2.22%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 46.66 | ||
| Fwd PE | 30.59 | ||
| P/S | 3.7 | ||
| P/FCF | 11.26 | ||
| P/OCF | 9.86 | ||
| P/B | 15.59 | ||
| P/tB | 16.32 | ||
| EV/EBITDA | 24.53 |
EPS(TTM)34.96
EY2.14%
EPS(NY)53.32
Fwd EY3.27%
FCF(TTM)144.88
FCFY8.88%
OCF(TTM)165.42
OCFY10.14%
SpS440.73
BVpS104.63
TBVpS99.97
PEG (NY)3.78
PEG (5Y)N/A
Graham Number286.88
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 | 3.24 |
F-Score5
WACC8.77%
ROIC/WACC2.08
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 Y12.33%
EPS Next 2Y28.76%
EPS Next 3Y31.82%
EPS Next 5Y32.67%
Revenue 1Y (TTM)36.94%
Revenue growth 3Y43.24%
Revenue growth 5Y55.35%
Sales Q2Q%39.48%
Revenue Next Year38.51%
Revenue Next 2Y33.27%
Revenue Next 3Y29.29%
Revenue Next 5Y24.21%
EBIT growth 1Y45.95%
EBIT growth 3Y80.24%
EBIT growth 5YN/A
EBIT Next Year67%
EBIT Next 3Y43.25%
EBIT Next 5Y36.07%
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 2 / 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 12.33% 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%.