MERCADOLIBRE INC (MELI) Stock Fundamental Analysis
USA - NASDAQ:MELI - US58733R1023 - Common Stock
2327.26 USD
-33.5 (-1.42%)
2327.26 USD
0 (0%)
Overall MELI gets a fundamental rating of 7 out of 10. We evaluated MELI against 30 industry peers in the Broadline Retail industry. MELI has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. MELI is valued quite expensively, but it does show have an excellent growth rating. This makes MELI very considerable for growth and quality investing!
1. Profitability
1.1 Basic Checks
In the past year MELI was profitable.
MELI had a positive operating cash flow in the past year.
Of the past 5 years MELI 4 years were profitable.
In the past 5 years MELI always reported a positive cash flow from operatings.
1.2 Ratios
With a decent Return On Assets value of 6.23%, MELI is doing good in the industry, outperforming 70.00% of the companies in the same industry.
With an excellent Return On Equity value of 35.94%, MELI belongs to the best of the industry, outperforming 96.67% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 18.79%, MELI belongs to the top of the industry, outperforming 93.33% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for MELI is significantly above the industry average of 10.45%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.23% | ||
| ROE | 35.94% | ||
| ROIC | 18.79% |
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
MELI has a Profit Margin of 8.52%. This is in the better half of the industry: MELI outperforms 76.67% of its industry peers.
MELI's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 12.30%, MELI belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
In the last couple of years the Operating Margin of MELI has grown nicely.
Looking at the Gross Margin, with a value of 45.87%, MELI is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
MELI's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.3% | ||
| PM (TTM) | 8.52% | ||
| GM | 45.87% |
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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), MELI is creating value.
MELI has about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for MELI has been increased compared to 5 years ago.
The debt/assets ratio for MELI has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 4.03 indicates that MELI is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.03, MELI is in the better half of the industry, outperforming 70.00% of the companies in the same industry.
The Debt to FCF ratio of MELI is 0.99, which is an excellent value as it means it would take MELI, only 0.99 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 0.99, MELI belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
MELI has a Debt/Equity ratio of 0.61. This is a neutral value indicating MELI is somewhat dependend on debt financing.
MELI's Debt to Equity ratio of 0.61 is on the low side compared to the rest of the industry. MELI is outperformed by 63.33% of its industry peers.
Although MELI 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 | 0.61 | ||
| Debt/FCF | 0.99 | ||
| Altman-Z | 4.03 |
ROIC/WACC2.17
WACC8.67%
2.3 Liquidity
MELI has a Current Ratio of 1.20. This is a normal value and indicates that MELI is financially healthy and should not expect problems in meeting its short term obligations.
MELI's Current ratio of 1.20 is on the low side compared to the rest of the industry. MELI is outperformed by 76.67% of its industry peers.
MELI has a Quick Ratio of 1.18. This is a normal value and indicates that MELI is financially healthy and should not expect problems in meeting its short term obligations.
With a Quick ratio value of 1.18, MELI perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
The current and quick ratio evaluation for MELI is rather negative, while it does have excellent solvency and profitability. These ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.2 | ||
| Quick Ratio | 1.18 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 44.60% over the past year.
MELI 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, MELI shows a very strong growth in Revenue. The Revenue has grown by 37.53%.
Measured over the past years, MELI shows a very strong growth in Revenue. The Revenue has been growing by 55.35% on average per year.
EPS 1Y (TTM)44.6%
EPS 3Y172.65%
EPS 5YN/A
EPS Q2Q%6.26%
Revenue 1Y (TTM)37.53%
Revenue growth 3Y43.24%
Revenue growth 5Y55.35%
Sales Q2Q%39.48%
3.2 Future
MELI is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 32.92% yearly.
The Revenue is expected to grow by 23.42% on average over the next years. This is a very strong growth
EPS Next Y20.72%
EPS Next 2Y32.66%
EPS Next 3Y33.7%
EPS Next 5Y32.92%
Revenue Next Year36.46%
Revenue Next 2Y31.22%
Revenue Next 3Y28.13%
Revenue Next 5Y23.42%
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
The Price/Earnings ratio is 56.79, which means the current valuation is very expensive for MELI.
Compared to the rest of the industry, the Price/Earnings ratio of MELI is on the same level as its industry peers.
MELI's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 26.10.
A Price/Forward Earnings ratio of 35.08 indicates a quite expensive valuation of MELI.
MELI's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. MELI is more expensive than 60.00% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of MELI to the average of the S&P500 Index (22.52), we can say MELI is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 56.79 | ||
| Fwd PE | 35.08 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of MELI indicates a slightly more expensive valuation: MELI is more expensive than 63.33% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, MELI is valued a bit cheaper than 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.98 | ||
| EV/EBITDA | 31.47 |
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 excellent profitability rating of MELI may justify a higher PE ratio.
MELI's earnings are expected to grow with 33.70% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.74
PEG (5Y)N/A
EPS Next 2Y32.66%
EPS Next 3Y33.7%
5. Dividend
5.1 Amount
MELI does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
2327.26
-33.5 (-1.42%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)
Earnings (Next)
Inst Owners84.47%
Inst Owner Change-0.02%
Ins Owners0.26%
Ins Owner Change0.02%
Market Cap117.99B
Revenue(TTM)20.78B
Net Income(TTM)2.05B
Analysts83.87
Price Target2914.59 (25.24%)
Short Float %1.17%
Short Ratio1.26
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.15%
Min EPS beat(2)-15.3%
Max EPS beat(2)14.99%
EPS beat(4)2
Avg EPS beat(4)8.09%
Min EPS beat(4)-23.22%
Max EPS beat(4)55.87%
EPS beat(8)5
Avg EPS beat(8)3.49%
EPS beat(12)9
Avg EPS beat(12)8.5%
EPS beat(16)11
Avg EPS beat(16)-0.01%
Revenue beat(2)1
Avg Revenue beat(2)2.74%
Min Revenue beat(2)-0.1%
Max Revenue beat(2)5.59%
Revenue beat(4)2
Avg Revenue beat(4)1.34%
Min Revenue beat(4)-1.12%
Max Revenue beat(4)5.59%
Revenue beat(8)6
Avg Revenue beat(8)3.33%
Revenue beat(12)9
Avg Revenue beat(12)3.16%
Revenue beat(16)12
Avg Revenue beat(16)3.22%
PT rev (1m)0.32%
PT rev (3m)1.73%
EPS NQ rev (1m)-11.21%
EPS NQ rev (3m)-20.77%
EPS NY rev (1m)-0.93%
EPS NY rev (3m)-9.96%
Revenue NQ rev (1m)-0.88%
Revenue NQ rev (3m)2.55%
Revenue NY rev (1m)0.23%
Revenue NY rev (3m)2.87%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 56.79 | ||
| Fwd PE | 35.08 | ||
| P/S | 4.9 | ||
| P/FCF | 15.98 | ||
| P/OCF | 13.93 | ||
| P/B | 20.65 | ||
| P/tB | 21.67 | ||
| EV/EBITDA | 31.47 |
EPS(TTM)40.98
EY1.76%
EPS(NY)66.35
Fwd EY2.85%
FCF(TTM)145.66
FCFY6.26%
OCF(TTM)167.1
OCFY7.18%
SpS475.27
BVpS112.68
TBVpS107.4
PEG (NY)2.74
PEG (5Y)N/A
Graham Number322.33
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.23% | ||
| ROE | 35.94% | ||
| ROCE | 26.48% | ||
| ROIC | 18.79% | ||
| ROICexc | 59.17% | ||
| ROICexgc | 64% | ||
| OM | 12.3% | ||
| PM (TTM) | 8.52% | ||
| GM | 45.87% | ||
| FCFM | 30.65% |
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-Score4
Asset Turnover0.73
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | 0.99 | ||
| Debt/EBITDA | 0.96 | ||
| Cap/Depr | 159.85% | ||
| Cap/Sales | 4.51% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 232.43% | ||
| Profit Quality | 359.72% | ||
| Current Ratio | 1.2 | ||
| Quick Ratio | 1.18 | ||
| Altman-Z | 4.03 |
F-Score4
WACC8.67%
ROIC/WACC2.17
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 Y20.72%
EPS Next 2Y32.66%
EPS Next 3Y33.7%
EPS Next 5Y32.92%
Revenue 1Y (TTM)37.53%
Revenue growth 3Y43.24%
Revenue growth 5Y55.35%
Sales Q2Q%39.48%
Revenue Next Year36.46%
Revenue Next 2Y31.22%
Revenue Next 3Y28.13%
Revenue Next 5Y23.42%
EBIT growth 1Y24.89%
EBIT growth 3Y80.24%
EBIT growth 5YN/A
EBIT Next Year73.75%
EBIT Next 3Y44.79%
EBIT Next 5Y37.08%
FCF growth 1Y79.42%
FCF growth 3Y170.77%
FCF growth 5Y86.33%
OCF growth 1Y86.73%
OCF growth 3Y101.69%
OCF growth 5Y77.37%
MERCADOLIBRE INC / MELI FAQ
What is the fundamental rating for MELI stock?
ChartMill assigns a fundamental rating of 7 / 10 to MELI.
Can you provide the valuation status for MERCADOLIBRE INC?
ChartMill assigns a valuation rating of 3 / 10 to MERCADOLIBRE INC (MELI). This can be considered as Overvalued.
What is the profitability of MELI stock?
MERCADOLIBRE INC (MELI) has a profitability rating of 8 / 10.
Can you provide the expected EPS growth for MELI stock?
The Earnings per Share (EPS) of MERCADOLIBRE INC (MELI) is expected to grow by 20.72% in the next year.
Can you provide the dividend sustainability for MELI stock?
The dividend rating of MERCADOLIBRE INC (MELI) is 0 / 10 and the dividend payout ratio is 0%.