MERCADOLIBRE INC (MELI) Stock Fundamental Analysis
NASDAQ:MELI - US58733R1023 - Common Stock
2413.43 USD
+7.9 (+0.33%)
2413.43 USD
0 (0%)
Taking everything into account, MELI scores 7 out of 10 in our fundamental rating. MELI was compared to 28 industry peers in the Broadline Retail industry. MELI scores excellent points on both the profitability and health parts. This is a solid base for a good stock. MELI is valued quite expensive, but it does show an excellent growth. These ratings could make MELI a good candidate for growth and quality investing.
1. Profitability
1.1 Basic Checks
MELI had positive earnings in the past year.
MELI had a positive operating cash flow in the past year.
MELI had positive earnings in 4 of the past 5 years.
In the past 5 years MELI always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of MELI (6.23%) is better than 67.86% of its industry peers.
The Return On Equity of MELI (35.94%) is better than 96.43% of its industry peers.
MELI's Return On Invested Capital of 18.79% is amongst the best of the industry. MELI outperforms 89.29% of its industry peers.
MELI had an Average Return On Invested Capital over the past 3 years of 20.35%. This is significantly above the industry average of 11.00%.
| 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's Profit Margin of 8.52% is fine compared to the rest of the industry. MELI outperforms 75.00% of its industry peers.
In the last couple of years the Profit Margin of MELI has grown nicely.
MELI has a better Operating Margin (12.30%) than 82.14% of its industry peers.
MELI's Operating Margin has improved in the last couple of years.
The Gross Margin of MELI (45.87%) is better than 64.29% of its industry peers.
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.
The number of shares outstanding for MELI remains at a similar level compared to 1 year ago.
The number of shares outstanding for MELI has been increased compared to 5 years ago.
Compared to 1 year ago, MELI has an improved debt to assets ratio.
2.2 Solvency
MELI has an Altman-Z score of 4.08. This indicates that MELI is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.08, MELI is in the better half of the industry, outperforming 71.43% of the companies in the same industry.
MELI has a debt to FCF ratio of 0.99. This is a very positive value and a sign of high solvency as it would only need 0.99 years to pay back of all of its debts.
MELI has a Debt to FCF ratio of 0.99. This is amongst the best in the industry. MELI outperforms 82.14% of its industry peers.
A Debt/Equity ratio of 0.61 indicates that MELI is somewhat dependend on debt financing.
MELI has a worse Debt to Equity ratio (0.61) than 64.29% of its industry peers.
Even though the debt/equity ratio score it not favorable for MELI, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | 0.99 | ||
| Altman-Z | 4.08 |
ROIC/WACC2.09
WACC9.01%
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.
Looking at the Current ratio, with a value of 1.20, MELI is doing worse than 71.43% of the companies in the same industry.
A Quick Ratio of 1.18 indicates that MELI should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.18, MELI perfoms like the industry average, outperforming 57.14% of the companies in the same industry.
MELI does not score too well on the current and quick ratio evaluation. However, as it has 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 46.33% over the past year.
Measured over the past years, MELI shows a very strong growth in Earnings Per Share. The EPS has been growing by 172.65% on average per year.
MELI shows a strong growth in Revenue. In the last year, the Revenue has grown by 35.81%.
The Revenue has been growing by 55.35% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)46.33%
EPS 3Y172.65%
EPS 5YN/A
EPS Q2Q%-1.62%
Revenue 1Y (TTM)35.81%
Revenue growth 3Y43.24%
Revenue growth 5Y55.35%
Sales Q2Q%33.85%
3.2 Future
Based on estimates for the next years, MELI will show a very strong growth in Earnings Per Share. The EPS will grow by 32.54% on average per year.
The Revenue is expected to grow by 22.38% on average over the next years. This is a very strong growth
EPS Next Y20.94%
EPS Next 2Y33.95%
EPS Next 3Y33.95%
EPS Next 5Y32.54%
Revenue Next Year35.5%
Revenue Next 2Y30.55%
Revenue Next 3Y27.78%
Revenue Next 5Y22.38%
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
MELI is valuated quite expensively with a Price/Earnings ratio of 59.61.
MELI's Price/Earnings ratio is in line with the industry average.
MELI's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 27.14.
MELI is valuated quite expensively with a Price/Forward Earnings ratio of 35.68.
Based on the Price/Forward Earnings ratio, MELI is valued a bit more expensive than the industry average as 64.29% of the companies are valued more cheaply.
The average S&P500 Price/Forward Earnings ratio is at 22.80. MELI is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 59.61 | ||
| Fwd PE | 35.68 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MELI is valued a bit more expensive than the industry average as 60.71% of the companies are valued more cheaply.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of MELI indicates a somewhat cheap valuation: MELI is cheaper than 64.29% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.57 | ||
| EV/EBITDA | 32.1 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates MELI does not grow enough to justify the current Price/Earnings ratio.
MELI has an outstanding profitability rating, which may justify a higher PE ratio.
MELI's earnings are expected to grow with 33.95% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.85
PEG (5Y)N/A
EPS Next 2Y33.95%
EPS Next 3Y33.95%
5. Dividend
5.1 Amount
MELI does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
2413.43
+7.9 (+0.33%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)
Earnings (Next)
Inst Owners84.76%
Inst Owner Change-0.4%
Ins Owners0.26%
Ins Owner Change0.02%
Market Cap122.36B
Analysts83.33
Price Target2911.43 (20.63%)
Short Float %1.45%
Short Ratio1.95
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)0.92%
PT rev (3m)13.72%
EPS NQ rev (1m)-8.29%
EPS NQ rev (3m)-0.04%
EPS NY rev (1m)-9.79%
EPS NY rev (3m)-8.52%
Revenue NQ rev (1m)2.46%
Revenue NQ rev (3m)10.39%
Revenue NY rev (1m)2.15%
Revenue NY rev (3m)6.55%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 59.61 | ||
| Fwd PE | 35.68 | ||
| P/S | 5.08 | ||
| P/FCF | 16.57 | ||
| P/OCF | 14.44 | ||
| P/B | 21.42 | ||
| P/tB | 22.47 | ||
| EV/EBITDA | 32.1 |
EPS(TTM)40.49
EY1.68%
EPS(NY)67.64
Fwd EY2.8%
FCF(TTM)145.66
FCFY6.04%
OCF(TTM)167.1
OCFY6.92%
SpS475.27
BVpS112.68
TBVpS107.4
PEG (NY)2.85
PEG (5Y)N/A
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%
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-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 | 4.08 |
F-Score4
WACC9.01%
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)46.33%
EPS 3Y172.65%
EPS 5YN/A
EPS Q2Q%-1.62%
EPS Next Y20.94%
EPS Next 2Y33.95%
EPS Next 3Y33.95%
EPS Next 5Y32.54%
Revenue 1Y (TTM)35.81%
Revenue growth 3Y43.24%
Revenue growth 5Y55.35%
Sales Q2Q%33.85%
Revenue Next Year35.5%
Revenue Next 2Y30.55%
Revenue Next 3Y27.78%
Revenue Next 5Y22.38%
EBIT growth 1Y24.89%
EBIT growth 3Y80.24%
EBIT growth 5YN/A
EBIT Next Year79.86%
EBIT Next 3Y45.4%
EBIT Next 5Y36.67%
FCF growth 1Y79.42%
FCF growth 3Y170.77%
FCF growth 5Y86.33%
OCF growth 1Y86.73%
OCF growth 3Y101.69%
OCF growth 5Y77.37%