1993.65 USD
-3.96 (-0.2%)
1997.49 USD
+3.84 (+0.19%)
We assign a fundamental rating of 7 out of 10 to MELI. MELI was compared to 30 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. With these ratings, MELI could be worth investigating further for growth and quality investing!.
1. Profitability
1.1 Basic Checks
MELI had positive earnings in the past year.
In the past year MELI had a positive cash flow from operations.
MELI had positive earnings in 4 of the past 5 years.
Each year in the past 5 years MELI had a positive operating cash flow.
1.2 Ratios
The Return On Assets of MELI (5.66%) is better than 70.00% of its industry peers.
MELI's Return On Equity of 33.40% is amongst the best of the industry. MELI outperforms 96.67% of its industry peers.
With an excellent Return On Invested Capital value of 18.27%, MELI belongs to the best of the industry, outperforming 93.33% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for MELI is significantly above the industry average of 9.38%.
| 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
With a decent Profit Margin value of 7.93%, MELI is doing good in the industry, outperforming 76.67% of the companies in the same industry.
In the last couple of years the Profit Margin of MELI has grown nicely.
MELI has a better Operating Margin (11.96%) than 86.67% of its industry peers.
In the last couple of years the Operating Margin of MELI has grown nicely.
MELI has a better Gross Margin (45.14%) than 66.67% of its industry peers.
MELI'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 MELI is creating value.
The number of shares outstanding for MELI remains at a similar level compared to 1 year ago.
Compared to 5 years ago, MELI has more shares outstanding
MELI has a better debt/assets ratio than last year.
2.2 Solvency
MELI has an Altman-Z score of 3.33. This indicates that MELI is financially healthy and has little risk of bankruptcy at the moment.
MELI has a Altman-Z score of 3.33. This is in the better half of the industry: MELI outperforms 66.67% of its industry peers.
The Debt to FCF ratio of MELI is 0.91, which is an excellent value as it means it would take MELI, only 0.91 years of fcf income to pay off all of its debts.
MELI's Debt to FCF ratio of 0.91 is amongst the best of the industry. MELI outperforms 83.33% of its industry peers.
A Debt/Equity ratio of 0.55 indicates that MELI is somewhat dependend on debt financing.
MELI has a Debt to Equity ratio of 0.55. This is comparable to the rest of the industry: MELI outperforms 43.33% 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 | 0.55 | ||
| Debt/FCF | 0.91 | ||
| Altman-Z | 3.33 |
ROIC/WACC2.08
WACC8.77%
2.3 Liquidity
A Current Ratio of 1.17 indicates that MELI should not have too much problems paying its short term obligations.
With a Current ratio value of 1.17, MELI is not doing good in the industry: 76.67% of the companies in the same industry are doing better.
A Quick Ratio of 1.15 indicates that MELI should not have too much problems paying its short term obligations.
MELI has a Quick ratio of 1.15. This is comparable to the rest of the industry: MELI outperforms 46.67% of its industry peers.
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 | 1.17 | ||
| Quick Ratio | 1.15 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 44.60% over the past year.
The Earnings Per Share has been growing by 172.65% on average over the past years. This is a very strong growth
Looking at the last year, MELI 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
Based on estimates for the next years, MELI will show a very strong growth in Earnings Per Share. The EPS will grow by 32.67% on average per year.
MELI is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 24.21% yearly.
EPS Next Y11.76%
EPS Next 2Y27.93%
EPS Next 3Y31.84%
EPS Next 5Y32.67%
Revenue Next Year38.62%
Revenue Next 2Y33.45%
Revenue Next 3Y29.28%
Revenue Next 5Y24.21%
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.
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
MELI is valuated quite expensively with a Price/Earnings ratio of 48.65.
The rest of the industry has a similar Price/Earnings ratio as MELI.
Compared to an average S&P500 Price/Earnings ratio of 26.61, MELI is valued quite expensively.
Based on the Price/Forward Earnings ratio of 32.31, the valuation of MELI can be described as expensive.
Based on the Price/Forward Earnings ratio, MELI is valued a bit more expensive than 63.33% of the companies in the same industry.
MELI's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 24.01.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 48.65 | ||
| Fwd PE | 32.31 |
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 60.00% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, MELI is valued a bit cheaper than 76.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.74 | ||
| EV/EBITDA | 25.6 |
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 31.84% in the coming years. This may justify a more expensive valuation.
PEG (NY)4.14
PEG (5Y)N/A
EPS Next 2Y27.93%
EPS Next 3Y31.84%
5. Dividend
5.1 Amount
No dividends for MELI!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
1993.65
-3.96 (-0.2%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)
Earnings (Next)
Inst Owners84.1%
Inst Owner Change1.83%
Ins Owners0.26%
Ins Owner Change0.02%
Market Cap101.08B
Revenue(TTM)26.19B
Net Income(TTM)2.08B
Analysts83.87
Price Target2860.45 (43.48%)
Short Float %1.5%
Short Ratio1.28
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
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)2.99%
Revenue beat(12)10
Avg Revenue beat(12)3.34%
Revenue beat(16)13
Avg Revenue beat(16)3.38%
PT rev (1m)-1.86%
PT rev (3m)-2.22%
EPS NQ rev (1m)-1.28%
EPS NQ rev (3m)-18.69%
EPS NY rev (1m)-5.57%
EPS NY rev (3m)-8.28%
Revenue NQ rev (1m)0.16%
Revenue NQ rev (3m)2.03%
Revenue NY rev (1m)0.98%
Revenue NY rev (3m)1.81%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 48.65 | ||
| Fwd PE | 32.31 | ||
| P/S | 3.86 | ||
| P/FCF | 11.74 | ||
| P/OCF | 10.28 | ||
| P/B | 16.26 | ||
| P/tB | 17.01 | ||
| EV/EBITDA | 25.6 |
EPS(TTM)40.98
EY2.06%
EPS(NY)61.7
Fwd EY3.09%
FCF(TTM)169.82
FCFY8.52%
OCF(TTM)193.91
OCFY9.73%
SpS516.63
BVpS122.64
TBVpS117.18
PEG (NY)4.14
PEG (5Y)N/A
Graham Number336.28
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 | 3.33 |
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 Y11.76%
EPS Next 2Y27.93%
EPS Next 3Y31.84%
EPS Next 5Y32.67%
Revenue 1Y (TTM)36.94%
Revenue growth 3Y43.24%
Revenue growth 5Y55.35%
Sales Q2Q%39.48%
Revenue Next Year38.62%
Revenue Next 2Y33.45%
Revenue Next 3Y29.28%
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 / 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 11.76% 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%.