MERCADOLIBRE INC (MELI) Stock Fundamental Analysis
USA - NASDAQ:MELI - US58733R1023 - Common Stock
2133.67 USD
-141.33 (-6.21%)
2153 USD
+19.33 (+0.91%)
Overall MELI gets a fundamental rating of 7 out of 10. We evaluated MELI against 28 industry peers in the Broadline Retail industry. MELI gets an excellent profitability rating and is at the same time showing great financial health properties. 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
MELI had positive earnings in the past year.
In the past year MELI had a positive cash flow from operations.
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 67.86% of the companies in the same industry.
The Return On Equity of MELI (35.94%) is better than 96.43% of its industry peers.
MELI has a Return On Invested Capital of 18.79%. This is amongst the best in the industry. MELI outperforms 92.86% 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 10.41%.
| 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
The Profit Margin of MELI (8.52%) is better than 75.00% of its industry peers.
In the last couple of years the Profit Margin of MELI has grown nicely.
Looking at the Operating Margin, with a value of 12.30%, MELI belongs to the top of the industry, outperforming 82.14% of the companies in the same industry.
In the last couple of years the Operating Margin of MELI has grown nicely.
With a decent Gross Margin value of 45.87%, MELI is doing good in the industry, outperforming 64.29% of the companies in the same industry.
In the last couple of years the Gross Margin of MELI has remained more or less at the same level.
| 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
MELI has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, MELI has about the same amount of shares outstanding.
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 3.93 indicates that MELI is not in any danger for bankruptcy at the moment.
MELI has a better Altman-Z score (3.93) than 71.43% of its industry peers.
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.
MELI has a better Debt to FCF ratio (0.99) than 82.14% of its industry peers.
MELI has a Debt/Equity ratio of 0.61. This is a neutral value indicating MELI is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.61, MELI is not doing good in the industry: 64.29% of the companies in the same industry are doing better.
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 | 3.93 |
ROIC/WACC2.16
WACC8.69%
2.3 Liquidity
A Current Ratio of 1.20 indicates that MELI should not have too much problems paying its short term obligations.
MELI has a worse Current ratio (1.20) than 75.00% 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.
MELI's Quick ratio of 1.18 is in line compared to the rest of the industry. MELI outperforms 53.57% of its industry peers.
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.
The Revenue has grown by 35.81% in the past year. This is a very strong growth!
MELI shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 55.35% yearly.
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
MELI is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 32.92% yearly.
MELI is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 23.42% yearly.
EPS Next Y21.85%
EPS Next 2Y33.81%
EPS Next 3Y33.91%
EPS Next 5Y32.92%
Revenue Next Year36.67%
Revenue Next 2Y31.39%
Revenue Next 3Y28.12%
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
A Price/Earnings ratio of 52.70 indicates a quite expensive valuation of MELI.
Compared to the rest of the industry, the Price/Earnings ratio of MELI is on the same level as its industry peers.
When comparing the Price/Earnings ratio of MELI to the average of the S&P500 Index (27.02), we can say MELI is valued expensively.
Based on the Price/Forward Earnings ratio of 31.61, the valuation of MELI can be described as expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MELI indicates a slightly more expensive valuation: MELI is more expensive than 60.71% of the companies listed in the same industry.
MELI is valuated rather expensively when we compare the Price/Forward Earnings ratio to 22.57, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 52.7 | ||
| Fwd PE | 31.61 |
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.
Based on the Price/Free Cash Flow ratio, MELI is valued a bit cheaper than the industry average as 64.29% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.65 | ||
| EV/EBITDA | 30.28 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
MELI has an outstanding profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as MELI's earnings are expected to grow with 33.91% in the coming years.
PEG (NY)2.41
PEG (5Y)N/A
EPS Next 2Y33.81%
EPS Next 3Y33.91%
5. Dividend
5.1 Amount
MELI does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
2133.67
-141.33 (-6.21%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)
Earnings (Next)
Inst Owners84.47%
Inst Owner Change0%
Ins Owners0.26%
Ins Owner Change0.02%
Market Cap108.18B
Analysts83.87
Price Target2934.79 (37.55%)
Short Float %1.82%
Short Ratio2.4
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)0.8%
PT rev (3m)1.95%
EPS NQ rev (1m)-0.68%
EPS NQ rev (3m)-12.61%
EPS NY rev (1m)0.75%
EPS NY rev (3m)-9.34%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)3.43%
Revenue NY rev (1m)0.86%
Revenue NY rev (3m)3.46%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 52.7 | ||
| Fwd PE | 31.61 | ||
| P/S | 4.49 | ||
| P/FCF | 14.65 | ||
| P/OCF | 12.77 | ||
| P/B | 18.94 | ||
| P/tB | 19.87 | ||
| EV/EBITDA | 30.28 |
EPS(TTM)40.49
EY1.9%
EPS(NY)67.5
Fwd EY3.16%
FCF(TTM)145.66
FCFY6.83%
OCF(TTM)167.1
OCFY7.83%
SpS475.27
BVpS112.68
TBVpS107.4
PEG (NY)2.41
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 | 3.93 |
F-Score4
WACC8.69%
ROIC/WACC2.16
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 Y21.85%
EPS Next 2Y33.81%
EPS Next 3Y33.91%
EPS Next 5Y32.92%
Revenue 1Y (TTM)35.81%
Revenue growth 3Y43.24%
Revenue growth 5Y55.35%
Sales Q2Q%33.85%
Revenue Next Year36.67%
Revenue Next 2Y31.39%
Revenue Next 3Y28.12%
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%