MERCADOLIBRE INC (MLB1.DE) Stock Fundamental Analysis

Europe • Frankfurt Stock Exchange • FRA:MLB1 • US58733R1023

1828.4 EUR

-40 (-2.14%)

Last: Jan 30, 2026, 07:00 PM

Fundamental Rating

MLB1 gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 13 industry peers in the Broadline Retail industry. MLB1 gets an excellent profitability rating and is at the same time showing great financial health properties. MLB1 is valued quite expensively, but it does show have an excellent growth rating. This makes MLB1 very considerable for growth and quality investing!

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1. Profitability

1.1 Basic Checks

In the past year MLB1 was profitable.
MLB1 had a positive operating cash flow in the past year.
Of the past 5 years MLB1 4 years were profitable.
Each year in the past 5 years MLB1 had a positive operating cash flow.

1.2 Ratios

MLB1 has a worse Return On Assets (5.66%) than 69.23% of its industry peers.
With an excellent Return On Equity value of 33.40%, MLB1 belongs to the best of the industry, outperforming 92.31% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 18.27%, MLB1 belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for MLB1 is significantly above the industry average of 8.68%.

		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

The Profit Margin of MLB1 (7.93%) is comparable to the rest of the industry.
In the last couple of years the Profit Margin of MLB1 has grown nicely.
Looking at the Operating Margin, with a value of 11.96%, MLB1 belongs to the top of the industry, outperforming 84.62% of the companies in the same industry.
MLB1's Operating Margin has improved in the last couple of years.
MLB1 has a Gross Margin of 45.14%. This is in the lower half of the industry: MLB1 underperforms 61.54% of its industry peers.
In the last couple of years the Gross Margin of MLB1 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%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

MLB1 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 MLB1 remains at a similar level compared to 1 year ago.
MLB1 has more shares outstanding than it did 5 years ago.
MLB1 has a better debt/assets ratio than last year.

2.2 Solvency

MLB1 has an Altman-Z score of 3.51. This indicates that MLB1 is financially healthy and has little risk of bankruptcy at the moment.
MLB1's Altman-Z score of 3.51 is fine compared to the rest of the industry. MLB1 outperforms 69.23% of its industry peers.
The Debt to FCF ratio of MLB1 is 0.91, which is an excellent value as it means it would take MLB1, only 0.91 years of fcf income to pay off all of its debts.
MLB1 has a better Debt to FCF ratio (0.91) than 100.00% of its industry peers.
A Debt/Equity ratio of 0.55 indicates that MLB1 is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.55, MLB1 perfoms like the industry average, outperforming 46.15% of the companies in the same industry.
Although MLB1 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	0.55
Debt/FCF	0.91
Altman-Z	3.51

ROIC/WACC2.04

WACC8.94%

2.3 Liquidity

MLB1 has a Current Ratio of 1.17. This is a normal value and indicates that MLB1 is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.17, MLB1 is in the better half of the industry, outperforming 61.54% of the companies in the same industry.
MLB1 has a Quick Ratio of 1.15. This is a normal value and indicates that MLB1 is financially healthy and should not expect problems in meeting its short term obligations.
MLB1 has a better Quick ratio (1.15) than 61.54% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	1.17
Quick Ratio	1.15

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WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

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3. Growth

3.1 Past

MLB1 shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 44.60%, which is quite impressive.
MLB1 shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 172.65% yearly.
The Revenue has grown by 36.94% in the past year. This is a very strong growth!
MLB1 shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 55.35% yearly.

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, MLB1 will show a very strong growth in Earnings Per Share. The EPS will grow by 31.97% on average per year.
The Revenue is expected to grow by 24.56% on average over the next years. This is a very strong growth

EPS Next Y11.47%

EPS Next 2Y27.93%

EPS Next 3Y31.86%

EPS Next 5Y31.97%

Revenue Next Year38.59%

Revenue Next 2Y33.64%

Revenue Next 3Y29.53%

Revenue Next 5Y24.56%

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.

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4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 53.18, MLB1 can be considered very expensive at the moment.
Based on the Price/Earnings ratio, MLB1 is valued a bit more expensive than the industry average as 69.23% of the companies are valued more cheaply.
MLB1 is valuated expensively when we compare the Price/Earnings ratio to 28.32, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 35.32 indicates a quite expensive valuation of MLB1.
MLB1's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. MLB1 is more expensive than 61.54% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of MLB1 to the average of the S&P500 Index (25.57), we can say MLB1 is valued slightly more expensively.

		Industry Rank	Sector Rank
PE	53.18
Fwd PE	35.32

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, MLB1 is valued a bit more expensive than the industry average as 69.23% of the companies are valued more cheaply.
MLB1's Price/Free Cash Flow ratio is rather cheap when compared to the industry. MLB1 is cheaper than 84.62% of the companies in the same industry.

		Industry Rank	Sector Rank
P/FCF	12.83
EV/EBITDA	28.03

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 MLB1 may justify a higher PE ratio.
A more expensive valuation may be justified as MLB1's earnings are expected to grow with 31.86% in the coming years.