MERCADOLIBRE INC (MLB1.DE) Stock Fundamental Analysis
FRA:MLB1 - Deutsche Boerse Ag - US58733R1023 - Common Stock - Currency: EUR
Overall MLB1 gets a fundamental rating of 7 out of 10. We evaluated MLB1 against 11 industry peers in the Broadline Retail industry. Both the health and profitability get an excellent rating, making MLB1 a very profitable company, without any liquidiy or solvency issues. MLB1 is valued quite expensively, but it does show have an excellent growth rating. With these ratings, MLB1 could be worth investigating further for growth and quality investing!.
1. Profitability
1.1 Basic Checks
MLB1 had positive earnings in the past year.
MLB1 had a positive operating cash flow in the past year.
MLB1 had positive earnings in 4 of the past 5 years.
MLB1 had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
MLB1 has a Return On Assets of 7.58%. This is comparable to the rest of the industry: MLB1 outperforms 54.55% of its industry peers.
MLB1 has a Return On Equity of 43.92%. This is amongst the best in the industry. MLB1 outperforms 100.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 21.73%, 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 8.85%.
The 3 year average ROIC (18.86%) for MLB1 is below the current ROIC(21.73%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.58% | ||
| ROE | 43.92% | ||
| ROIC | 21.73% |
ROA(3y)5.57%
ROA(5y)3.5%
ROE(3y)34.15%
ROE(5y)21.57%
ROIC(3y)18.86%
ROIC(5y)13.44%
1.3 Margins
With a Profit Margin value of 9.20%, MLB1 perfoms like the industry average, outperforming 45.45% of the companies in the same industry.
MLB1's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 12.66%, MLB1 belongs to the top of the industry, outperforming 81.82% of the companies in the same industry.
In the last couple of years the Operating Margin of MLB1 has grown nicely.
MLB1 has a Gross Margin (46.09%) which is in line with 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 | 12.66% | ||
| PM (TTM) | 9.2% | ||
| GM | 46.09% |
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), MLB1 is creating value.
Compared to 1 year ago, MLB1 has about the same amount of shares outstanding.
MLB1 has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, MLB1 has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 4.87 indicates that MLB1 is not in any danger for bankruptcy at the moment.
The Altman-Z score of MLB1 (4.87) is better than 72.73% of its industry peers.
The Debt to FCF ratio of MLB1 is 0.81, which is an excellent value as it means it would take MLB1, only 0.81 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of MLB1 (0.81) is better than 100.00% of its industry peers.
A Debt/Equity ratio of 0.66 indicates that MLB1 is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.66, MLB1 perfoms like the industry average, outperforming 45.45% 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 | 0.66 | ||
| Debt/FCF | 0.81 | ||
| Altman-Z | 4.87 |
ROIC/WACC2.24
WACC9.71%
2.3 Liquidity
A Current Ratio of 1.21 indicates that MLB1 should not have too much problems paying its short term obligations.
MLB1 has a Current ratio (1.21) which is in line with its industry peers.
A Quick Ratio of 1.20 indicates that MLB1 should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.20, MLB1 is in line with its industry, outperforming 54.55% of the companies in the same industry.
The current and quick ratio evaluation for MLB1 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 | 1.21 | ||
| Quick Ratio | 1.2 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 92.94% 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
The Revenue has grown by 37.53% in the past year. This is a very strong growth!
The Revenue has been growing by 55.35% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)92.94%
EPS 3Y172.65%
EPS 5YN/A
EPS Q2Q%288%
Revenue 1Y (TTM)37.53%
Revenue growth 3Y43.24%
Revenue growth 5Y55.35%
Sales Q2Q%42.2%
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 30.31% on average per year.
MLB1 is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 19.86% yearly.
EPS Next Y27.2%
EPS Next 2Y32.51%
EPS Next 3Y32.23%
EPS Next 5Y30.31%
Revenue Next Year25.44%
Revenue Next 2Y24.42%
Revenue Next 3Y22.33%
Revenue Next 5Y19.86%
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
With a Price/Earnings ratio of 59.66, 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 72.73% of the companies are valued more cheaply.
MLB1 is valuated expensively when we compare the Price/Earnings ratio to 28.10, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 46.91 indicates a quite expensive valuation of MLB1.
Based on the Price/Forward Earnings ratio, MLB1 is valued a bit more expensive than the industry average as 63.64% of the companies are valued more cheaply.
MLB1 is valuated expensively when we compare the Price/Forward Earnings ratio to 20.74, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 59.66 | ||
| Fwd PE | 46.91 |
4.2 Price Multiples
63.64% of the companies in the same industry are cheaper than MLB1, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, MLB1 is valued a bit cheaper than 72.73% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.16 | ||
| EV/EBITDA | 33.72 |
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 MLB1 may justify a higher PE ratio.
A more expensive valuation may be justified as MLB1's earnings are expected to grow with 32.23% in the coming years.
PEG (NY)2.19
PEG (5Y)N/A
EPS Next 2Y32.51%
EPS Next 3Y32.23%
5. Dividend
5.1 Amount
No dividends for MLB1!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
FRA:MLB1 (5/6/2025, 10:00:02 AM)
1983.2
-23.8 (-1.19%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)
Earnings (Next)
Inst Owners83.73%
Inst Owner ChangeN/A
Ins Owners0.09%
Ins Owner ChangeN/A
Market Cap100.55B
Analysts84.14
Price Target2235.71 (12.73%)
Short Float %N/A
Short RatioN/A
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)16.33%
Min EPS beat(2)-23.22%
Max EPS beat(2)55.87%
EPS beat(4)3
Avg EPS beat(4)15.84%
Min EPS beat(4)-23.22%
Max EPS beat(4)55.87%
EPS beat(8)6
Avg EPS beat(8)8.24%
EPS beat(12)9
Avg EPS beat(12)10.71%
EPS beat(16)11
Avg EPS beat(16)-250.31%
Revenue beat(2)1
Avg Revenue beat(2)-0.07%
Min Revenue beat(2)-1.12%
Max Revenue beat(2)0.98%
Revenue beat(4)3
Avg Revenue beat(4)4.12%
Min Revenue beat(4)-1.12%
Max Revenue beat(4)10.34%
Revenue beat(8)7
Avg Revenue beat(8)3.95%
Revenue beat(12)10
Avg Revenue beat(12)4.14%
Revenue beat(16)13
Avg Revenue beat(16)5.15%
PT rev (1m)-4.31%
PT rev (3m)1.74%
EPS NQ rev (1m)-2.28%
EPS NQ rev (3m)16.66%
EPS NY rev (1m)-0.83%
EPS NY rev (3m)6.39%
Revenue NQ rev (1m)-0.43%
Revenue NQ rev (3m)1.66%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)2.18%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 59.66 | ||
| Fwd PE | 46.91 | ||
| P/S | 5.49 | ||
| P/FCF | 16.16 | ||
| P/OCF | 14.4 | ||
| P/B | 26.21 | ||
| P/tB | 27.54 | ||
| EV/EBITDA | 33.72 |
EPS(TTM)33.24
EY1.68%
EPS(NY)42.28
Fwd EY2.13%
FCF(TTM)122.73
FCFY6.19%
OCF(TTM)137.68
OCFY6.94%
SpS361.28
BVpS75.66
TBVpS72.01
PEG (NY)2.19
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.58% | ||
| ROE | 43.92% | ||
| ROCE | 30.62% | ||
| ROIC | 21.73% | ||
| ROICexc | 126.76% | ||
| ROICexgc | 147.84% | ||
| OM | 12.66% | ||
| PM (TTM) | 9.2% | ||
| GM | 46.09% | ||
| FCFM | 33.97% |
ROA(3y)5.57%
ROA(5y)3.5%
ROE(3y)34.15%
ROE(5y)21.57%
ROIC(3y)18.86%
ROIC(5y)13.44%
ROICexc(3y)207.02%
ROICexc(5y)N/A
ROICexgc(3y)457.7%
ROICexgc(5y)N/A
ROCE(3y)26.57%
ROCE(5y)18.94%
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-Score6
Asset Turnover0.82
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.66 | ||
| Debt/FCF | 0.81 | ||
| Debt/EBITDA | 0.89 | ||
| Cap/Depr | 139.38% | ||
| Cap/Sales | 4.14% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 243.78% | ||
| Profit Quality | 369.34% | ||
| Current Ratio | 1.21 | ||
| Quick Ratio | 1.2 | ||
| Altman-Z | 4.87 |
F-Score6
WACC9.71%
ROIC/WACC2.24
Cap/Depr(3y)116.48%
Cap/Depr(5y)176.74%
Cap/Sales(3y)3.99%
Cap/Sales(5y)5.36%
Profit Quality(3y)451.37%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)92.94%
EPS 3Y172.65%
EPS 5YN/A
EPS Q2Q%288%
EPS Next Y27.2%
EPS Next 2Y32.51%
EPS Next 3Y32.23%
EPS Next 5Y30.31%
Revenue 1Y (TTM)37.53%
Revenue growth 3Y43.24%
Revenue growth 5Y55.35%
Sales Q2Q%42.2%
Revenue Next Year25.44%
Revenue Next 2Y24.42%
Revenue Next 3Y22.33%
Revenue Next 5Y19.86%
EBIT growth 1Y18.09%
EBIT growth 3Y80.24%
EBIT growth 5YN/A
EBIT Next Year71.5%
EBIT Next 3Y41.27%
EBIT Next 5Y33.61%
FCF growth 1Y52.41%
FCF growth 3Y170.77%
FCF growth 5Y86.33%
OCF growth 1Y54.05%
OCF growth 3Y101.69%
OCF growth 5Y77.37%