MERCADOLIBRE INC (MLB1.DE) Stock Fundamental Analysis
FRA:MLB1 - Deutsche Boerse Ag - US58733R1023 - Common Stock - Currency: EUR
We assign a fundamental rating of 6 out of 10 to MLB1. MLB1 was compared to 10 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 shows excellent growth, but is valued quite expensive already. These ratings would make MLB1 suitable for growth and quality investing!
1. Profitability
1.1 Basic Checks
In the past year MLB1 was profitable.
In the past year MLB1 had a positive cash flow from operations.
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
With a Return On Assets value of 7.45%, MLB1 perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
MLB1 has a better Return On Equity (41.19%) than 90.00% of its industry peers.
MLB1 has a Return On Invested Capital of 21.15%. This is amongst the best in the industry. MLB1 outperforms 100.00% of its industry peers.
MLB1 had an Average Return On Invested Capital over the past 3 years of 18.86%. This is significantly above the industry average of 9.76%.
The 3 year average ROIC (18.86%) for MLB1 is below the current ROIC(21.15%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.45% | ||
| ROE | 41.19% | ||
| ROIC | 21.15% |
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
MLB1 has a worse Profit Margin (9.21%) than 60.00% of its industry peers.
In the last couple of years the Profit Margin of MLB1 has grown nicely.
MLB1 has a Operating Margin of 12.81%. This is in the better half of the industry: MLB1 outperforms 80.00% of its industry peers.
MLB1's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 46.13%, MLB1 is in line with its industry, outperforming 60.00% of the companies in the same industry.
MLB1's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.81% | ||
| PM (TTM) | 9.21% | ||
| GM | 46.13% |
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.
MLB1 has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, MLB1 has more shares outstanding
MLB1 has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 4.91 indicates that MLB1 is not in any danger for bankruptcy at the moment.
MLB1 has a better Altman-Z score (4.91) than 70.00% of its industry peers.
MLB1 has a debt to FCF ratio of 1.00. This is a very positive value and a sign of high solvency as it would only need 1.00 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 1.00, MLB1 belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
MLB1 has a Debt/Equity ratio of 0.57. This is a neutral value indicating MLB1 is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.57, MLB1 is not doing good in the industry: 60.00% of the companies in the same industry are doing better.
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 | 0.57 | ||
| Debt/FCF | 1 | ||
| Altman-Z | 4.91 |
ROIC/WACC2.02
WACC10.48%
2.3 Liquidity
A Current Ratio of 1.20 indicates that MLB1 should not have too much problems paying its short term obligations.
MLB1's Current ratio of 1.20 is in line compared to the rest of the industry. MLB1 outperforms 60.00% of its industry peers.
A Quick Ratio of 1.18 indicates that MLB1 should not have too much problems paying its short term obligations.
MLB1's Quick ratio of 1.18 is in line compared to the rest of the industry. MLB1 outperforms 60.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.2 | ||
| Quick Ratio | 1.18 |
3. Growth
3.1 Past
MLB1 shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 81.92%, which is quite impressive.
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, MLB1 shows a very strong growth in Revenue. The Revenue has grown by 37.68%.
MLB1 shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 55.35% yearly.
EPS 1Y (TTM)81.92%
EPS 3Y172.65%
EPS 5YN/A
EPS Q2Q%43.66%
Revenue 1Y (TTM)37.68%
Revenue growth 3Y43.24%
Revenue growth 5Y55.35%
Sales Q2Q%36.97%
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.
The Revenue is expected to grow by 19.86% on average over the next years. This is quite good.
EPS Next Y32.21%
EPS Next 2Y35.68%
EPS Next 3Y35.73%
EPS Next 5Y30.31%
Revenue Next Year27.17%
Revenue Next 2Y25.38%
Revenue Next 3Y24.43%
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
The Price/Earnings ratio is 62.24, which means the current valuation is very expensive for MLB1.
Based on the Price/Earnings ratio, MLB1 is valued more expensive than 80.00% of the companies in the same industry.
MLB1's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 26.25.
A Price/Forward Earnings ratio of 36.46 indicates a quite expensive valuation of MLB1.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MLB1 indicates a rather expensive valuation: MLB1 more expensive than 80.00% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.15. MLB1 is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 62.24 | ||
| Fwd PE | 36.46 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of MLB1 is on the same level as its industry peers.
Based on the Price/Free Cash Flow ratio, MLB1 is valued a bit cheaper than the industry average as 70.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.88 | ||
| EV/EBITDA | 34.65 |
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 35.73% in the coming years.
PEG (NY)1.93
PEG (5Y)N/A
EPS Next 2Y35.68%
EPS Next 3Y35.73%
5. Dividend
5.1 Amount
No dividends for MLB1!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
FRA:MLB1 (5/30/2025, 7:00:00 PM)
2243
+6.5 (+0.29%)
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 Cap113.72B
Analysts84.14
Price Target2287.18 (1.97%)
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)2
Avg EPS beat(2)35.43%
Min EPS beat(2)14.99%
Max EPS beat(2)55.87%
EPS beat(4)3
Avg EPS beat(4)17.01%
Min EPS beat(4)-23.22%
Max EPS beat(4)55.87%
EPS beat(8)6
Avg EPS beat(8)6.84%
EPS beat(12)10
Avg EPS beat(12)12.5%
EPS beat(16)12
Avg EPS beat(16)38.42%
Revenue beat(2)2
Avg Revenue beat(2)3.28%
Min Revenue beat(2)0.98%
Max Revenue beat(2)5.59%
Revenue beat(4)3
Avg Revenue beat(4)2.93%
Min Revenue beat(4)-1.12%
Max Revenue beat(4)6.26%
Revenue beat(8)7
Avg Revenue beat(8)3.52%
Revenue beat(12)10
Avg Revenue beat(12)3.76%
Revenue beat(16)13
Avg Revenue beat(16)4.34%
PT rev (1m)-4.47%
PT rev (3m)4.08%
EPS NQ rev (1m)8.74%
EPS NQ rev (3m)19%
EPS NY rev (1m)3.93%
EPS NY rev (3m)10.62%
Revenue NQ rev (1m)3.87%
Revenue NQ rev (3m)5.63%
Revenue NY rev (1m)1.38%
Revenue NY rev (3m)3.98%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 62.24 | ||
| Fwd PE | 36.46 | ||
| P/S | 5.73 | ||
| P/FCF | 19.88 | ||
| P/OCF | 17.25 | ||
| P/B | 25.64 | ||
| P/tB | 26.97 | ||
| EV/EBITDA | 34.65 |
EPS(TTM)36.04
EY1.61%
EPS(NY)61.53
Fwd EY2.74%
FCF(TTM)112.83
FCFY5.03%
OCF(TTM)130.03
OCFY5.8%
SpS391.28
BVpS87.49
TBVpS83.17
PEG (NY)1.93
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.45% | ||
| ROE | 41.19% | ||
| ROCE | 29.8% | ||
| ROIC | 21.15% | ||
| ROICexc | 130.55% | ||
| ROICexgc | 155.15% | ||
| OM | 12.81% | ||
| PM (TTM) | 9.21% | ||
| GM | 46.13% | ||
| FCFM | 28.84% |
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-Score5
Asset Turnover0.81
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.57 | ||
| Debt/FCF | 1 | ||
| Debt/EBITDA | 0.82 | ||
| Cap/Depr | 154.96% | ||
| Cap/Sales | 4.4% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 212.43% | ||
| Profit Quality | 313.1% | ||
| Current Ratio | 1.2 | ||
| Quick Ratio | 1.18 | ||
| Altman-Z | 4.91 |
F-Score5
WACC10.48%
ROIC/WACC2.02
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)81.92%
EPS 3Y172.65%
EPS 5YN/A
EPS Q2Q%43.66%
EPS Next Y32.21%
EPS Next 2Y35.68%
EPS Next 3Y35.73%
EPS Next 5Y30.31%
Revenue 1Y (TTM)37.68%
Revenue growth 3Y43.24%
Revenue growth 5Y55.35%
Sales Q2Q%36.97%
Revenue Next Year27.17%
Revenue Next 2Y25.38%
Revenue Next 3Y24.43%
Revenue Next 5Y19.86%
EBIT growth 1Y23.69%
EBIT growth 3Y80.24%
EBIT growth 5YN/A
EBIT Next Year76.57%
EBIT Next 3Y44.13%
EBIT Next 5Y33.61%
FCF growth 1Y78.01%
FCF growth 3Y170.77%
FCF growth 5Y86.33%
OCF growth 1Y84.45%
OCF growth 3Y101.69%
OCF growth 5Y77.37%