MERCADOLIBRE INC (MLB1.DE) Stock Fundamental Analysis
FRA:MLB1 - Deutsche Boerse Ag - US58733R1023 - Common Stock - Currency: EUR
We assign a fundamental rating of 7 out of 10 to MLB1. MLB1 was compared to 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. These ratings could make MLB1 a good candidate for growth and quality investing.
1. Profitability
1.1 Basic Checks
In the past year MLB1 was profitable.
MLB1 had a positive operating cash flow in the past year.
MLB1 had positive earnings in 4 of the past 5 years.
Each year in the past 5 years MLB1 had a positive operating cash flow.
1.2 Ratios
The Return On Assets of MLB1 (7.45%) is comparable to the rest of the industry.
Looking at the Return On Equity, with a value of 41.19%, MLB1 belongs to the top of the industry, outperforming 90.91% of the companies in the same industry.
MLB1's Return On Invested Capital of 21.15% is amongst the best of the industry. MLB1 outperforms 100.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for MLB1 is significantly above the industry average of 8.96%.
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 Profit Margin (9.21%) which is comparable to the rest of the industry.
MLB1's Profit Margin has improved in the last couple of years.
MLB1 has a better Operating Margin (12.81%) than 81.82% of its industry peers.
In the last couple of years the Operating Margin of MLB1 has grown nicely.
MLB1 has a Gross Margin (46.13%) 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 | 12.81% | ||
| 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so 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 4.72 indicates that MLB1 is not in any danger for bankruptcy at the moment.
MLB1 has a better Altman-Z score (4.72) than 72.73% 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.
MLB1 has a Debt to FCF ratio of 1.00. This is amongst the best in the industry. MLB1 outperforms 100.00% of its industry peers.
A Debt/Equity ratio of 0.57 indicates that MLB1 is somewhat dependend on debt financing.
MLB1's Debt to Equity ratio of 0.57 is in line compared to the rest of the industry. MLB1 outperforms 45.45% of its industry peers.
Even though the debt/equity ratio score it not favorable for MLB1, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.57 | ||
| Debt/FCF | 1 | ||
| Altman-Z | 4.72 |
ROIC/WACC2.26
WACC9.35%
2.3 Liquidity
A Current Ratio of 1.20 indicates that MLB1 should not have too much problems paying its short term obligations.
MLB1 has a Current ratio of 1.20. This is in the better half of the industry: MLB1 outperforms 63.64% 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 has a better Quick ratio (1.18) than 63.64% 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.
MLB1 shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 172.65% yearly.
MLB1 shows a strong growth in Revenue. In the last year, 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
The Earnings Per Share is expected to grow by 31.51% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 20.57% on average over the next years. This is a very strong growth
EPS Next Y32.21%
EPS Next 2Y35.68%
EPS Next 3Y35.73%
EPS Next 5Y31.51%
Revenue Next Year30.55%
Revenue Next 2Y27.47%
Revenue Next 3Y25.9%
Revenue Next 5Y20.57%
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
A Price/Earnings ratio of 59.15 indicates a quite expensive valuation of MLB1.
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's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 26.34.
A Price/Forward Earnings ratio of 34.65 indicates a quite expensive valuation of MLB1.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MLB1 indicates a slightly more expensive valuation: MLB1 is more expensive than 63.64% of the companies listed in the same industry.
MLB1's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 22.19.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 59.15 | ||
| Fwd PE | 34.65 |
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 63.64% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.89 | ||
| EV/EBITDA | 32.54 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates MLB1 does not grow enough to justify the current Price/Earnings ratio.
MLB1 has an outstanding profitability rating, which may justify a higher PE ratio.
MLB1's earnings are expected to grow with 35.73% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.84
PEG (5Y)N/A
EPS Next 2Y35.68%
EPS Next 3Y35.73%
5. Dividend
5.1 Amount
MLB1 does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
FRA:MLB1 (6/20/2025, 5:29:52 PM)
2095
+22 (+1.06%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)
Earnings (Next)
Inst Owners84.81%
Inst Owner ChangeN/A
Ins Owners0.26%
Ins Owner ChangeN/A
Market Cap106.22B
Analysts84.14
Price Target2468.31 (17.82%)
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)7.92%
PT rev (3m)2.45%
EPS NQ rev (1m)2.21%
EPS NQ rev (3m)8.72%
EPS NY rev (1m)0%
EPS NY rev (3m)10.62%
Revenue NQ rev (1m)3.95%
Revenue NQ rev (3m)6.25%
Revenue NY rev (1m)2.66%
Revenue NY rev (3m)4.26%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 59.15 | ||
| Fwd PE | 34.65 | ||
| P/S | 5.45 | ||
| P/FCF | 18.89 | ||
| P/OCF | 16.39 | ||
| P/B | 24.36 | ||
| P/tB | 25.63 | ||
| EV/EBITDA | 32.54 |
EPS(TTM)35.42
EY1.69%
EPS(NY)60.47
Fwd EY2.89%
FCF(TTM)110.89
FCFY5.29%
OCF(TTM)127.8
OCFY6.1%
SpS384.56
BVpS85.99
TBVpS81.74
PEG (NY)1.84
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 | 4.72 |
F-Score5
WACC9.35%
ROIC/WACC2.26
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 5Y31.51%
Revenue 1Y (TTM)37.68%
Revenue growth 3Y43.24%
Revenue growth 5Y55.35%
Sales Q2Q%36.97%
Revenue Next Year30.55%
Revenue Next 2Y27.47%
Revenue Next 3Y25.9%
Revenue Next 5Y20.57%
EBIT growth 1Y23.69%
EBIT growth 3Y80.24%
EBIT growth 5YN/A
EBIT Next Year76.57%
EBIT Next 3Y44.13%
EBIT Next 5Y34.7%
FCF growth 1Y78.01%
FCF growth 3Y170.77%
FCF growth 5Y86.33%
OCF growth 1Y84.45%
OCF growth 3Y101.69%
OCF growth 5Y77.37%