MERCADOLIBRE INC (MELI) Stock Fundamental Analysis
USA - NASDAQ:MELI - US58733R1023 - Common Stock
2048.89 USD
+17.84 (+0.88%)
2044 USD
-4.89 (-0.24%)
We assign a fundamental rating of 7 out of 10 to MELI. MELI was compared to 30 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 growing strongly while it is still valued neutral. This is a good combination! These ratings would make MELI suitable 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
MELI's Return On Assets of 5.66% is fine compared to the rest of the industry. MELI outperforms 66.67% of its industry peers.
With an excellent Return On Equity value of 33.40%, MELI belongs to the best of the industry, outperforming 96.67% of the companies in the same industry.
With an excellent Return On Invested Capital value of 18.27%, MELI belongs to the best of the industry, outperforming 93.33% of the companies in the same industry.
MELI had an Average Return On Invested Capital over the past 3 years of 20.35%. This is significantly above the industry average of 10.28%.
| 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
With a decent Profit Margin value of 7.93%, MELI is doing good in the industry, outperforming 76.67% of the companies in the same industry.
In the last couple of years the Profit Margin of MELI has grown nicely.
The Operating Margin of MELI (11.96%) is better than 83.33% of its industry peers.
In the last couple of years the Operating Margin of MELI has grown nicely.
With a decent Gross Margin value of 45.14%, MELI is doing good in the industry, outperforming 66.67% 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 | 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%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so MELI is creating value.
MELI has about the same amout of shares outstanding than it did 1 year ago.
MELI has more shares outstanding than it did 5 years ago.
MELI has a better debt/assets ratio than last year.
2.2 Solvency
MELI has an Altman-Z score of 3.38. This indicates that MELI is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of MELI (3.38) is better than 63.33% of its industry peers.
The Debt to FCF ratio of MELI is 0.91, which is an excellent value as it means it would take MELI, only 0.91 years of fcf income to pay off all of its debts.
MELI's Debt to FCF ratio of 0.91 is fine compared to the rest of the industry. MELI outperforms 80.00% of its industry peers.
MELI has a Debt/Equity ratio of 0.55. This is a neutral value indicating MELI is somewhat dependend on debt financing.
The Debt to Equity ratio of MELI (0.55) is worse than 60.00% of its industry peers.
Even though the debt/equity ratio score it not favorable for MELI, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.55 | ||
| Debt/FCF | 0.91 | ||
| Altman-Z | 3.38 |
ROIC/WACC2.11
WACC8.67%
2.3 Liquidity
A Current Ratio of 1.17 indicates that MELI should not have too much problems paying its short term obligations.
MELI's Current ratio of 1.17 is on the low side compared to the rest of the industry. MELI is outperformed by 76.67% of its industry peers.
A Quick Ratio of 1.15 indicates that MELI should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.15, MELI is in line with its industry, outperforming 43.33% of the companies in the same industry.
The current and quick ratio evaluation for MELI 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 | 1.17 | ||
| Quick Ratio | 1.15 |
3. Growth
3.1 Past
MELI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 44.60%, which is quite impressive.
MELI shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 172.65% yearly.
MELI shows a strong growth in Revenue. In the last year, the Revenue has grown by 36.94%.
Measured over the past years, MELI shows a very strong growth in Revenue. The Revenue has been growing by 55.35% on average per year.
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
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 24.13% yearly.
EPS Next Y18.34%
EPS Next 2Y31.82%
EPS Next 3Y33.53%
EPS Next 5Y32.92%
Revenue Next Year37.28%
Revenue Next 2Y32%
Revenue Next 3Y28.44%
Revenue Next 5Y24.13%
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
The Price/Earnings ratio is 50.00, which means the current valuation is very expensive for MELI.
MELI's Price/Earnings is on the same level as the industry average.
MELI's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 25.89.
With a Price/Forward Earnings ratio of 31.28, MELI can be considered very expensive at the moment.
MELI's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. MELI is more expensive than 60.00% of the companies in the same industry.
MELI's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 34.59.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 50 | ||
| Fwd PE | 31.28 |
4.2 Price Multiples
MELI's Enterprise Value to EBITDA ratio is in line with the industry average.
MELI's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. MELI is cheaper than 76.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.06 | ||
| EV/EBITDA | 26.32 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates MELI does not grow enough to justify the current Price/Earnings ratio.
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 33.53% in the coming years.
PEG (NY)2.73
PEG (5Y)N/A
EPS Next 2Y31.82%
EPS Next 3Y33.53%
5. Dividend
5.1 Amount
No dividends for MELI!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
2048.89
+17.84 (+0.88%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)
Earnings (Next)
Inst Owners84.47%
Inst Owner Change1.75%
Ins Owners0.26%
Ins Owner Change1.57%
Market Cap103.88B
Revenue(TTM)26.19B
Net Income(TTM)2.08B
Analysts83.87
Price Target2914.59 (42.25%)
Short Float %1.17%
Short Ratio1.26
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)0
Avg EPS beat(2)-13.97%
Min EPS beat(2)-15.3%
Max EPS beat(2)-12.64%
EPS beat(4)2
Avg EPS beat(4)10.73%
Min EPS beat(4)-15.3%
Max EPS beat(4)55.87%
EPS beat(8)4
Avg EPS beat(8)-0.57%
EPS beat(12)8
Avg EPS beat(12)7.16%
EPS beat(16)10
Avg EPS beat(16)-3.69%
Revenue beat(2)1
Avg Revenue beat(2)0.25%
Min Revenue beat(2)-0.1%
Max Revenue beat(2)0.61%
Revenue beat(4)3
Avg Revenue beat(4)1.77%
Min Revenue beat(4)-0.1%
Max Revenue beat(4)5.59%
Revenue beat(8)6
Avg Revenue beat(8)2.99%
Revenue beat(12)10
Avg Revenue beat(12)3.34%
Revenue beat(16)13
Avg Revenue beat(16)3.38%
PT rev (1m)-0.69%
PT rev (3m)-0.66%
EPS NQ rev (1m)-16.51%
EPS NQ rev (3m)-25.81%
EPS NY rev (1m)-2.88%
EPS NY rev (3m)-11.73%
Revenue NQ rev (1m)1.11%
Revenue NQ rev (3m)4.73%
Revenue NY rev (1m)0.45%
Revenue NY rev (3m)3.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 50 | ||
| Fwd PE | 31.28 | ||
| P/S | 3.97 | ||
| P/FCF | 12.06 | ||
| P/OCF | 10.57 | ||
| P/B | 16.71 | ||
| P/tB | 17.49 | ||
| EV/EBITDA | 26.32 |
EPS(TTM)40.98
EY2%
EPS(NY)65.51
Fwd EY3.2%
FCF(TTM)169.82
FCFY8.29%
OCF(TTM)193.91
OCFY9.46%
SpS516.63
BVpS122.64
TBVpS117.18
PEG (NY)2.73
PEG (5Y)N/A
Graham Number336.28
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.66% | ||
| ROE | 33.4% | ||
| ROCE | 25.74% | ||
| ROIC | 18.27% | ||
| ROICexc | 37.85% | ||
| ROICexgc | 39.73% | ||
| OM | 11.96% | ||
| PM (TTM) | 7.93% | ||
| GM | 45.14% | ||
| FCFM | 32.87% |
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%
ROICexgc growth 3Y46.42%
ROICexgc 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 Turnover0.71
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.55 | ||
| Debt/FCF | 0.91 | ||
| Debt/EBITDA | 0.88 | ||
| Cap/Depr | 166.8% | ||
| Cap/Sales | 4.66% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 254.43% | ||
| Profit Quality | 414.54% | ||
| Current Ratio | 1.17 | ||
| Quick Ratio | 1.15 | ||
| Altman-Z | 3.38 |
F-Score5
WACC8.67%
ROIC/WACC2.11
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)44.6%
EPS 3Y172.65%
EPS 5YN/A
EPS Q2Q%6.26%
EPS Next Y18.34%
EPS Next 2Y31.82%
EPS Next 3Y33.53%
EPS Next 5Y32.92%
Revenue 1Y (TTM)36.94%
Revenue growth 3Y43.24%
Revenue growth 5Y55.35%
Sales Q2Q%39.48%
Revenue Next Year37.28%
Revenue Next 2Y32%
Revenue Next 3Y28.44%
Revenue Next 5Y24.13%
EBIT growth 1Y45.95%
EBIT growth 3Y80.24%
EBIT growth 5YN/A
EBIT Next Year73.75%
EBIT Next 3Y44.79%
EBIT Next 5Y36.21%
FCF growth 1Y99.63%
FCF growth 3Y170.77%
FCF growth 5Y86.33%
OCF growth 1Y106.79%
OCF growth 3Y101.69%
OCF growth 5Y77.37%
MERCADOLIBRE INC / MELI FAQ
What is the fundamental rating for MELI stock?
ChartMill assigns a fundamental rating of 7 / 10 to MELI.
Can you provide the valuation status for MERCADOLIBRE INC?
ChartMill assigns a valuation rating of 4 / 10 to MERCADOLIBRE INC (MELI). This can be considered as Fairly Valued.
What is the profitability of MELI stock?
MERCADOLIBRE INC (MELI) has a profitability rating of 8 / 10.
Can you provide the expected EPS growth for MELI stock?
The Earnings per Share (EPS) of MERCADOLIBRE INC (MELI) is expected to grow by 18.34% in the next year.
Can you provide the dividend sustainability for MELI stock?
The dividend rating of MERCADOLIBRE INC (MELI) is 0 / 10 and the dividend payout ratio is 0%.