2149.9 USD
-28.51 (-1.31%)
2144.92 USD
-4.98 (-0.23%)
Overall MELI gets a fundamental rating of 7 out of 10. We evaluated MELI against 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 valued quite expensively, but it does show have an excellent growth rating. With these ratings, MELI could be worth investigating further for growth and quality investing!.
1. Profitability
1.1 Basic Checks
In the past year MELI was profitable.
MELI had a positive operating cash flow in the past year.
Of the past 5 years MELI 4 years were profitable.
MELI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 5.66%, MELI is doing good in the industry, outperforming 70.00% of the companies in the same industry.
MELI's Return On Equity of 33.40% is amongst the best of the industry. MELI outperforms 96.67% of its industry peers.
MELI's Return On Invested Capital of 18.27% is amongst the best of the industry. MELI outperforms 93.33% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for MELI is significantly above the industry average of 9.29%.
| 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
MELI has a Profit Margin of 7.93%. This is in the better half of the industry: MELI outperforms 76.67% of its industry peers.
In the last couple of years the Profit Margin of MELI has grown nicely.
MELI's Operating Margin of 11.96% is amongst the best of the industry. MELI outperforms 86.67% of its industry peers.
In the last couple of years the Operating Margin of MELI has grown nicely.
MELI has a better Gross Margin (45.14%) than 66.67% of its industry peers.
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
MELI has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, MELI has about the same amount of shares outstanding.
MELI has more shares outstanding than it did 5 years ago.
The debt/assets ratio for MELI has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.51 indicates that MELI is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.51, MELI is in the better half of the industry, outperforming 73.33% of the companies in the same industry.
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.
The Debt to FCF ratio of MELI (0.91) is better than 83.33% 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.
Looking at the Debt to Equity ratio, with a value of 0.55, MELI is in line with its industry, outperforming 43.33% of the companies in the same industry.
Although MELI 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/WACC2.05
WACC8.91%
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.
MELI's Quick ratio of 1.15 is in line compared to the rest of the industry. MELI outperforms 46.67% of its industry peers.
MELI does not score too well on the current and quick ratio evaluation. However, as it has 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
The Earnings Per Share has grown by an impressive 44.60% 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
MELI shows a strong growth in Revenue. In the last year, the Revenue has grown by 36.94%.
MELI 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, MELI 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 Y11.76%
EPS Next 2Y27.93%
EPS Next 3Y31.84%
EPS Next 5Y31.97%
Revenue Next Year38.62%
Revenue Next 2Y33.45%
Revenue Next 3Y29.28%
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.
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 52.46 indicates a quite expensive valuation of MELI.
MELI's Price/Earnings ratio is in line with the industry average.
MELI is valuated expensively when we compare the Price/Earnings ratio to 27.25, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 34.85 indicates a quite expensive valuation of MELI.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MELI indicates a slightly more expensive valuation: MELI is more expensive than 63.33% of the companies listed in the same industry.
MELI's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 23.98.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 52.46 | ||
| Fwd PE | 34.85 |
4.2 Price Multiples
MELI's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. MELI is more expensive than 66.67% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, MELI is valued a bit cheaper than the industry average as 73.33% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.66 | ||
| EV/EBITDA | 28.02 |
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.
MELI's earnings are expected to grow with 31.84% in the coming years. This may justify a more expensive valuation.
PEG (NY)4.46
PEG (5Y)N/A
EPS Next 2Y27.93%
EPS Next 3Y31.84%
5. Dividend
5.1 Amount
MELI does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
2149.9
-28.51 (-1.31%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)
Earnings (Next)
Inst Owners84.22%
Inst Owner Change0.78%
Ins Owners0.26%
Ins Owner Change0.02%
Market Cap109.00B
Revenue(TTM)26.19B
Net Income(TTM)2.08B
Analysts83.87
Price Target2860.45 (33.05%)
Short Float %1.7%
Short Ratio1.49
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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)-1.18%
PT rev (3m)-2.53%
EPS NQ rev (1m)-1.05%
EPS NQ rev (3m)-17.69%
EPS NY rev (1m)-0.51%
EPS NY rev (3m)-8.28%
Revenue NQ rev (1m)0.49%
Revenue NQ rev (3m)2.29%
Revenue NY rev (1m)0.08%
Revenue NY rev (3m)1.43%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 52.46 | ||
| Fwd PE | 34.85 | ||
| P/S | 4.16 | ||
| P/FCF | 12.66 | ||
| P/OCF | 11.09 | ||
| P/B | 17.53 | ||
| P/tB | 18.35 | ||
| EV/EBITDA | 28.02 |
EPS(TTM)40.98
EY1.91%
EPS(NY)61.7
Fwd EY2.87%
FCF(TTM)169.82
FCFY7.9%
OCF(TTM)193.91
OCFY9.02%
SpS516.63
BVpS122.64
TBVpS117.18
PEG (NY)4.46
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 | 3.51 |
F-Score5
WACC8.91%
ROIC/WACC2.05
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 Y11.76%
EPS Next 2Y27.93%
EPS Next 3Y31.84%
EPS Next 5Y31.97%
Revenue 1Y (TTM)36.94%
Revenue growth 3Y43.24%
Revenue growth 5Y55.35%
Sales Q2Q%39.48%
Revenue Next Year38.62%
Revenue Next 2Y33.45%
Revenue Next 3Y29.28%
Revenue Next 5Y24.56%
EBIT growth 1Y45.95%
EBIT growth 3Y80.24%
EBIT growth 5YN/A
EBIT Next Year65.43%
EBIT Next 3Y42.75%
EBIT Next 5Y34.72%
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.
What is the valuation status of MERCADOLIBRE INC (MELI) stock?
ChartMill assigns a valuation rating of 3 / 10 to MERCADOLIBRE INC (MELI). This can be considered as Overvalued.
Can you provide the profitability details for MERCADOLIBRE INC?
MERCADOLIBRE INC (MELI) has a profitability rating of 8 / 10.
How financially healthy is MERCADOLIBRE INC?
The financial health rating of MERCADOLIBRE INC (MELI) is 8 / 10.
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%.