MERCADOLIBRE INC (MELI)
US58733R1023 - Common Stock
Taking everything into account, MELI scores 6 out of 10 in our fundamental rating. MELI was compared to 32 industry peers in the Broadline Retail industry. MELI has an excellent profitability rating, but there are some minor concerns on its financial health. MELI is not priced too expensively while it is growing strongly. Keep and eye on this one! These ratings could make MELI a good candidate for growth investing.
1. Profitability
1.1 Basic Checks
In the past year MELI was profitable.
In the past year MELI had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: MELI reported negative net income in multiple years.
MELI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 6.98%, MELI is in the better half of the industry, outperforming 71.88% of the companies in the same industry.
MELI has a Return On Equity of 38.27%. This is amongst the best in the industry. MELI outperforms 96.88% of its industry peers.
With an excellent Return On Invested Capital value of 19.16%, MELI belongs to the best of the industry, outperforming 90.63% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for MELI is in line with the industry average of 11.65%.
The last Return On Invested Capital (19.16%) for MELI is above the 3 year average (12.44%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.98% | ||
| ROE | 38.27% | ||
| ROIC | 19.16% |
ROA(3y)3.31%
ROA(5y)1.26%
ROE(3y)21.31%
ROE(5y)11.12%
ROIC(3y)12.44%
ROIC(5y)N/A
1.3 Margins
MELI has a better Profit Margin (8.03%) than 78.13% of its industry peers.
MELI's Operating Margin of 12.50% is amongst the best of the industry. MELI outperforms 87.50% of its industry peers.
MELI's Operating Margin has improved in the last couple of years.
The Gross Margin of MELI (47.85%) is better than 65.63% 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 | 12.5% | ||
| PM (TTM) | 8.03% | ||
| GM | 47.85% |
OM growth 3Y57.54%
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y5%
GM growth 5Y0.57%
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.
The number of shares outstanding for MELI has been increased compared to 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 5.57. This indicates that MELI is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of MELI (5.57) is better than 78.13% of its industry peers.
MELI has a debt to FCF ratio of 0.83. This is a very positive value and a sign of high solvency as it would only need 0.83 years to pay back of all of its debts.
MELI's Debt to FCF ratio of 0.83 is amongst the best of the industry. MELI outperforms 81.25% of its industry peers.
MELI has a Debt/Equity ratio of 0.67. This is a neutral value indicating MELI is somewhat dependend on debt financing.
MELI has a worse Debt to Equity ratio (0.67) than 62.50% of its industry peers.
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 | 0.67 | ||
| Debt/FCF | 0.83 | ||
| Altman-Z | 5.57 |
ROIC/WACC1.95
WACC9.85%
2.3 Liquidity
MELI has a Current Ratio of 1.28. This is a normal value and indicates that MELI is financially healthy and should not expect problems in meeting its short term obligations.
MELI has a Current ratio (1.28) which is comparable to the rest of the industry.
A Quick Ratio of 1.26 indicates that MELI should not have too much problems paying its short term obligations.
MELI has a Quick ratio (1.26) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.28 | ||
| Quick Ratio | 1.26 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 45.04% over the past year.
MELI shows a strong growth in Revenue. In the last year, the Revenue has grown by 37.35%.
Measured over the past years, MELI shows a very strong growth in Revenue. The Revenue has been growing by 58.65% on average per year.
EPS 1Y (TTM)45.04%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%9.36%
Revenue 1Y (TTM)37.35%
Revenue growth 3Y53.87%
Revenue growth 5Y58.65%
Sales Q2Q%41.28%
3.2 Future
MELI is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 35.62% yearly.
MELI is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 22.47% yearly.
EPS Next Y94.61%
EPS Next 2Y60.81%
EPS Next 3Y51.98%
EPS Next 5Y35.62%
Revenue Next Year41.14%
Revenue Next 2Y32.44%
Revenue Next 3Y28.16%
Revenue Next 5Y22.47%
3.3 Evolution
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
MELI is valuated quite expensively with a Price/Earnings ratio of 74.71.
Compared to the rest of the industry, the Price/Earnings ratio of MELI is on the same level as its industry peers.
MELI's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 28.76.
Based on the Price/Forward Earnings ratio of 41.90, the valuation of MELI can be described as expensive.
Based on the Price/Forward Earnings ratio, MELI is valued a bit more expensive than the industry average as 62.50% of the companies are valued more cheaply.
MELI's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 23.90.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 74.71 | ||
| Fwd PE | 41.9 |
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 65.63% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of MELI indicates a somewhat cheap valuation: MELI is cheaper than 62.50% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.08 | ||
| EV/EBITDA | 36.64 |
4.3 Compensation for Growth
MELI's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
MELI has a very decent profitability rating, which may justify a higher PE ratio.
MELI's earnings are expected to grow with 51.98% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.79
PEG (5Y)N/A
EPS Next 2Y60.81%
EPS Next 3Y51.98%
5. Dividend
5.1 Amount
No dividends for MELI!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
MERCADOLIBRE INC
NASDAQ:MELI (11/6/2024, 9:43:06 PM)
After market: 1929 -188.3 (-8.89%)2117.3
+27.29 (+1.31%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap107.35B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
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Revenue beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
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Revenue NQ rev (1m)
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Revenue NY rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 74.71 | ||
| Fwd PE | 41.9 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.79
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.98% | ||
| ROE | 38.27% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 12.5% | ||
| PM (TTM) | 8.03% | ||
| GM | 47.85% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.87
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.67 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.28 | ||
| Quick Ratio | 1.26 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)45.04%
EPS 3YN/A
EPS 5Y
EPS Q2Q%
EPS Next Y94.61%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)37.35%
Revenue growth 3Y53.87%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y