MERCADOLIBRE INC (MELI) Stock Fundamental Analysis
USA - NASDAQ:MELI - US58733R1023 - Common Stock
2390.14 USD
+54.32 (+2.33%)
2390.14 USD
0 (0%)
Overall MELI gets a fundamental rating of 7 out of 10. We evaluated MELI against 28 industry peers in the Broadline Retail industry. Both the health and profitability get an excellent rating, making MELI a very profitable company, without any liquidiy or solvency issues. MELI shows excellent growth, but is valued quite expensive already. This makes MELI very considerable for growth and quality 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.
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 6.23%, MELI is doing good in the industry, outperforming 67.86% of the companies in the same industry.
MELI's Return On Equity of 35.94% is amongst the best of the industry. MELI outperforms 96.43% of its industry peers.
MELI has a better Return On Invested Capital (18.79%) than 89.29% of its industry peers.
MELI had an Average Return On Invested Capital over the past 3 years of 20.35%. This is significantly above the industry average of 11.01%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.23% | ||
| ROE | 35.94% | ||
| ROIC | 18.79% |
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
The Profit Margin of MELI (8.52%) is better than 75.00% of its industry peers.
MELI's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 12.30%, MELI belongs to the top of the industry, outperforming 82.14% of the companies in the same industry.
In the last couple of years the Operating Margin of MELI has grown nicely.
MELI's Gross Margin of 45.87% is fine compared to the rest of the industry. MELI outperforms 64.29% 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 | 12.3% | ||
| PM (TTM) | 8.52% | ||
| GM | 45.87% |
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.
The number of shares outstanding for MELI remains at a similar level compared to 1 year ago.
The number of shares outstanding for MELI has been increased compared to 5 years ago.
The debt/assets ratio for MELI has been reduced compared to a year ago.
2.2 Solvency
MELI has an Altman-Z score of 4.06. This indicates that MELI is financially healthy and has little risk of bankruptcy at the moment.
MELI has a better Altman-Z score (4.06) than 67.86% of its industry peers.
The Debt to FCF ratio of MELI is 0.99, which is an excellent value as it means it would take MELI, only 0.99 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.99, MELI belongs to the top of the industry, outperforming 82.14% of the companies in the same industry.
A Debt/Equity ratio of 0.61 indicates that MELI is somewhat dependend on debt financing.
The Debt to Equity ratio of MELI (0.61) is worse than 67.86% 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 | 0.61 | ||
| Debt/FCF | 0.99 | ||
| Altman-Z | 4.06 |
ROIC/WACC2.08
WACC9.02%
2.3 Liquidity
A Current Ratio of 1.20 indicates that MELI should not have too much problems paying its short term obligations.
With a Current ratio value of 1.20, MELI is not doing good in the industry: 75.00% of the companies in the same industry are doing better.
A Quick Ratio of 1.18 indicates that MELI should not have too much problems paying its short term obligations.
MELI's Quick ratio of 1.18 is in line compared to the rest of the industry. MELI outperforms 57.14% 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 | 1.2 | ||
| Quick Ratio | 1.18 |
3. Growth
3.1 Past
MELI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 46.33%, 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
MELI shows a strong growth in Revenue. In the last year, the Revenue has grown by 35.81%.
MELI shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 55.35% yearly.
EPS 1Y (TTM)46.33%
EPS 3Y172.65%
EPS 5YN/A
EPS Q2Q%-1.62%
Revenue 1Y (TTM)35.81%
Revenue growth 3Y43.24%
Revenue growth 5Y55.35%
Sales Q2Q%33.85%
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 32.89% on average per year.
Based on estimates for the next years, MELI will show a very strong growth in Revenue. The Revenue will grow by 22.65% on average per year.
EPS Next Y20.94%
EPS Next 2Y33.95%
EPS Next 3Y33.95%
EPS Next 5Y32.89%
Revenue Next Year36.15%
Revenue Next 2Y31.03%
Revenue Next 3Y27.79%
Revenue Next 5Y22.65%
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
With a Price/Earnings ratio of 59.03, MELI can be considered very expensive at the moment.
MELI's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 27.20, MELI is valued quite expensively.
A Price/Forward Earnings ratio of 35.34 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 60.71% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.71. MELI is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 59.03 | ||
| Fwd PE | 35.34 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MELI is valued a bit more expensive than 60.71% of the companies in the same industry.
64.29% of the companies in the same industry are more expensive than MELI, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.41 | ||
| EV/EBITDA | 31.88 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
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 33.95% in the coming years.
PEG (NY)2.82
PEG (5Y)N/A
EPS Next 2Y33.95%
EPS Next 3Y33.95%
5. Dividend
5.1 Amount
No dividends for MELI!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
2390.14
+54.32 (+2.33%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)
Earnings (Next)
Inst Owners84.76%
Inst Owner Change-0.39%
Ins Owners0.26%
Ins Owner Change0.02%
Market Cap121.18B
Analysts83.87
Price Target2925.37 (22.39%)
Short Float %1.82%
Short Ratio2.45
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)1
Avg EPS beat(2)-0.15%
Min EPS beat(2)-15.3%
Max EPS beat(2)14.99%
EPS beat(4)2
Avg EPS beat(4)8.09%
Min EPS beat(4)-23.22%
Max EPS beat(4)55.87%
EPS beat(8)5
Avg EPS beat(8)3.49%
EPS beat(12)9
Avg EPS beat(12)8.5%
EPS beat(16)11
Avg EPS beat(16)-0.01%
Revenue beat(2)1
Avg Revenue beat(2)2.74%
Min Revenue beat(2)-0.1%
Max Revenue beat(2)5.59%
Revenue beat(4)2
Avg Revenue beat(4)1.34%
Min Revenue beat(4)-1.12%
Max Revenue beat(4)5.59%
Revenue beat(8)6
Avg Revenue beat(8)3.33%
Revenue beat(12)9
Avg Revenue beat(12)3.16%
Revenue beat(16)12
Avg Revenue beat(16)3.22%
PT rev (1m)-0.3%
PT rev (3m)3.71%
EPS NQ rev (1m)-2.51%
EPS NQ rev (3m)-1.18%
EPS NY rev (1m)-9.79%
EPS NY rev (3m)-8.52%
Revenue NQ rev (1m)1.45%
Revenue NQ rev (3m)11.02%
Revenue NY rev (1m)2.43%
Revenue NY rev (3m)4.29%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 59.03 | ||
| Fwd PE | 35.34 | ||
| P/S | 5.03 | ||
| P/FCF | 16.41 | ||
| P/OCF | 14.3 | ||
| P/B | 21.21 | ||
| P/tB | 22.26 | ||
| EV/EBITDA | 31.88 |
EPS(TTM)40.49
EY1.69%
EPS(NY)67.64
Fwd EY2.83%
FCF(TTM)145.66
FCFY6.09%
OCF(TTM)167.1
OCFY6.99%
SpS475.27
BVpS112.68
TBVpS107.4
PEG (NY)2.82
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.23% | ||
| ROE | 35.94% | ||
| ROCE | 26.48% | ||
| ROIC | 18.79% | ||
| ROICexc | 59.17% | ||
| ROICexgc | 64% | ||
| OM | 12.3% | ||
| PM (TTM) | 8.52% | ||
| GM | 45.87% | ||
| FCFM | 30.65% |
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%
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-Score4
Asset Turnover0.73
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | 0.99 | ||
| Debt/EBITDA | 0.96 | ||
| Cap/Depr | 159.85% | ||
| Cap/Sales | 4.51% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 232.43% | ||
| Profit Quality | 359.72% | ||
| Current Ratio | 1.2 | ||
| Quick Ratio | 1.18 | ||
| Altman-Z | 4.06 |
F-Score4
WACC9.02%
ROIC/WACC2.08
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)46.33%
EPS 3Y172.65%
EPS 5YN/A
EPS Q2Q%-1.62%
EPS Next Y20.94%
EPS Next 2Y33.95%
EPS Next 3Y33.95%
EPS Next 5Y32.89%
Revenue 1Y (TTM)35.81%
Revenue growth 3Y43.24%
Revenue growth 5Y55.35%
Sales Q2Q%33.85%
Revenue Next Year36.15%
Revenue Next 2Y31.03%
Revenue Next 3Y27.79%
Revenue Next 5Y22.65%
EBIT growth 1Y24.89%
EBIT growth 3Y80.24%
EBIT growth 5YN/A
EBIT Next Year79.86%
EBIT Next 3Y45.4%
EBIT Next 5Y36.87%
FCF growth 1Y79.42%
FCF growth 3Y170.77%
FCF growth 5Y86.33%
OCF growth 1Y86.73%
OCF growth 3Y101.69%
OCF growth 5Y77.37%