2033.32 USD
-21.68 (-1.05%)
2036.94 USD
+3.62 (+0.18%)
Overall MELI gets a fundamental rating of 7 out of 10. We evaluated MELI against 30 industry peers in the Broadline Retail industry. MELI has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. MELI is growing strongly while it is still valued neutral. This is a good combination! With these ratings, MELI could be worth investigating further for growth and quality investing!.
1. Profitability
1.1 Basic Checks
MELI had positive earnings in the past year.
MELI had a positive operating cash flow in the past year.
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
The Return On Assets of MELI (5.66%) is better than 70.00% of its industry peers.
MELI has a better Return On Equity (33.40%) than 96.67% of its industry peers.
Looking at the Return On Invested Capital, with a value of 18.27%, MELI belongs to the top of the industry, outperforming 93.33% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for MELI is significantly above the industry average of 9.45%.
| 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
Looking at the Profit Margin, with a value of 7.93%, MELI is in the better half of the industry, outperforming 76.67% of the companies in the same industry.
MELI's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 11.96%, MELI belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
MELI's Operating Margin has improved in the last couple of years.
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.
Compared to 1 year ago, MELI has about the same amount of shares outstanding.
The number of shares outstanding for MELI has been increased compared to 5 years ago.
Compared to 1 year ago, MELI has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.37 indicates that MELI is not in any danger for bankruptcy at the moment.
The Altman-Z score of MELI (3.37) is better than 70.00% of its industry peers.
MELI has a debt to FCF ratio of 0.91. This is a very positive value and a sign of high solvency as it would only need 0.91 years to pay back of all of its debts.
The Debt to FCF ratio of MELI (0.91) is better than 83.33% of its industry peers.
A Debt/Equity ratio of 0.55 indicates that MELI is somewhat dependend on debt financing.
MELI has a Debt to Equity ratio of 0.55. This is in the lower half of the industry: MELI underperforms 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 | 3.37 |
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 has a Current ratio of 1.17. This is in the lower half of the industry: MELI underperforms 76.67% of its industry peers.
MELI has a Quick Ratio of 1.15. This is a normal value and indicates that MELI is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.15, MELI is in line with its industry, outperforming 46.67% 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.
The Earnings Per Share has been growing by 172.65% on average over the past years. This is a very strong growth
The Revenue has grown by 36.94% in the past year. This is a very strong growth!
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 32.67% on average per year.
MELI is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 24.21% yearly.
EPS Next Y18.34%
EPS Next 2Y31.82%
EPS Next 3Y33.53%
EPS Next 5Y32.67%
Revenue Next Year37.28%
Revenue Next 2Y32%
Revenue Next 3Y28.44%
Revenue Next 5Y24.21%
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
A Price/Earnings ratio of 49.62 indicates a quite expensive valuation of MELI.
The rest of the industry has a similar Price/Earnings ratio as MELI.
MELI is valuated expensively when we compare the Price/Earnings ratio to 26.15, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 31.04 indicates a quite expensive valuation of MELI.
MELI's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of MELI to the average of the S&P500 Index (36.12), we can say MELI is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 49.62 | ||
| Fwd PE | 31.04 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of MELI indicates a slightly more expensive valuation: MELI is more expensive than 63.33% of the companies listed in the same industry.
73.33% 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 | 11.97 | ||
| EV/EBITDA | 26.12 |
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.
MELI's earnings are expected to grow with 33.53% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.7
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 |
2033.32
-21.68 (-1.05%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)
Earnings (Next)
Inst Owners84.47%
Inst Owner Change1.79%
Ins Owners0.26%
Ins Owner Change0.02%
Market Cap103.09B
Revenue(TTM)26.19B
Net Income(TTM)2.08B
Analysts83.87
Price Target2919.16 (43.57%)
Short Float %1.24%
Short Ratio1.14
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)-0.53%
PT rev (3m)-0.51%
EPS NQ rev (1m)-10.69%
EPS NQ rev (3m)-20.53%
EPS NY rev (1m)-1.96%
EPS NY rev (3m)-11.73%
Revenue NQ rev (1m)1.9%
Revenue NQ rev (3m)2.8%
Revenue NY rev (1m)0.6%
Revenue NY rev (3m)3.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 49.62 | ||
| Fwd PE | 31.04 | ||
| P/S | 3.94 | ||
| P/FCF | 11.97 | ||
| P/OCF | 10.49 | ||
| P/B | 16.58 | ||
| P/tB | 17.35 | ||
| EV/EBITDA | 26.12 |
EPS(TTM)40.98
EY2.02%
EPS(NY)65.51
Fwd EY3.22%
FCF(TTM)169.82
FCFY8.35%
OCF(TTM)193.91
OCFY9.54%
SpS516.63
BVpS122.64
TBVpS117.18
PEG (NY)2.7
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 | 3.37 |
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 5Y32.67%
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 5Y24.21%
EBIT growth 1Y45.95%
EBIT growth 3Y80.24%
EBIT growth 5YN/A
EBIT Next Year73.75%
EBIT Next 3Y44.79%
EBIT Next 5Y36.07%
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%.