MERCADOLIBRE INC (MELI) Stock Fundamental Analysis
USA - NASDAQ:MELI - US58733R1023 - Common Stock
2301.88 USD
-3.81 (-0.17%)
2306 USD
+4.12 (+0.18%)
Taking everything into account, MELI scores 7 out of 10 in our fundamental rating. 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 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.
In the past year MELI had a positive cash flow from operations.
MELI had positive earnings in 4 of the past 5 years.
In the past 5 years MELI always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 5.66%, MELI is in the better half of the industry, outperforming 66.67% 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 has a better Return On Invested Capital (18.27%) than 93.33% of its industry peers.
The Average Return On Invested Capital over the past 3 years for MELI is significantly above the industry average of 10.38%.
| 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.
Looking at the Operating Margin, with a value of 11.96%, MELI belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
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.
MELI's Gross Margin has been stable in the last couple of years.
| 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.
MELI has a better debt/assets ratio than last year.
2.2 Solvency
MELI has an Altman-Z score of 3.64. This indicates that MELI is financially healthy and has little risk of bankruptcy at the moment.
MELI has a better Altman-Z score (3.64) 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.
MELI has a better Debt to FCF ratio (0.91) than 83.33% of its industry peers.
A Debt/Equity ratio of 0.55 indicates that MELI is somewhat dependend on debt financing.
The Debt to Equity ratio of MELI (0.55) is worse than 63.33% 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 | 3.64 |
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 worse Current ratio (1.17) than 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.
MELI has a Quick ratio of 1.15. This is comparable to the rest of the industry: MELI outperforms 43.33% 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
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.
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 32.92% 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 24.13% on average per year.
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
Based on the Price/Earnings ratio of 56.17, the valuation of MELI can be described as expensive.
MELI's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 26.13. MELI is valued rather expensively when compared to this.
Based on the Price/Forward Earnings ratio of 35.14, the valuation of MELI can be described as expensive.
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 60.00% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.35, MELI is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 56.17 | ||
| Fwd PE | 35.14 |
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.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of MELI indicates a somewhat cheap valuation: MELI is cheaper than 70.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.55 | ||
| EV/EBITDA | 29.69 |
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)3.06
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 |
2301.88
-3.81 (-0.17%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)
Earnings (Next)
Inst Owners84.47%
Inst Owner Change-0.87%
Ins Owners0.26%
Ins Owner Change0.02%
Market Cap116.71B
Revenue(TTM)26.19B
Net Income(TTM)2.08B
Analysts83.87
Price Target2914.59 (26.62%)
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)-0.37%
PT rev (3m)1.03%
EPS NQ rev (1m)-15.47%
EPS NQ rev (3m)-23.88%
EPS NY rev (1m)-0.93%
EPS NY rev (3m)-9.96%
Revenue NQ rev (1m)-0.71%
Revenue NQ rev (3m)2.31%
Revenue NY rev (1m)-0.15%
Revenue NY rev (3m)2.87%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 56.17 | ||
| Fwd PE | 35.14 | ||
| P/S | 4.46 | ||
| P/FCF | 13.55 | ||
| P/OCF | 11.87 | ||
| P/B | 18.77 | ||
| P/tB | 19.64 | ||
| EV/EBITDA | 29.69 |
EPS(TTM)40.98
EY1.78%
EPS(NY)65.51
Fwd EY2.85%
FCF(TTM)169.82
FCFY7.38%
OCF(TTM)193.91
OCFY8.42%
SpS516.63
BVpS122.64
TBVpS117.18
PEG (NY)3.06
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 | 3.64 |
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 3 / 10 to MERCADOLIBRE INC (MELI). This can be considered as Overvalued.
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%.