MERCADOLIBRE INC (MELI) Stock Fundamental Analysis
USA - NASDAQ:MELI - US58733R1023 - Common Stock
2103.91 USD
+4.34 (+0.21%)
2103.9 USD
-0.01 (0%)
Overall MELI gets a fundamental rating of 7 out of 10. We evaluated MELI against 30 industry peers in the Broadline Retail industry. MELI scores excellent points on both the profitability and health parts. This is a solid base for a good stock. MELI is not overvalued while it is showing excellent growth. This is an interesting combination. 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.
In the past 5 years MELI always reported a positive cash flow from operatings.
1.2 Ratios
MELI has a Return On Assets of 5.66%. This is in the better half of the industry: MELI outperforms 66.67% of its industry peers.
MELI has a Return On Equity of 33.40%. This is amongst the best in the industry. MELI outperforms 96.67% of its industry peers.
MELI has a Return On Invested Capital of 18.27%. This is amongst the best in the industry. MELI outperforms 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 10.39%.
| 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
The Profit Margin of MELI (7.93%) is better than 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's Gross Margin of 45.14% is fine compared to the rest of the industry. MELI outperforms 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
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.
Compared to 5 years ago, MELI has more shares outstanding
The debt/assets ratio for MELI has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.43 indicates that MELI is not in any danger for bankruptcy at the moment.
MELI has a better Altman-Z score (3.43) than 63.33% of its industry peers.
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.
MELI's Debt to FCF ratio of 0.91 is amongst the best of the industry. MELI outperforms 83.33% of its industry peers.
A Debt/Equity ratio of 0.55 indicates that MELI is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.55, MELI is doing worse than 63.33% of the companies in the same industry.
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 | 3.43 |
ROIC/WACC2.09
WACC8.76%
2.3 Liquidity
A Current Ratio of 1.17 indicates that MELI should not have too much problems paying its short term obligations.
With a Current ratio value of 1.17, MELI is not doing good in the industry: 76.67% of the companies in the same industry are doing better.
A Quick Ratio of 1.15 indicates that MELI should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.15, MELI perfoms like the industry average, outperforming 43.33% of the companies in the same industry.
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.
Measured over the past years, MELI shows a very strong growth in Earnings Per Share. The EPS has been growing by 172.65% on average per year.
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
MELI is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 32.92% yearly.
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.
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 51.34, MELI can be considered very expensive at the moment.
The rest of the industry has a similar Price/Earnings ratio as MELI.
When comparing the Price/Earnings ratio of MELI to the average of the S&P500 Index (26.34), we can say MELI is valued expensively.
A Price/Forward Earnings ratio of 32.12 indicates a quite expensive valuation of MELI.
Based on the Price/Forward Earnings ratio, MELI is valued a bit more expensive than 60.00% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.43, MELI is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 51.34 | ||
| Fwd PE | 32.12 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as MELI.
Based on the Price/Free Cash Flow ratio, MELI is valued a bit cheaper than 73.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.39 | ||
| EV/EBITDA | 26.99 |
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.
The excellent profitability rating of MELI 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)2.8
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 |
2103.91
+4.34 (+0.21%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)
Earnings (Next)
Inst Owners84.47%
Inst Owner Change-1.1%
Ins Owners0.26%
Ins Owner Change0.02%
Market Cap106.67B
Revenue(TTM)26.19B
Net Income(TTM)2.08B
Analysts83.87
Price Target2914.59 (38.53%)
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)-0.69%
PT rev (3m)-0.66%
EPS NQ rev (1m)-17.59%
EPS NQ rev (3m)-25.81%
EPS NY rev (1m)-2.88%
EPS NY rev (3m)-11.73%
Revenue NQ rev (1m)1.61%
Revenue NQ rev (3m)4.73%
Revenue NY rev (1m)0.45%
Revenue NY rev (3m)3.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 51.34 | ||
| Fwd PE | 32.12 | ||
| P/S | 4.07 | ||
| P/FCF | 12.39 | ||
| P/OCF | 10.85 | ||
| P/B | 17.15 | ||
| P/tB | 17.95 | ||
| EV/EBITDA | 26.99 |
EPS(TTM)40.98
EY1.95%
EPS(NY)65.51
Fwd EY3.11%
FCF(TTM)169.82
FCFY8.07%
OCF(TTM)193.91
OCFY9.22%
SpS516.63
BVpS122.64
TBVpS117.18
PEG (NY)2.8
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 | 3.43 |
F-Score5
WACC8.76%
ROIC/WACC2.09
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 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%.