MERCADOLIBRE INC (MELI) Stock Fundamental Analysis
USA - NASDAQ:MELI - US58733R1023 - Common Stock
2024.98 USD
-18.08 (-0.88%)
2024.98 USD
0 (0%)
We assign a fundamental rating of 7 out of 10 to MELI. 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 shows excellent growth, but is valued quite expensive already. These ratings could make MELI a good candidate for growth and quality investing.
1. Profitability
1.1 Basic Checks
In the past year MELI was profitable.
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 (6.23%) is better than 70.00% of its industry peers.
Looking at the Return On Equity, with a value of 35.94%, MELI belongs to the top of the industry, outperforming 96.67% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 18.79%, 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 10.42%.
| 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
With a decent Profit Margin value of 8.52%, MELI is doing good in the industry, outperforming 76.67% of the companies in the same industry.
MELI's Profit Margin has improved in the last couple of years.
MELI has a Operating Margin of 12.30%. This is amongst the best in the industry. MELI outperforms 83.33% of its industry peers.
In the last couple of years the Operating Margin of MELI has grown nicely.
With a decent Gross Margin value of 45.87%, 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 | 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), MELI 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.
MELI has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.65 indicates that MELI is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 3.65, MELI is doing good in the industry, outperforming 63.33% of the companies in the same industry.
MELI has a debt to FCF ratio of 0.99. This is a very positive value and a sign of high solvency as it would only need 0.99 years to pay back of all of its debts.
MELI's Debt to FCF ratio of 0.99 is amongst the best of the industry. MELI outperforms 83.33% of its industry peers.
A Debt/Equity ratio of 0.61 indicates that MELI is somewhat dependend on debt financing.
MELI's Debt to Equity ratio of 0.61 is on the low side compared to the rest of the industry. MELI is outperformed by 63.33% 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 | 3.65 |
ROIC/WACC2.2
WACC8.55%
2.3 Liquidity
MELI has a Current Ratio of 1.20. This is a normal value and indicates that MELI is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.20, MELI is not doing good in the industry: 76.67% of the companies in the same industry are doing better.
MELI has a Quick Ratio of 1.18. 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 1.18. This is comparable to the rest of the industry: MELI outperforms 50.00% of its industry peers.
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 | 1.2 | ||
| Quick Ratio | 1.18 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 46.33% over the past year.
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 35.81% in the past year. This is a very strong growth!
Measured over the past years, MELI shows a very strong growth in Revenue. The Revenue has been growing by 55.35% on average per year.
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 32.92% on average per year.
The Revenue is expected to grow by 23.42% on average over the next years. This is a very strong growth
EPS Next Y21.85%
EPS Next 2Y33.81%
EPS Next 3Y33.91%
EPS Next 5Y32.92%
Revenue Next Year36.67%
Revenue Next 2Y31.39%
Revenue Next 3Y28.12%
Revenue Next 5Y23.42%
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.
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 50.01, the valuation of MELI can be described as expensive.
MELI's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of MELI to the average of the S&P500 Index (27.42), we can say MELI is valued expensively.
With a Price/Forward Earnings ratio of 30.00, MELI can be considered very expensive at the moment.
MELI's Price/Forward Earnings is on the same level as the industry average.
MELI's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 22.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 50.01 | ||
| Fwd PE | 30 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MELI is valued a bit more expensive than the industry average as 60.00% of the companies are valued more cheaply.
66.67% 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 | 13.9 | ||
| EV/EBITDA | 26.8 |
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.
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 33.91% in the coming years.
PEG (NY)2.29
PEG (5Y)N/A
EPS Next 2Y33.81%
EPS Next 3Y33.91%
5. Dividend
5.1 Amount
No dividends for MELI!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
2024.98
-18.08 (-0.88%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)
Earnings (Next)
Inst Owners84.47%
Inst Owner Change0%
Ins Owners0.26%
Ins Owner Change0.02%
Market Cap102.67B
Analysts83.87
Price Target2934.79 (44.93%)
Short Float %1.82%
Short Ratio2.4
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)0.32%
PT rev (3m)1.95%
EPS NQ rev (1m)-1.96%
EPS NQ rev (3m)-12.51%
EPS NY rev (1m)0%
EPS NY rev (3m)-9.12%
Revenue NQ rev (1m)-0.36%
Revenue NQ rev (3m)3.08%
Revenue NY rev (1m)0.38%
Revenue NY rev (3m)3.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 50.01 | ||
| Fwd PE | 30 | ||
| P/S | 4.26 | ||
| P/FCF | 13.9 | ||
| P/OCF | 12.12 | ||
| P/B | 17.97 | ||
| P/tB | 18.86 | ||
| EV/EBITDA | 26.8 |
EPS(TTM)40.49
EY2%
EPS(NY)67.5
Fwd EY3.33%
FCF(TTM)145.66
FCFY7.19%
OCF(TTM)167.1
OCFY8.25%
SpS475.27
BVpS112.68
TBVpS107.4
PEG (NY)2.29
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 | 3.65 |
F-Score4
WACC8.55%
ROIC/WACC2.2
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 Y21.85%
EPS Next 2Y33.81%
EPS Next 3Y33.91%
EPS Next 5Y32.92%
Revenue 1Y (TTM)35.81%
Revenue growth 3Y43.24%
Revenue growth 5Y55.35%
Sales Q2Q%33.85%
Revenue Next Year36.67%
Revenue Next 2Y31.39%
Revenue Next 3Y28.12%
Revenue Next 5Y23.42%
EBIT growth 1Y24.89%
EBIT growth 3Y80.24%
EBIT growth 5YN/A
EBIT Next Year73.75%
EBIT Next 3Y44.79%
EBIT Next 5Y37.08%
FCF growth 1Y79.42%
FCF growth 3Y170.77%
FCF growth 5Y86.33%
OCF growth 1Y86.73%
OCF growth 3Y101.69%
OCF growth 5Y77.37%