MERCADOLIBRE INC (MLB1.DE) Stock Fundamental Analysis
FRA:MLB1 - Deutsche Boerse Ag - US58733R1023 - Common Stock - Currency: EUR
MLB1 gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 15 industry peers in the Broadline Retail industry. Both the health and profitability get an excellent rating, making MLB1 a very profitable company, without any liquidiy or solvency issues. MLB1 shows excellent growth, but is valued quite expensive already. These ratings could make MLB1 a good candidate for growth and quality investing.
1. Profitability
1.1 Basic Checks
In the past year MLB1 was profitable.
MLB1 had a positive operating cash flow in the past year.
Of the past 5 years MLB1 4 years were profitable.
In the past 5 years MLB1 always reported a positive cash flow from operatings.
1.2 Ratios
MLB1 has a Return On Assets of 7.58%. This is comparable to the rest of the industry: MLB1 outperforms 50.00% of its industry peers.
The Return On Equity of MLB1 (43.92%) is better than 100.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 21.73%, MLB1 belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for MLB1 is significantly above the industry average of 9.93%.
The last Return On Invested Capital (21.73%) for MLB1 is above the 3 year average (18.86%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.58% | ||
| ROE | 43.92% | ||
| ROIC | 21.73% |
ROA(3y)5.57%
ROA(5y)3.5%
ROE(3y)34.15%
ROE(5y)21.57%
ROIC(3y)18.86%
ROIC(5y)13.44%
1.3 Margins
MLB1 has a Profit Margin of 9.20%. This is comparable to the rest of the industry: MLB1 outperforms 42.86% of its industry peers.
MLB1's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 12.66%, MLB1 is in the better half of the industry, outperforming 71.43% of the companies in the same industry.
MLB1's Operating Margin has improved in the last couple of years.
MLB1 has a Gross Margin (46.09%) which is comparable to the rest of the industry.
MLB1's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.66% | ||
| PM (TTM) | 9.2% | ||
| GM | 46.09% |
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), MLB1 is creating value.
The number of shares outstanding for MLB1 remains at a similar level compared to 1 year ago.
Compared to 5 years ago, MLB1 has more shares outstanding
Compared to 1 year ago, MLB1 has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 4.35 indicates that MLB1 is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.35, MLB1 is in the better half of the industry, outperforming 71.43% of the companies in the same industry.
MLB1 has a debt to FCF ratio of 0.81. This is a very positive value and a sign of high solvency as it would only need 0.81 years to pay back of all of its debts.
MLB1's Debt to FCF ratio of 0.81 is amongst the best of the industry. MLB1 outperforms 100.00% of its industry peers.
MLB1 has a Debt/Equity ratio of 0.66. This is a neutral value indicating MLB1 is somewhat dependend on debt financing.
MLB1 has a Debt to Equity ratio (0.66) which is in line with its industry peers.
Although MLB1 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 | 0.66 | ||
| Debt/FCF | 0.81 | ||
| Altman-Z | 4.35 |
ROIC/WACC2.12
WACC10.23%
2.3 Liquidity
MLB1 has a Current Ratio of 1.21. This is a normal value and indicates that MLB1 is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of MLB1 (1.21) is comparable to the rest of the industry.
A Quick Ratio of 1.20 indicates that MLB1 should not have too much problems paying its short term obligations.
MLB1 has a Quick ratio (1.20) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.21 | ||
| Quick Ratio | 1.2 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 92.94% over the past year.
MLB1 shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 172.65% yearly.
Looking at the last year, MLB1 shows a very strong growth in Revenue. The Revenue has grown by 38.89%.
Measured over the past years, MLB1 shows a very strong growth in Revenue. The Revenue has been growing by 55.35% on average per year.
EPS 1Y (TTM)92.94%
EPS 3Y172.65%
EPS 5YN/A
EPS Q2Q%288%
Revenue 1Y (TTM)38.89%
Revenue growth 3Y43.24%
Revenue growth 5Y55.35%
Sales Q2Q%42.2%
3.2 Future
The Earnings Per Share is expected to grow by 27.28% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 17.48% on average over the next years. This is quite good.
EPS Next Y19.52%
EPS Next 2Y29.26%
EPS Next 3Y26.44%
EPS Next 5Y27.28%
Revenue Next Year25.22%
Revenue Next 2Y24.45%
Revenue Next 3Y22.35%
Revenue Next 5Y17.48%
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
The Price/Earnings ratio is 50.96, which means the current valuation is very expensive for MLB1.
Compared to the rest of the industry, the Price/Earnings ratio of MLB1 indicates a slightly more expensive valuation: MLB1 is more expensive than 71.43% of the companies listed in the same industry.
MLB1's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 29.35.
Based on the Price/Forward Earnings ratio of 42.63, the valuation of MLB1 can be described as expensive.
Based on the Price/Forward Earnings ratio, MLB1 is valued a bit more expensive than 64.29% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.10, MLB1 is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 50.96 | ||
| Fwd PE | 42.63 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MLB1 is valued a bit more expensive than the industry average as 71.43% of the companies are valued more cheaply.
MLB1's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. MLB1 is cheaper than 71.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.8 | ||
| EV/EBITDA | 28.17 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
MLB1 has a very decent profitability rating, which may justify a higher PE ratio.
MLB1's earnings are expected to grow with 26.44% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.61
PEG (5Y)N/A
EPS Next 2Y29.26%
EPS Next 3Y26.44%
5. Dividend
5.1 Amount
No dividends for MLB1!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
FRA:MLB1 (3/7/2025, 7:00:00 PM)
1769.2
-172 (-8.86%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)
Earnings (Next)
Inst Owners83.73%
Inst Owner ChangeN/A
Ins Owners0.09%
Ins Owner ChangeN/A
Market Cap89.70B
Analysts84.44
Price Target2409.18 (36.17%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0
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)16.33%
Min EPS beat(2)-23.22%
Max EPS beat(2)55.87%
EPS beat(4)3
Avg EPS beat(4)15.84%
Min EPS beat(4)-23.22%
Max EPS beat(4)55.87%
EPS beat(8)6
Avg EPS beat(8)8.24%
EPS beat(12)9
Avg EPS beat(12)10.71%
EPS beat(16)11
Avg EPS beat(16)-250.31%
Revenue beat(2)1
Avg Revenue beat(2)-0.07%
Min Revenue beat(2)-1.12%
Max Revenue beat(2)0.98%
Revenue beat(4)3
Avg Revenue beat(4)4.12%
Min Revenue beat(4)-1.12%
Max Revenue beat(4)10.34%
Revenue beat(8)7
Avg Revenue beat(8)3.95%
Revenue beat(12)9
Avg Revenue beat(12)3.47%
Revenue beat(16)12
Avg Revenue beat(16)4.64%
PT rev (1m)9.64%
PT rev (3m)7.78%
EPS NQ rev (1m)5.5%
EPS NQ rev (3m)-2.61%
EPS NY rev (1m)-0.04%
EPS NY rev (3m)-5.96%
Revenue NQ rev (1m)3.27%
Revenue NQ rev (3m)1.04%
Revenue NY rev (1m)2.53%
Revenue NY rev (3m)1.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 50.96 | ||
| Fwd PE | 42.63 | ||
| P/S | 4.69 | ||
| P/FCF | 13.8 | ||
| P/OCF | 12.3 | ||
| P/B | 22.38 | ||
| P/tB | 23.52 | ||
| EV/EBITDA | 28.17 |
EPS(TTM)34.72
EY1.96%
EPS(NY)41.5
Fwd EY2.35%
FCF(TTM)128.22
FCFY7.25%
OCF(TTM)143.85
OCFY8.13%
SpS377.45
BVpS79.04
TBVpS75.23
PEG (NY)2.61
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.58% | ||
| ROE | 43.92% | ||
| ROCE | 30.62% | ||
| ROIC | 21.73% | ||
| ROICexc | 126.76% | ||
| ROICexgc | 147.84% | ||
| OM | 12.66% | ||
| PM (TTM) | 9.2% | ||
| GM | 46.09% | ||
| FCFM | 33.97% |
ROA(3y)5.57%
ROA(5y)3.5%
ROE(3y)34.15%
ROE(5y)21.57%
ROIC(3y)18.86%
ROIC(5y)13.44%
ROICexc(3y)207.02%
ROICexc(5y)N/A
ROICexgc(3y)457.7%
ROICexgc(5y)N/A
ROCE(3y)26.57%
ROCE(5y)18.94%
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-Score6
Asset Turnover0.82
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.66 | ||
| Debt/FCF | 0.81 | ||
| Debt/EBITDA | 0.89 | ||
| Cap/Depr | 139.38% | ||
| Cap/Sales | 4.14% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 243.78% | ||
| Profit Quality | 369.34% | ||
| Current Ratio | 1.21 | ||
| Quick Ratio | 1.2 | ||
| Altman-Z | 4.35 |
F-Score6
WACC10.23%
ROIC/WACC2.12
Cap/Depr(3y)116.48%
Cap/Depr(5y)176.74%
Cap/Sales(3y)3.99%
Cap/Sales(5y)5.36%
Profit Quality(3y)451.37%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)92.94%
EPS 3Y172.65%
EPS 5YN/A
EPS Q2Q%288%
EPS Next Y19.52%
EPS Next 2Y29.26%
EPS Next 3Y26.44%
EPS Next 5Y27.28%
Revenue 1Y (TTM)38.89%
Revenue growth 3Y43.24%
Revenue growth 5Y55.35%
Sales Q2Q%42.2%
Revenue Next Year25.22%
Revenue Next 2Y24.45%
Revenue Next 3Y22.35%
Revenue Next 5Y17.48%
EBIT growth 1Y23.35%
EBIT growth 3Y80.24%
EBIT growth 5YN/A
EBIT Next Year63.83%
EBIT Next 3Y41.27%
EBIT Next 5Y30.22%
FCF growth 1Y52.41%
FCF growth 3Y170.77%
FCF growth 5Y86.33%
OCF growth 1Y54.05%
OCF growth 3Y101.69%
OCF growth 5Y77.37%