Mercadolibre Inc

Consumer Discretionary
Business Services
www.mercadolibre.com

Earnings Score
Moat Score
Safety Score

Market Cap $89.94B
PE 64
Debt $6.85B
Cash $3.82B
EV $92.96B
FCF $5.63B

Earnings

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Sales & Net Margins

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Earnings	$1.40B
EBIT	$2.18B
ROE	38%
ROA	11%
FCF	$5.63B
Equity	$3.66B
Growth Stability	-478%
PE	64.29
PEG	0.69
PB	24.6
P/FCF	15.98
P/S	5.26
Price/Cash	0.04
Debt/Equity	1.87
Debt/FCF	1.22
Net Margins	9%
Gross Margins	49%
Op. Margins	13%
Earnings CAGR	12%
Sales Growth YoY	36%
Sales Growth QoQ	17%
Sales CAGR	52%
FCF CAGR	52%
Equity CAGR	27%
Earnings Stability	0.17
Earnings Growth YoY	103%

Earnings Growth QoQ	54%
Earnings CAGR 5Y	94%
Sales CAGR 5Y	59%
FCF CAGR 5Y	115%
Equity CAGR 5Y	21%
Earnings CAGR 3Y	43%
Sales CAGR 3Y	43%
FCF CAGR 3Y	446%
Equity CAGR 3Y	110%
Market Cap	$89.94B
Revenue	$17.11B
Assets	$20.03B
Total Debt	$6.85B
Cash	$3.82B
Shares Outstanding	50.7M
EV	92.96B
Earnings Score	10%
Moat Score	93%
Safety Score	58%
Final Score	54%
Working Capital	3.57B
Current Ratio	1.28
Shares Growth 3y	1%
Equity Growth QoQ	8%
Equity Growth YoY	62%

Assets & ROA

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Stockholders Equity & ROE

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MercadoLibre runs the largest e-commerce marketplace in Latin America, connecting a network of more than 140 million active users and 1 million active sellers across its 18-country footprint. The company also operates a host of complementary businesses, with shipping solutions (Mercado Envios), a payment and financing operation (Mercado Pago), advertisements (Mercado Clics), classifieds, and a turnkey e-commerce solution (Mercado Shops) rounding out its arsenal. MercadoLibre generates revenue from final value fees, advertising royalties, payment processing, insertion fees, subscription fees, and interest income from consumer and small-business lending.

SEC Filings

Direct access to Mercadolibre Inc (MELI) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2024
- 10-Q Jun 30
- 10-Q Mar 31
2023
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2022
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31

Sector Comparison

How does Mercadolibre Inc compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of Mercadolibre Inc compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR 12%

Stability 17%

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Mercadolibre Inc Discounted Cash Flow

Fully customizable DCF calculator online for Mercadolibre Inc.

Years

Calculation mode

= $2T

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	$5.6B	$8.6B	$13B	$20B	$30B	$46B	$70B	$107B	$163B	$248B	$377B	$3.8T
DCF		$7.8B	$11B	$15B	$21B	$29B	$40B	$55B	$76B	$105B	$146B	$1.5T
Value	$2T

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Net Margins	13%	16%	16%	1%	-3%	-8%	-0%	1%	5%	7%	9%
ROA	-	17%	15%	4%	-3%	-2%	2%	4%	8%	10%	11%
ROE	-	31%	32%	4%	-11%	-9%	-0%	5%	26%	32%	38%

Net Margins (9.3%)

Net Margins are at a level that is not too high nor too low. They are not a competitive advantage but they are not a competitive disadvantage either.

Safety and Stability

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Debt over FCF	-	-	-	-	5.34	2.6	1.51	12.25	2.77	1.47	1.22
Debt over Equity	0.79	-	-	-	2.18	0.41	0.85	3.14	3.77	2.21	1.87
Growth Stability	-	-	-	13%	-43%	-478%	-	-	-	100%	-478%

Good Debt/FCF ratio (1.22)

Net Margins are high enough to offer a good protection on the profits in case of higher costs or higher interests. Furthermore higher margins reduce earnings’ volatility.

Bad Debt/Equity ratio (1.87)

The company is overleveraged and has a bad balance between equity and debt.

Bad Graham’s Stability (-478%)

The company has a bad stability in its earnings, which is a sign of a bad competitive advantage.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	CAGR 5Y
Revenue YoY growth	-	17%	30%	44%	18%	60%	73%	78%	49%	37%	59%
Earnings YoY growth	-	46%	29%	-90%	-365%	394%	-98%	-2K%	479%	105%	94%
Equity YoY growth	-	-5%	26%	-24%	3%	489%	-17%	-7%	19%	68%	21%
FCF YoY growth	-	12%	-33%	76%	-36%	128%	198%	-58%	534%	86%	115%