Mercadolibre Inc
MELI
Services-Business Services, NEC
Mkt Cap
$79.65BPE
80.70Debt
$6.726BCash
$3.256BEV
$83.12BFCF
$4.313BP/E Ratio
80.70Debt
$6.726BCash
$3.256BEV
$83.12BFCF
$4.313BMercadoLibre, Inc. operates online commerce platforms in Latin America. It operates Mercado Libre Marketplace, an automated online commerce platform that enables businesses, merchants, and individuals to list merchandise and conduct sales and purchases online; and Mercado Pago FinTech platform, a financial technology solution platform, which facilitates transactions on and off its marketplaces by providing a mechanism that allows its users to send and receive payments online, as well as allows users to transfer money through their websites or on the apps. The company also offers Mercado Fondo that allows users to invest funds deposited in their Mercado Pago accounts; Mercado Credito, which extends loans to certain merchants and consumers; and Mercado Envios logistics solution that enables sellers on its platform to utilize third-party carriers and other logistics service providers, as well as fulfillment and warehousing services for sellers. In addition, it provides Mercado Libre Classifieds, an online classified listing service, where users can list and purchase motor vehicles, real estate, and services; Mercado Libre Ads, an advertising platform, which enables large retailers and brands to promote their products and services on the web; and Mercado Shops, an online storefronts solution that enables users to set-up, manage, and promote their own digital stores. The company was incorporated in 1999 and is headquartered in Montevideo, Uruguay.
Sector
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DCF
Discounted Cash Flow Valuation of Mercadolibre Inc
Value
Growth
%
%
Discount
%
%
Multiple
| g\r | +10% | +11% | +12% | +13% | +14% |
|---|---|---|---|---|---|
| 0% | 10 | 9 | 8 | 8 | 7 |
| +1% | 11 | 10 | 9 | 8 | 8 |
| +2% | 13 | 11 | 10 | 9 | 8 |
| +3% | 14 | 13 | 11 | 10 | 9 |
| +4% | 17 | 14 | 12 | 11 | 10 |
| Years | 0 | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | TV |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| FCF | $4.313B | $5.607B | $7.133B | $8.877B | $10.8B | $12.84B | $14.91B | $16.9B | $18.68B | $20.13B | $21.14B | $211.4B |
| DCF | $4.876B | $5.394B | $5.837B | $6.175B | $6.384B | $6.446B | $6.352B | $6.107B | $5.723B | $5.225B | $52.25B | |
| Value | $110.8B | |||||||||||
In the chart Earnings are multiplied by this value.
Earnings Growth 21%
Earnings Stability -14%
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 | TTM |
|---|---|---|---|---|---|---|---|---|---|---|
| Net Margin | 13% | 16% | 16% | 1.1% | -2.5% | -7.9% | -0.098% | 1.2% | 4.6% | 7.5% |
| ROA | 13% | 17% | 15% | 4.3% | -2.9% | -2.2% | 2% | 4.4% | 7.5% | 12% |
| ROE | 20% | 31% | 32% | 4.2% | -11% | -9.1% | -0.24% | 5.4% | 26% | 36% |
What is the average Net Margin?
The average Net Margin over the past 5 years is -0.6%.
What is the trend of Net Margin?
The trend of Net Margin over the past 5 years is +1.03%.
What is the average Return on Assets (ROA)?
The average ROA over the past 5 years is +2.17%.
What is the trend of Return on Assets (ROA)?
The trend of ROA over the past 5 years is +1.2%.
What is the average Return on Equity (ROE)?
The average ROE over the past 5 years is +2.64%.
What is the trend of Return on Equity (ROE)?
The trend of ROE over the past 5 years is +4.82%.
Safety & Stabiliy
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 | TTM |
|---|---|---|---|---|---|---|---|---|---|---|
| Debt FCF | 1.73 | - | - | - | 5.34 | 2.60 | 1.51 | 12.25 | 2.77 | 1.56 |
| Debt Equity | 0.79 | - | - | - | 2.18 | 0.41 | 0.85 | 3.14 | 3.77 | 2.45 |
| MIN | ||||||||||
| Graham Stability | - | - | 100% | 13% | -43% | -480% | - | - | - | -480% |
What is the Debt/FCF?
The Debt/FCF trailing twelve month is 1.56.
What is the trend of Debt/FCF?
The trend of Debt/FCF over the past 5 years is 0.45.
What is the Graham’s Stability?
Graham’s Stability measure stands at -4.78.
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 | 12-2015 | 12-2017 | 12-2019 | 12-2021 | Trend |
|---|---|---|---|---|---|
| Revenue | 49% | 54% | 66% | 49% | 6.8% |
| Net Income | 24% | 100% | - | 480% | 64% |
| Stockholders Equity | 27% | 41% | -2.7% | 19% | 8% |
| FCF | 45% | 63% | 99% | 530% | 9.7% |
What is the 5 year Revenue CAGR?
The Revenue CAGR over the past 5 years is +54%.
What is the trend of Revenue growth?
The trend of Revenue growth rate over the past 5 years is +6.83%.
What is the 5 year Earnings CAGR?
The Earnings CAGR over the past 5 years is +103.59%.
What is the trend of Earnings growth?
The trend of Earnings growth rate over the past 5 years is +63.72%.
What is the 5 year Equity CAGR?
The Equity CAGR over the past 5 years is +41.18%.
What is the trend of Equity growth?
The trend of Equity growth rate over the past 5 years is +8.03%.
What is the 5 year FCF CAGR?
The FCF CAGR over the past 5 years is +63.33%.
What is the trend of FCF growth?
The trend of FCF growth rate over the past 5 years is +9.68%.