MercadoLibre
Market Cap
US$75.7b
Last Updated
2020/12/01 23:43 UTC
Data Sources
Company Financials +
Executive Summary
MercadoLibre, Inc. operates online commerce platforms in Latin America. More Details
Rewards
Risk Analysis
Snowflake Analysis
High growth potential with adequate balance sheet.
Similar Companies
Share Price & News
How has MercadoLibre's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: MELI is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 8% a week.
Volatility Over Time: MELI's weekly volatility (8%) has been stable over the past year.
Market Performance
7 Day Return
5.7%
MELI
0.05%
US Online Retail
0.6%
US Market
1 Year Return
164.5%
MELI
73.3%
US Online Retail
22.7%
US Market
Return vs Industry: MELI exceeded the US Online Retail industry which returned 70.9% over the past year.
Return vs Market: MELI exceeded the US Market which returned 21% over the past year.
Shareholder returns
| MELI | Industry | Market | |
|---|---|---|---|
| 7 Day | 5.7% | 0.05% | 0.6% |
| 30 Day | 25.3% | 4.3% | 13.1% |
| 90 Day | 27.2% | -4.0% | 4.5% |
| 1 Year | 164.5%164.5% | 73.5%73.3% | 25.5%22.7% |
| 3 Year | 462.2%461.9% | 116.0%115.8% | 49.0%39.1% |
| 5 Year | 1,182.7%1,173.1% | 256.9%256.2% | 98.3%76.5% |
Long-Term Price Volatility Vs. Market
How volatile is MercadoLibre's share price compared to the market and industry in the last 5 years?
Simply Wall St News
3 weeks ago | Simply Wall St
MercadoLibre, Inc. Just Beat Earnings Expectations: Here's What Analysts Think Will Happen Next1 month ago | Simply Wall St
Imagine Holding MercadoLibre (NASDAQ:MELI) Shares While The Price Zoomed 928% Higher2 months ago | Simply Wall St
Health Check: How Prudently Does MercadoLibre (NASDAQ:MELI) Use Debt?Valuation
Is MercadoLibre undervalued compared to its fair value and its price relative to the market?
43.38x
Price to Book (PB) ratio
Share Price vs. Fair Value
Below Fair Value: MELI ($1521.66) is trading above our estimate of fair value ($48.85)
Significantly Below Fair Value: MELI is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: MELI is unprofitable, so we can't compare its PE Ratio to the US Online Retail industry average.
PE vs Market: MELI is unprofitable, so we can't compare its PE Ratio to the US market.
Price to Earnings Growth Ratio
PEG Ratio: Insufficient data to calculate MELI's PEG Ratio to determine if it is good value.
Price to Book Ratio
PB vs Industry: MELI is overvalued based on its PB Ratio (43.4x) compared to the US Online Retail industry average (4.5x).
Next Steps
Future Growth
How is MercadoLibre forecast to perform in the next 1 to 3 years based on estimates from 22 analysts?
63.3%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: MELI is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.2%).
Earnings vs Market: MELI is forecast to become profitable over the next 3 years, which is considered above average market growth.
High Growth Earnings: MELI's is expected to become profitable in the next 3 years.
Revenue vs Market: MELI's revenue (30.3% per year) is forecast to grow faster than the US market (10.3% per year).
High Growth Revenue: MELI's revenue (30.3% per year) is forecast to grow faster than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: MELI's Return on Equity is forecast to be low in 3 years time (15.9%).
Next Steps
Past Performance
How has MercadoLibre performed over the past 5 years?
-63.0%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: MELI is currently unprofitable.
Growing Profit Margin: MELI is currently unprofitable.
Past Earnings Growth Analysis
Earnings Trend: MELI is unprofitable, and losses have increased over the past 5 years at a rate of 63% per year.
Accelerating Growth: Unable to compare MELI's earnings growth over the past year to its 5-year average as it is currently unprofitable
Earnings vs Industry: MELI is unprofitable, making it difficult to compare its past year earnings growth to the Online Retail industry (33%).
Return on Equity
High ROE: MELI has a negative Return on Equity (-0.23%), as it is currently unprofitable.
Next Steps
Financial Health
How is MercadoLibre's financial position?
Financial Position Analysis
Short Term Liabilities: MELI's short term assets ($4.9B) exceed its short term liabilities ($3.0B).
Long Term Liabilities: MELI's short term assets ($4.9B) exceed its long term liabilities ($934.9M).
Debt to Equity History and Analysis
Debt Level: MELI's debt to equity ratio (68.4%) is considered high.
Reducing Debt: MELI's debt to equity ratio has reduced from 81.8% to 68.4% over the past 5 years.
Debt Coverage: MELI's debt is well covered by operating cash flow (81.7%).
Interest Coverage: MELI is unprofitable, therefore interest payments are not well covered by earnings.
Balance Sheet
Next Steps
Dividend
What is MercadoLibre current dividend yield, its reliability and sustainability?
0.015%
Forecast Dividend Yield
Dividend Yield vs Market
Notable Dividend: Unable to evaluate MELI's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate MELI's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if MELI's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if MELI's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: MELI is not paying a notable dividend for the US market.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of MELI's dividend in 3 years as they are not forecast to pay a notable one for the US market.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
16.7yrs
Average management tenure
CEO
Marcos Eduardo Galperín (49 yo)
21.08yrs
Tenure
US$11,477,200
Compensation
Mr. Marcos Eduardo Galperín has served as a Director at Grupo Televisa, S.A.B. since April 2017.He served as Independent Director at Globant S.A. since July 2014 until April 21, 2020. He Co-Founded Mercad...
CEO Compensation Analysis
Compensation vs Market: Marcos's total compensation ($USD11.48M) is about average for companies of similar size in the US market ($USD10.98M).
Compensation vs Earnings: Marcos's compensation has increased whilst the company is unprofitable.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Co-Founder | 21.08yrs | US$11.48m | no data | |
| Executive VP & CFO | 9.42yrs | US$2.77m | 0.038% $ 29.1m | |
| Executive VP & COO of Business Ecosystem | 21.83yrs | US$2.86m | 0.18% $ 138.5m | |
| Executive VP & CEO of Fintech | 16.75yrs | US$2.82m | 0.037% $ 28.0m | |
| Executive VP & COO of Product & Technology | 16.58yrs | US$2.90m | no data | |
| Chief Accounting Officer & Senior VP | 12.25yrs | US$191.00k | no data | |
| Head of Investor Relations | no data | no data | no data | |
| Senior VP | no data | no data | no data |
16.7yrs
Average Tenure
49yo
Average Age
Experienced Management: MELI's management team is seasoned and experienced (16.7 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Co-Founder | 21.08yrs | US$11.48m | no data | |
| Independent Director | 8.58yrs | US$214.96k | 0.00063% $ 477.2k | |
| Independent Director | 12.5yrs | US$236.84k | 0.0054% $ 4.1m | |
| Independent Director | 7.67yrs | US$236.84k | 0.0025% $ 1.9m | |
| Independent Director | 3.83yrs | US$214.96k | 0.0087% $ 6.6m | |
| Director | 21.83yrs | no data | no data | |
| Lead Independent Director | 4.75yrs | US$249.52k | 0.00063% $ 477.2k | |
| Independent Director | 6.08yrs | US$214.96k | 0.00063% $ 477.2k |
8.1yrs
Average Tenure
50yo
Average Age
Experienced Board: MELI's board of directors are considered experienced (8.1 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
MercadoLibre, Inc.'s company bio, employee growth, exchange listings and data sources
Key Information
- Name: MercadoLibre, Inc.
- Ticker: MELI
- Exchange: NasdaqGS
- Founded: 1999
- Industry: Internet and Direct Marketing Retail
- Sector: Retail
- Market Cap: US$75.743b
- Shares outstanding: 49.78m
- Website: https://www.mercadolibre.com
Number of Employees
Location
- MercadoLibre, Inc.
- Arias 3751
- 7th Floor
- Buenos Aires
- Capital Federal
- C1430CRG
- Argentina
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| MELI | NasdaqGS (Nasdaq Global Select) | Yes | Common Stock | US | USD | Aug 2007 |
| MLB1 | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Aug 2007 |
| MELI N | BMV (Bolsa Mexicana de Valores) | Yes | Common Stock | MX | MXN | Aug 2007 |
| MLB1 | XTRA (XETRA Trading Platform) | Yes | Common Stock | DE | EUR | Aug 2007 |
| 0K0E | LSE (London Stock Exchange) | Yes | Common Stock | GB | USD | Aug 2007 |
| MELI | BASE (Buenos Aires Stock Exchange) | CEDEAR EACH 60 REP 1 | AR | ARS | Aug 2013 | |
| MELI34 | BOVESPA (Bolsa de Valores de Sao Paulo) | BDR EACH 120 REP 1 COM | BR | BRL | May 2019 |
Biography
MercadoLibre, Inc. operates online commerce platforms in Latin America. It operates MercadoLibre Marketplace, an automated online commerce platform that enables businesses and individuals to list merchandi...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/12/01 23:43 |
| End of Day Share Price | 2020/12/01 00:00 |
| Earnings | 2020/09/30 |
| Annual Earnings | 2019/12/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.