NasdaqGS:MELI

Stock Analysis Report

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Executive Summary

MercadoLibre, Inc. operates online commerce platforms in Latin America.


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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

1.2%

MELI

1.7%

US Online Retail

3.0%

US Market


1 Year Return

49.7%

MELI

42.0%

US Online Retail

9.9%

US Market

Return vs Industry: MELI exceeded the US Online Retail industry which returned 36.7% over the past year.

Return vs Market: MELI exceeded the US Market which returned 9.5% over the past year.


Shareholder returns

MELIIndustryMarket
7 Day1.2%1.7%3.0%
30 Day40.7%9.7%8.2%
90 Day36.3%18.0%0.4%
1 Year49.7%49.7%42.0%42.0%12.4%9.9%
3 Year205.9%205.4%87.9%87.7%31.0%22.3%
5 Year502.5%496.9%215.1%203.1%58.1%40.3%

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

Valuation

Is MercadoLibre undervalued compared to its fair value and its price relative to the market?

22.68x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: MELI ($851.67) is trading above our estimate of fair value ($25.47)

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 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 (22.7x) compared to the US Online Retail industry average (2.8x).


Next Steps

Future Growth

How is MercadoLibre forecast to perform in the next 1 to 3 years based on estimates from 22 analysts?

64.4%

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% per year) is forecast to grow faster than the US market (8.8% per year).

High Growth Revenue: MELI's revenue (30% 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 (11%).


Next Steps

Past Performance

How has MercadoLibre performed over the past 5 years?

-58.3%

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 -58.3% 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 (-7.6%).


Return on Equity

High ROE: MELI has a negative Return on Equity (-10.43%), 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 ($3.5B) exceed its short term liabilities ($1.6B).

Long Term Liabilities: MELI's short term assets ($3.5B) exceed its long term liabilities ($916.2M).


Debt to Equity History and Analysis

Debt Level: MELI's debt to equity ratio (47.1%) is considered high.

Reducing Debt: MELI's debt to equity ratio has reduced from 86.3% to 47.1% over the past 5 years.

Debt Coverage: MELI's debt is well covered by operating cash flow (24.6%).

Interest Coverage: Insufficient data to determine if MELI's interest payments on its debt are well covered by EBIT.


Balance Sheet


Next Steps

Dividend

What is MercadoLibre's current dividend yield, its reliability and sustainability?


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?

16.3yrs

Average management tenure


CEO

Marcos Eduardo Galperín (48yo)

20.67yrs

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 ($USD11.48M) is about average for companies of similar size in the US market ($USD11.65M).

Compensation vs Earnings: Marcos's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Marcos Eduardo Galperín
Co-Founder20.67yrsUS$11.48mno data
Pedro Arnt
Executive VP & CFO9yrsUS$2.77m0.038% $16.3m
Stelleo Tolda
Executive VP & COO of Business Ecosystem21.42yrsUS$2.86m0.18% $77.5m
Osvaldo Giménez
Executive VP & CEO of Fintech16.33yrsUS$2.82m0.037% $15.7m
Daniel Rabinovich
Executive VP & COO of Product & Technology16.17yrsUS$2.90mno data
Marcelo Melamud
Chief Accounting Officer & Senior VP11.83yrsUS$191.00kno data
Federico Sandler
Head of Investor Relationsno datano datano data
Jacobo Cohen Imach
Senior VPno datano datano data

16.3yrs

Average Tenure

48yo

Average Age

Experienced Management: MELI's management team is seasoned and experienced (16.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Marcos Eduardo Galperín
Co-Founder20.67yrsUS$11.48mno data
Susan Segal
Independent Director8.17yrsUS$214.96k0.00036% $152.4k
Mario Eduardo Vázquez
Independent Director12.08yrsUS$236.84k0.0051% $2.2m
Meyer Malka Rais
Independent Director7.25yrsUS$236.84k0.0022% $922.9k
Nicolas Alejandro Aguzin
Independent Director3.42yrsUS$214.96k0.020% $8.7m
Nicolás R. Galperin
Director21.42yrsno datano data
Emiliano Calemzuk
Lead Independent Director4.33yrsUS$249.52k0.00060% $254.0k
Roberto Balls Sallouti
Independent Director5.67yrsUS$214.96k0.00036% $152.4k

7.7yrs

Average Tenure

49yo

Average Age

Experienced Board: MELI's board of directors are considered experienced (7.6 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$42.336b
  • Shares outstanding: 49.71m
  • Website: https://www.mercadolibre.com

Number of Employees


Location

  • MercadoLibre, Inc.
  • Arias 3751
  • 7th Floor
  • Buenos Aires
  • Capital Federal
  • C1430CRG
  • Argentina

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MELINasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDAug 2007
MLB1DB (Deutsche Boerse AG)YesCommon StockDEEURAug 2007
MELI NBMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNAug 2007
MLB1XTRA (XETRA Trading Platform)YesCommon StockDEEURAug 2007
0K0ELSE (London Stock Exchange)YesCommon StockGBUSDAug 2007
MELIBASE (Buenos Aires Stock Exchange)CEDEAR EACH REP 2 ORD NPVARARSAug 2013
MELI34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 1 REP 0.1 COM USD0.001BRBRLMay 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 merchandise and conduct sales and purchases online; and MercadoPago FinTech, 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, and allows merchants to process transactions via their Websites and mobile apps, as well as in their brick-and-mortar stores through QR and mobile points of sale. The company also offers MercadoFondo, an asset management product; and MercadoCredito, a lending solution. In addition, it provides MercadoEnvios logistics solution, which offers its platform technological and operational integration services with third-party carriers and other logistics service providers, as well as fulfillment and warehousing services for sellers. Further, the company provides MercadoLibre Classifieds service that enables users to list their offerings related to motor vehicles, vessels, aircraft, and real estate and services outside the Marketplace platform. Additionally, it offers MercadoLibre Advertising platform, which enables retailers and various other consumer brands to promote their products and services on the Internet by providing branding and performance marketing solutions. The company also provides MercadoShops, a software-as-a-service hosted online store solution that enables users to set-up, manage, and promote their own Webstores. The company was founded in 1999 and is headquartered in Buenos Aires, Argentina. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/01 03:46
End of Day Share Price2020/05/29 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


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.