ScoreWhy is MercadoLibre, Inc. ?
1
Strong ability to service debt as the company has a low Debt to EBITDA ratio of 0.24 times
2
Healthy long term growth as Net Sales has grown by an annual rate of 53.72% and Operating profit at 107.61%
3
The company has declared Positive results for the last 16 consecutive quarters
- OPERATING CASH FLOW(Y) Highest at USD 6,799.2 MM
- INTEREST COVERAGE RATIO(Q) Highest at 2,844.44
- NET PROFIT(9M) Higher at USD 1,656 MM
4
With ROE of 41.19%, it has a expensive valuation with a 25.15 Price to Book Value
- The stock is trading at a discount compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of 7.76%, its profits have risen by 82.4% ; the PEG ratio of the company is 0.7
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to MercadoLibre, Inc. should be less than 10%
- Overall Portfolio exposure to E-Retail/ E-Commerce should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in E-Retail/ E-Commerce)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is MercadoLibre, Inc. for you?
Medium Risk, High Return
Absolute
Risk Adjusted
Volatility
MercadoLibre, Inc.
7.76%
0.68
38.10%
S&P 500
12.83%
0.64
20.14%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
53.72%
EBIT Growth (5y)
107.61%
EBIT to Interest (avg)
6.35
Debt to EBITDA (avg)
0.24
Net Debt to Equity (avg)
-0.15
Sales to Capital Employed (avg)
1.64
Tax Ratio
22.43%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
82.63%
ROCE (avg)
256.19%
ROE (avg)
23.64%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
61
Industry P/E
Price to Book Value
25.15
EV to EBIT
43.65
EV to EBITDA
35.73
EV to Capital Employed
29.43
EV to Sales
5.59
PEG Ratio
0.74
Dividend Yield
NA
ROCE (Latest)
67.44%
ROE (Latest)
41.19%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Mildly Bearish
Dow Theory
No Trend
Mildly Bearish
OBV
Mildly Bullish
Mildly Bearish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend18What is working for the Company
OPERATING CASH FLOW(Y)
Highest at USD 6,799.2 MM
INTEREST COVERAGE RATIO(Q)
Highest at 2,844.44
NET PROFIT(9M)
Higher at USD 1,656 MM
CASH AND EQV(HY)
Highest at USD 21,102 MM
INVENTORY TURNOVER RATIO(HY)
Highest at 37.75 times
NET SALES(Q)
Highest at USD 6,790 MM
OPERATING PROFIT(Q)
Highest at USD 1,024 MM
-4What is not working for the Company
DEBT-EQUITY RATIO
(HY)
Highest at 1.54 %
DEBTORS TURNOVER RATIO(HY)
Lowest at 2.27 times
Here's what is working for MercadoLibre, Inc.
Operating Cash Flow
Highest at USD 6,799.2 MM and Grown
In each year in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (USD MM)
Interest Coverage Ratio
Highest at 2,844.44
in the last five periodsMOJO Watch
The company's ability to manage interest payments is improving
Operating Profit to Interest
Net Profit
At USD 1,656 MM has Grown at 59.23%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is positive
Net Profit (USD MM)
Net Sales
Highest at USD 6,790 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (USD MM)
Net Sales
At USD 6,790 MM has Grown at 33.85%
Year on Year (YoY)MOJO Watch
Near term sales trend is positive
Net Sales (USD MM)
Operating Profit
Highest at USD 1,024 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (USD MM)
Cash and Eqv
Highest at USD 21,102 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Inventory Turnover Ratio
Highest at 37.75 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Net Profit
Higher at USD 1,656 MM
than preceding 12 month period ended Jun 2025MOJO Watch
In the nine month period the company has already crossed sales of the previous twelve months
Net Profit (USD MM)
Depreciation
Highest at USD 199 MM
in the last five periodsMOJO Watch
The expenditure on assets done by the company may have gone into operation
Depreciation (USD MM)
Here's what is not working for MercadoLibre, Inc.
Debt-Equity Ratio
Highest at 1.54 %
in the last five Semi-Annual periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio
Debtors Turnover Ratio
Lowest at 2.27 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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