ScoreWhy is MercadoLibre, Inc. ?
1
Strong Long Term Fundamental Strength with a 90.47% CAGR growth in Operating Profits
- Strong ability to service debt as the company has a low Debt to EBITDA ratio of 3.31 times
- The company has been able to generate a Return on Capital Employed (avg) of 256.19% signifying high profitability per unit of total capital (equity and debt)
2
Flat results in Mar 26
- ROCE(HY) Lowest at 31.26%
- DEBTORS TURNOVER RATIO(HY) Lowest at 2.13 times
- INTEREST COVERAGE RATIO(Q) Lowest at 1,318.46
3
With ROE of 29.59%, it has a very expensive valuation with a 12.02 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 -35.44%, its profits have risen by 4.5% ; the PEG ratio of the company is 9
4
High Institutional Holdings at 79.11%
- These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
5
Below par performance in long term as well as near term
- Along with generating -35.44% returns in the last 1 year, the stock has also underperformed S&P 500 in the last 3 years, 1 year and 3 months
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?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
MercadoLibre, Inc.
-35.44%
-0.03
40.13%
S&P 500
22.24%
1.67
13.28%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
48.70%
EBIT Growth (5y)
90.47%
EBIT to Interest (avg)
6.35
Debt to EBITDA (avg)
0.24
Net Debt to Equity (avg)
-0.15
Sales to Capital Employed (avg)
1.62
Tax Ratio
22.43%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
79.11%
ROCE (avg)
256.19%
ROE (avg)
23.64%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
41
Industry P/E
Price to Book Value
12.02
EV to EBIT
24.44
EV to EBITDA
19.47
EV to Capital Employed
20.09
EV to Sales
2.71
PEG Ratio
9.02
Dividend Yield
NA
ROCE (Latest)
82.20%
ROE (Latest)
29.59%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bearish
RSI
Bullish
No Signal
Bollinger Bands
Mildly Bearish
Mildly Bearish
Moving Averages
Mildly Bearish (Daily)
KST
Bearish
Mildly Bearish
Dow Theory
Mildly Bullish
Mildly Bearish
OBV
Mildly Bearish
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend12What is working for the Company
OPERATING CASH FLOW(Y)
Highest at USD 9,728.6 MM
NET SALES(Q)
Highest at USD 8,845 MM
CASH AND EQV(HY)
Highest at USD 33,280 MM
-19What is not working for the Company
ROCE(HY)
Lowest at 31.26%
DEBTORS TURNOVER RATIO(HY)
Lowest at 2.13 times
INTEREST COVERAGE RATIO(Q)
Lowest at 1,318.46
RAW MATERIAL COST(Y)
Grown by 6.63% (YoY
INTEREST(Q)
Highest at USD 65 MM
OPERATING PROFIT(Q)
Lowest at USD 857 MM
OPERATING PROFIT MARGIN(Q)
Lowest at 9.69 %
PRE-TAX PROFIT(Q)
Lowest at USD 579 MM
NET PROFIT(Q)
Lowest at USD 417 MM
EPS(Q)
Lowest at USD 8.23
Here's what is working for MercadoLibre, Inc.
Operating Cash Flow
Highest at USD 9,728.6 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)
Net Sales
Highest at USD 8,845 MM and Grown
In each period in the last five periodsMOJO Watch
Near term sales trend is very positive
Net Sales (USD MM)
Net Sales
At USD 8,845 MM has Grown at 49.03%
Year on Year (YoY)MOJO Watch
Near term sales trend is positive
Net Sales (USD MM)
Cash and Eqv
Highest at USD 33,280 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Depreciation
Highest at USD 246 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.
Interest
At USD 65 MM has Grown at 30%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (USD MM)
Interest Coverage Ratio
Lowest at 1,318.46
in the last five periodsMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Debtors Turnover Ratio
Lowest at 2.13 times and Fallen
In each half year in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio
Interest
Highest at USD 65 MM
in the last five periods and Increased by 30% (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (USD MM)
Operating Profit
Lowest at USD 857 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is negative
Operating Profit (USD MM)
Operating Profit Margin
Lowest at 9.69 %
in the last five periodsMOJO Watch
Company's profit margin has deteriorated
Operating Profit to Sales
Pre-Tax Profit
Lowest at USD 579 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is negative
Pre-Tax Profit (USD MM)
Net Profit
Lowest at USD 417 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is negative
Net Profit (USD MM)
EPS
Lowest at USD 8.23
in the last five periodsMOJO Watch
Declining profitability; company has created lower earnings for shareholders
EPS (USD)
Raw Material Cost
Grown by 6.63% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin
Raw Material Cost as a percentage of Sales
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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