ScoreWhy is MercadoLibre, Inc. ?
1
Strong Long Term Fundamental Strength with a 106.24% CAGR growth in Operating Profits
- Strong ability to service debt as the company has a low Debt to EBITDA ratio of 0.24 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
The company has declared Positive results for the last 16 consecutive quarters
- OPERATING CASH FLOW(Y) Highest at USD 7,608.85 MM
- CASH AND EQV(HY) Highest at USD 24,436 MM
- NET SALES(Q) Highest at USD 7,409 MM
3
With ROE of 33.40%, it has a expensive valuation with a 14.12 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 -24.47%, its profits have risen by 44.5% ; the PEG ratio of the company is 1
4
High Institutional Holdings at 80.15%
- These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
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.
-23.19%
0.02
39.29%
S&P 500
13.68%
0.71
19.28%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
51.15%
EBIT Growth (5y)
106.24%
EBIT to Interest (avg)
6.35
Debt to EBITDA (avg)
0.24
Net Debt to Equity (avg)
-0.15
Sales to Capital Employed (avg)
1.65
Tax Ratio
22.43%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
80.15%
ROCE (avg)
256.19%
ROE (avg)
23.64%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
42
Industry P/E
Price to Book Value
14.12
EV to EBIT
27.50
EV to EBITDA
22.29
EV to Capital Employed
19.00
EV to Sales
3.29
PEG Ratio
0.95
Dividend Yield
NA
ROCE (Latest)
69.08%
ROE (Latest)
33.40%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bearish
RSI
Bullish
No Signal
Bollinger Bands
Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Mildly Bearish
Dow Theory
Mildly Bearish
Mildly Bearish
OBV
No Trend
Mildly Bearish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend10What is working for the Company
OPERATING CASH FLOW(Y)
Highest at USD 7,608.85 MM
CASH AND EQV(HY)
Highest at USD 24,436 MM
NET SALES(Q)
Highest at USD 7,409 MM
-8What is not working for the Company
ROCE(HY)
Lowest at 40.65%
DEBTORS TURNOVER RATIO(HY)
Lowest at 2.2 times
RAW MATERIAL COST(Y)
Grown by 5.79% (YoY
OPERATING PROFIT MARGIN(Q)
Lowest at 12.59 %
Here's what is working for MercadoLibre, Inc.
Operating Cash Flow
Highest at USD 7,608.85 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 7,409 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (USD MM)
Net Sales
At USD 7,409 MM has Grown at 39.48%
Year on Year (YoY)MOJO Watch
Near term sales trend is positive
Net Sales (USD MM)
Cash and Eqv
Highest at USD 24,436 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Depreciation
Highest at USD 209 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.
Debtors Turnover Ratio
Lowest at 2.2 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
Operating Profit Margin
Lowest at 12.59 %
in the last five periodsMOJO Watch
Company's profit margin has deteriorated
Operating Profit to Sales
Raw Material Cost
Grown by 5.79% (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
GET THE MARKETSMOJO APP
Company
Stocks
Portfolio
"Investment in securities markets are subject to market risk. Read all the related documents carefully before investing."
