MercadoLibre, Inc.
MercadoLibre, Inc. Fundamental Analysis
MercadoLibre, Inc. (MLB1.DE) shows moderate financial fundamentals with a PE ratio of 44.92, profit margin of 6.03%, and ROE of 29.59%. The company generates $31.8B in annual revenue with strong year-over-year growth of 39.06%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 65.3/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze MLB1.DE's fundamental strength across five key dimensions:
Efficiency Score
WeakMLB1.DE struggles to generate sufficient returns from assets.
Valuation Score
ModerateMLB1.DE shows balanced valuation metrics.
Growth Score
ModerateMLB1.DE shows steady but slowing expansion.
Financial Health Score
ModerateMLB1.DE shows balanced financial health with some risks.
Profitability Score
ModerateMLB1.DE maintains healthy but balanced margins.
Key Financial Metrics
Is MLB1.DE Expensive or Cheap?
P/E Ratio
MLB1.DE trades at 44.92 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, MLB1.DE's PEG of -5.61 indicates potential undervaluation.
Price to Book
The market values MercadoLibre, Inc. at 11.88 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 24.43 times EBITDA. This signals the market has high growth expectations.
How Well Does MLB1.DE Make Money?
Net Profit Margin
For every $100 in sales, MercadoLibre, Inc. keeps $6.03 as profit after all expenses.
Operating Margin
Core operations generate 9.58 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $29.59 in profit for every $100 of shareholder equity.
ROA
MercadoLibre, Inc. generates $4.10 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
MercadoLibre, Inc. generates strong operating cash flow of $10.87B, reflecting robust business health.
Free Cash Flow
MercadoLibre, Inc. generates strong free cash flow of $9.68B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $190.99 in free cash annually.
FCF Yield
MLB1.DE converts 11.08% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
44.92
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-5.61
vs 25 benchmark
P/B Ratio
Price to book value ratio
11.88
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.71
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
2.31
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.16
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.30
vs 25 benchmark
ROA
Return on assets percentage
0.04
vs 25 benchmark
ROCE
Return on capital employed
0.20
vs 25 benchmark
How MLB1.DE Stacks Against Its Sector Peers
| Metric | MLB1.DE Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 44.92 | 24.19 | Worse (Expensive) |
| ROE | 29.59% | 1204.00% | Weak |
| Net Margin | 6.03% | 2563.00% | Weak |
| Debt/Equity | 2.31 | 0.71 | Weak (High Leverage) |
| Current Ratio | 1.16 | 2.83 | Neutral |
| ROA | 4.10% | -8376.00% (disorted) | Weak |
MLB1.DE outperforms its industry in 0 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews MercadoLibre, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
613.33%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
196031.89%
Industry Style: Cyclical, Growth, Discretionary
High GrowthFCF CAGR
905.23%
Industry Style: Cyclical, Growth, Discretionary
High Growth