MercadoLibre Stock Analysis (NASDAQ:MELI)
MercadoLibre Analysis Video
View MercadoLibre stock analysis video. This is our MELI analyst opinion covering the buy and sell arguments for MELI stock.
Mercadolibre Inc Stock Rating (3.1/5)
Our MercadoLibre stock opinion is based on fundamentals of the company. This MercadoLibre stock analysis is based on latest Q4 earnings for 2016. The stock price analysis takes into account a company's valuation metrics.
Should you buy MELI stock?
- The Year Over Year (YoY) revenue growth for MercadoLibre was 41.8% in 2016 Q4.
- The company saw a significant growth in revenue with a 5 year CAGR of 23.1%.
- The TTM operating margin was good at 21.4% for MercadoLibre.
- LTM Net margins were good at 16.1% for MercadoLibre.
- MercadoLibre's return on invested capital of 46% is good.
- Return On Equity (ROE) which is a measure of the company's profitability, looks great for MercadoLibre at 36.3%.
- The company has a good Free Cash Flow (FCF) margin of 10.6%.
Should you sell MELI stock?
- MercadoLibre is debt laden and has a high debt/equity ratio of 0.73.
- MELI stock is trading at a PE ratio of 60.8, which is worse than the industry average multiple of 18.4.
- MELI stock is trading at a PS multiple of 11, which is a negative when compared to the Internet Commerce industry average multiple of 0.7.