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 (3.4/5)
Our MercadoLibre stock opinion is based on fundamentals of the company. This MercadoLibre stock analysis is based on latest Q3 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 36.9% in 2016 Q3.
- The company saw a significant growth in revenue with a 5 year CAGR of 22.8%.
- The TTM operating margin was good at 19.5% for MercadoLibre.
- LTM Net margins were good at 16.1% for MercadoLibre.
- The company has an operating cash flow which is 2.6 times the net income.
- MercadoLibre has an attractive ROIC (Return on Invested Capital) of 36.1%
- The LTM ROE of 34.1% for MercadoLibre is attractive.
- MercadoLibre has a healthy FCF (Free Cash Flow) margin of 34.1%.
Should you sell MELI stock?
- With a debt/equity ratio of 0.77, MercadoLibre is highly leveraged in comparison to Retail-Wholesale peers.
- Trading at a PE ratio of 65.1, MELI stock is overvalued in comparison to industry average multiple of 19.7.
- MELI stock is trading at a PS multiple of 11.9, which is a negative when compared to the Internet Commerce industry average multiple of 0.8.