MercadoLibre Stock Analysis (NASDAQ:MELI)

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$228.91 $1.3 (0.56%) MELI stock closing price Apr 28, 2017 (Closing)
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MercadoLibre
Updated on : Apr 28, 2017
previous close
MELI 228.9 (0%)
S&P 500 2384.2 (0%)
Closing Price On: Apr 28, 2017
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Internet Commerce
Sector :
Retail-Wholesale
5 Quarter Revenue
Revenue Growth
2016-Q4
$million
%
YOY GROWTH
Compared to the industry
Long Term Growth
5 Year CAGR:
23.1%
Operating Profit
Operating Margin:
21.4%
Sector Average:
5.5%
5 Quarter Net Profit
Net Margins
2016-Q4
%
LTM Margin
Compared to the industry
Debt/Equity Ratio
Debt:
313.5M
Debt/Equity Ratio:
 0.73
Compared to the industry
Cash Flow
Operating cash flow:
$42.6M
Net Income:
$51.4M
Dividend Yield
MELI dividend yield:
0.26%
PROS      CONS
Recent Growth
Long Term Growth
Operating Margins
Net Margins
ROIC
ROE
High Debt Burden
PE Valuation
PS Valuation
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
MELI PS :
12
Industry PS :
0.7
Sector:   Retail-Wholesale.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
46%
Return on Equity:
36.3%
Free Cash Flow Margin:
10.6%
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MercadoLibre Analysis Video

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View MercadoLibre stock analysis video. This is our MELI analyst opinion covering the buy and sell arguments for MELI stock.

Mercadolibre Inc Stock Rating (3.2/5)

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.
  • Revenue growth has been tremendous with a compounded annual growth of 23.1% over the last 5 years.
  • MercadoLibre had a healthy average operating margin of 21.4% over the last 4 quarters.
  • Net margins came in at average 16.1% for MercadoLibre over the last twelve months.
  • MercadoLibre has an attractive ROIC (Return on Invested Capital) of 46%
  • The LTM ROE of 36.3% for MercadoLibre is attractive.
  • MercadoLibre has a healthy FCF (Free Cash Flow) 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 66, which is worse than the industry average multiple of 19.9.
  • The company is trading at a price to sales multiple of 12, which is higher in comparison to the Internet Commerce industry average of 0.7, making MELI stock expensive.

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