MercadoLibre Stock Analysis (NASDAQ:MELI)

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$286.02 $6.76 (2.42%) MELI stock closing price Jul 26, 2017 (Closing)
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MercadoLibre
Updated on : Jul 26, 2017
previous close
MELI 286 (0%)
S&P 500 2477.8 (0%)
Closing Price On: Jul 26, 2017
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Internet Commerce
Sector :
Retail-Wholesale
5 Quarter Revenue
Revenue Growth
2017-Q1
$million
%
YOY GROWTH
Compared to the industry
Long Term Growth
5 Year CAGR:
24.5%
Operating Profit
Operating Margin:
22.3%
Sector Average:
5.7%
5 Quarter Net Profit
Net Margins
2017-Q1
%
LTM Margin
Compared to the industry
Debt/Equity Ratio
Debt:
321M
Debt/Equity Ratio:
 0.67
Compared to the industry
Cash Flow
Operating cash flow:
$104.8M
Net Income:
$48.5M
Dividend Yield
MELI dividend yield:
0.21%
PROS      CONS
Recent Growth
Long Term Growth
Operating Margins
Net Margins
Cash Flow
ROIC
High Debt Burden
PE Valuation
PS Valuation
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
MELI PS :
13.1
Industry PS :
0.7
Sector:   Retail-Wholesale.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
53.4%
Return on Equity:
38.2%
Free Cash Flow Margin:
33.6%
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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 (3.3/5)

Our MercadoLibre stock opinion is based on fundamentals of the company. This MercadoLibre stock analysis is based on latest Q1 earnings for 2017. 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 73.8% in 2017 Q1.
  • The company saw a significant growth in revenue with a 5 year CAGR of 24.5%.
  • MercadoLibre had a healthy average operating margin of 22.3% over the last 4 quarters.
  • Net margins stood at a healthy 16.1% (average) for MercadoLibre in the Trailing Twelve Months.
  • The operating cash flow looks good at 2.2 times the net income.
  • MercadoLibre generates a high return on invested capital of 53.4%.
  • MercadoLibre has a good Return On Equity (ROE) of 38.2%.
  • The company has a good Free Cash Flow (FCF) margin of 33.6%.

Should you sell MELI stock?

  • MercadoLibre is debt laden and has a high debt/equity ratio of  0.67.
  • Trading at a PE ratio of 73.5, MELI stock is overvalued in comparison to industry average multiple of 17.2.
  • MELI stock is trading at a PS multiple of 13.1, which is a negative when compared to the Internet Commerce industry average multiple of 0.7.

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