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 (3.3/5)
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.