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 (3.2/5)
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.