MercadoLibre, Inc.
Find Ratings Reports
34.92 |
2.41%
MERCADOLIBRE INC's gross profit margin for the first quarter of its fiscal year 2021 has decreased when compared to the same period a year ago. Even though sales increased, the net income has decreased, representing a decrease to the bottom line. MERCADOLIBRE INC has weak liquidity. Currently, the Quick Ratio is 0.97 which shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year, indicating deteriorating cash flow.
At the same time, stockholders' equity ("net worth") has significantly decreased by 101.54% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.
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| Income Statement | Q1 FY21 | Q1 FY20 |
|---|---|---|
| Net Sales ($mil) | 1378.44 | 652.09 |
| EBITDA ($mil) | 129.26 | -8.14 |
| EBIT ($mil) | 90.84 | -29.69 |
| Net Income ($mil) | -34.01 | -21.11 |
| Balance Sheet | Q1 FY21 | Q1 FY20 |
|---|---|---|
| Cash & Equiv. ($mil) | 2168.43 | 2823.71 |
| Total Assets ($mil) | 5197.86 | 4458.08 |
| Total Debt ($mil) | 2518.97 | 1124.98 |
| Equity ($mil) | -30.4 | 1965.41 |
| Profitability | Q1 FY21 | Q1 FY20 |
|---|---|---|
| Gross Profit Margin | 45.69 | 51.28 |
| EBITDA Margin | 9.37 | -1.24 |
| Operating Margin | 6.59 | -4.55 |
| Sales Turnover | 0.9 | 0.56 |
| Return on Assets | -0.26 | -4.59 |
| Return on Equity | 0.0 | -10.63 |
| Debt | Q1 FY21 | Q1 FY20 |
|---|---|---|
| Current Ratio | 1.22 | 2.23 |
| Debt/Capital | 1.01 | 0.36 |
| Interest Expense | 42.04 | 23.58 |
| Interest Coverage | 2.16 | -1.26 |
| Share Data | Q1 FY21 | Q1 FY20 |
|---|---|---|
| Shares outstanding (mil) | 49.85 | 49.71 |
| Div / share | 0.0 | 0.0 |
| EPS | -0.68 | -0.44 |
| Book value / share | -0.61 | 39.54 |
| Institutional Own % | n/a | n/a |
| Avg Daily Volume | 523331.0 | 539064.0 |
HOLD. This stock’s P/E ratio is negative, making its value useless in the assessment of premium or discount valuation, only displaying that the company has negative earnings per share. Along with this, the price-to-book ratio is also meaningless due to a negative book value for the company, making any comparisons useless. The price-to-sales ratio is well above both the S&P 500 average and the subsector average, indicating a premium.
| Price/Earnings |
|
Price/Cash Flow |
| |||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| MELI NM | Peers 50.43 | MELI 71.74 | Peers 29.51 | |||||||||||||||||||||
|
Neutral. The absence of a valid P/E ratio happens when a stock can not be valued on the basis of a negative stream of earnings. MELI's P/E is negative making this valuation measure meaningless. |
Premium. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures. MELI is trading at a significant premium to its peers. |
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| Price/Projected Earnings |
|
Price to Earnings/Growth |
|
|||||||||||||||||||||
| MELI 244.11 | Peers 70.34 | MELI NA | Peers 1.37 | |||||||||||||||||||||
|
Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations. MELI is trading at a significant premium to its peers. |
Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples. Ratio not available. |
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| Price/Book |
|
Earnings Growth |
|
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| MELI NM | Peers 12.69 | MELI 92.62 | Peers 102.83 | |||||||||||||||||||||
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Neutral. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet. MELI's P/B is negative making this valuation measure meaningless. |
Average. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. MELI is expected to keep pace with its peers on the basis of earnings growth. |
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| Price/Sales |
|
Sales Growth |
|
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| MELI 15.34 | Peers 5.70 | MELI 89.91 | Peers 44.57 | |||||||||||||||||||||
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Premium. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales. MELI is trading at a significant premium to its subsector. |
Higher. A sales growth rate that exceeds the subsector implies that a company is gaining market share. MELI has a sales growth rate that significantly exceeds its peers. |
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