MercadoLibre, Inc.
Find Ratings ReportsMERCADOLIBRE INC's gross profit margin for the first quarter of its fiscal year 2022 has increased when compared to the same period a year ago. The company grew its sales and net income significantly quarter versus same quarter a year prior, and was able to outpace the average competitor in the subsector when comparing revenue growth, but not when comparing net income growth. MERCADOLIBRE INC has average liquidity. Currently, the Quick Ratio is 1.03 which shows that technically this company has the ability to cover short-term cash needs. The company's liquidity has increased from the same period last year, indicating improving cash flow.
At the same time, stockholders' equity ("net worth") has greatly increased by 5,326.28% from the same quarter last year. Together, the key liquidity measurements indicate that it is relatively unlikely that the company will face financial difficulties in the near future.
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| Income Statement | Q1 FY22 | Q1 FY21 |
|---|---|---|
| Net Sales ($mil) | 2248.0 | 1378.44 |
| EBITDA ($mil) | 223.0 | 129.26 |
| EBIT ($mil) | 139.0 | 90.84 |
| Net Income ($mil) | 65.0 | -34.01 |
| Balance Sheet | Q1 FY22 | Q1 FY21 |
|---|---|---|
| Cash & Equiv. ($mil) | 3826.0 | 2168.43 |
| Total Assets ($mil) | 11023.0 | 5197.86 |
| Total Debt ($mil) | 4640.0 | 2518.97 |
| Equity ($mil) | 1589.0 | -30.4 |
| Profitability | Q1 FY22 | Q1 FY21 |
|---|---|---|
| Gross Profit Margin | 51.47 | 45.69 |
| EBITDA Margin | 9.91 | 9.37 |
| Operating Margin | 6.18 | 6.59 |
| Sales Turnover | 0.72 | 0.9 |
| Return on Assets | 1.65 | -0.26 |
| Return on Equity | 11.47 | 0.0 |
| Debt | Q1 FY22 | Q1 FY21 |
|---|---|---|
| Current Ratio | 1.4 | 1.22 |
| Debt/Capital | 0.74 | 1.01 |
| Interest Expense | 56.0 | 42.04 |
| Interest Coverage | 2.48 | 2.16 |
| Share Data | Q1 FY22 | Q1 FY21 |
|---|---|---|
| Shares outstanding (mil) | 50.38 | 49.85 |
| Div / share | 0.0 | 0.0 |
| EPS | 1.3 | -0.68 |
| Book value / share | 31.54 | -0.61 |
| Institutional Own % | n/a | n/a |
| Avg Daily Volume | 657148.0 | 752950.0 |
HOLD. MERCADOLIBRE INC's P/E ratio indicates a significant premium compared to an average of 81.68 for the Other Information Services subsector and a significant premium compared to the S&P 500 average of 19.86. For additional comparison, its price-to-book ratio of 22.92 indicates a significant premium versus the S&P 500 average of 3.81 and a significant premium versus the subsector average of 19.62. The price-to-sales ratio is well above the S&P 500 average, but well below the subsector average. After reviewing these and other key valuation criteria, MERCADOLIBRE INC proves to trade at a premium to investment alternatives.
| Price/Earnings |
|
Price/Cash Flow |
| |||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| MELI 196.98 | Peers 81.68 | MELI 36.53 | Peers 53.96 | |||||||||||||||||||||
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Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations. MELI is trading at a significant premium to its peers. |
Discount. 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 discount to its peers. |
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| Price/Projected Earnings |
|
Price to Earnings/Growth |
|
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| MELI 58.54 | Peers 59.66 | MELI 0.54 | Peers 1.47 | |||||||||||||||||||||
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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. |
Discount. 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. MELI trades at a significant discount to its peers. |
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| Price/Book |
|
Earnings Growth |
|
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| MELI 22.92 | Peers 19.62 | MELI 1283.87 | Peers 32.29 | |||||||||||||||||||||
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Premium. A higher price-to-book ratio makes a stock less attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet. MELI is trading at a premium to its peers. |
Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. MELI is expected to have an earnings growth rate that significantly exceeds its peers. |
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| Price/Sales |
|
Sales Growth |
|
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| MELI 4.59 | Peers 6.06 | MELI 68.92 | Peers 36.52 | |||||||||||||||||||||
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Discount. 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 discount to its subsector on this measurement. |
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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