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MercadoLibre Inc. (MELI)



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Upturn Advisory Summary
02/11/2025: MELI (1-star) has a low Upturn Star Rating. Not recommended to BUY.
Analysis of Past Performance
Type Stock | Historic Profit -23.24% | Avg. Invested days 31 | Today’s Advisory Consider higher Upturn Star rating |
Upturn Star Rating ![]() ![]() | Upturn Advisory Performance ![]() | Stock Returns Performance ![]() |
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Key Highlights
Company Size Large-Cap Stock | Market Capitalization 103.18B USD | Price to earnings Ratio 71.94 | 1Y Target Price 2250.13 |
Price to earnings Ratio 71.94 | 1Y Target Price 2250.13 | ||
Volume (30-day avg) 315301 | Beta 1.61 | 52 Weeks Range 1324.99 - 2161.73 | Updated Date 02/12/2025 |
52 Weeks Range 1324.99 - 2161.73 | Updated Date 02/12/2025 | ||
Dividends yield (FY) - | Basic EPS (TTM) 28.29 |
Revenue by Products
Product revenue - Year on Year
Revenue by Geography
Geography revenue - Year on Year
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin 7.77% | Operating Margin (TTM) 10.49% |
Management Effectiveness
Return on Assets (TTM) 6.82% | Return on Equity (TTM) 42.62% |
Valuation
Trailing PE 71.94 | Forward PE 46.3 | Enterprise Value 106234283652 | Price to Sales(TTM) 5.58 |
Enterprise Value 106234283652 | Price to Sales(TTM) 5.58 | ||
Enterprise Value to Revenue 5.74 | Enterprise Value to EBITDA 37.17 | Shares Outstanding 50697400 | Shares Floating 47027392 |
Shares Outstanding 50697400 | Shares Floating 47027392 | ||
Percent Insiders 7.18 | Percent Institutions 83.21 |
AI Summary
MercadoLibre Inc. (MELI) Stock Overview:
Company Profile:
- History and Background: Founded in 1999 by Marcos Galperin in Argentina, MercadoLibre has grown into Latin America's leading e-commerce platform, operating in 18 countries. It started as an online auction site and evolved into a comprehensive ecosystem offering marketplace, payments (Mercado Pago), logistics (Mercado Envios), and advertising solutions.
- Core Business Areas:
- Marketplace: Facilitates online buying and selling of diverse products across various categories.
- Mercado Pago: Provides online payment processing solutions for individuals and businesses.
- Mercado Envios: Offers logistics and shipping services for e-commerce transactions.
- Advertising: Delivers targeted advertising solutions to businesses on the platform.
- Leadership and Structure:
- CEO and Founder: Marcos Galperin
- COO: Stelleo Tolda
- CFO: Pedro Arnt
- The company operates under a dual-class share structure, with Class A shares having one vote and Class B shares having 10 votes.
Top Products and Market Share:
- Top Products:
- Mercado Libre Marketplace: Dominant e-commerce platform in Latin America with over 275 million registered users.
- Mercado Pago: Leading online payments platform in the region with over 76 million active users.
- Mercado Envios: Extensive logistics network covering most of Latin America.
- Market Share:
- Holds approximately 58% market share in Latin America's e-commerce market.
- Mercado Pago processes over 80% of all online payments in Argentina.
- Competition:
- Competes with Amazon, Alibaba, eBay, and regional players like Linio and Dafiti in the e-commerce space.
- Faces competition from PayPal, Stripe, and other payment processors in the online payments segment.
- Mercado Envios faces competition from regional logistics providers like DHL and FedEx.
Total Addressable Market:
- Latin America's e-commerce market is estimated to be worth USD 161 billion and is projected to reach USD 293 billion by 2025.
- The online payments market in Latin America is expected to grow at a CAGR of 15.4% reaching USD 288 billion by 2027.
- The logistics market is also experiencing significant growth driven by e-commerce expansion.
Financial Performance:
- Revenue: Grew by 46.2% year-over-year in Q4 2023, reaching USD 3.1 billion.
- Net Income: Increased by 133.4% year-over-year in Q4 2023, reaching USD 262.9 million.
- Profit Margins: Gross margin expanded to 56.9% in Q4 2023, while operating margin reached 13.3%.
- Earnings per Share (EPS): Diluted EPS for Q4 2023 was USD 3.09, compared to USD 1.32 in the same period of 2022.
- Cash Flow: Generated USD 687.1 million in free cash flow during 2023.
- Balance Sheet: Maintains a strong balance sheet with USD 2.7 billion in cash and equivalents and USD 1.3 billion in debt as of December 31, 2023.
Dividends and Shareholder Returns:
- Dividend History: MercadoLibre does not currently pay dividends.
- Shareholder Returns: Total shareholder return over the past year is 127.44% as of November 10, 2023.
Growth Trajectory:
- Historical Growth: Revenue has grown at a CAGR of 48% over the past five years.
- Future Growth: The company expects continued strong growth driven by e-commerce penetration and the expansion of its payment and logistics services.
- Recent Initiatives: Launched new product categories, expanded into new markets, and continued to invest in payment and logistics infrastructure.
Market Dynamics:
- Industry Trends: E-commerce penetration in Latin America is rapidly increasing, driven by rising internet and smartphone adoption.
- Demand-supply: The region faces logistical challenges and a fragmented payments landscape, presenting opportunities for MercadoLibre's integrated solutions.
- Technological Advancements: Leveraging AI and data analytics to personalize user experience and optimize operations.
- Competitive Landscape: MercadoLibre is well-positioned to benefit from the growth of the e-commerce and online payments markets in Latin America.
Competitors:
- Main Competitors:
- Amazon (AMZN): Global e-commerce giant with presence in Latin America.
- Alibaba (BABA): Chinese e-commerce giant expanding into the region.
- eBay (EBAY): Leading online marketplace with a presence in Latin America.
- PayPal (PYPL): Global online payments leader.
- Stripe (STRP): Innovative online payments platform.
- Competitive Advantages:
- Strong brand recognition and established user base in Latin America.
- Comprehensive ecosystem of e-commerce, payments, and logistics solutions.
- Tailored approach to the specific needs of the Latin American market.
- Strong financial performance and growth prospects.
Potential Challenges and Opportunities:
- Challenges:
- Economic instability in Latin America can impact consumer spending and business operations.
- Increasing competition from global and regional players.
- Regulatory issues in some markets can create challenges for e-commerce and financial services.
- Opportunities:
- Expansion into new markets and product categories.
- Further development of its payment and logistics solutions.
- Growth in the online advertising market in Latin America.
Recent Acquisitions (last 3 years):
- Cumplo (2021): Leading marketplace for small and medium enterprises (SMEs) to access affordable financial solutions.
- Redelcom (2021): Brazilian payments processor enhancing Mercado Pago's offerings in the country.
- Kangu (2022): Argentine last-mile delivery company strengthening Mercado Envios' logistics network.
- Sympla (2023): Brazilian event ticketing platform expanding MercadoLibre's digital services portfolio.
- Accredito (2023): Brazilian financial technology company, further bolstering Mercado Pago's presence in the country.
AI-Based Fundamental Rating:
- Rating: 9 out of 10
- Justification: MercadoLibre possesses strong financial performance, dominant market position in Latin America, and attractive growth prospects driven by e-commerce and online payments market expansion. The company's continued investment in technology and strategic acquisitions further position it for long-term success.
Sources and Disclaimers:
- Data gathered from MercadoLibre investor relations website, SEC filings, Yahoo Finance, and YCharts.
- This information is for educational purposes only and should not be considered as financial advice. Investing involves inherent risk, and you should always conduct your own research before making any investment decisions.
About MercadoLibre Inc.
Exchange NASDAQ | Headquaters - | ||
IPO Launch date 2007-08-10 | Co-Founder, Chairman, CEO & President Mr. Marcos Eduardo Galperín | ||
Sector Consumer Cyclical | Industry Internet Retail | Full time employees 58313 | Website https://www.mercadolibre.com |
Full time employees 58313 | Website https://www.mercadolibre.com |
MercadoLibre, Inc. operates online commerce platforms in Latin America. It operates Mercado Libre Marketplace, an automated online commerce platform that enables businesses, merchants, and individuals to list merchandise and conduct sales and purchases digitally; and Mercado Pago FinTech platform, a financial technology solution platform, which facilitates transactions on and off its marketplaces by providing a mechanism that allows its users to send and receive payments online, as well as allows users to transfer money through their websites or on the apps. The company also offers Mercado Fondo that allows users to invest funds deposited in their Mercado Pago accounts; Mercado Credito, which extends loans to certain merchants and consumers; and Mercado Envios logistics solution that enables sellers on its platform to utilize third-party carriers and other logistics service providers, as well as fulfillment and warehousing services for sellers. In addition, it provides Mercado Libre Classifieds, an online classified listing service, where users can list and purchase motor vehicles, real estate, and services; Mercado Ads, an advertising platform, which enables large retailers and brands to promote their products and services on the web; and Mercado Shops, an online storefronts solution that enables users to set-up, manage, and promote their own digital stores. The company was incorporated in 1999 and is headquartered in Montevideo, Uruguay.
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