Is MercadoLibre Stock a Good Investment?
MercadoLibre Investment Advice | MELI |
- Examine MercadoLibre's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research MercadoLibre's leadership team and their track record. Good management can help MercadoLibre navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Broadline Retail space and any emerging trends that could impact MercadoLibre's business and its evolving consumer preferences.
- Compare MercadoLibre's performance and market position to its competitors. Analyze how MercadoLibre is positioned in terms of product offerings, innovation, and market share.
- Check if MercadoLibre pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about MercadoLibre's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in MercadoLibre stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if MercadoLibre is a good investment.
Sell | Buy |
Strong Sell
Market Performance | Very Weak | Details | |
Volatility | Very steady | Details | |
Hype Condition | Low key | Details | |
Current Valuation | Undervalued | Details | |
Odds Of Distress | Very Small | Details | |
Economic Sensitivity | Slowly supersedes the market | Details | |
Investor Sentiment | Interested | Details | |
Analyst Consensus | Strong Buy | Details | |
Financial Strenth (F Score) | Strong | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
Examine MercadoLibre Stock
Researching MercadoLibre's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 84.0% of the company shares are owned by institutional investors. The company has Price/Earnings To Growth (PEG) ratio of 1.14. MercadoLibre recorded earning per share (EPS) of 28.16. The entity last dividend was issued on the 28th of December 2017.
To determine if MercadoLibre is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding MercadoLibre's research are outlined below:
| MercadoLibre generated a negative expected return over the last 90 days | |
| MercadoLibre has high historical volatility and very poor performance | |
| MercadoLibre is unlikely to experience financial distress in the next 2 years | |
| MercadoLibre has a strong financial position based on the latest SEC filings | |
| Over 84.0% of the company shares are owned by institutional investors | |
| Latest headline from news.google.com: Discretionary transaction by Tolda Stelleo of 20000 shares of MercadoLibre subject to Rule 16b-3 |
MercadoLibre Quarterly Accounts Payable |
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MercadoLibre uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in MercadoLibre. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to MercadoLibre's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 22nd of February 2024 Upcoming Quarterly Report | View | |
| 1st of May 2024 Next Financial Report | View | |
| 31st of December 2023 Next Fiscal Quarter End | View | |
| 22nd of February 2024 Next Fiscal Year End | View | |
| 30th of September 2023 Last Quarter Report | View | |
| 31st of December 2022 Last Financial Announcement | View |
Earnings surprises can significantly impact MercadoLibre's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises MercadoLibre's investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
2007-11-13 | 2007-09-30 | 0.06 | 0.07 | 0.01 | 16 | ||
2009-05-06 | 2009-03-31 | 0.1 | 0.12 | 0.02 | 20 | ||
2008-08-12 | 2008-06-30 | 0.09 | 0.07 | -0.02 | 22 | ||
2008-03-05 | 2007-12-31 | 0.1 | 0.12 | 0.02 | 20 | ||
2018-11-01 | 2018-09-30 | -0.26 | -0.23 | 0.03 | 11 | ||
2009-08-05 | 2009-06-30 | 0.12 | 0.15 | 0.03 | 25 | ||
2011-08-03 | 2011-06-30 | 0.38 | 0.34 | -0.04 | 10 | ||
2010-05-06 | 2010-03-31 | 0.18 | 0.22 | 0.04 | 22 |
MercadoLibre Target Price Consensus
MercadoLibre target price is determined by taking all analyst projections and averaging them out. There is no one specific way to measure analysts' performance other than comparing it to past results via a very sophisticated attribution analysis. MercadoLibre's target price projections below should be used in combination with other traditional price prediction techniques such as stock price forecasting, investor sentiment analysis, technical analysis, earnings estimate, and various momentum models.
| 24 | Strong Buy |
Most MercadoLibre analysts issue ratings four times a year, at intervals of three months. Ratings are usually accompanied by a target price to help potential investors understand MercadoLibre stock's fair price compared to its market value. Analysts arrive at stock ratings after researching the public financial statements of MercadoLibre, talking to its executives and customers, or listening to those companies' conference calls.
Macroaxis Advice Exposure ValuationMercadoLibre Target Price Projection
MercadoLibre's current and average target prices are 1,947 and 2,259, respectively. The current price of MercadoLibre is the price at which MercadoLibre is currently trading. On the other hand, MercadoLibre's target price is what analysts think the stock is worth or could sell for in the future. The more significant the discrepancy between the two prices, the more it stimulates investors to act.Current Price
MercadoLibre Market Quote on 30th of January 2025
Target Price
Analyst Consensus On MercadoLibre Target Price
MercadoLibre Analyst Ratings
MercadoLibre's analyst stock recommendations are determined by taking an average estimate of all analysts we track and classifying them as Strong Buy, Buy, Hold, Strong Sell, or Sell. Ratings generally communicate what analysts sense about MercadoLibre stock, and they use a lot of effort and time to analyze it and arrive at a rating. That suggests that analyst recommendations are the outcome of an objective and thorough examination of MercadoLibre's financials, market performance, and future outlook by experienced professionals. MercadoLibre's historical ratings below, therefore, can serve as a valuable tool for investors.Know MercadoLibre's Top Institutional Investors
Have you ever been surprised when a price of an equity instrument such as MercadoLibre is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading MercadoLibre backward and forwards among themselves. MercadoLibre's institutional investor refers to the entity that pools money to purchase MercadoLibre's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | Arrowstreet Capital Limited Partnership | 2024-09-30 | 543.2 K | Gqg Partners Llc | 2024-09-30 | 541 K | Wcm Investment Management | 2024-09-30 | 533.9 K | Amvescap Plc. | 2024-09-30 | 480.1 K | Generation Investment Management Llp | 2024-09-30 | 479.8 K | Goldman Sachs Group Inc | 2024-09-30 | 459.9 K | Hhg Plc | 2024-09-30 | 416.2 K | Schroder Investment Management Group | 2024-09-30 | 404.9 K | State Street Corp | 2024-09-30 | 404.6 K | Baillie Gifford & Co Limited. | 2024-09-30 | 4.7 M | Capital Research Global Investors | 2024-09-30 | 2.2 M |
MercadoLibre's market capitalization trends
The company currently falls under 'Large-Cap' category with a current market capitalization of 95.81 B.Market Cap |
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MercadoLibre's profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | 0.07 | 0.10 | |
| Return On Capital Employed | 0.26 | 0.15 | |
| Return On Assets | 0.06 | 0.07 | |
| Return On Equity | 0.29 | 0.30 |
Determining MercadoLibre's profitability involves analyzing its financial statements and using various financial metrics to determine if MercadoLibre is a good buy. For example, gross profit margin measures MercadoLibre's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of MercadoLibre's profitability and make more informed investment decisions.
MercadoLibre's Earnings Breakdown by Geography
Evaluate MercadoLibre's management efficiency
MercadoLibre has return on total asset (ROA) of 0.0682 % which means that it generated a profit of $0.0682 on every $100 spent on assets. This is way below average. Similarly, it shows a return on stockholder's equity (ROE) of 0.4262 %, meaning that it created $0.4262 on every $100 dollars invested by stockholders. MercadoLibre's management efficiency ratios could be used to measure how well MercadoLibre manages its routine affairs as well as how well it operates its assets and liabilities. As of now, MercadoLibre's Return On Tangible Assets are decreasing as compared to previous years. The MercadoLibre's current Return On Assets is estimated to increase to 0.07, while Return On Capital Employed is projected to decrease to 0.15. As of now, MercadoLibre's Non Currrent Assets Other are increasing as compared to previous years. The MercadoLibre's current Total Current Assets is estimated to increase to about 17.3 B, while Other Current Assets are projected to decrease to under 139.8 M.| Last Reported | Projected for Next Year | ||
| Book Value Per Share | 54.99 | 57.74 | |
| Tangible Book Value Per Share | 51.44 | 54.02 | |
| Enterprise Value Over EBITDA | 32.16 | 30.56 | |
| Price Book Value Ratio | 23.15 | 12.64 | |
| Enterprise Value Multiple | 32.16 | 30.56 | |
| Price Fair Value | 23.15 | 12.64 | |
| Enterprise Value | 73.6 B | 77.3 B |
The decision-making processes within MercadoLibre are key to its success in a competitive market. By evaluating these processes, we assess the stock's potential for future gains.
Beta 1.612 |
Basic technical analysis of MercadoLibre Stock
As of the 30th of January, MercadoLibre secures the Risk Adjusted Performance of (0.01), standard deviation of 2.97, and Mean Deviation of 1.86. In connection with fundamental indicators, the technical analysis model lets you check existing technical drivers of MercadoLibre, as well as the relationship between them.MercadoLibre's insider trading activities
Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific MercadoLibre insiders, such as employees or executives, is commonly permitted as long as it does not rely on MercadoLibre's material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases MercadoLibre insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.
MercadoLibre's Outstanding Corporate Bonds
MercadoLibre issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. MercadoLibre uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most MercadoLibre bonds can be classified according to their maturity, which is the date when MercadoLibre has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
| US58733RAF91 Corp BondUS58733RAF91 | View | |
| US58733RAE27 Corp BondUS58733RAE27 | View | |
| MGM Resorts International Corp BondUS552953CD18 | View |
Understand MercadoLibre's technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing MercadoLibre's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | (0.01) | |||
| Market Risk Adjusted Performance | (0.38) | |||
| Mean Deviation | 1.86 | |||
| Coefficient Of Variation | (4,270) | |||
| Standard Deviation | 2.97 | |||
| Variance | 8.82 | |||
| Information Ratio | (0.05) | |||
| Jensen Alpha | (0.09) | |||
| Total Risk Alpha | (0.34) | |||
| Treynor Ratio | (0.39) | |||
| Maximum Drawdown | 17.52 | |||
| Value At Risk | (3.09) | |||
| Potential Upside | 4.74 | |||
| Skewness | (2.34) | |||
| Kurtosis | 12.7 |
| Risk Adjusted Performance | (0.01) | |||
| Market Risk Adjusted Performance | (0.38) | |||
| Mean Deviation | 1.86 | |||
| Coefficient Of Variation | (4,270) | |||
| Standard Deviation | 2.97 | |||
| Variance | 8.82 | |||
| Information Ratio | (0.05) | |||
| Jensen Alpha | (0.09) | |||
| Total Risk Alpha | (0.34) | |||
| Treynor Ratio | (0.39) | |||
| Maximum Drawdown | 17.52 | |||
| Value At Risk | (3.09) | |||
| Potential Upside | 4.74 | |||
| Skewness | (2.34) | |||
| Kurtosis | 12.7 |
Consider MercadoLibre's intraday indicators
MercadoLibre intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of MercadoLibre stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
| Accumulation Distribution | 21100.44 | |||
| Daily Balance Of Power | 0.6574 | |||
| Rate Of Daily Change | 1.03 | |||
| Day Median Price | 1933.13 | |||
| Day Typical Price | 1937.68 | |||
| Market Facilitation Index | 2.0E-4 | |||
| Price Action Indicator | 42.16 | |||
| Period Momentum Indicator | 57.02 |
MercadoLibre Corporate Filings
F4 | 2nd of December 2024 The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities | ViewVerify |
10Q | 7th of November 2024 Quarterly performance report mandated by Securities and Exchange Commission (SEC), to be filed by publicly traded corporations | ViewVerify |
8K | 6th of November 2024 Report filed with the SEC to announce major events that shareholders should know about | ViewVerify |
| 4th of November 2024 Other Reports | ViewVerify |
MercadoLibre Stock media impact
Far too much social signal, news, headlines, and media speculation about MercadoLibre that are available to investors today. That information is available publicly through MercadoLibre media outlets and privately through word of mouth or via MercadoLibre internal channels. However, regardless of the origin, that massive amount of MercadoLibre data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of MercadoLibre news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of MercadoLibre relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to MercadoLibre's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive MercadoLibre alpha.
MercadoLibre Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards MercadoLibre can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.
MercadoLibre Historical Investor Sentiment
Investor biases related to MercadoLibre's public news can be used to forecast risks associated with an investment in MercadoLibre. The trend in average sentiment can be used to explain how an investor holding MercadoLibre can time the market purely based on public headlines and social activities around MercadoLibre. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
MercadoLibre's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for MercadoLibre and other traded tickers. The bigger the bubble, the more accurate the estimated score. Higher bars for a given day show more participation in the average MercadoLibre news discussions. The higher the estimate score, the more favorable the investor's outlook on MercadoLibre.
MercadoLibre Maximum Pain Price Across March 21st 2025 Option Contracts
MercadoLibre's options can also be used to analyze investors' bias and current market sentiment in the context of behavioral finance. For example, Max pain usually refers to a trading concept that asserts that market manipulation can cause the market price of MercadoLibre close to the expiration of its current option contract to expire worthlessly. According to most research, about 35% of options are not executed, with roughly 50% traded out before expiration. So, Max pain occurs when market makers reach a net favorable position across all options at a strike price where option holders stand to lose the most money. By contrast, option sellers may reap the most after selling more options than buying, causing them to expire worthlessly. Please continue to view the detailed analysis of MercadoLibre's options.
MercadoLibre Corporate Management
| Marcelo Melamud | Chief Accounting Officer and VP | Profile | |
| Marcos Galpern | Chairman, CoFounder | Profile | |
| Juan Serna | Executive Argentina | Profile | |
| Ariel Szarfsztejn | Executive Commerce | Profile |
Check out Correlation Analysis to better understand how to build diversified portfolios, which includes a position in MercadoLibre. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in bureau of economic analysis. For more detail on how to invest in MercadoLibre Stock please use our How to Invest in MercadoLibre guide.You can also try the Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
Is Broadline Retail space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of MercadoLibre. If investors know MercadoLibre will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about MercadoLibre listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.094 | Earnings Share 28.16 | Revenue Per Share | Quarterly Revenue Growth 0.353 | Return On Assets |
The market value of MercadoLibre is measured differently than its book value, which is the value of MercadoLibre that is recorded on the company's balance sheet. Investors also form their own opinion of MercadoLibre's value that differs from its market value or its book value, called intrinsic value, which is MercadoLibre's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because MercadoLibre's market value can be influenced by many factors that don't directly affect MercadoLibre's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
In summary, please note that there is a difference between MercadoLibre's value and its price, as these two are different measures arrived at by various means. Investors typically determine if MercadoLibre is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, MercadoLibre's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.