Operates an online marketplace connecting buyers and sellers in Latin America. Provides a fintech platform (Mercado Pago) for online and offline payments. Now — the numbers.
That much dependence is a risk in itself: if this one line weakens, the whole company feels it directly.
This is an established company with proven profits.
Average growth of 42% a year over the last 4 years. Every year shown ended in profit.
We compared this company with its own sector across five subjects.
A score of 50 means class average.
Clearly above the class average — a step short of the very top.
Clearly below the class average.
Clearly below the class average.
Sales are growing strongly for its sector.
Clearly above the class average — a step short of the very top.
Financial Strength: The cash-and-debt balance is thin; the buffer for hard times is slim.
Valuation: The stock trades at a price that looks expensive next to its earnings; that can cap future returns.
The stock trades 27% below its peak. The market has trimmed its expectations for the company.
Over the last 4 years, sales grew about 42% a year on average.
Over the last 12 months, company executives reported 11 buys and 4 sells. Management buying with its own money is usually read as a good sign.
The company’s market value is 48 times its annual profit. Even a small disappointment could hit the price hard.
The balance sheet offers little cushion against a rough stretch. Report-card grade: 46/100.
Today’s price already includes part of tomorrow’s optimism. Report-card grade: 49/100.
On our five-subject report card, MELI sits in the middle of the class: some subjects shine, others don’t. The grade moves as the numbers move.
The takeaway: MELI is an established business that has proven its profits for years. The real debate isn’t the quality of the business — it’s whether the price paid for the stock is too high.