Mercadolibre Stock Return On Equity
| MELI Stock | USD 1,364 6.17 0.45% |
MercadoLibre fundamentals help investors to digest information that contributes to MercadoLibre's financial success or failures. It also enables traders to predict the movement of MercadoLibre Stock. The fundamental analysis module provides a way to measure MercadoLibre's intrinsic value by examining its available economic and financial indicators, including the cash flow records, the balance sheet account changes, the income statement patterns, and various microeconomic indicators and financial ratios related to MercadoLibre stock.
| Last Reported | Projected for Next Year | ||
| Return On Equity | 0.32 | 0.34 |
MercadoLibre | Return On Equity |
MercadoLibre Company Return On Equity Analysis
MercadoLibre's Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.
Current MercadoLibre Return On Equity | 0.4 |
Most of MercadoLibre's fundamental indicators, such as Return On Equity, are part of a valuation analysis module that helps investors searching for stocks that are currently trading at higher or lower prices than their real value. If the real value is higher than the market price, MercadoLibre is considered to be undervalued, and we provide a buy recommendation. Otherwise, we render a sell signal.
MercadoLibre Return On Equity Driver Correlations
Understanding the fundamental principles of building solid financial models for MercadoLibre is extremely important. It helps to project a fair market value of MercadoLibre Stock properly, considering its historical fundamentals such as Return On Equity. Since MercadoLibre's main accounts across its financial reports are all linked and dependent on each other, it is essential to analyze all possible correlations between related accounts. However, instead of reviewing all of MercadoLibre's historical financial statements, investors can examine the correlated drivers to determine its overall health. This can be effectively done using a conventional correlation matrix of MercadoLibre's interrelated accounts and indicators.
Click cells to compare fundamentals
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
| Competition |
MercadoLibre Total Stockholder Equity
Total Stockholder Equity |
|
Based on the latest financial disclosure, MercadoLibre has a Return On Equity of 0.403. This is 88.81% lower than that of the Internet & Direct Marketing Retail sector and significantly higher than that of the Consumer Discretionary industry. The return on equity for all United States stocks is notably lower than that of the firm.
MercadoLibre Return On Equity Peer Comparison
Stock peer comparison is one of the most widely used and accepted methods of equity analyses. It analyses MercadoLibre's direct or indirect competition against its Return On Equity to detect undervalued stocks with similar characteristics or determine the stocks which would be a good addition to a portfolio. Peer analysis of MercadoLibre could also be used in its relative valuation, which is a method of valuing MercadoLibre by comparing valuation metrics of similar companies.MercadoLibre is currently under evaluation in return on equity category among related companies.
MercadoLibre Current Valuation Drivers
We derive many important indicators used in calculating different scores of MercadoLibre from analyzing MercadoLibre's financial statements. These drivers represent accounts that assess MercadoLibre's ability to generate profits relative to its revenue, operating costs, and shareholders' equity. Below are some of MercadoLibre's important valuation drivers and their relationship over time.
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 (projected) | ||
| Market Cap | 27.8B | 83.3B | 67.2B | 42.6B | 79.0B | 82.9B | |
| Enterprise Value | 27.5B | 83.2B | 68.6B | 46.1B | 81.6B | 85.6B |
MercadoLibre Fundamentals
| Return On Equity | 0.4 | ||||
| Return On Asset | 0.0866 | ||||
| Profit Margin | 0.07 % | ||||
| Operating Margin | 0.14 % | ||||
| Current Valuation | 68.77 B | ||||
| Shares Outstanding | 50.7 M | ||||
| Shares Owned By Insiders | 7.30 % | ||||
| Shares Owned By Institutions | 85.69 % | ||||
| Number Of Shares Shorted | 661.02 K | ||||
| Price To Earning | 188.27 X | ||||
| Price To Book | 23.84 X | ||||
| Price To Sales | 5.06 X | ||||
| Revenue | 14.47 B | ||||
| Gross Profit | 5.95 B | ||||
| EBITDA | 2.23 B | ||||
| Net Income | 987 M | ||||
| Cash And Equivalents | 2.23 B | ||||
| Cash Per Share | 44.26 X | ||||
| Total Debt | 6.42 B | ||||
| Debt To Equity | 3.15 % | ||||
| Current Ratio | 1.30 X | ||||
| Book Value Per Share | 60.58 X | ||||
| Cash Flow From Operations | 4.45 B | ||||
| Short Ratio | 1.99 X | ||||
| Earnings Per Share | 19.45 X | ||||
| Price To Earnings To Growth | 1.42 X | ||||
| Target Price | 1921.38 | ||||
| Number Of Employees | 58.31 K | ||||
| Beta | 1.45 | ||||
| Market Capitalization | 69.46 B | ||||
| Total Asset | 17.65 B | ||||
| Retained Earnings | 1.9 B | ||||
| Working Capital | 3 B | ||||
| Current Asset | 545.17 M | ||||
| Current Liabilities | 322.48 M | ||||
| Five Year Return | 0.34 % | ||||
| Net Asset | 17.65 B |
About MercadoLibre Fundamental Analysis
The Macroaxis Fundamental Analysis modules help investors analyze MercadoLibre's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of MercadoLibre using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of MercadoLibre based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
Building efficient market-beating portfolios requires time, education, and a lot of computing power!
The Portfolio Architect is an AI-driven system that provides multiple benefits to our users by leveraging cutting-edge machine learning algorithms, statistical analysis, and predictive modeling to automate the process of asset selection and portfolio construction, saving time and reducing human error for individual and institutional investors.
Try AI Portfolio ArchitectCheck out MercadoLibre Piotroski F Score and MercadoLibre Altman Z Score 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
Complementary Tools for MercadoLibre Stock analysis
When running MercadoLibre's price analysis, check to measure MercadoLibre's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy MercadoLibre is operating at the current time. Most of MercadoLibre's value examination focuses on studying past and present price action to predict the probability of MercadoLibre's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move MercadoLibre's price. Additionally, you may evaluate how the addition of MercadoLibre to your portfolios can decrease your overall portfolio volatility.
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. |
Is MercadoLibre's industry 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 0.007 | Earnings Share 19.45 | Revenue Per Share 287.949 | Quarterly Revenue Growth 0.419 | Return On Assets 0.0866 |
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.
Please note, there is a significant difference between MercadoLibre's value and its price as these two are different measures arrived at by different 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.