-1.29%
8.91%
-6.46%
8.22%
8.42%
77.55%
183.52%

Company Description

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 online; 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 Libre Ads, an advertising platform, which enables large retailers and brands to promote their products and services on the Internet; and Mercado Shops, an online storefronts solution that enables users to set-up, manage, and promote their own digital stores.MercadoLibre, Inc.


was incorporated in 1999 and is headquartered in Montevideo, Uruguay.

Market Data

Last Price 1922.19
Change Percentage -1.29%
Open 1950
Previous Close 1947.32
Market Cap ( Millions) 97450
Volume 280295
Year High 2161.73
Year Low 1324.99
M A 50 1853.1
M A 200 1823.49

Financial Ratios

FCF Yield 5.78%
Dividend Yield 0.00%
ROE 40.71%
Debt / Equity 158.02%
Net Debt / EBIDTA 159.77%
Price To Book 24.35
Price Earnings Ratio 67.81
Price To FCF 17.3
Price To sales 5.29
EV / EBITDA 39.01

Business Breakdown

Expected Mid-Term Growth

Segment nΒ°1 -> Commerce Services

Expected Growth : 25.4 %

What the company do ?

Commerce Services from MercadoLibre, Inc. enable businesses to manage online stores, process payments, and fulfill orders across Latin America.

Why we expect these perspectives ?

Growing e-commerce adoption in Latin America, increasing online store management needs, and MercadoLibre's dominant market position drive growth in Commerce Services.

Segment nΒ°2 -> Fintech Services

Expected Growth : 25.4 %

What the company do ?

MercadoLibre's Fintech Services offer payment processing, credit solutions, and digital wallets, enabling seamless transactions and financial inclusion across Latin America.

Why we expect these perspectives ?

Growing e-commerce adoption, increasing digital payments, and expanding financial inclusion in Latin America drive MercadoLibre's Fintech Services growth, with payment processing, credit solutions, and digital wallets being key enablers.

Segment nΒ°3 -> Credit

Expected Growth : 15.5 %

What the company do ?

Credit from MercadoLibre, Inc. allows buyers to purchase now and pay later, increasing sales and customer loyalty for sellers on the platform.

Why we expect these perspectives ?

Increased sales and customer loyalty for sellers on the platform, driven by the convenience of 'buy now, pay later' option, will fuel growth in MercadoLibre's credit segment.

Segment nΒ°4 -> Commerce Products

Expected Growth : 25.4 %

What the company do ?

Commerce Products from MercadoLibre, Inc. offers a wide range of products from various categories, enabling buyers to purchase from a vast online marketplace.

Why we expect these perspectives ?

Growing e-commerce adoption in Latin America, increasing internet penetration, and MercadoLibre's dominant market position drive growth in commerce products segment.

Segment nΒ°5 -> Fintech Products

Expected Growth : 25.4 %

What the company do ?

MercadoLibre's Fintech products offer digital payment solutions, credit services, and insurance products, enhancing the e-commerce experience for buyers and sellers in Latin America.

Why we expect these perspectives ?

MercadoLibre's Fintech products are poised for growth driven by increasing e-commerce adoption, rising demand for digital payment solutions, and expanding credit services in Latin America, further enhancing the online shopping experience for buyers and sellers.

Mercadolibre, Inc. Products

Product Range What is it ?
Mercado Pago An online payment system that allows users to send and receive payments securely
Mercado Libre Marketplace An e-commerce platform that allows individuals and businesses to buy and sell goods
Mercado Envios A logistics and shipping service that allows sellers to send packages to buyers
Mercado Ads A digital advertising platform that allows businesses to promote their products and services
Mercado Shops An e-commerce platform that allows businesses to create their own online stores
Mercado CrΓ©dito A financial services platform that provides credit and financing options to buyers and sellers

MercadoLibre, Inc.'s Porter Forces

MercadoLibre's business model is based on providing a platform for buyers and sellers to interact, which makes it difficult for substitutes to emerge. However, the rise of social media and other online platforms could potentially threaten MercadoLibre's market share.

MercadoLibre's customers have low bargaining power due to the company's dominant position in the Latin American e-commerce market. Additionally, the company's platform provides a wide range of products and services, making it difficult for customers to switch to alternative platforms.

MercadoLibre's suppliers, including sellers and logistics providers, have some bargaining power due to the company's reliance on them to provide products and services. However, the company's scale and market position give it some negotiating power to maintain favorable terms.

The threat of new entrants is low due to the significant barriers to entry in the Latin American e-commerce market, including the need for significant investments in technology, logistics, and marketing. Additionally, MercadoLibre's established brand and market position make it difficult for new entrants to gain traction.

The intensity of rivalry in the Latin American e-commerce market is high, with several players competing for market share. However, MercadoLibre's dominant position and strong brand give it a competitive advantage, allowing it to maintain its market share despite intense competition.

Capital Structure

Value
Debt Weight 64.81%
Debt Cost 8.13%
Equity Weight 35.19%
Equity Cost 12.04%
WACC 9.50%
Leverage 184.21%

Historical Valuation

Price/Earnings Ratio

Margin Valuation

Peers Valuation

Competitors

Company Rational
ORLY O'Reilly Automotive, Inc., together with its subsidiaries, operates as a retailer and supplier of automotive aftermarket parts, tools, supplies, equipment, and accessories in the United States. The company provides new …
PDD PDD Holdings Inc., through its subsidiaries, operates an e-commerce platform in the People's Republic of China. It owns and operates a portfolio of businesses, including Temu, an e-commerce marketplace in …
EBAY eBay Inc. operates marketplace platforms that connect buyers and sellers in the United States and internationally. The company's Marketplace platform includes its online marketplace at ebay.com and the eBay suite …
AZO AutoZone, Inc. retails and distributes automotive replacement parts and accessories. The company offers various products for cars, sport utility vehicles, vans, and light trucks, including new and remanufactured automotive hard …
TSCO Tractor Supply Company operates as a rural lifestyle retailer in the United States. The company offers a selection of merchandise, including equine, livestock, pet, and small animal products necessary for …

Peers Metrics

DCF BETA

Parameters

Short Term Growth
Short term Time
Long-Term Growth
WACC
Target Price
1922.19$
Current Price
1922.19$
Potential
-0.00%

Expected Cash-Flows

Scoring Insights

Peers Group Analysis

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