Mercadolibre Intrinsic Value – MERCADOLIBRE Reports Q2 FY2023 Earnings of USD 3415.0 Million, Up 31.5% YOY
August 21, 2023
🌥️Earnings Overview
On June 30th 2023, MERCADOLIBRE ($NASDAQ:MELI) announced their second quarter FY2023 financial results, which revealed total revenue of USD 3415.0 million, a 31.5% year-on-year increase. Net income equally showed growth of 113.0%, amounting to USD 262.0 million compared to the same period in the previous year.
Analysis – Mercadolibre Intrinsic Value
GoodWhale has conducted an analysis of MERCADOLIBRE‘s wellbeing, and the results are highly promising. Our proprietary Valuation Line has calculated the intrinsic value of MERCADOLIBRE to be around $2273.0. This means that the stock is currently trading at a price of $1164.8, representing an undervaluation of 48.8%. This presents a great opportunity for investors to invest in MERCADOLIBRE to benefit from their potential revaluation. Furthermore, GoodWhale has identified positive trends in MERCADOLIBRE’s financial performance and potential growth drivers that could signal future success. We believe that MERCADOLIBRE is well-positioned to benefit from the growing digital economy, both in Latin America and abroad, and represents a strong investment opportunity. More…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Mercadolibre. More…
| Total Revenues | Net Income | Net Margin |
| 12.14k | 757 | 8.2% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Mercadolibre. More…
| Operations | Investing | Financing |
| 4.54k | -2.52k | -142 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Mercadolibre. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 15.24k | 12.99k | 44.96 |
Key Ratios Snapshot
Some of the financial key ratios for Mercadolibre are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 62.9% | -4.1% | 13.8% |
| FCF Margin | ROE | ROA |
| 33.9% | 48.8% | 6.9% |
Peers
MercadoLibre Inc is an online marketplace headquartered in Argentina. The company was founded in 1999 by Marcos Galperin and has since expanded to 18 countries in Latin America. MercadoLibre operates under the “eBay of Latin America” moniker and offers online and mobile trading platforms that allow users to buy and sell a wide variety of goods and services. The company has over 100 million registered users and processed over $13 billion in transactions in 2015. MercadoLibre faces stiff competition from a number of well-established e-commerce companies, including eBay Inc, Etsy Inc, and Emerge Commerce Ltd. All three companies offer similar online marketplace platforms that allow users to buy and sell a wide variety of goods and services. MercadoLibre has been successful in differentiating itself from its competitors by focusing on the Latin American market and offering a localized user experience.
– eBay Inc ($NASDAQ:EBAY)
eBay Inc is an American multinational technology company that facilitates online consumer-to-consumer and business-to-consumer sales through its website. The company has a market cap of 24.67B as of 2022 and a Return on Equity of -46.35%. eBay was founded in 1995 and is headquartered in San Jose, California. The company operates in three segments: Marketplace, Payments, and Advertising & Enterprise. The Marketplace segment includes eBay’s online marketplace, which enables buyers and sellers to offer, search for, and purchase items in a wide range of categories. The Payments segment includes PayPal, which enables consumers and merchants to send and receive payments online. The Advertising & Enterprise segment includes Promoted Listings, which enables sellers to promote their listings on eBay, and eBay Advertising, which enables third-party advertisers to reach eBay’s global customer base.
– Etsy Inc ($NASDAQ:ETSY)
Etsy is an e-commerce website focused on handmade or vintage items and supplies, as well as unique factory-manufactured items. Etsy’s mission is to “reconnect people with the things they love.” The company had a market cap of $14.37B as of 2022. Etsy’s ROE was -2030.17% as of 2022.
Etsy was founded in 2005 in Brooklyn, New York. The company’s platform connects people around the world with unique goods. Etsy sellers offer a wide range of items, including art, photography, clothing, jewelry, food, bath and beauty products, quilts, knick-knacks, and toys. Etsy also provides buyers with an easy way to find items they are looking for.
Etsy has been growing steadily since its inception. The company went public in 2015 and has since been expanding its reach and offerings. In 2017, Etsy acquired Reverb, a marketplace for musical instruments and gear. This acquisition allowed Etsy to expand its product offerings and attract new buyers and sellers.
Etsy is a unique e-commerce platform that offers buyers and sellers a way to connect with each other and find unique goods. The company’s market cap and ROE show that it is a financially healthy company. Etsy is a good choice for investors looking for exposure to the e-commerce sector.
– Emerge Commerce Ltd ($TSXV:ECOM)
Emerge Commerce Ltd is a Canadian e-commerce company that provides online marketing and advertising solutions. The company has a market capitalization of 11.1 million as of 2022 and a return on equity of -9.43%. The company’s primary business is providing online marketing and advertising solutions to small and medium-sized businesses. Emerge Commerce Ltd also offers a range of other services, including web design, web development, and online reputation management.
Summary
MERCADOLIBRE reported strong financial results for the second quarter of FY2023, with total revenue of USD 3415.0 million, an increase of 31.5% from the previous year, and a 113.0% growth in net income to USD 262.0 million. Despite this good news, the stock price declined on the same day. From an investing perspective, the company appears to be well-positioned to continue its growth trajectory, as demonstrated by its impressive year-on-year performance. The company’s long-term outlook remains favourable and investors should continue to monitor the stock for future opportunities.
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