MercadoLibre Return On Asset vs. Operating Margin
| MELI Stock | USD 2,178 1.39 0.06% |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 0.72 | 0.53 |
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For MercadoLibre profitability analysis, we use financial ratios and fundamental drivers that measure the ability of MercadoLibre to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well MercadoLibre utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between MercadoLibre's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of MercadoLibre over time as well as its relative position and ranking within its peers.
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MercadoLibre's Revenue Breakdown by Earning Segment
Check out Correlation Analysis.
MercadoLibre Revenue Breakdown by Earning Segment
By analyzing MercadoLibre's earnings estimates, investors can diagnose different trends across MercadoLibre's analyst sentiment over time as well as compare current estimates against different timeframes.
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 0.061 | Earnings Share 40.98 | Revenue Per Share | Quarterly Revenue Growth 0.395 | 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.
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.
MercadoLibre Operating Margin vs. Return On Asset Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining MercadoLibre's current stock value. Our valuation model uses many indicators to compare MercadoLibre value to that of its competitors to determine the firm's financial worth. MercadoLibre is rated below average in return on asset category among its peers. It also is rated below average in operating margin category among its peers reporting about 1.48 of Operating Margin per Return On Asset. As of now, MercadoLibre's Operating Profit Margin is increasing as compared to previous years. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the MercadoLibre's earnings, one of the primary drivers of an investment's value.MercadoLibre's Earnings Breakdown by Geography
MercadoLibre Operating Margin vs. Return On Asset
Return on Asset or ROA shows how effective is the management of the company in generating income from utilizing all of the assets at their disposal. It is a useful ratio to evaluate the performance of different departments of a company as well as to understand management performance over time.
MercadoLibre |
| = | 0.066 |
Return on Asset measures overall efficiency of a company in generating profits from its total assets. It is expressed as the percentage of profits earned per dollar of Asset. A low ROA typically means that a company is asset-intensive and therefore will needs more money to continue generating revenue in the future.
Operating Margin shows how much operating income a company makes on each dollar of sales. It is one of the profitability indicators which helps analysts to understand whether the firm is successful or not making money from everyday operations.
MercadoLibre |
| = | 0.1 % |
A good Operating Margin is required for a company to be able to pay for its fixed costs or payout its debt, which implies that the higher the margin, the better. This ratio is most effective in evaluating the earning potential of a company over time when comparing it against a firm's competitors.
MercadoLibre Operating Margin Comparison
MercadoLibre is currently under evaluation in operating margin category among its peers.
MercadoLibre Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in MercadoLibre, profitability is also one of the essential criteria for including it into their portfolios because, without profit, MercadoLibre will eventually generate negative long term returns. The profitability progress is the general direction of MercadoLibre's change in net profit over the period of time. It can combine multiple indicators of MercadoLibre, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
| Last Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | -828 M | -786.6 M | |
| Operating Income | 3 B | 3.2 B | |
| Income Before Tax | 2.8 B | 2.9 B | |
| Total Other Income Expense Net | -179.1 M | -170.1 M | |
| Net Income | 2.2 B | 2.3 B | |
| Income Tax Expense | 599.1 M | 629.1 M | |
| Net Income Applicable To Common Shares | 554.3 M | 582 M | |
| Net Income From Continuing Ops | 2.2 B | 2.3 B | |
| Non Operating Income Net Other | 77 M | 39.4 M | |
| Interest Income | 170.2 M | 172.7 M | |
| Net Interest Income | -19.6 M | -18.6 M | |
| Change To Netincome | 1.5 B | 1.6 B | |
| Net Income Per Share | 33.93 | 35.62 | |
| Income Quality | 4.76 | 5.00 | |
| Net Income Per E B T | 0.90 | 0.89 |
MercadoLibre Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on MercadoLibre. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of MercadoLibre position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the MercadoLibre's important profitability drivers and their relationship over time.
MercadoLibre Earnings Estimation Breakdown
The calculation of MercadoLibre's earning per share is based on the data from the past 12 consecutive months, used for reporting the company's financial figures. The next projected EPS of MercadoLibre is estimated to be 11.85 with the future projection ranging from a low of 9.495 to a high of 10.425. Please be aware that this consensus of annual earnings estimates for MercadoLibre is based on EPS before non-recurring items and includes expenses related to employee stock options.Last Reported EPS
9.49 Lowest | Expected EPS | 10.43 Highest |
MercadoLibre Earnings Projection Consensus
Suppose the current estimates of MercadoLibre's value are higher than the current market price of the MercadoLibre stock. In this case, investors may conclude that MercadoLibre is overpriced and will exhibit bullish sentiment. On the other hand, if the present value is lower than the stock price, analysts may conclude that the market undervalues the equity. These scenarios may suggest that the market is not as efficient as it should be at the estimation time, and MercadoLibre's stock will quickly adjusts to the new information provided by the consensus estimate.
| Number of Analysts | Historical Accuracy | Last Reported EPS | Estimated EPS for 31st of December 2025 | Current EPS (TTM) | |
| 26 | 69.16% | 8.32 | 11.85 | 40.98 |
MercadoLibre Earnings History
Earnings estimate consensus by MercadoLibre analysts from Wall Street is used by the market to judge MercadoLibre's stock performance. Investors also use these earnings estimates to evaluate and project the stock performance into the future in order to make their investment decisions. However, we recommend analyzing not only MercadoLibre's upcoming profit reports and earnings-per-share forecasts but also comparing them to our different valuation methods.MercadoLibre Quarterly Gross Profit |
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MercadoLibre Earnings per Share Projection vs Actual
Actual Earning per Share of MercadoLibre refers to what the company shows during its earnings calls or quarterly reports. The Expected EPS is what analysts covering MercadoLibre predict the company's earnings will be in the future. The higher the earnings per share of MercadoLibre, the better is its profitability. While calculating the Earning per Share, we use the weighted ratio, as the number of shares outstanding can change over time.MercadoLibre Estimated Months Earnings per Share
For an investor who is primarily interested in generating an income out of investing in entities such as MercadoLibre, the EPS ratio can tell if the company is intending to increase its current dividend. Although EPS is an essential tool for investors, it should not be used in isolation. EPS of MercadoLibre should always be considered in relation to other companies to make a more educated investment decision.MercadoLibre Quarterly Analyst Estimates and Surprise Metrics
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.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
null | null | null | null | null | 0 | ||
2025-11-04 | 2025-09-30 | 12.63 | 8.32 | -4.31 | 34 | ||
2025-07-30 | 2025-06-30 | 12.38 | 10.31 | -2.07 | 16 | ||
2025-05-07 | 2025-03-31 | 8.33 | 9.74 | 1.41 | 16 | ||
2025-02-20 | 2024-12-31 | 8.05 | 12.61 | 4.56 | 56 | ||
2024-11-06 | 2024-09-30 | 9.8479 | 7.83 | -2.0179 | 20 | ||
2024-08-01 | 2024-06-30 | 8.53 | 10.48 | 1.95 | 22 | ||
2024-05-02 | 2024-03-31 | 6.03 | 6.78 | 0.75 | 12 | ||
2024-02-22 | 2023-12-31 | 7.08 | 3.25 | -3.83 | 54 | ||
2023-11-01 | 2023-09-30 | 5.86 | 7.16 | 1.3 | 22 | ||
2023-08-02 | 2023-06-30 | 4.54 | 5.16 | 0.62 | 13 | ||
2023-05-03 | 2023-03-31 | 2.8 | 3.97 | 1.17 | 41 | ||
2023-02-23 | 2022-12-31 | 2.4 | 3.25 | 0.85 | 35 | ||
2022-11-03 | 2022-09-30 | 2.43 | 2.56 | 0.13 | 5 | ||
2022-08-03 | 2022-06-30 | 1.8 | 2.43 | 0.63 | 35 | ||
2022-05-05 | 2022-03-31 | 1.36 | 1.3 | -0.06 | 4 | ||
2022-02-22 | 2021-12-31 | 0.99 | -0.75 | -1.74 | 175 | ||
2021-11-04 | 2021-09-30 | 1.29 | 1.92 | 0.63 | 48 | ||
2021-08-04 | 2021-06-30 | 0.19 | 1.37 | 1.18 | 621 | ||
2021-05-05 | 2021-03-31 | -0.01 | -0.68 | -0.67 | 6700 | ||
2021-03-01 | 2020-12-31 | 0.05 | -1.02 | -1.07 | 2140 | ||
2020-11-04 | 2020-09-30 | 0.17 | 0.28 | 0.11 | 64 | ||
2020-08-10 | 2020-06-30 | 0.09 | 1.11 | 1.02 | 1133 | ||
2020-05-05 | 2020-03-31 | -0.49 | -0.44 | 0.05 | 10 | ||
2020-02-10 | 2019-12-31 | -0.91 | -1.11 | -0.2 | 21 | ||
2019-10-31 | 2019-09-30 | 0.04 | -2.96 | -3.0 | 7500 | ||
2019-08-07 | 2019-06-30 | 0.25 | 0.31 | 0.06 | 24 | ||
2019-05-02 | 2019-03-31 | -0.13 | 0.13 | 0.26 | 200 | ||
2019-02-26 | 2018-12-31 | -0.13 | -0.05 | 0.08 | 61 | ||
2018-11-01 | 2018-09-30 | -0.26 | -0.23 | 0.03 | 11 | ||
2018-08-08 | 2018-06-30 | -0.1 | -0.25 | -0.15 | 150 | ||
2018-05-09 | 2018-03-31 | 0.35 | -0.29 | -0.64 | 182 | ||
2018-02-22 | 2017-12-31 | 0.51 | 0.41 | -0.1 | 19 | ||
2017-11-02 | 2017-09-30 | 0.62 | 0.63 | 0.01 | 1 | ||
2017-08-03 | 2017-06-30 | 1.04 | 0.12 | -0.92 | 88 | ||
2017-05-04 | 2017-03-31 | 0.79 | 1.1 | 0.31 | 39 | ||
2017-02-23 | 2016-12-31 | 0.93 | 1.16 | 0.23 | 24 | ||
2016-11-03 | 2016-09-30 | 0.83 | 0.88 | 0.05 | 6 | ||
2016-08-04 | 2016-06-30 | 0.59 | 0.74 | 0.15 | 25 | ||
2016-05-05 | 2016-03-31 | 0.56 | 0.68 | 0.12 | 21 | ||
2016-02-25 | 2015-12-31 | 0.69 | 0.88 | 0.19 | 27 | ||
2015-11-04 | 2015-09-30 | 0.62 | 0.75 | 0.13 | 20 | ||
2015-08-05 | 2015-06-30 | 0.68 | 0.44 | -0.24 | 35 | ||
2015-05-06 | 2015-03-31 | 0.4 | 0.04 | -0.36 | 90 | ||
2015-02-25 | 2014-12-31 | 0.8 | 0.76 | -0.04 | 5 | ||
2014-10-30 | 2014-09-30 | 0.65 | 0.76 | 0.11 | 16 | ||
2014-08-07 | 2014-06-30 | 0.56 | 1.08 | 0.52 | 92 | ||
2014-05-08 | 2014-03-31 | 0.57 | 0.63 | 0.06 | 10 | ||
2014-02-27 | 2013-12-31 | 0.77 | 0.93 | 0.16 | 20 | ||
2013-11-05 | 2013-09-30 | 0.73 | 0.66 | -0.07 | 9 | ||
2013-08-01 | 2013-06-30 | 0.62 | 0.67 | 0.05 | 8 | ||
2013-05-06 | 2013-03-31 | 0.54 | 0.53 | -0.01 | 1 | ||
2013-02-25 | 2012-12-31 | 0.61 | 0.69 | 0.08 | 13 | ||
2012-11-01 | 2012-09-30 | 0.6 | 0.59 | -0.01 | 1 | ||
2012-08-02 | 2012-06-30 | 0.49 | 0.57 | 0.08 | 16 | ||
2012-05-08 | 2012-03-31 | 0.46 | 0.45 | -0.01 | 2 | ||
2012-02-23 | 2011-12-31 | 0.51 | 0.47 | -0.04 | 7 | ||
2011-11-02 | 2011-09-30 | 0.43 | 0.6 | 0.17 | 39 | ||
2011-08-03 | 2011-06-30 | 0.38 | 0.34 | -0.04 | 10 | ||
2011-05-04 | 2011-03-31 | 0.31 | 0.32 | 0.01 | 3 | ||
2011-02-23 | 2010-12-31 | 0.35 | 0.36 | 0.01 | 2 | ||
2010-11-03 | 2010-09-30 | 0.31 | 0.43 | 0.12 | 38 | ||
2010-08-04 | 2010-06-30 | 0.24 | 0.26 | 0.02 | 8 | ||
2010-05-06 | 2010-03-31 | 0.18 | 0.22 | 0.04 | 22 | ||
2010-02-22 | 2009-12-31 | 0.26 | 0.26 | 0.0 | 0 | ||
2009-11-04 | 2009-09-30 | 0.17 | 0.22 | 0.05 | 29 | ||
2009-08-05 | 2009-06-30 | 0.12 | 0.15 | 0.03 | 25 | ||
2009-05-06 | 2009-03-31 | 0.1 | 0.12 | 0.02 | 20 | ||
2009-02-24 | 2008-12-31 | 0.08 | 0.18 | 0.1 | 125 | ||
2008-11-11 | 2008-09-30 | 0.12 | 0.13 | 0.01 | 8 | ||
2008-08-12 | 2008-06-30 | 0.09 | 0.07 | -0.02 | 22 | ||
2008-05-13 | 2008-03-31 | 0.09 | 0.05 | -0.04 | 44 | ||
2008-03-05 | 2007-12-31 | 0.1 | 0.12 | 0.02 | 20 | ||
2007-11-13 | 2007-09-30 | 0.06 | 0.07 | 0.01 | 16 |
Use MercadoLibre in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if MercadoLibre position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in MercadoLibre will appreciate offsetting losses from the drop in the long position's value.MercadoLibre Pair Trading
MercadoLibre Pair Trading Analysis
The ability to find closely correlated positions to MercadoLibre could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace MercadoLibre when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back MercadoLibre - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling MercadoLibre to buy it.
The correlation of MercadoLibre is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as MercadoLibre moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if MercadoLibre moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for MercadoLibre can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your MercadoLibre position
In addition to having MercadoLibre in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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It encompasses large technology companies, automotive makers, security firms, and thematic ETFs across multiple industries. These entities are directly or indirectly involved in shaping the development and marketing of self-driving vehicles. The Driverless Cars theme has 30 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Driverless Cars Theme or any other thematic opportunities.
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Check out Correlation 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
To fully project MercadoLibre's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of MercadoLibre at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include MercadoLibre's income statement, its balance sheet, and the statement of cash flows.