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MercadoLibre Inc MELI

Rating as of

Morningstar’s Analysis

Valuation
Currency in USD
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1-Star Price

PREMIUM

5-Star Price

PREMIUM

Economic Moat

PREMIUM

Capital Allocation

PREMIUM

Wide-Moat MercadoLibre Closed 2020 With Another Quarter of Strong Revenue; Shares Fully Valued

David Swartz Equity Analyst

Analyst Note

| David Swartz |

Wide-moat MercadoLibre continued to benefit from the effects of the pandemic and its investments in product and technology in 2020’s fourth quarter as its revenue growth (in USD) of 97% beat our 80% forecast. We expect to lift our per share fair value estimate on MercadoLibre of $1,300 by a high-single-digit percentage given its improving prospects but view its shares as fully valued.

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Company Profile

Business Description

Founded in 1999, MercadoLibre's commerce segment (representing around 52% of net revenue in 2019) includes online marketplaces in more than a dozen Latin American countries, display and paid search advertising capabilities (MercadoClics), online store management services (MercadoShops), and third-party logistics solutions (MercadoEnvios). Its fintech segment includes an online/offline payment-processing platform (MercadoPago), mobile wallet platform, credit solutions for buyers/sellers, and asset management offerings (Mercado Fondo). The company derives more than 95% of its revenue from Brazil, Argentina, and Mexico.

Contact
Pasaje Posta 4789, 6th Floor
Buenos Aires, C1430EKG
T +54 1146408000
Sector Consumer Cyclical
Industry Internet Retail
Most Recent Earnings Dec 31, 2020
Fiscal Year End Dec 31, 2021
Stock Type Cyclical
Employees 15,546

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