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MercadoLibre (MercadoLibre) Piotroski F-Score : 7 (As of Jun. 25, 2024)


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What is MercadoLibre Piotroski F-Score?

Good Sign:

Piotroski F-Score is 7, indicates a very healthy situation.

The zones of discrimination were as such:

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

MercadoLibre has an F-score of 7. It is a good or high score, which usually indicates a very healthy situation.

The historical rank and industry rank for MercadoLibre's Piotroski F-Score or its related term are showing as below:

MELI' s Piotroski F-Score Range Over the Past 10 Years
Min: 2   Med: 5   Max: 8
Current: 7

During the past 13 years, the highest Piotroski F-Score of MercadoLibre was 8. The lowest was 2. And the median was 5.


MercadoLibre Piotroski F-Score Historical Data

The historical data trend for MercadoLibre's Piotroski F-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

MercadoLibre Piotroski F-Score Chart

MercadoLibre Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Piotroski F-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only 5.00 3.00 5.00 6.00 7.00

MercadoLibre Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
Piotroski F-Score Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 6.00 6.00 7.00 7.00 7.00

Competitive Comparison of MercadoLibre's Piotroski F-Score

For the Internet Retail subindustry, MercadoLibre's Piotroski F-Score, along with its competitors' market caps and Piotroski F-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


MercadoLibre's Piotroski F-Score Distribution in the Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, MercadoLibre's Piotroski F-Score distribution charts can be found below:

* The bar in red indicates where MercadoLibre's Piotroski F-Score falls into.


How is the Piotroski F-Score calculated?

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

This Year (Mar24) TTM:Last Year (Mar23) TTM:
Net Income was 262 + 359 + 165 + 344 = $1,130 Mil.
Cash Flow from Operations was 1412 + 941 + 1928 + 1512 = $5,793 Mil.
Revenue was 3415 + 3760 + 4261 + 4333 = $15,769 Mil.
Gross Profit was 1720 + 1995 + 1955 + 2024 = $7,694 Mil.
Average Total Assets from the begining of this year (Mar23)
to the end of this year (Mar24) was
(14201 + 15243 + 16124 + 17646 + 19062) / 5 = $16455.2 Mil.
Total Assets at the begining of this year (Mar23) was $14,201 Mil.
Long-Term Debt & Capital Lease Obligation was $2,877 Mil.
Total Current Assets was $15,505 Mil.
Total Current Liabilities was $12,256 Mil.
Net Income was 123 + 129 + 165 + 201 = $618 Mil.

Revenue was 2597 + 2690 + 3002 + 3186 = $11,475 Mil.
Gross Profit was 1284 + 1348 + 1458 + 1614 = $5,704 Mil.
Average Total Assets from the begining of last year (Mar22)
to the end of last year (Mar23) was
(11023 + 11447 + 11962 + 13736 + 14201) / 5 = $12473.8 Mil.
Total Assets at the begining of last year (Mar22) was $11,023 Mil.
Long-Term Debt & Capital Lease Obligation was $3,029 Mil.
Total Current Assets was $11,336 Mil.
Total Current Liabilities was $8,827 Mil.

*Note: If the latest quarterly/semi-annual/annual total assets data is 0, then we will use previous quarterly/semi-annual/annual data for all the items in the balance sheet.

Profitability

Question 1. Return on Assets (ROA)

Net income before extraordinary items for the year divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

MercadoLibre's current Net Income (TTM) was 1,130. ==> Positive ==> Score 1.

Question 2. Cash Flow Return on Assets (CFROA)

Net cash flow from operating activities (operating cash flow) divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

MercadoLibre's current Cash Flow from Operations (TTM) was 5,793. ==> Positive ==> Score 1.

Question 3. Change in Return on Assets

Compare this year's return on assets (1) to last year's return on assets.

Score 1 if it's higher, 0 if it's lower.

ROA (This Year)=Net Income/Total Assets (Mar23)
=1130/14201
=0.07957186

ROA (Last Year)=Net Income/Total Assets (Mar22)
=618/11023
=0.05606459

MercadoLibre's return on assets of this year was 0.07957186. MercadoLibre's return on assets of last year was 0.05606459. ==> This year is higher. ==> Score 1.

Question 4. Quality of Earnings (Accrual)

Compare Cash flow return on assets (2) to return on assets (1)

Score 1 if CFROA > ROA, 0 if CFROA <= ROA.

MercadoLibre's current Net Income (TTM) was 1,130. MercadoLibre's current Cash Flow from Operations (TTM) was 5,793. ==> 5,793 > 1,130 ==> CFROA > ROA ==> Score 1.

Funding

Question 5. Change in Gearing or Leverage

Compare this year's gearing (long-term debt divided by average total assets) to last year's gearing.

Score 0 if this year's gearing is higher, 1 otherwise.

Gearing (This Year: Mar24)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Mar23 to Mar24
=2877/16455.2
=0.17483835

Gearing (Last Year: Mar23)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Mar22 to Mar23
=3029/12473.8
=0.24282897

MercadoLibre's gearing of this year was 0.17483835. MercadoLibre's gearing of last year was 0.24282897. ==> This year is lower or equal to last year. ==> Score 1.

Question 6. Change in Working Capital (Liquidity)

Compare this year's current ratio (current assets divided by current liabilities) to last year's current ratio.

Score 1 if this year's current ratio is higher, 0 if it's lower

Current Ratio (This Year: Mar24)=Total Current Assets/Total Current Liabilities
=15505/12256
=1.26509465

Current Ratio (Last Year: Mar23)=Total Current Assets/Total Current Liabilities
=11336/8827
=1.28424153

MercadoLibre's current ratio of this year was 1.26509465. MercadoLibre's current ratio of last year was 1.28424153. ==> Last year's current ratio is higher ==> Score 0.

Question 7. Change in Shares in Issue

Compare the number of shares in issue this year, to the number in issue last year.

Score 0 if there is larger number of shares in issue this year, 1 otherwise.

MercadoLibre's number of shares in issue this year was 50.697. MercadoLibre's number of shares in issue last year was 51.235. ==> There is smaller number of shares in issue this year, or the same. ==> Score 1.

Efficiency

Question 8. Change in Gross Margin

Compare this year's gross margin (Gross Profit divided by sales) to last year's.

Score 1 if this year's gross margin is higher, 0 if it's lower.

Gross Margin (This Year: TTM)=Gross Profit/Revenue
=7694/15769
=0.48791934

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=5704/11475
=0.49708061

MercadoLibre's gross margin of this year was 0.48791934. MercadoLibre's gross margin of last year was 0.49708061. ==> Last year's gross margin is higher ==> Score 0.

Question 9. Change in asset turnover

Compare this year's asset turnover (total sales for the year divided by total assets at the beginning of the year) to last year's asset turnover ratio.

Score 1 if this year's asset turnover ratio is higher, 0 if it's lower

Asset Turnover (This Year)=Revenue/Total Assets at the Beginning of This Year (Mar23)
=15769/14201
=1.11041476

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (Mar22)
=11475/11023
=1.04100517

MercadoLibre's asset turnover of this year was 1.11041476. MercadoLibre's asset turnover of last year was 1.04100517. ==> This year's asset turnover is higher. ==> Score 1.

Evaluation

Piotroski F-Score= Que. 1+ Que. 2+ Que. 3+Que. 4+Que. 5+Que. 6+Que. 7+Que. 8+Que. 9
=1+1+1+1+1+0+1+0+1
=7

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

MercadoLibre has an F-score of 7. It is a good or high score, which usually indicates a very healthy situation.

MercadoLibre  (NAS:MELI) Piotroski F-Score Explanation

The developer of the system is Joseph D. Piotroski is relatively unknown accounting professor who shuns publicity and rarely gives interviews.

He graduated from the University of Illinois with a B.S. in accounting in 1989, received an M.B.A. from Indiana University in 1994. Five years later, in 1999, after earning a Ph.D. in accounting from the University of Michigan, he became an associate professor of accounting at the University of Chicago.

In 2000, he wrote a research paper called "Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers" (pdf).

He wanted to see if he can develop a system (using a simple nine-point scoring system) that can increase the returns of a strategy of investing in low price to book (referred to in the paper as high book to market) value companies.

What he found was something that exceeded his most optimistic expectations.

Buying only those companies that scored highest (8 or 9) on his nine-point scale, or F-Score as he called it, over the 20 year period from 1976 to 1996 led to an average out-performance over the market of 13.4%.

Even more impressive were the results of a strategy of investing in the highest F-Score companies (8 or 9) and shorting companies with the lowest F-Score (0 or 1).

Over the same period from 1976 to 1996 (20 years) this strategy led to an average yearly return of 23%, substantially outperforming the average S&P 500 index return of 15.83% over the same period.


MercadoLibre Piotroski F-Score Related Terms

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MercadoLibre (MercadoLibre) Business Description

Address
WTC Free Zone, Dr. Luis Bonavita 1294, Of. 1733, Tower II, Montevideo, URY, 11300
MercadoLibre runs the largest e-commerce marketplace in Latin America, connecting a network of more than 148 million active users and 1 million active sellers as of the end of 2022 across an 18-country footprint. The company also operates a host of complementary businesses, with shipping solutions (Mercado Envios), a payment and financing operation (Mercado Pago and Mercado Credito), advertisements (Mercado Clics), classifieds, and a turnkey e-commerce solution (Mercado Shops) rounding out its arsenal. MercadoLibre generates revenue from final value fees, advertising royalties, payment processing, insertion fees, subscription fees, and interest income from consumer and small-business lending.
Executives
De La Serna Juan Martin officer: Executive VP Corporate Affairs AV. PTE. PERON 2375, LOTE MN04, PILAR, BUENOS AIRES C1 1629
Emiliano Calemzuk director C/O MERCADOLIBRE, INC., TRONADOR 4890, 8TH FLOOR, BUENOS AIRES C1 C1430DNN
Petroni Merhy Andrea Mayumi director HOUSE B, 32 STANLEY VILLAGE ROAD, STANLEY K3 000000
Marcelo Melamud officer: V. P. Chief Accounting Officer TRONADOR 4890, 8TH FLOOR, BUENOS AIRES C1 C1430DNN
Richard A Sanders director 80 PALL MALL, LONDON X0 SW1Y 5ES
Ariel Szarfsztejn officer: Executive VP - Commerce POSTA 4789, 6TH FLOOR, BUENOS AIRES C1 C1430CRG
Henrique Vasoncelos Dubugras director 1000 LAUREL WAY, BEVERLY HILLS CA 90210
Alejandro Nicolas Aguzin director ARIAS 3751, 7TH FLOOR, BUENOS AIRES C1 C1430DNN
Meyer Malka director 364 UNIVERSITY AVENUE, PALO ALTO CA 94301
Roberto Balls Sallouti director ARIAS 3751, 7TH FLOOR, BUENOS AIRES C1 C1 C1430CRG
Stelleo Tolda officer: Country Manager Brazil C/O MERCADOLIBRE, INC., TRONADOR 4890, 8TH FLOOR, BUENOS AIRES C1 C1430DNN
Ebay Inc 10 percent owner 2025 HAMILTON AVENUE, SAN JOSE CA 95125
Daniel Rabinovich officer: VP-Chief Technology Officer ARIAS 3751, 7TH FLOOR, BUENOS AIRES C1 C1430CRG
A Michael Spence director 121 INNOVATION DR STE 200, IRVINE CA 92612
Pedro Arnt officer: Executive VP and CFO ARIAS 3751, 7TH FLOOR, BUENOS AIRES C1 C1430CRG

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