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MercadoLibre Piotroski F-Score

: 6 (As of Today)
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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 6 indicating the company's financial situation is typical for a stable company.

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

NAS:MELI' s Piotroski F-Score Range Over the Past 10 Years
Min: 2   Med: 5   Max: 8
Current: 6

2
8

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 Annual Data
Trend Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20
Piotroski F-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 7.00 6.00 2.00 5.00 3.00

MercadoLibre Quarterly Data
Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21
Piotroski F-Score 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 Premium Member Only Premium Member Only Premium Member Only 4.00 3.00 4.00 4.00 6.00

Competitive Comparison

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 Piotroski F-Score Distribution

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 (Sep21) TTM:Last Year (Sep20) TTM:
Net Income was -50.58 + -34.012 + 68.195 + 95.225 = $79 Mil.
Cash Flow from Operations was 256.557 + -262.997 + 262.038 + 265.306 = $521 Mil.
Revenue was 1327.304 + 1378.441 + 1702.75 + 1857.452 = $6,266 Mil.
Gross Profit was 489.034 + 591.377 + 753.92 + 806.59 = $2,641 Mil.
Average Total Assets from the begining of this year (Sep20)
to the end of this year (Sep21) was
(5737.719 + 6526.332 + 5197.855 + 6142.694 + 6800.017) / 5 = $6080.9234 Mil.
Total Assets at the begining of this year (Sep20) was $5,738 Mil.
Long-Term Debt & Capital Lease Obligation was $2,278 Mil.
Total Current Assets was $5,283 Mil.
Total Current Liabilities was $4,287 Mil.
Net Income was -53.998 + -21.109 + 55.947 + 15.035 = $-4 Mil.

Revenue was 674.271 + 652.091 + 878.369 + 1115.701 = $3,320 Mil.
Gross Profit was 308.347 + 312.814 + 427.172 + 480.19 = $1,529 Mil.
Average Total Assets from the begining of last year (Sep19)
to the end of last year (Sep20) was
(4439.341 + 4781.691 + 4458.08 + 5452.736 + 5737.719) / 5 = $4973.9134 Mil.
Total Assets at the begining of last year (Sep19) was $4,439 Mil.
Long-Term Debt & Capital Lease Obligation was $807 Mil.
Total Current Assets was $4,924 Mil.
Total Current Liabilities was $3,007 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 79. ==> 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 521. ==> 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 (Sep20)
=78.828/5737.719
=0.01373856

ROA (Last Year)=Net Income/Total Assets (Sep19)
=-4.125/4439.341
=-0.00092919

MercadoLibre's return on assets of this year was 0.01373856. MercadoLibre's return on assets of last year was -0.00092919. ==> 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 79. MercadoLibre's current Cash Flow from Operations (TTM) was 521. ==> 521 > 79 ==> 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: Sep21)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Sep20 to Sep21
=2277.726/6080.9234
=0.3745691

Gearing (Last Year: Sep20)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Sep19 to Sep20
=807.435/4973.9134
=0.16233395

MercadoLibre's gearing of this year was 0.3745691. MercadoLibre's gearing of last year was 0.16233395. ==> Last year is lower than this year ==> Score 0.

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: Sep21)=Total Current Assets/Total Current Liabilities
=5283.121/4286.531
=1.23249336

Current Ratio (Last Year: Sep20)=Total Current Assets/Total Current Liabilities
=4923.891/3007.26
=1.63733465

MercadoLibre's current ratio of this year was 1.23249336. MercadoLibre's current ratio of last year was 1.63733465. ==> 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 49.597. MercadoLibre's number of shares in issue last year was 49.721. ==> 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
=2640.921/6265.947
=0.42147197

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=1528.523/3320.432
=0.46033859

MercadoLibre's gross margin of this year was 0.42147197. MercadoLibre's gross margin of last year was 0.46033859. ==> 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 (Sep20)
=6265.947/5737.719
=1.09206237

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (Sep19)
=3320.432/4439.341
=0.74795606

MercadoLibre's asset turnover of this year was 1.09206237. MercadoLibre's asset turnover of last year was 0.74795606. ==> 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+0+0+1+0+1
=6

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

MercadoLibre has an F-score of 6 indicating the company's financial situation is typical for a stable company.

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

Thank you for viewing the detailed overview of MercadoLibre's Piotroski F-Score provided by GuruFocus.com. Please click on the following links to see related term pages.


MercadoLibre Business Description

MercadoLibre logo
Industry
Consumer Cyclical » Retail - Cyclical NAICS : 454110 SIC : 5961
Address
Pasaje Posta 4789, 6th Floor, Buenos Aires, ARG, C1430EKG
Founded in 1999, MercadoLibre's commerce segment (representing 64% of net revenue in 2020) 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.
Executives
Aguzin Alejandro Nicolas director ARIAS 3751, 7TH FLOOR BUENOS AIRES C1 C1430DNN
Calemzuk Emiliano director C/O MERCADOLIBRE, INC. TRONADOR 4890, 8TH FLOOR BUENOS AIRES C1 C1430DNN
Segal Susan director PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> Ownership Information: SEGAL SUSAN a.header:link {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:visited {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:hover {color: #191970;}
Vazquez Mario director TRONADOR 4890, 8TH FLOOR BUENOS AIRES C1 430DNN
Malka Meyer director C/O MERCADOLIBRE, INC. ARIAS 3751, 7TH FLOOR BUENOS AIRES C1 C1C1430CRG
Sallouti Roberto Balls director ARIAS 3751, 7TH FLOOR BUENOS AIRES C1 C1 C1430CRG
Galperin Marcos director, officer: President and CEO C/O MERCADOLIBRE, INC. TRONADOR 4890, 8TH FLOOR BUENOS AIRES C1 C1430DNN
Tolda Stelleo officer: Executive VP and COO C/O MERCADOLIBRE, INC. TRONADOR 4890, 8TH FLOOR BUENOS AIRES C1 C1430DNN
Ebay Inc 10 percent owner 2025 HAMILTON AVENUE SAN JOSE CA 95125
Rabinovich Daniel officer: EVP-Chief Technology Officer ARIAS 3751, 7TH FLOOR BUENOS AIRES C1 C1430CRG
Melamud Marcelo officer: VP - Chief Accounting Officer TRONADOR 4890, 8TH FLOOR BUENOS AIRES C1 C1430DNN
Spence A Michael director 121 INNOVATION DR STE 200 IRVINE CA 92612
Arnt Pedro officer: Executive VP and CFO ARIAS 3751, 7TH FLOOR BUENOS AIRES C1 C1430CRG
Osvaldo Gimenez officer: Executive VP - Payments TRONADOR 4890, 8TH FLOOR BUENOS AIRES C1 C1430DNN
Olivan Javier director 62 RIDGE VIEW DRIVE ATHERTON X1 94027

MercadoLibre Headlines

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