MERCADOLIBRE INC Receives High Rating from Growth Model

Rating boost for MERCADOLIBRE INC. The stock scores 88% based on fundamentals, highlighting strong attributes in various financial metrics that suggest a positive outlook.

Date: 11-01-2025

AI Rating: 7

Fundamental Strength of MERCADOLIBRE INC

MERCADOLIBRE INC (MELI) is noted for its high rating within the P/B Growth Investor strategy, scoring 88% based on its fundamentals. This rating indicates a strong interest in the stock due to its underlying financial characteristics, highlighting the potential for sustained future growth.

The analysis reveals several positive factors:

Book/Market Ratio: Pass. This indicates that the stock is a low book-to-market value stock, aligning with characteristics that growth investors seek.
Return on Assets: Pass. A strong return on assets suggests efficient use of resources, reflecting positively on the company's operational effectiveness.
Cash Flow from Operations to Assets: Pass. This strong cash flow metric is an indication of liquidity, which is vital for funding operations and growth initiatives.
Cash Flow from Operations to Assets vs. Return on Assets: Pass. This comparison suggests a healthy balance between operating cash flow and asset return.
Sales Variance: Pass. This indicates consistent sales and resilience of the business against fluctuations.
Capital Expenditures to Assets: Pass. Demonstrates responsible investments in assets, contributing to future growth.
Research and Development to Assets: Pass. Investment in R&D is crucial for innovation and maintaining competitive advantage.

However, there is a weak point:

Advertising to Assets: Fail. This could indicate underutilization of advertising resources or lower brand visibility, which may impact future growth.

Overall, MELI’s profile reflects strength in various fundamental areas while facing challenges in advertising effectiveness. This can impact stock price positively due to the overall solid fundamentals, even if marketing strategies need reevaluation.

Stocks: MELI