$MercadoLibre (MELI.US)$Excluded from the March 2022 invento...

The Uruguayan company, which was listed in 2007, is mainly engaged in e-commerce platform business. The main markets are Brazil, Argentina and Mexico, and the current price is 1,777.

Revenue has grown rapidly in the past 5 years. The growth rate fell to 49% in 2022, operating profit reversed losses in 2020, grew 1.3 times to reach 1.03 billion in 2022, and net profit reversed losses in 2021 and reached 480 million in 2022. Interest expenses in 2022 account for 5.4% of operating profit, and the interest burden is not heavy. The gross margin fell from 48.4% to 42.5% in the past 5 years, and increased sharply to 49% in 2022, and the return on net assets reached 28.7% in 2022.

In the first three quarters of 2023, revenue increased 35.5%, operating profit increased 1.3 times, and net profit increased 1.6 times to 820 million.

The balance ratio has grown from 85% to 86.7% over the past 5 years. Receivables have grown too fast in the past two years. In 2021, it grew from 1,378 billion to $3.338 billion, accounting for 47% of revenue. In 2022, it increased from $3.338 billion to $4.975 billion, accounting for 47% of revenue, while net profit in these two years was only $570 million. An abnormal receivable ratio indicates that there should be a big difference between the business model and ordinary e-commerce.

Long-term loans of $2.43 billion, accounting for 78% of net assets of $2,741 million. Treasury stock of 587 million.

Net cash flow operating over the past 5 years has been far lower than net investment, and no shareholder surplus has been generated.

Currently, the price-earnings ratio is 187.37, and the price-earnings ratio is TTM91.1. Considering that the receivables ratio is too high, cash flow will soon limit the pace of development. We can wait a few more quarters to see how the company solves this problem and wait and see for a while.