Mercadolibre Beneish M Score

MELI -  USA Stock  

USD 808.90  21.09  2.68%

This module uses fundamental data of Mercadolibre to approximate the value of its Beneish M Score. Mercadolibre M Score tells investors if the company management is likely to be manipulating earnings. The score is calculated using eight financial indicators that are adjusted by a specific multiplier. Please note, the M Score is a probabilistic model and cannot detect companies that manipulate their earnings with 100% accuracy. Additionally, see Mercadolibre Piotroski F Score and Mercadolibre Altman Z Score analysis.
  
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The current Total Debt is estimated to increase to about 4.3 B. The current Debt Current is estimated to increase to about 1.5 B. Mercadolibre Dividend Yield is most likely to slightly decrease in the upcoming years. The last year's value of Dividend Yield was reported at 0.0018. The current EBITDA Margin is estimated to increase to 0.14, while Asset Turnover is projected to decrease to 0.85.
At this time, it appears that Mercadolibre is an unlikely manipulator. The earnings manipulation may begin if Mercadolibre's top management creates an artificial sense of financial success, forcing the stock price to be traded at a high price-earnings multiple than it should be. In general, excessive earnings management by Mercadolibre executives may lead to removing some of the operating profits from subsequent periods to inflate earnings in the following periods. This way, the manipulation of Mercadolibre's earnings can lead to misrepresentations of actual financial condition, taking the otherwise loyal stakeholders on to the path of questionable ethical practices and plain fraud.
-2.58
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables1.0Focus
Asset Quality1.0Focus
Expense Coverage1.0Focus
Gross Margin Strengs1.13Focus
Accruals Factor1.0Focus
Depreciation Resistance1.0Focus
Net Sales Growth1.08Focus
Financial Leverage Condition1.0Focus

Mercadolibre Beneish M-Score Indicator Trends

The cure to earnings manipulation is the transparency of financial reporting. It will typically remove the temptation of the top executives to inflate earnings (i.e., to promote the idea of 'winning at any cost'). Because a healthy internal audit department can enhance transparency, the board should promote the auditors' access to all the record-keeping systems across the enterprise. For example, if Mercadolibre's auditors report directly to the board (not management), the managers will be reluctant to manipulate simply due to the fear of punishment. On the other hand, the auditors will be free to investigate the ledgers properly because they know that the board has their back.
Current ValueLast YearChange From Last Year 10 Year Trend
Revenues7.6 B7.1 B
Significantly Up
Increasing
Slightly volatile
Selling General and Administrative Expense2.1 BB
Significantly Up
Increasing
Slightly volatile
Net Cash Flow from OperationsB965 M
Significantly Up
Increasing
Slightly volatile
Depreciation Amortization and Accretion220 M203.9 M
Significantly Up
Increasing
Slightly volatile
Total Assets10.9 B10.1 B
Significantly Up
Increasing
Slightly volatile
Investments2.3 B2.2 B
Significantly Up
Increasing
Slightly volatile
Investments Current2.2 BB
Significantly Up
Increasing
Slightly volatile
Investments Non Current165.1 M150 M
Significantly Up
Increasing
Slightly volatile
Property Plant and Equipment Net1.4 B1.3 B
Significantly Up
Increasing
Slightly volatile
Trade and Non Trade Receivables2.1 B1.9 B
Significantly Up
Increasing
Slightly volatile
Total Liabilities9.2 B8.6 B
Significantly Up
Increasing
Slightly volatile
Current Assets8.8 B8.2 B
Significantly Up
Increasing
Slightly volatile
Assets Non Current2.1 B1.9 B
Significantly Up
Increasing
Slightly volatile
Current Liabilities6.3 B5.8 B
Significantly Up
Increasing
Slightly volatile
Liabilities Non Current2.9 B2.7 B
Significantly Up
Increasing
Slightly volatile
Total Debt4.3 BB
Significantly Up
Increasing
Slightly volatile
Debt Current1.5 B1.4 B
Significantly Up
Increasing
Slightly volatile
Debt Non Current2.8 B2.6 B
Significantly Up
Increasing
Slightly volatile
Operating Income475.5 M440.7 M
Significantly Up
Increasing
Slightly volatile
Gross Margin0.480.425
Moderately Up
Decreasing
Slightly volatile

Mercadolibre Beneish M-Score Driver Matrix

One of the toughest challenges investors face today is learning how to quickly synthesize historical financial statements and information provided by the company, SEC reporting, and various external parties in order to detect the potential manipulation of earnings. Understanding the correlation between Mercadolibre's different financial indicators related to revenue, expenses, operating profit, and net earnings helps investors identify and prioritize their investing strategies towards Mercadolibre in a much-optimized way. Analyzing correlations between earnings drivers directly associated with dollar figures is the most effective way to find Mercadolibre's degree of accounting gimmicks and manipulations.

About Mercadolibre Beneish M Score

M-Score is one of many grading techniques for value stocks. It was developed by Professor M. Daniel Beneish of the Kelley School of Business at Indiana University and published in 1999 under the paper titled The Detection of Earnings Manipulation. The Beneish score is a multi-factor model that utilizes financial identifiers to compile eight variables used to classify whether a company has manipulated its reported earnings. The variables are built from the officially filed financial statements to create a final score call 'M Score.' The score helps to identify companies that are likely to manipulate their profits if they show deteriorating gross margins, operating expenses, and leverage against growing revenue.

Depreciation Amortization and Accretion

220.04 Million

Share
Mercadolibre Depreciation Amortization and Accretion is most likely to increase significantly in the upcoming years. The last year's value of Depreciation Amortization and Accretion was reported at 203.94 Million

Mercadolibre Earnings Manipulation Drivers

Although earnings manipulation is typically not the result of intentional misconduct by the c-level executives, it is still a widespread practice by the senior management of public companies such as Mercadolibre. It is usually done by a series of misrepresentations of various accounting rules and operating activities across multiple financial cycles. The best way to spot the manipulation is to examine the historical financial statement to find inconsistencies in earning reports to find trends in assets or liabilities that are not sustainable in the future.
201720182019202020212022 (projected)
Revenues1.22 B1.44 B2.3 B3.97 B7.07 B7.63 B
Total Assets1.67 B2.24 B4.78 B6.53 B10.1 B10.9 B
Current Assets1.29 B1.51 B3.79 B5.35 B8.18 B8.82 B
Assets Non Current386.27 M728.4 M992.84 M1.18 B1.93 B2.08 B
Total Liabilities1.35 B1.9 B2.7 B4.87 B8.57 B9.25 B
Current Liabilities968.03 M1.17 B1.75 B3.64 B5.84 B6.3 B
Total Debt368.41 M735.18 M1.02 B1.71 B3.98 B4.3 B
Debt Current56.33 M132.95 M209.4 M603.64 M1.38 B1.49 B
Debt Non Current312.09 M602.23 M808.03 M1.1 B2.6 B2.81 B
Operating Income56.27 M(69.48 M)(153.16 M)127.69 M440.7 M475.5 M
Investments317.56 M833.46 M2.05 B1.81 B2.16 B2.33 B
Investments Current282.84 M557.32 M1.78 B1.63 B2.01 B2.17 B

About Mercadolibre Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Mercadolibre's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Mercadolibre using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Mercadolibre based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
MercadoLibre, Inc. operates online commerce platforms in Latin America. MercadoLibre, Inc. was incorporated in 1999 and is headquartered in Montevideo, Uruguay. Mercadolibre operates under Internet Retail classification in the United States and is traded on NASDAQ Exchange. It employs 29957 people.

Mercadolibre Investors Sentiment

The influence of Mercadolibre's investor sentiment on the probability of its price appreciation or decline could be a good factor in your decision-making process regarding taking a position in Mercadolibre. The overall investor sentiment generally increases the direction of a stock movement in a one-year investment horizon. However, the impact of investor sentiment on the entire stock markets does not have a solid backing from leading economists and market statisticians.

Mercadolibre Implied Volatility

    
  114.73  
Mercadolibre's implied volatility exposes the market's sentiment of Mercadolibre stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Mercadolibre's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Mercadolibre stock will not fluctuate a lot when Mercadolibre's options are near their expiration.
Some investors attempt to determine whether the market's mood is bullish or bearish by monitoring changes in market sentiment. Unlike more traditional methods such as technical analysis, investor sentiment usually refers to the aggregate attitude towards Mercadolibre in the overall investment community. So, suppose investors can accurately measure the market's sentiment. In that case, they can use it for their benefit. For example, some tools to gauge market sentiment could be utilized using contrarian indexes, Mercadolibre's short interest history, or implied volatility extrapolated from Mercadolibre options trading.

Current Sentiment - MELI

Mercadolibre Investor Sentiment

Most of Macroaxis users are now bullish on Mercadolibre. What is your trading attitude regarding investing in Mercadolibre? Are you bullish or bearish?
Bullish
Bearish
98% Bullish
2% Bearish
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Additionally, see Mercadolibre Piotroski F Score and Mercadolibre Altman Z Score analysis. Note that the Mercadolibre information on this page should be used as a complementary analysis to other Mercadolibre's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .

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When running Mercadolibre price analysis, check to measure Mercadolibre's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Mercadolibre is operating at the current time. Most of Mercadolibre's value examination focuses on studying past and present price action to predict the probability of Mercadolibre's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Mercadolibre's price. Additionally, you may evaluate how the addition of Mercadolibre to your portfolios can decrease your overall portfolio volatility.
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Is Mercadolibre's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Mercadolibre. If investors know Mercadolibre will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Mercadolibre listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of Mercadolibre is measured differently than its book value, which is the value of Mercadolibre that is recorded on the company's balance sheet. Investors also form their own opinion of Mercadolibre's value that differs from its market value or its book value, called intrinsic value, which is Mercadolibre's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Mercadolibre's market value can be influenced by many factors that don't directly affect Mercadolibre's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Mercadolibre's value and its price as these two are different measures arrived at by different means. Investors typically determine Mercadolibre value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Mercadolibre's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.