2075.01 USD
-23.84 (-1.14%)
2077.99 USD
+2.98 (+0.14%)
MELI gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 30 industry peers in the Broadline Retail industry. MELI gets an excellent profitability rating and is at the same time showing great financial health properties. MELI is valued quite expensively, but it does show have an excellent growth rating. With these ratings, MELI could be worth investigating further for growth and quality investing!.
1. Profitability
1.1 Basic Checks
- In the past year MELI was profitable.
- MELI had a positive operating cash flow in the past year.
- Of the past 5 years MELI 4 years were profitable.
- MELI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- The Return On Assets of MELI (5.66%) is better than 70.00% of its industry peers.
- Looking at the Return On Equity, with a value of 33.40%, MELI belongs to the top of the industry, outperforming 96.67% of the companies in the same industry.
- With an excellent Return On Invested Capital value of 18.27%, MELI belongs to the best of the industry, outperforming 93.33% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for MELI is significantly above the industry average of 9.29%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.66% | ||
| ROE | 33.4% | ||
| ROIC | 18.27% |
ROA(3y)5.57%
ROA(5y)3.5%
ROE(3y)34.15%
ROE(5y)21.57%
ROIC(3y)20.35%
ROIC(5y)14.34%
1.3 Margins
- MELI's Profit Margin of 7.93% is fine compared to the rest of the industry. MELI outperforms 76.67% of its industry peers.
- MELI's Profit Margin has improved in the last couple of years.
- MELI has a better Operating Margin (11.96%) than 86.67% of its industry peers.
- MELI's Operating Margin has improved in the last couple of years.
- MELI has a Gross Margin of 45.14%. This is in the better half of the industry: MELI outperforms 66.67% of its industry peers.
- In the last couple of years the Gross Margin of MELI has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.96% | ||
| PM (TTM) | 7.93% | ||
| GM | 45.14% |
OM growth 3Y25.83%
OM growth 5YN/A
PM growth 3Y98.37%
PM growth 5YN/A
GM growth 3Y2.74%
GM growth 5Y-0.81%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), MELI is creating value.
- The number of shares outstanding for MELI remains at a similar level compared to 1 year ago.
- Compared to 5 years ago, MELI has more shares outstanding
- Compared to 1 year ago, MELI has an improved debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 3.43 indicates that MELI is not in any danger for bankruptcy at the moment.
- With a decent Altman-Z score value of 3.43, MELI is doing good in the industry, outperforming 73.33% of the companies in the same industry.
- MELI has a debt to FCF ratio of 0.91. This is a very positive value and a sign of high solvency as it would only need 0.91 years to pay back of all of its debts.
- MELI has a Debt to FCF ratio of 0.91. This is amongst the best in the industry. MELI outperforms 83.33% of its industry peers.
- A Debt/Equity ratio of 0.55 indicates that MELI is somewhat dependend on debt financing.
- The Debt to Equity ratio of MELI (0.55) is comparable to the rest of the industry.
- Even though the debt/equity ratio score it not favorable for MELI, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.55 | ||
| Debt/FCF | 0.91 | ||
| Altman-Z | 3.43 |
ROIC/WACC2.05
WACC8.9%
2.3 Liquidity
- MELI has a Current Ratio of 1.17. This is a normal value and indicates that MELI is financially healthy and should not expect problems in meeting its short term obligations.
- The Current ratio of MELI (1.17) is worse than 76.67% of its industry peers.
- A Quick Ratio of 1.15 indicates that MELI should not have too much problems paying its short term obligations.
- MELI has a Quick ratio of 1.15. This is comparable to the rest of the industry: MELI outperforms 46.67% of its industry peers.
- The current and quick ratio evaluation for MELI is rather negative, while it does have excellent solvency and profitability. These ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.17 | ||
| Quick Ratio | 1.15 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 44.60% over the past year.
- Measured over the past years, MELI shows a very strong growth in Earnings Per Share. The EPS has been growing by 172.65% on average per year.
- MELI shows a strong growth in Revenue. In the last year, the Revenue has grown by 36.94%.
- Measured over the past years, MELI shows a very strong growth in Revenue. The Revenue has been growing by 55.35% on average per year.
EPS 1Y (TTM)44.6%
EPS 3Y172.65%
EPS 5YN/A
EPS Q2Q%6.26%
Revenue 1Y (TTM)36.94%
Revenue growth 3Y43.24%
Revenue growth 5Y55.35%
Sales Q2Q%39.48%
3.2 Future
- Based on estimates for the next years, MELI will show a very strong growth in Earnings Per Share. The EPS will grow by 31.97% on average per year.
- MELI is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 24.56% yearly.
EPS Next Y11.76%
EPS Next 2Y27.93%
EPS Next 3Y31.84%
EPS Next 5Y31.97%
Revenue Next Year38.62%
Revenue Next 2Y33.45%
Revenue Next 3Y29.28%
Revenue Next 5Y24.56%
3.3 Evolution
- The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
- The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 50.63 indicates a quite expensive valuation of MELI.
- The rest of the industry has a similar Price/Earnings ratio as MELI.
- MELI's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 27.47.
- The Price/Forward Earnings ratio is 33.63, which means the current valuation is very expensive for MELI.
- Based on the Price/Forward Earnings ratio, MELI is valued a bit more expensive than 63.33% of the companies in the same industry.
- MELI is valuated rather expensively when we compare the Price/Forward Earnings ratio to 24.26, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 50.63 | ||
| Fwd PE | 33.63 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, MELI is valued a bit more expensive than the industry average as 70.00% of the companies are valued more cheaply.
- 73.33% of the companies in the same industry are more expensive than MELI, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.22 | ||
| EV/EBITDA | 26.98 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates MELI does not grow enough to justify the current Price/Earnings ratio.
- The excellent profitability rating of MELI may justify a higher PE ratio.
- A more expensive valuation may be justified as MELI's earnings are expected to grow with 31.84% in the coming years.
PEG (NY)4.31
PEG (5Y)N/A
EPS Next 2Y27.93%
EPS Next 3Y31.84%
5. Dividend
5.1 Amount
- MELI does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
2075.01
-23.84 (-1.14%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)10-29 2025-10-29/amc
Earnings (Next)02-24 2026-02-24/amc
Inst Owners84.22%
Inst Owner Change0.78%
Ins Owners0.26%
Ins Owner Change0.02%
Market Cap105.20B
Revenue(TTM)26.19B
Net Income(TTM)2.08B
Analysts83.87
Price Target2860.45 (37.85%)
Short Float %1.7%
Short Ratio1.49
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-13.97%
Min EPS beat(2)-15.3%
Max EPS beat(2)-12.64%
EPS beat(4)2
Avg EPS beat(4)10.73%
Min EPS beat(4)-15.3%
Max EPS beat(4)55.87%
EPS beat(8)4
Avg EPS beat(8)-0.57%
EPS beat(12)8
Avg EPS beat(12)7.16%
EPS beat(16)10
Avg EPS beat(16)-3.69%
Revenue beat(2)1
Avg Revenue beat(2)0.25%
Min Revenue beat(2)-0.1%
Max Revenue beat(2)0.61%
Revenue beat(4)3
Avg Revenue beat(4)1.77%
Min Revenue beat(4)-0.1%
Max Revenue beat(4)5.59%
Revenue beat(8)6
Avg Revenue beat(8)2.99%
Revenue beat(12)10
Avg Revenue beat(12)3.34%
Revenue beat(16)13
Avg Revenue beat(16)3.38%
PT rev (1m)-1.18%
PT rev (3m)-2.53%
EPS NQ rev (1m)-1.05%
EPS NQ rev (3m)-17.69%
EPS NY rev (1m)-0.51%
EPS NY rev (3m)-8.28%
Revenue NQ rev (1m)0.49%
Revenue NQ rev (3m)2.29%
Revenue NY rev (1m)0.08%
Revenue NY rev (3m)1.43%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 50.63 | ||
| Fwd PE | 33.63 | ||
| P/S | 4.02 | ||
| P/FCF | 12.22 | ||
| P/OCF | 10.7 | ||
| P/B | 16.92 | ||
| P/tB | 17.71 | ||
| EV/EBITDA | 26.98 |
EPS(TTM)40.98
EY1.97%
EPS(NY)61.7
Fwd EY2.97%
FCF(TTM)169.82
FCFY8.18%
OCF(TTM)193.91
OCFY9.34%
SpS516.63
BVpS122.64
TBVpS117.18
PEG (NY)4.31
PEG (5Y)N/A
Graham Number336.28
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.66% | ||
| ROE | 33.4% | ||
| ROCE | 25.74% | ||
| ROIC | 18.27% | ||
| ROICexc | 37.85% | ||
| ROICexgc | 39.73% | ||
| OM | 11.96% | ||
| PM (TTM) | 7.93% | ||
| GM | 45.14% | ||
| FCFM | 32.87% |
ROA(3y)5.57%
ROA(5y)3.5%
ROE(3y)34.15%
ROE(5y)21.57%
ROIC(3y)20.35%
ROIC(5y)14.34%
ROICexc(3y)236.4%
ROICexc(5y)N/A
ROICexgc(3y)537.13%
ROICexgc(5y)N/A
ROCE(3y)28.68%
ROCE(5y)20.2%
ROICexgc growth 3Y46.42%
ROICexgc growth 5YN/A
ROICexc growth 3Y51.24%
ROICexc growth 5YN/A
OM growth 3Y25.83%
OM growth 5YN/A
PM growth 3Y98.37%
PM growth 5YN/A
GM growth 3Y2.74%
GM growth 5Y-0.81%
F-Score5
Asset Turnover0.71
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.55 | ||
| Debt/FCF | 0.91 | ||
| Debt/EBITDA | 0.88 | ||
| Cap/Depr | 166.8% | ||
| Cap/Sales | 4.66% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 254.43% | ||
| Profit Quality | 414.54% | ||
| Current Ratio | 1.17 | ||
| Quick Ratio | 1.15 | ||
| Altman-Z | 3.43 |
F-Score5
WACC8.9%
ROIC/WACC2.05
Cap/Depr(3y)116.48%
Cap/Depr(5y)176.74%
Cap/Sales(3y)3.91%
Cap/Sales(5y)5.31%
Profit Quality(3y)451.37%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)44.6%
EPS 3Y172.65%
EPS 5YN/A
EPS Q2Q%6.26%
EPS Next Y11.76%
EPS Next 2Y27.93%
EPS Next 3Y31.84%
EPS Next 5Y31.97%
Revenue 1Y (TTM)36.94%
Revenue growth 3Y43.24%
Revenue growth 5Y55.35%
Sales Q2Q%39.48%
Revenue Next Year38.62%
Revenue Next 2Y33.45%
Revenue Next 3Y29.28%
Revenue Next 5Y24.56%
EBIT growth 1Y45.95%
EBIT growth 3Y80.24%
EBIT growth 5YN/A
EBIT Next Year65.43%
EBIT Next 3Y42.75%
EBIT Next 5Y34.72%
FCF growth 1Y99.63%
FCF growth 3Y170.77%
FCF growth 5Y86.33%
OCF growth 1Y106.79%
OCF growth 3Y101.69%
OCF growth 5Y77.37%
MERCADOLIBRE INC / MELI FAQ
What is the fundamental rating for MELI stock?
ChartMill assigns a fundamental rating of 7 / 10 to MELI.
What is the valuation status of MERCADOLIBRE INC (MELI) stock?
ChartMill assigns a valuation rating of 3 / 10 to MERCADOLIBRE INC (MELI). This can be considered as Overvalued.
Can you provide the profitability details for MERCADOLIBRE INC?
MERCADOLIBRE INC (MELI) has a profitability rating of 8 / 10.
How financially healthy is MERCADOLIBRE INC?
The financial health rating of MERCADOLIBRE INC (MELI) is 8 / 10.
Can you provide the dividend sustainability for MELI stock?
The dividend rating of MERCADOLIBRE INC (MELI) is 0 / 10 and the dividend payout ratio is 0%.