MERCADOLIBRE INC (MELI) Fundamental Analysis & Valuation
NASDAQ:MELI • US58733R1023
1783.26 USD
+69.25 (+4.04%)
Last: Mar 4, 2026, 03:09 PM
This MELI fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
Overall MELI gets a fundamental rating of 6 out of 10. We evaluated MELI against 30 industry peers in the Broadline Retail industry. While MELI has a great profitability rating, there are some minor concerns on its financial health. MELI is not overvalued while it is showing excellent growth. This is an interesting combination. With these ratings, MELI could be worth investigating further for growth investing!.
1. MELI Profitability Analysis
1.1 Basic Checks
- In the past year MELI was profitable.
- MELI had a positive operating cash flow in the past year.
- Each year in the past 5 years MELI has been profitable.
- MELI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- Looking at the Return On Assets, with a value of 4.68%, MELI is in the better half of the industry, outperforming 63.33% of the companies in the same industry.
- MELI has a better Return On Equity (29.59%) than 96.67% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 16.97%, MELI belongs to the top of the industry, outperforming 93.33% of the companies in the same industry.
- MELI had an Average Return On Invested Capital over the past 3 years of 21.88%. This is significantly above the industry average of 9.25%.
- The last Return On Invested Capital (16.97%) for MELI is well below the 3 year average (21.88%), which needs to be investigated, but indicates that MELI had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.68% | ||
| ROE | 29.59% | ||
| ROIC | 16.97% |
ROA(3y)5.96%
ROA(5y)4.44%
ROE(3y)35.22%
ROE(5y)27.5%
ROIC(3y)21.88%
ROIC(5y)17.77%
1.3 Margins
- MELI's Profit Margin of 6.91% is fine compared to the rest of the industry. MELI outperforms 70.00% of its industry peers.
- MELI's Profit Margin has improved in the last couple of years.
- Looking at the Operating Margin, with a value of 11.08%, MELI is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
- MELI's Operating Margin has improved in the last couple of years.
- With a Gross Margin value of 44.50%, MELI perfoms like the industry average, outperforming 56.67% of the companies in the same industry.
- 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 | 11.08% | ||
| PM (TTM) | 6.91% | ||
| GM | 44.5% |
OM growth 3Y3.76%
OM growth 5Y28.09%
PM growth 3Y15.63%
PM growth 5YN/A
GM growth 3Y-2.64%
GM growth 5Y0.68%
2. MELI Health Analysis
2.1 Basic Checks
- MELI has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
- Compared to 1 year ago, MELI has about the same amount of shares outstanding.
- The number of shares outstanding for MELI has been increased compared to 5 years ago.
- MELI has a better debt/assets ratio than last year.
2.2 Solvency
- MELI has an Altman-Z score of 2.71. This is not the best score and indicates that MELI is in the grey zone with still only limited risk for bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 2.71, MELI is in line with its industry, outperforming 60.00% of the companies in the same industry.
- MELI has a debt to FCF ratio of 0.85. This is a very positive value and a sign of high solvency as it would only need 0.85 years to pay back of all of its debts.
- The Debt to FCF ratio of MELI (0.85) is better than 83.33% of its industry peers.
- A Debt/Equity ratio of 0.68 indicates that MELI is somewhat dependend on debt financing.
- MELI has a worse Debt to Equity ratio (0.68) than 63.33% of its industry peers.
- 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 | 0.68 | ||
| Debt/FCF | 0.85 | ||
| Altman-Z | 2.71 |
ROIC/WACC1.86
WACC9.12%
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.
- The Quick ratio of MELI (1.15) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.17 | ||
| Quick Ratio | 1.15 |
3. MELI Growth Analysis
3.1 Past
- The Earnings Per Share has been growing slightly by 4.51% 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 60.44% on average per year.
- Looking at the last year, MELI shows a very strong growth in Revenue. The Revenue has grown by 39.06%.
- Measured over the past years, MELI shows a very strong growth in Revenue. The Revenue has been growing by 48.70% on average per year.
EPS 1Y (TTM)4.51%
EPS 3Y60.44%
EPS 5YN/A
EPS Q2Q%-12.53%
Revenue 1Y (TTM)39.06%
Revenue growth 3Y38.91%
Revenue growth 5Y48.7%
Sales Q2Q%44.56%
3.2 Future
- MELI is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 35.40% yearly.
- MELI is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 19.27% yearly.
EPS Next Y48.52%
EPS Next 2Y43.89%
EPS Next 3Y40.95%
EPS Next 5Y35.4%
Revenue Next Year32.19%
Revenue Next 2Y27.48%
Revenue Next 3Y24.27%
Revenue Next 5Y19.27%
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.
- Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. MELI Valuation Analysis
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 45.26, MELI can be considered very expensive at the moment.
- MELI's Price/Earnings is on the same level as the industry average.
- MELI is valuated expensively when we compare the Price/Earnings ratio to 26.83, which is the current average of the S&P500 Index.
- The Price/Forward Earnings ratio is 30.47, 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 the industry average as 63.33% of the companies are valued more cheaply.
- MELI is valuated rather expensively when we compare the Price/Forward Earnings ratio to 24.95, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 45.26 | ||
| Fwd PE | 30.47 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, MELI is valued a bit more expensive than 63.33% of the companies in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of MELI indicates a rather cheap valuation: MELI is cheaper than 83.33% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.39 | ||
| EV/EBITDA | 21.69 |
4.3 Compensation for Growth
- MELI's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- The excellent profitability rating of MELI may justify a higher PE ratio.
- MELI's earnings are expected to grow with 40.95% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.93
PEG (5Y)N/A
EPS Next 2Y43.89%
EPS Next 3Y40.95%
5. MELI Dividend Analysis
5.1 Amount
- No dividends for MELI!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
MELI Fundamentals: All Metrics, Ratios and Statistics
NASDAQ:MELI (3/4/2026, 3:09:29 PM)
1783.26
+69.25 (+4.04%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)02-24 2026-02-24/amc
Earnings (Next)05-07 2026-05-07
Inst Owners84.22%
Inst Owner Change-1.2%
Ins Owners0.26%
Ins Owner Change0%
Market Cap90.41B
Revenue(TTM)28.89B
Net Income(TTM)2.00B
Analysts84.52
Price Target2854.36 (60.06%)
Short Float %1.66%
Short Ratio1.35
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)-9.17%
Min EPS beat(2)-12.64%
Max EPS beat(2)-5.7%
EPS beat(4)1
Avg EPS beat(4)-4.66%
Min EPS beat(4)-15.3%
Max EPS beat(4)14.99%
EPS beat(8)4
Avg EPS beat(8)5.59%
EPS beat(12)7
Avg EPS beat(12)3.94%
EPS beat(16)10
Avg EPS beat(16)6.86%
Revenue beat(2)2
Avg Revenue beat(2)1.02%
Min Revenue beat(2)0.61%
Max Revenue beat(2)1.44%
Revenue beat(4)3
Avg Revenue beat(4)1.88%
Min Revenue beat(4)-0.1%
Max Revenue beat(4)5.59%
Revenue beat(8)6
Avg Revenue beat(8)3%
Revenue beat(12)10
Avg Revenue beat(12)2.83%
Revenue beat(16)13
Avg Revenue beat(16)3.26%
PT rev (1m)-0.3%
PT rev (3m)-2.22%
EPS NQ rev (1m)1.1%
EPS NQ rev (3m)-6.15%
EPS NY rev (1m)-0.71%
EPS NY rev (3m)-6.49%
Revenue NQ rev (1m)0.92%
Revenue NQ rev (3m)3.38%
Revenue NY rev (1m)0.75%
Revenue NY rev (3m)3.27%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 45.26 | ||
| Fwd PE | 30.47 | ||
| P/S | 3.13 | ||
| P/FCF | 8.39 | ||
| P/OCF | 7.46 | ||
| P/B | 13.4 | ||
| P/tB | 13.8 | ||
| EV/EBITDA | 21.69 |
EPS(TTM)39.4
EY2.21%
EPS(NY)58.52
Fwd EY3.28%
FCF(TTM)212.49
FCFY11.92%
OCF(TTM)238.97
OCFY13.4%
SpS569.88
BVpS133.1
TBVpS129.23
PEG (NY)0.93
PEG (5Y)N/A
Graham Number343.5
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.68% | ||
| ROE | 29.59% | ||
| ROCE | 22.81% | ||
| ROIC | 16.97% | ||
| ROICexc | 30.8% | ||
| ROICexgc | 31.6% | ||
| OM | 11.08% | ||
| PM (TTM) | 6.91% | ||
| GM | 44.5% | ||
| FCFM | 37.29% |
ROA(3y)5.96%
ROA(5y)4.44%
ROE(3y)35.22%
ROE(5y)27.5%
ROIC(3y)21.88%
ROIC(5y)17.77%
ROICexc(3y)229.5%
ROICexc(5y)162.58%
ROICexgc(3y)538.3%
ROICexgc(5y)354.16%
ROCE(3y)29.4%
ROCE(5y)23.88%
ROICexgc growth 3Y-33.3%
ROICexgc growth 5YN/A
ROICexc growth 3Y-28.99%
ROICexc growth 5YN/A
OM growth 3Y3.76%
OM growth 5Y28.09%
PM growth 3Y15.63%
PM growth 5YN/A
GM growth 3Y-2.64%
GM growth 5Y0.68%
F-Score5
Asset Turnover0.68
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.68 | ||
| Debt/FCF | 0.85 | ||
| Debt/EBITDA | 1.14 | ||
| Cap/Depr | 164.18% | ||
| Cap/Sales | 4.65% | ||
| Interest Coverage | 5.24 | ||
| Cash Conversion | 301.47% | ||
| Profit Quality | 539.46% | ||
| Current Ratio | 1.17 | ||
| Quick Ratio | 1.15 | ||
| Altman-Z | 2.71 |
F-Score5
WACC9.12%
ROIC/WACC1.86
Cap/Depr(3y)133.57%
Cap/Depr(5y)162.49%
Cap/Sales(3y)4.05%
Cap/Sales(5y)5%
Profit Quality(3y)459.33%
Profit Quality(5y)464.07%
High Growth Momentum
Growth
EPS 1Y (TTM)4.51%
EPS 3Y60.44%
EPS 5YN/A
EPS Q2Q%-12.53%
EPS Next Y48.52%
EPS Next 2Y43.89%
EPS Next 3Y40.95%
EPS Next 5Y35.4%
Revenue 1Y (TTM)39.06%
Revenue growth 3Y38.91%
Revenue growth 5Y48.7%
Sales Q2Q%44.56%
Revenue Next Year32.19%
Revenue Next 2Y27.48%
Revenue Next 3Y24.27%
Revenue Next 5Y19.27%
EBIT growth 1Y21.66%
EBIT growth 3Y44.14%
EBIT growth 5Y90.47%
EBIT Next Year64.21%
EBIT Next 3Y41.72%
EBIT Next 5Y30.45%
FCF growth 1Y52.64%
FCF growth 3Y63.06%
FCF growth 5Y63.03%
OCF growth 1Y53.02%
OCF growth 3Y60.33%
OCF growth 5Y59.26%
MERCADOLIBRE INC / MELI FAQ
What is the fundamental rating for MELI stock?
ChartMill assigns a fundamental rating of 6 / 10 to MELI.
What is the valuation status of MERCADOLIBRE INC (MELI) stock?
ChartMill assigns a valuation rating of 4 / 10 to MERCADOLIBRE INC (MELI). This can be considered as Fairly Valued.
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 6 / 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%.