2075.01 USD
-23.84 (-1.14%)
2077.99 USD
+2.98 (+0.14%)
We assign a fundamental rating of 7 out of 10 to MELI. MELI was compared to 30 industry peers in the Broadline Retail industry. Both the health and profitability get an excellent rating, making MELI a very profitable company, without any liquidiy or solvency issues. MELI shows excellent growth, but is valued quite expensive already. These ratings would make MELI suitable for growth and quality investing!
1. Profitability
1.1 Basic Checks
- MELI had positive earnings in the past year.
- 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
- With a decent Return On Assets value of 5.66%, MELI is doing good in the industry, outperforming 70.00% of the companies in the same industry.
- MELI's Return On Equity of 33.40% is amongst the best of the industry. MELI outperforms 96.67% of its industry peers.
- MELI has a Return On Invested Capital of 18.27%. This is amongst the best in the industry. MELI outperforms 93.33% of its industry peers.
- 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
- Looking at the Profit Margin, with a value of 7.93%, MELI is in the better half of the industry, outperforming 76.67% of the companies in the same industry.
- In the last couple of years the Profit Margin of MELI has grown nicely.
- MELI has a Operating Margin of 11.96%. This is amongst the best in the industry. MELI outperforms 86.67% of its industry peers.
- In the last couple of years the Operating Margin of MELI has grown nicely.
- MELI's Gross Margin of 45.14% is fine compared to the rest of the industry. MELI outperforms 66.67% of its industry peers.
- MELI's Gross Margin has been stable in the last couple of years.
| 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.
- 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
- An Altman-Z score of 3.41 indicates that MELI is not in any danger for bankruptcy at the moment.
- MELI has a better Altman-Z score (3.41) than 73.33% of its industry peers.
- 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.
- The Debt to FCF ratio of MELI (0.91) is better than 83.33% of its industry peers.
- MELI has a Debt/Equity ratio of 0.55. This is a neutral value indicating MELI is somewhat dependend on debt financing.
- MELI has a Debt to Equity ratio (0.55) which is comparable to the rest of the industry.
- Although MELI does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.55 | ||
| Debt/FCF | 0.91 | ||
| Altman-Z | 3.41 |
ROIC/WACC2.04
WACC8.97%
2.3 Liquidity
- A Current Ratio of 1.17 indicates that MELI should not have too much problems paying its short term obligations.
- MELI has a worse Current ratio (1.17) than 76.67% of its industry peers.
- MELI has a Quick Ratio of 1.15. This is a normal value and indicates that MELI is financially healthy and should not expect problems in meeting its short term obligations.
- MELI's Quick ratio of 1.15 is in line compared 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
- MELI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 44.60%, which is quite impressive.
- MELI shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 172.65% yearly.
- 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
- MELI is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 31.97% yearly.
- MELI is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 24.56% yearly.
EPS Next Y11.47%
EPS Next 2Y27.93%
EPS Next 3Y31.86%
EPS Next 5Y31.97%
Revenue Next Year38.55%
Revenue Next 2Y33.57%
Revenue Next 3Y29.48%
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.
- 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. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 50.63 indicates a quite expensive valuation of MELI.
- Compared to the rest of the industry, the Price/Earnings ratio of MELI is on the same level as its industry peers.
- The average S&P500 Price/Earnings ratio is at 27.47. MELI is valued rather expensively when compared to this.
- MELI is valuated quite expensively with a Price/Forward Earnings ratio of 33.63.
- 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's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 24.26.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 50.63 | ||
| Fwd PE | 33.63 |
4.2 Price Multiples
- 70.00% of the companies in the same industry are cheaper than MELI, based on the Enterprise Value to EBITDA ratio.
- 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 | 26.66 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- MELI has an outstanding profitability rating, which may justify a higher PE ratio.
- MELI's earnings are expected to grow with 31.86% in the coming years. This may justify a more expensive valuation.
PEG (NY)4.42
PEG (5Y)N/A
EPS Next 2Y27.93%
EPS Next 3Y31.86%
5. Dividend
5.1 Amount
- No dividends for MELI!.
| 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 Target2862.87 (37.97%)
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)-1.1%
PT rev (3m)-2.45%
EPS NQ rev (1m)-0.75%
EPS NQ rev (3m)-18.32%
EPS NY rev (1m)-0.26%
EPS NY rev (3m)-8.52%
Revenue NQ rev (1m)0.4%
Revenue NQ rev (3m)2.37%
Revenue NY rev (1m)-0.05%
Revenue NY rev (3m)1.38%
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 | 26.66 |
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)4.42
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 | 3.41 |
F-Score5
WACC8.97%
ROIC/WACC2.04
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 Y11.47%
EPS Next 2Y27.93%
EPS Next 3Y31.86%
EPS Next 5Y31.97%
Revenue 1Y (TTM)36.94%
Revenue growth 3Y43.24%
Revenue growth 5Y55.35%
Sales Q2Q%39.48%
Revenue Next Year38.55%
Revenue Next 2Y33.57%
Revenue Next 3Y29.48%
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%.