MERCADOLIBRE INC (MELI) Fundamental Analysis & Valuation

NASDAQ:MELI • US58733R1023

Current stock price

1773.96 USD
-19.24 (-1.07%)
At close:
1773.95 USD
-0.01 (0%)
After Hours:

This MELI fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

8

1. MELI Profitability Analysis

1.1 Basic Checks

  • In the past year MELI was profitable.
  • In the past year MELI had a positive cash flow from operations.
  • In the past 5 years MELI has always been profitable.
  • Each year in the past 5 years MELI had a positive operating cash flow.
MELI Yearly Net Income VS EBIT VS OCF VS FCFMELI Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 2B 4B 6B 8B 10B

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 66.67% of the companies in the same industry.
  • Looking at the Return On Equity, with a value of 29.59%, MELI belongs to the top of the industry, outperforming 93.33% of the companies in the same industry.
  • With an excellent Return On Invested Capital value of 16.97%, MELI belongs to the best of the industry, outperforming 90.00% 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 8.75%.
  • 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 RankSector 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%
MELI Yearly ROA, ROE, ROICMELI Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 10 -10 20 30 40

1.3 Margins

  • Looking at the Profit Margin, with a value of 6.91%, MELI is in the better half of the industry, outperforming 73.33% of the companies in the same industry.
  • MELI's Profit Margin has improved in the last couple of years.
  • MELI has a better Operating Margin (11.08%) than 80.00% of its industry peers.
  • In the last couple of years the Operating Margin of MELI has grown nicely.
  • MELI's Gross Margin of 44.50% is in line compared to the rest of the industry. MELI outperforms 56.67% of its industry peers.
  • MELI's Gross Margin has been stable in the last couple of years.
Industry RankSector 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%
MELI Yearly Profit, Operating, Gross MarginsMELI Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 20 40 60

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ROAROEROICOperating and Profit MarginShow most profitable peers

7

2. MELI Health Analysis

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so MELI is creating value.
  • Compared to 1 year ago, MELI has about the same amount of shares outstanding.
  • MELI has more shares outstanding than it did 5 years ago.
  • Compared to 1 year ago, MELI has an improved debt to assets ratio.
MELI Yearly Shares OutstandingMELI Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10M 20M 30M 40M 50M
MELI Yearly Total Debt VS Total AssetsMELI Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10B 20B 30B 40B

2.2 Solvency

  • An Altman-Z score of 2.77 indicates that MELI is not a great score, but indicates only limited risk for bankruptcy at the moment.
  • The Altman-Z score of MELI (2.77) is better than 63.33% of its industry peers.
  • 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.
  • MELI has a better Debt to FCF ratio (0.85) than 83.33% of its industry peers.
  • MELI has a Debt/Equity ratio of 0.68. This is a neutral value indicating MELI is somewhat dependend on debt financing.
  • MELI has a worse Debt to Equity ratio (0.68) than 63.33% of its industry peers.
  • Although MELI's pure debt/equity ratio does not look good, it has limited outstanding debt compared to the Free Cash Flow. 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 RankSector Rank
Debt/Equity 0.68
Debt/FCF 0.85
Altman-Z 2.77
ROIC/WACC1.87
WACC9.09%
MELI Yearly LT Debt VS Equity VS FCFMELI Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B 8B 10B

2.3 Liquidity

  • A Current Ratio of 1.17 indicates that MELI should not have too much problems paying its short term obligations.
  • The Current ratio of MELI (1.17) is worse than 73.33% of its industry peers.
  • A Quick Ratio of 1.15 indicates that MELI should not have too much problems paying its short term obligations.
  • Looking at the Quick ratio, with a value of 1.15, MELI is in line with its industry, outperforming 46.67% of the companies in the same industry.
  • MELI does not score too well on the current and quick ratio evaluation. However, as it has excellent solvency and profitability, these ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
Industry RankSector Rank
Current Ratio 1.17
Quick Ratio 1.15
MELI Yearly Current Assets VS Current LiabilitesMELI Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10B 20B 30B

More info and screens

WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

8

3. MELI Growth Analysis

3.1 Past

  • MELI shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 4.51%.
  • 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%.
  • MELI shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 48.70% yearly.
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

  • The Earnings Per Share is expected to grow by 35.40% on average over the next years. This is a very strong growth
  • 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 Year34.11%
Revenue Next 2Y29.11%
Revenue Next 3Y25.17%
Revenue Next 5Y19.27%

3.3 Evolution

  • Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of 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.
MELI Yearly Revenue VS EstimatesMELI Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 20B 40B 60B 80B
MELI Yearly EPS VS EstimatesMELI Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 0 100 200 300

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Find the best growth stocksShow best growing peers

4

4. MELI Valuation Analysis

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 45.02, which means the current valuation is very expensive for MELI.
  • The rest of the industry has a similar Price/Earnings ratio as MELI.
  • The average S&P500 Price/Earnings ratio is at 26.78. MELI is valued rather expensively when compared to this.
  • The Price/Forward Earnings ratio is 30.32, which means the current valuation is very expensive for MELI.
  • 66.67% of the companies in the same industry are cheaper than MELI, based on the Price/Forward Earnings ratio.
  • When comparing the Price/Forward Earnings ratio of MELI to the average of the S&P500 Index (23.54), we can say MELI is valued slightly more expensively.
Industry RankSector Rank
PE 45.02
Fwd PE 30.32
MELI Price Earnings VS Forward Price EarningsMELI Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

4.2 Price Multiples

  • The rest of the industry has a similar Enterprise Value to EBITDA ratio as MELI.
  • Based on the Price/Free Cash Flow ratio, MELI is valued a bit cheaper than 80.00% of the companies in the same industry.
Industry RankSector Rank
P/FCF 8.35
EV/EBITDA 22.69
MELI Per share dataMELI EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 100 200 300 400 500

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%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. MELI Dividend Analysis

5.1 Amount

  • MELI does not give a dividend.
Industry RankSector Rank
Dividend Yield 0%

More info and screens

Find the best dividend stocksShow peers with best dividend

MELI Fundamentals: All Metrics, Ratios and Statistics

MERCADOLIBRE INC

NASDAQ:MELI (4/10/2026, 8:00:01 PM)

After market: 1773.95 -0.01 (0%)

1773.96

-19.24 (-1.07%)

Chartmill FA Rating
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)02-24
Earnings (Next)05-07
Inst Owners82.1%
Inst Owner Change0%
Ins Owners0.26%
Ins Owner Change0%
Market Cap89.94B
Revenue(TTM)28.89B
Net Income(TTM)2.00B
Analysts83.87
Price Target2663.74 (50.16%)
Short Float %2.27%
Short Ratio1.76
Dividend
Industry RankSector 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)-6.68%
PT rev (3m)-6.88%
EPS NQ rev (1m)-8.32%
EPS NQ rev (3m)-18.63%
EPS NY rev (1m)0%
EPS NY rev (3m)-5.15%
Revenue NQ rev (1m)1.4%
Revenue NQ rev (3m)5.62%
Revenue NY rev (1m)1.45%
Revenue NY rev (3m)4.47%
Valuation
Industry RankSector Rank
PE 45.02
Fwd PE 30.32
P/S 3.11
P/FCF 8.35
P/OCF 7.42
P/B 13.33
P/tB 13.73
EV/EBITDA 22.69
EPS(TTM)39.4
EY2.22%
EPS(NY)58.52
Fwd EY3.3%
FCF(TTM)212.49
FCFY11.98%
OCF(TTM)238.97
OCFY13.47%
SpS569.88
BVpS133.1
TBVpS129.23
PEG (NY)0.93
PEG (5Y)N/A
Graham Number343.5
Profitability
Industry RankSector 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 RankSector 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 2.77
F-Score5
WACC9.09%
ROIC/WACC1.87
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 Year34.11%
Revenue Next 2Y29.11%
Revenue Next 3Y25.17%
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 Fundamental Analysis FAQ

What is the fundamental rating for MELI stock?

ChartMill assigns a fundamental rating of 7 / 10 to MELI.


What is the valuation status for MELI stock?

ChartMill assigns a valuation rating of 4 / 10 to MERCADOLIBRE INC (MELI). This can be considered as Fairly Valued.


How profitable is MERCADOLIBRE INC (MELI) stock?

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 7 / 10.


What is the earnings growth outlook for MERCADOLIBRE INC?

The Earnings per Share (EPS) of MERCADOLIBRE INC (MELI) is expected to grow by 48.52% in the next year.