MERCADOLIBRE INC (MELI) Fundamental Analysis & Valuation

NASDAQ:MELI • US58733R1023

Current stock price

1628.41 USD
-11.06 (-0.67%)
Last:

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.
  • MELI had a positive operating cash flow in the past year.
  • Each year in the past 5 years MELI has 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

  • With a decent Return On Assets value of 4.68%, MELI is doing good in the industry, outperforming 66.67% of the companies in the same industry.
  • MELI's Return On Equity of 29.59% is amongst the best of the industry. MELI outperforms 93.33% of its industry peers.
  • MELI has a Return On Invested Capital of 16.97%. This is amongst the best in the industry. MELI outperforms 90.00% 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 8.76%.
  • The 3 year average ROIC (21.88%) for MELI is well above the current ROIC(16.97%). The reason for the recent decline needs to be investigated.
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

  • MELI's Profit Margin of 6.91% is fine compared to the rest of the industry. MELI outperforms 70.00% of its industry peers.
  • In the last couple of years the Profit Margin of MELI has grown nicely.
  • With an excellent Operating Margin value of 11.08%, MELI belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
  • In the last couple of years the Operating Margin of MELI has grown nicely.
  • The Gross Margin of MELI (44.50%) is comparable to the rest of the industry.
  • 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

5

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.
  • 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.
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

  • MELI has an Altman-Z score of 2.64. 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.
  • With a Altman-Z score value of 2.64, MELI perfoms like the industry average, 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.
  • MELI's Debt to FCF ratio of 0.85 is fine compared to the rest of the industry. MELI outperforms 80.00% of its industry peers.
  • A Debt/Equity ratio of 0.68 indicates that MELI is somewhat dependend on debt financing.
  • Looking at the Debt to Equity ratio, with a value of 0.68, MELI is doing worse than 63.33% of the companies in the same 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 RankSector Rank
Debt/Equity 0.68
Debt/FCF 0.85
Altman-Z 2.64
ROIC/WACC1.85
WACC9.19%
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

  • 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.
  • With a Current ratio value of 1.17, MELI is not doing good in the industry: 73.33% of the companies in the same industry are doing better.
  • 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 (1.15) which is comparable to the rest of the industry.
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

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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

  • Based on estimates for the next years, MELI will show a very strong growth in Earnings Per Share. The EPS will grow by 35.40% on average per year.
  • The Revenue is expected to grow by 19.27% on average over the next years. This is quite good.
EPS Next Y48.52%
EPS Next 2Y43.89%
EPS Next 3Y40.95%
EPS Next 5Y35.4%
Revenue Next Year34.2%
Revenue Next 2Y29.24%
Revenue Next 3Y24.76%
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.
  • The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in 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 41.33, which means the current valuation is very expensive for MELI.
  • MELI's Price/Earnings ratio is in line with the industry average.
  • When comparing the Price/Earnings ratio of MELI to the average of the S&P500 Index (25.61), we can say MELI is valued expensively.
  • The Price/Forward Earnings ratio is 27.83, 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 22.79, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 41.33
Fwd PE 27.83
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

  • MELI's Enterprise Value to EBITDA ratio is in line with the industry average.
  • MELI's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. MELI is cheaper than 80.00% of the companies in the same industry.
Industry RankSector Rank
P/FCF 7.66
EV/EBITDA 20.75
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.
  • MELI has an outstanding profitability rating, which may justify a higher PE ratio.
  • A more expensive valuation may be justified as MELI's earnings are expected to grow with 40.95% in the coming years.
PEG (NY)0.85
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%

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Find the best dividend stocksShow peers with best dividend

MELI Fundamentals: All Metrics, Ratios and Statistics

MERCADOLIBRE INC

NASDAQ:MELI (3/26/2026, 3:25:57 PM)

1628.41

-11.06 (-0.67%)

Chartmill FA Rating
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)02-24
Earnings (Next)05-07
Inst Owners82.1%
Inst Owner Change-1.19%
Ins Owners0.26%
Ins Owner Change0%
Market Cap82.56B
Revenue(TTM)28.89B
Net Income(TTM)2.00B
Analysts84.52
Price Target2854.36 (75.29%)
Short Float %1.91%
Short Ratio1.44
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)-0.36%
PT rev (3m)-0.21%
EPS NQ rev (1m)-12.04%
EPS NQ rev (3m)-13.24%
EPS NY rev (1m)-4.47%
EPS NY rev (3m)-5.15%
Revenue NQ rev (1m)5.04%
Revenue NQ rev (3m)6.46%
Revenue NY rev (1m)3.97%
Revenue NY rev (3m)4.54%
Valuation
Industry RankSector Rank
PE 41.33
Fwd PE 27.83
P/S 2.86
P/FCF 7.66
P/OCF 6.81
P/B 12.23
P/tB 12.6
EV/EBITDA 20.75
EPS(TTM)39.4
EY2.42%
EPS(NY)58.52
Fwd EY3.59%
FCF(TTM)212.49
FCFY13.05%
OCF(TTM)238.97
OCFY14.68%
SpS569.88
BVpS133.1
TBVpS129.23
PEG (NY)0.85
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 2.64
F-Score5
WACC9.19%
ROIC/WACC1.85
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 Year34.2%
Revenue Next 2Y29.24%
Revenue Next 3Y24.76%
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 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 5 / 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%.