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MERCADOLIBRE INC (MELI) Stock Fundamental Analysis

USA - Nasdaq - NASDAQ:MELI - US58733R1023 - Common Stock

2014.26 USD
-6.62 (-0.33%)
Last: 12/31/2025, 8:14:28 PM
2018 USD
+3.74 (+0.19%)
After Hours: 12/31/2025, 8:14:28 PM
Fundamental Rating

7

MELI gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 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 is valued quite expensive, but it does show an excellent growth. These ratings would make MELI suitable for growth and quality investing!


Dividend Valuation Growth Profitability Health

8

1. Profitability

1.1 Basic Checks

In the past year MELI was profitable.
MELI had a positive operating cash flow in the past year.
MELI had positive earnings in 4 of the past 5 years.
MELI had a positive operating cash flow in each of the past 5 years.
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 0 2B 4B 6B

1.2 Ratios

MELI's Return On Assets of 5.66% is fine compared to the rest of the industry. MELI outperforms 70.00% of its industry peers.
The Return On Equity of MELI (33.40%) is better than 96.67% of its industry peers.
MELI's Return On Invested Capital of 18.27% is amongst the best of the industry. MELI outperforms 93.33% of its industry peers.
MELI had an Average Return On Invested Capital over the past 3 years of 20.35%. This is significantly above the industry average of 9.29%.
Industry RankSector 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%
MELI Yearly ROA, ROE, ROICMELI Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 10 -10 20 30 40

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.
The Operating Margin of MELI (11.96%) is better than 86.67% of its industry peers.
In the last couple of years the Operating Margin of MELI has grown nicely.
With a decent Gross Margin value of 45.14%, MELI is doing good in the industry, outperforming 66.67% 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 RankSector 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%
MELI Yearly Profit, Operating, Gross MarginsMELI Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 40 60

8

2. Health

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.
Compared to 5 years ago, MELI has more shares outstanding
The debt/assets ratio for MELI has been reduced compared to a year ago.
MELI Yearly Shares OutstandingMELI Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 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 5B 10B 15B 20B 25B

2.2 Solvency

MELI has an Altman-Z score of 3.35. This indicates that MELI is financially healthy and has little risk of bankruptcy at the moment.
MELI has a better Altman-Z score (3.35) than 70.00% 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.
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 0.55
Debt/FCF 0.91
Altman-Z 3.35
ROIC/WACC2.07
WACC8.84%
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 2B 4B 6B

2.3 Liquidity

A Current Ratio of 1.17 indicates that MELI should not have too much problems paying its short term obligations.
MELI's Current ratio of 1.17 is on the low side compared to the rest of the industry. MELI is outperformed by 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 has a Quick ratio of 1.15. This is comparable to the rest of the industry: MELI outperforms 46.67% of its industry peers.
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 5B 10B 15B 20B

9

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.
The Revenue has grown by 36.94% in the past year. This is a very strong growth!
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 32.67% yearly.
MELI is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 24.21% yearly.
EPS Next Y11.76%
EPS Next 2Y27.93%
EPS Next 3Y31.84%
EPS Next 5Y32.67%
Revenue Next Year38.62%
Revenue Next 2Y33.45%
Revenue Next 3Y29.28%
Revenue Next 5Y24.21%

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.
MELI Yearly Revenue VS EstimatesMELI Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 20B 40B 60B 80B
MELI Yearly EPS VS EstimatesMELI Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 0 50 100 150 200 250

3

4. Valuation

4.1 Price/Earnings Ratio

MELI is valuated quite expensively with a Price/Earnings ratio of 49.15.
MELI's Price/Earnings is on the same level as the industry average.
MELI's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 26.51.
A Price/Forward Earnings ratio of 32.65 indicates a quite expensive valuation of 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.
The average S&P500 Price/Forward Earnings ratio is at 23.13. MELI is valued slightly more expensive when compared to this.
Industry RankSector Rank
PE 49.15
Fwd PE 32.65
MELI Price Earnings VS Forward Price EarningsMELI Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of MELI indicates a slightly more expensive valuation: MELI is more expensive than 60.00% of the companies listed in the same industry.
MELI's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. MELI is cheaper than 76.67% of the companies in the same industry.
Industry RankSector Rank
P/FCF 11.86
EV/EBITDA 25.87
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

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.
MELI has an outstanding profitability rating, which may justify a higher PE ratio.
MELI's earnings are expected to grow with 31.84% in the coming years. This may justify a more expensive valuation.
PEG (NY)4.18
PEG (5Y)N/A
EPS Next 2Y27.93%
EPS Next 3Y31.84%

0

5. Dividend

5.1 Amount

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

MERCADOLIBRE INC

NASDAQ:MELI (12/31/2025, 8:14:28 PM)

After market: 2018 +3.74 (+0.19%)

2014.26

-6.62 (-0.33%)

Chartmill FA Rating
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 Owners84.1%
Inst Owner Change1.83%
Ins Owners0.26%
Ins Owner Change0.02%
Market Cap102.12B
Revenue(TTM)26.19B
Net Income(TTM)2.08B
Analysts83.87
Price Target2860.45 (42.01%)
Short Float %1.7%
Short Ratio1.49
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)-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)-2.01%
PT rev (3m)-2.22%
EPS NQ rev (1m)-1.28%
EPS NQ rev (3m)-18.69%
EPS NY rev (1m)-5.57%
EPS NY rev (3m)-8.28%
Revenue NQ rev (1m)0.48%
Revenue NQ rev (3m)2.35%
Revenue NY rev (1m)0.98%
Revenue NY rev (3m)1.81%
Valuation
Industry RankSector Rank
PE 49.15
Fwd PE 32.65
P/S 3.9
P/FCF 11.86
P/OCF 10.39
P/B 16.42
P/tB 17.19
EV/EBITDA 25.87
EPS(TTM)40.98
EY2.03%
EPS(NY)61.7
Fwd EY3.06%
FCF(TTM)169.82
FCFY8.43%
OCF(TTM)193.91
OCFY9.63%
SpS516.63
BVpS122.64
TBVpS117.18
PEG (NY)4.18
PEG (5Y)N/A
Graham Number336.28
Profitability
Industry RankSector 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 RankSector 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 3.35
F-Score5
WACC8.84%
ROIC/WACC2.07
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 5Y32.67%
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 5Y24.21%
EBIT growth 1Y45.95%
EBIT growth 3Y80.24%
EBIT growth 5YN/A
EBIT Next Year65.43%
EBIT Next 3Y42.75%
EBIT Next 5Y36.07%
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%.