2101.95 USD
+28.38 (+1.37%)
2095 USD
-6.95 (-0.33%)
Taking everything into account, MELI scores 7 out of 10 in our fundamental rating. 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 is valued quite expensive, but it does show an excellent growth. With these ratings, MELI could be worth investigating further 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.
- MELI had positive earnings in 4 of the past 5 years.
- Each year in the past 5 years MELI had a positive operating cash flow.
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.
- The Return On Equity of MELI (33.40%) is better than 96.67% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 18.27%, MELI belongs to the top of the industry, outperforming 93.33% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years 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.
- 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.
- 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
- 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.
- MELI has a better debt/assets ratio than last year.
2.2 Solvency
- MELI has an Altman-Z score of 3.43. This indicates that MELI is financially healthy and has little risk of bankruptcy at the moment.
- With a decent Altman-Z score value of 3.43, MELI is doing good in the industry, outperforming 73.33% of the companies in the same industry.
- 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.
- A Debt/Equity ratio of 0.55 indicates that MELI is somewhat dependend on debt financing.
- With a Debt to Equity ratio value of 0.55, MELI perfoms like the industry average, outperforming 43.33% of the companies in the same 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 | 3.43 |
ROIC/WACC2.05
WACC8.91%
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.
- MELI has a Current ratio of 1.17. This is in the lower half of the industry: MELI underperforms 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.
- MELI has a Quick ratio (1.15) which is comparable to the rest of the 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 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.
- The Earnings Per Share has been growing by 172.65% on average over the past years. This is a very strong growth
- Looking at the last year, MELI shows a very strong growth in Revenue. The Revenue has grown by 36.94%.
- The Revenue has been growing by 55.35% on average over the past years. This is a very strong growth!
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
- The Earnings Per Share is expected to grow by 31.97% on average over the next years. This is a very strong growth
- MELI is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 24.56% yearly.
EPS Next Y11.76%
EPS Next 2Y27.93%
EPS Next 3Y31.84%
EPS Next 5Y31.97%
Revenue Next Year38.62%
Revenue Next 2Y33.45%
Revenue Next 3Y29.28%
Revenue Next 5Y24.56%
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.
- The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 51.29, the valuation of MELI can be described as expensive.
- MELI's Price/Earnings ratio is in line with the industry average.
- MELI's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 27.33.
- MELI is valuated quite expensively with a Price/Forward Earnings ratio of 34.07.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of MELI indicates a slightly more expensive valuation: MELI is more expensive than 63.33% of the companies listed in the same industry.
- MELI is valuated rather expensively when we compare the Price/Forward Earnings ratio to 24.12, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 51.29 | ||
| Fwd PE | 34.07 |
4.2 Price Multiples
- MELI's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. MELI is more expensive than 66.67% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, MELI is valued a bit cheaper than the industry average as 73.33% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.38 | ||
| EV/EBITDA | 27.02 |
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 31.84% in the coming years. This may justify a more expensive valuation.
PEG (NY)4.36
PEG (5Y)N/A
EPS Next 2Y27.93%
EPS Next 3Y31.84%
5. Dividend
5.1 Amount
- MELI does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
2101.95
+28.38 (+1.37%)
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 Cap106.57B
Revenue(TTM)26.19B
Net Income(TTM)2.08B
Analysts83.87
Price Target2860.45 (36.09%)
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)-1.18%
PT rev (3m)-2.53%
EPS NQ rev (1m)-1.05%
EPS NQ rev (3m)-17.69%
EPS NY rev (1m)-0.51%
EPS NY rev (3m)-8.28%
Revenue NQ rev (1m)0.49%
Revenue NQ rev (3m)2.29%
Revenue NY rev (1m)0.08%
Revenue NY rev (3m)1.43%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 51.29 | ||
| Fwd PE | 34.07 | ||
| P/S | 4.07 | ||
| P/FCF | 12.38 | ||
| P/OCF | 10.84 | ||
| P/B | 17.14 | ||
| P/tB | 17.94 | ||
| EV/EBITDA | 27.02 |
EPS(TTM)40.98
EY1.95%
EPS(NY)61.7
Fwd EY2.94%
FCF(TTM)169.82
FCFY8.08%
OCF(TTM)193.91
OCFY9.23%
SpS516.63
BVpS122.64
TBVpS117.18
PEG (NY)4.36
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 | 3.43 |
F-Score5
WACC8.91%
ROIC/WACC2.05
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 5Y31.97%
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 5Y24.56%
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%.