2081.71 USD
+9.93 (+0.48%)
We assign a fundamental rating of 7 out of 10 to MELI. MELI was compared to 30 industry peers in the Broadline Retail industry. MELI has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. MELI is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one! These ratings could make MELI a good candidate for growth and quality investing.
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.
1.2 Ratios
MELI has a Return On Assets of 5.66%. This is in the better half 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 has a better Return On Invested Capital (18.27%) than 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 9.35%.
| 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
MELI has a Profit Margin of 7.93%. This is in the better half of the industry: MELI outperforms 76.67% of its industry peers.
In the last couple of years the Profit Margin of MELI has grown nicely.
MELI has a better Operating Margin (11.96%) than 86.67% of its industry peers.
In the last couple of years the Operating Margin of MELI has grown nicely.
The Gross Margin of MELI (45.14%) is better than 66.67% of its industry peers.
In the last couple of years the Gross Margin of MELI has remained more or less at the same level.
| 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.
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.
2.2 Solvency
MELI has an Altman-Z score of 3.40. This indicates that MELI is financially healthy and has little risk of bankruptcy at the moment.
MELI has a Altman-Z score of 3.40. This is in the better half of the industry: MELI outperforms 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.
MELI has a Debt to FCF ratio of 0.91. This is amongst the best in the industry. MELI outperforms 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.
Looking at the Debt to Equity ratio, with a value of 0.55, MELI is doing worse than 60.00% 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 | 3.4 |
ROIC/WACC2.11
WACC8.64%
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.
A Quick Ratio of 1.15 indicates that MELI should not have too much problems paying 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
The Earnings Per Share has grown by an impressive 44.60% over the past year.
The Earnings Per Share has been growing by 172.65% on average over the past years. This is a very strong growth
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
Based on estimates for the next years, MELI will show a very strong growth in Earnings Per Share. The EPS will grow by 32.67% on average per year.
Based on estimates for the next years, MELI will show a very strong growth in Revenue. The Revenue will grow by 24.21% on average per year.
EPS Next Y18.34%
EPS Next 2Y31.82%
EPS Next 3Y33.53%
EPS Next 5Y32.67%
Revenue Next Year37.28%
Revenue Next 2Y32%
Revenue Next 3Y28.44%
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.
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
MELI is valuated quite expensively with a Price/Earnings ratio of 50.80.
The rest of the industry has a similar Price/Earnings ratio as MELI.
The average S&P500 Price/Earnings ratio is at 26.31. MELI is valued rather expensively when compared to this.
The Price/Forward Earnings ratio is 31.78, which means the current valuation is very expensive for MELI.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MELI is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of MELI to the average of the S&P500 Index (36.56), we can say MELI is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 50.8 | ||
| Fwd PE | 31.78 |
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 63.33% of the companies in the same industry.
MELI's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. MELI is cheaper than 73.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.26 | ||
| EV/EBITDA | 26.62 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of MELI may justify a higher PE ratio.
MELI's earnings are expected to grow with 33.53% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.77
PEG (5Y)N/A
EPS Next 2Y31.82%
EPS Next 3Y33.53%
5. Dividend
5.1 Amount
No dividends for MELI!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NASDAQ:MELI (12/1/2025, 10:24:09 AM)
2081.71
+9.93 (+0.48%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)
Earnings (Next)
Inst Owners84.47%
Inst Owner Change1.8%
Ins Owners0.26%
Ins Owner Change0.02%
Market Cap105.54B
Revenue(TTM)26.19B
Net Income(TTM)2.08B
Analysts83.87
Price Target2919.16 (40.23%)
Short Float %1.24%
Short Ratio1.14
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
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)0.16%
PT rev (3m)0.27%
EPS NQ rev (1m)-8.85%
EPS NQ rev (3m)-17.41%
EPS NY rev (1m)-1.96%
EPS NY rev (3m)-2.14%
Revenue NQ rev (1m)1.67%
Revenue NQ rev (3m)2.22%
Revenue NY rev (1m)0.6%
Revenue NY rev (3m)1.31%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 50.8 | ||
| Fwd PE | 31.78 | ||
| P/S | 4.03 | ||
| P/FCF | 12.26 | ||
| P/OCF | 10.74 | ||
| P/B | 16.97 | ||
| P/tB | 17.77 | ||
| EV/EBITDA | 26.62 |
EPS(TTM)40.98
EY1.97%
EPS(NY)65.51
Fwd EY3.15%
FCF(TTM)169.82
FCFY8.16%
OCF(TTM)193.91
OCFY9.31%
SpS516.63
BVpS122.64
TBVpS117.18
PEG (NY)2.77
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 | 3.4 |
F-Score5
WACC8.64%
ROIC/WACC2.11
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 Y18.34%
EPS Next 2Y31.82%
EPS Next 3Y33.53%
EPS Next 5Y32.67%
Revenue 1Y (TTM)36.94%
Revenue growth 3Y43.24%
Revenue growth 5Y55.35%
Sales Q2Q%39.48%
Revenue Next Year37.28%
Revenue Next 2Y32%
Revenue Next 3Y28.44%
Revenue Next 5Y24.21%
EBIT growth 1Y45.95%
EBIT growth 3Y80.24%
EBIT growth 5YN/A
EBIT Next Year73.75%
EBIT Next 3Y44.79%
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.
Can you provide the valuation status for MERCADOLIBRE INC?
ChartMill assigns a valuation rating of 4 / 10 to MERCADOLIBRE INC (MELI). This can be considered as Fairly Valued.
What is the profitability of MELI stock?
MERCADOLIBRE INC (MELI) has a profitability rating of 8 / 10.
Can you provide the expected EPS growth for MELI stock?
The Earnings per Share (EPS) of MERCADOLIBRE INC (MELI) is expected to grow by 18.34% in the next year.
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%.