1970.15 USD
-64.61 (-3.18%)
At close: Feb 6, 2026
1972 USD
+1.85 (+0.09%)
After Hours: 2/6/2026, 8:00:00 PM
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 gets an excellent profitability rating and is at the same time showing great financial health properties. MELI shows excellent growth, but is valued quite expensive already. These ratings would make MELI suitable for growth and quality investing!
1. Profitability
1.1 Basic Checks
- MELI had positive earnings in the past year.
- In the past year MELI had a positive cash flow from operations.
- Of the past 5 years MELI 4 years were profitable.
- In the past 5 years MELI always reported a positive cash flow from operatings.
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.
- MELI has a Return On Equity of 33.40%. This is amongst the best in the industry. MELI outperforms 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.
- Measured over the past 3 years, the Average Return On Invested Capital for MELI is significantly above the industry average of 9.28%.
| 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.
- MELI's Profit Margin has improved in the last couple of years.
- MELI has a better Operating Margin (11.96%) than 86.67% of its industry peers.
- MELI's Operating Margin has improved in the last couple of years.
- 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
- 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
- An Altman-Z score of 3.37 indicates that MELI is not in any danger for bankruptcy at the moment.
- MELI has a better Altman-Z score (3.37) than 76.67% of its industry peers.
- The Debt to FCF ratio of MELI is 0.91, which is an excellent value as it means it would take MELI, only 0.91 years of fcf income to pay off all of its debts.
- With an excellent Debt to FCF ratio value of 0.91, MELI belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
- A Debt/Equity ratio of 0.55 indicates that MELI is somewhat dependend on debt financing.
- MELI has a Debt to Equity ratio of 0.55. This is comparable to the rest of the industry: MELI outperforms 43.33% of its industry peers.
- 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 | 3.37 |
ROIC/WACC2.05
WACC8.89%
2.3 Liquidity
- A Current Ratio of 1.17 indicates that MELI should not have too much problems paying its short term obligations.
- Looking at the Current ratio, with a value of 1.17, MELI is doing worse than 76.67% of the companies in the same industry.
- 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 (1.15) which is in line with 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 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.
- 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!
- MELI shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 55.35% yearly.
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
- Based on estimates for the next years, MELI will show a very strong growth in Revenue. The Revenue will grow by 24.56% on average per year.
EPS Next Y11.47%
EPS Next 2Y27.93%
EPS Next 3Y31.86%
EPS Next 5Y31.97%
Revenue Next Year38.59%
Revenue Next 2Y33.64%
Revenue Next 3Y29.53%
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.
- 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.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 48.08, MELI can be considered very expensive at the moment.
- 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 (27.92), we can say MELI is valued expensively.
- MELI is valuated quite expensively with a Price/Forward Earnings ratio of 31.93.
- MELI's Price/Forward Earnings 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.
- The average S&P500 Price/Forward Earnings ratio is at 27.78. MELI is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 48.08 | ||
| Fwd PE | 31.93 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, MELI is valued a bit more expensive than 70.00% of the companies in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of MELI indicates a somewhat cheap valuation: MELI is cheaper than 70.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.6 | ||
| EV/EBITDA | 26.14 |
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.
- A more expensive valuation may be justified as MELI's earnings are expected to grow with 31.86% in the coming years.
PEG (NY)4.19
PEG (5Y)N/A
EPS Next 2Y27.93%
EPS Next 3Y31.86%
5. Dividend
5.1 Amount
- MELI does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
1970.15
-64.61 (-3.18%)
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 Change-1.13%
Ins Owners0.26%
Ins Owner Change0.02%
Market Cap99.89B
Revenue(TTM)26.19B
Net Income(TTM)2.08B
Analysts83.87
Price Target2862.87 (45.31%)
Short Float %2.14%
Short Ratio1.88
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)0.08%
PT rev (3m)-1.77%
EPS NQ rev (1m)-1.7%
EPS NQ rev (3m)-13.33%
EPS NY rev (1m)-0.26%
EPS NY rev (3m)-7.66%
Revenue NQ rev (1m)0.2%
Revenue NQ rev (3m)2.59%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)1.56%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 48.08 | ||
| Fwd PE | 31.93 | ||
| P/S | 3.81 | ||
| P/FCF | 11.6 | ||
| P/OCF | 10.16 | ||
| P/B | 16.06 | ||
| P/tB | 16.81 | ||
| EV/EBITDA | 26.14 |
EPS(TTM)40.98
EY2.08%
EPS(NY)61.7
Fwd EY3.13%
FCF(TTM)169.82
FCFY8.62%
OCF(TTM)193.91
OCFY9.84%
SpS516.63
BVpS122.64
TBVpS117.18
PEG (NY)4.19
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 | 3.37 |
F-Score5
WACC8.89%
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 Y11.47%
EPS Next 2Y27.93%
EPS Next 3Y31.86%
EPS Next 5Y31.97%
Revenue 1Y (TTM)36.94%
Revenue growth 3Y43.24%
Revenue growth 5Y55.35%
Sales Q2Q%39.48%
Revenue Next Year38.59%
Revenue Next 2Y33.64%
Revenue Next 3Y29.53%
Revenue Next 5Y24.56%
EBIT growth 1Y45.95%
EBIT growth 3Y80.24%
EBIT growth 5YN/A
EBIT Next Year65.15%
EBIT Next 3Y42.8%
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%.