MERCADOLIBRE INC (MELI) Stock Fundamental Analysis
NASDAQ:MELI • US58733R1023
1996.87 USD
+0.32 (+0.02%)
At close: Feb 20, 2026
2000 USD
+3.13 (+0.16%)
After Hours: 2/20/2026, 8:00:01 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 scores excellent points on both the profitability and health parts. This is a solid base for a good stock. MELI is valued quite expensive, but it does show an excellent growth. 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.
- 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
- 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.
- 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.
- The Return On Invested Capital of MELI (18.27%) is better than 93.33% 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 9.24%.
| 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 73.33% of its industry peers.
- MELI's Profit Margin has improved in the last couple of years.
- MELI has a Operating Margin of 11.96%. This is amongst the best in the industry. MELI outperforms 86.67% of its industry peers.
- MELI's Operating Margin has improved in the last couple of years.
- Looking at the Gross Margin, with a value of 45.14%, MELI is in the better half of 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 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
- MELI has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it 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.
- The debt/assets ratio for MELI has been reduced compared to a year ago.
2.2 Solvency
- MELI has an Altman-Z score of 3.33. This indicates that MELI is financially healthy and has little risk of bankruptcy at the moment.
- MELI has a better Altman-Z score (3.33) than 70.00% 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.
- Looking at the Debt to FCF ratio, with a value of 0.91, MELI belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
- 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 of 0.55. This is comparable to the rest of the industry: MELI outperforms 43.33% of its industry peers.
- 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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.55 | ||
| Debt/FCF | 0.91 | ||
| Altman-Z | 3.33 |
ROIC/WACC2.01
WACC9.11%
2.3 Liquidity
- A Current Ratio of 1.17 indicates that MELI should not have too much problems paying 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.
- 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.
- The Quick ratio of MELI (1.15) 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
- 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.
- MELI shows a strong growth in Revenue. In the last year, 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
- The Revenue is expected to grow by 24.56% on average over the next years. This is a very strong growth
EPS Next Y10.6%
EPS Next 2Y27.47%
EPS Next 3Y31.59%
EPS Next 5Y31.97%
Revenue Next Year38.68%
Revenue Next 2Y33.81%
Revenue Next 3Y29.65%
Revenue Next 5Y24.56%
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.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 48.73, which means the current valuation is very expensive for MELI.
- MELI's Price/Earnings ratio is in line with the industry average.
- Compared to an average S&P500 Price/Earnings ratio of 26.99, MELI is valued quite expensively.
- Based on the Price/Forward Earnings ratio of 32.60, the valuation of MELI can be described as expensive.
- 63.33% of the companies in the same industry are cheaper than MELI, based on the Price/Forward Earnings ratio.
- When comparing the Price/Forward Earnings ratio of MELI to the average of the S&P500 Index (28.06), we can say MELI is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 48.73 | ||
| Fwd PE | 32.6 |
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.
- 73.33% of the companies in the same industry are more expensive than MELI, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.76 | ||
| EV/EBITDA | 25.63 |
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 31.59% in the coming years.
PEG (NY)4.6
PEG (5Y)N/A
EPS Next 2Y27.47%
EPS Next 3Y31.59%
5. Dividend
5.1 Amount
- MELI does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
1996.87
+0.32 (+0.02%)
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-1.56%
Ins Owners0.26%
Ins Owner Change0%
Market Cap101.24B
Revenue(TTM)26.19B
Net Income(TTM)2.08B
Analysts83.87
Price Target2864.62 (43.46%)
Short Float %1.61%
Short Ratio1.43
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)0.15%
PT rev (3m)-1.71%
EPS NQ rev (1m)-1.53%
EPS NQ rev (3m)-2.4%
EPS NY rev (1m)-0.78%
EPS NY rev (3m)-6.54%
Revenue NQ rev (1m)0.17%
Revenue NQ rev (3m)0.93%
Revenue NY rev (1m)0.09%
Revenue NY rev (3m)1.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 48.73 | ||
| Fwd PE | 32.6 | ||
| P/S | 3.87 | ||
| P/FCF | 11.76 | ||
| P/OCF | 10.3 | ||
| P/B | 16.28 | ||
| P/tB | 17.04 | ||
| EV/EBITDA | 25.63 |
EPS(TTM)40.98
EY2.05%
EPS(NY)61.26
Fwd EY3.07%
FCF(TTM)169.82
FCFY8.5%
OCF(TTM)193.91
OCFY9.71%
SpS516.63
BVpS122.64
TBVpS117.18
PEG (NY)4.6
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 | 3.33 |
F-Score5
WACC9.11%
ROIC/WACC2.01
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 Y10.6%
EPS Next 2Y27.47%
EPS Next 3Y31.59%
EPS Next 5Y31.97%
Revenue 1Y (TTM)36.94%
Revenue growth 3Y43.24%
Revenue growth 5Y55.35%
Sales Q2Q%39.48%
Revenue Next Year38.68%
Revenue Next 2Y33.81%
Revenue Next 3Y29.65%
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%.