MERCADOLIBRE INC (MELI) Fundamental Analysis & Valuation
NASDAQ:MELI • US58733R1023
1742.09 USD
-27.43 (-1.55%)
At close: Mar 10, 2026
1760.03 USD
+17.94 (+1.03%)
Pre-Market: 3/11/2026, 4:00:00 AM
This MELI fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
MELI gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 30 industry peers in the Broadline Retail industry. MELI has an excellent profitability rating, but there are some minor concerns on its financial health. MELI is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one! These ratings would make MELI suitable for growth investing!
1. MELI Profitability Analysis
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 each of the past 5 years.
- Each year in the past 5 years MELI had a positive operating cash flow.
1.2 Ratios
- Looking at the Return On Assets, with a value of 4.68%, MELI is in the better half of the industry, outperforming 63.33% of the companies in the same industry.
- Looking at the Return On Equity, with a value of 29.59%, MELI belongs to the top of the industry, outperforming 96.67% of the companies in the same industry.
- MELI's Return On Invested Capital of 16.97% is amongst the best of the industry. MELI outperforms 90.00% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for MELI is significantly above the industry average of 9.12%.
- The 3 year average ROIC (21.88%) for MELI is well above the current ROIC(16.97%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.68% | ||
| ROE | 29.59% | ||
| ROIC | 16.97% |
ROA(3y)5.96%
ROA(5y)4.44%
ROE(3y)35.22%
ROE(5y)27.5%
ROIC(3y)21.88%
ROIC(5y)17.77%
1.3 Margins
- MELI has a better Profit Margin (6.91%) than 70.00% of its industry peers.
- In the last couple of years the Profit Margin of MELI has grown nicely.
- MELI has a better Operating Margin (11.08%) than 80.00% of its industry peers.
- In the last couple of years the Operating Margin of MELI has grown nicely.
- MELI has a Gross Margin (44.50%) which is in line with 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 | 11.08% | ||
| PM (TTM) | 6.91% | ||
| GM | 44.5% |
OM growth 3Y3.76%
OM growth 5Y28.09%
PM growth 3Y15.63%
PM growth 5YN/A
GM growth 3Y-2.64%
GM growth 5Y0.68%
2. MELI Health Analysis
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so MELI is creating value.
- The number of shares outstanding for MELI remains at a similar level compared to 1 year ago.
- The number of shares outstanding for MELI has been increased compared to 5 years ago.
- Compared to 1 year ago, MELI has an improved debt to assets ratio.
2.2 Solvency
- MELI has an Altman-Z score of 2.73. This is not the best score and indicates that MELI is in the grey zone with still only limited risk for bankruptcy at the moment.
- MELI has a Altman-Z score (2.73) which is comparable to the rest of the industry.
- The Debt to FCF ratio of MELI is 0.85, which is an excellent value as it means it would take MELI, only 0.85 years of fcf income to pay off all of its debts.
- MELI's Debt to FCF ratio of 0.85 is amongst the best of the industry. MELI outperforms 83.33% of its industry peers.
- A Debt/Equity ratio of 0.68 indicates that MELI is somewhat dependend on debt financing.
- With a Debt to Equity ratio value of 0.68, MELI is not doing good in the industry: 63.33% of the companies in the same industry are doing better.
- Although MELI's pure debt/equity ratio does not look good, it has limited outstanding debt compared to the Free Cash Flow. 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 | 0.68 | ||
| Debt/FCF | 0.85 | ||
| Altman-Z | 2.73 |
ROIC/WACC1.91
WACC8.9%
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 73.33% of its industry peers.
- A Quick Ratio of 1.15 indicates that MELI should not have too much problems paying its short term obligations.
- With a Quick ratio value of 1.15, MELI perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.17 | ||
| Quick Ratio | 1.15 |
3. MELI Growth Analysis
3.1 Past
- MELI shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 4.51%.
- Measured over the past years, MELI shows a very strong growth in Earnings Per Share. The EPS has been growing by 60.44% on average per year.
- Looking at the last year, MELI shows a very strong growth in Revenue. The Revenue has grown by 39.06%.
- Measured over the past years, MELI shows a very strong growth in Revenue. The Revenue has been growing by 48.70% on average per year.
EPS 1Y (TTM)4.51%
EPS 3Y60.44%
EPS 5YN/A
EPS Q2Q%-12.53%
Revenue 1Y (TTM)39.06%
Revenue growth 3Y38.91%
Revenue growth 5Y48.7%
Sales Q2Q%44.56%
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 35.40% on average per year.
- The Revenue is expected to grow by 19.27% on average over the next years. This is quite good.
EPS Next Y48.52%
EPS Next 2Y43.89%
EPS Next 3Y40.95%
EPS Next 5Y35.4%
Revenue Next Year32.19%
Revenue Next 2Y27.48%
Revenue Next 3Y24.27%
Revenue Next 5Y19.27%
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. MELI Valuation Analysis
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 44.22 indicates a quite expensive valuation of MELI.
- 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 26.25.
- A Price/Forward Earnings ratio of 29.77 indicates a quite expensive valuation of MELI.
- Based on the Price/Forward Earnings ratio, MELI is valued a bit more expensive than the industry average as 63.33% of the companies are valued more cheaply.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.39, MELI is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 44.22 | ||
| Fwd PE | 29.77 |
4.2 Price Multiples
- MELI's Enterprise Value to EBITDA ratio is in line with the industry average.
- Based on the Price/Free Cash Flow ratio, MELI is valued a bit cheaper than the industry average as 76.67% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.2 | ||
| EV/EBITDA | 22.04 |
4.3 Compensation for Growth
- The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- The excellent profitability rating of MELI may justify a higher PE ratio.
- A more expensive valuation may be justified as MELI's earnings are expected to grow with 40.95% in the coming years.
PEG (NY)0.91
PEG (5Y)N/A
EPS Next 2Y43.89%
EPS Next 3Y40.95%
5. MELI Dividend Analysis
5.1 Amount
- MELI does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
MELI Fundamentals: All Metrics, Ratios and Statistics
1742.09
-27.43 (-1.55%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)02-24 2026-02-24/amc
Earnings (Next)05-07 2026-05-07
Inst Owners82.1%
Inst Owner Change-1.19%
Ins Owners0.26%
Ins Owner Change0%
Market Cap88.32B
Revenue(TTM)28.89B
Net Income(TTM)2.00B
Analysts84.52
Price Target2854.36 (63.85%)
Short Float %1.66%
Short Ratio1.35
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)-9.17%
Min EPS beat(2)-12.64%
Max EPS beat(2)-5.7%
EPS beat(4)1
Avg EPS beat(4)-4.66%
Min EPS beat(4)-15.3%
Max EPS beat(4)14.99%
EPS beat(8)4
Avg EPS beat(8)5.59%
EPS beat(12)7
Avg EPS beat(12)3.94%
EPS beat(16)10
Avg EPS beat(16)6.86%
Revenue beat(2)2
Avg Revenue beat(2)1.02%
Min Revenue beat(2)0.61%
Max Revenue beat(2)1.44%
Revenue beat(4)3
Avg Revenue beat(4)1.88%
Min Revenue beat(4)-0.1%
Max Revenue beat(4)5.59%
Revenue beat(8)6
Avg Revenue beat(8)3%
Revenue beat(12)10
Avg Revenue beat(12)2.83%
Revenue beat(16)13
Avg Revenue beat(16)3.26%
PT rev (1m)-0.36%
PT rev (3m)-1.39%
EPS NQ rev (1m)-10.02%
EPS NQ rev (3m)-15.5%
EPS NY rev (1m)-4.47%
EPS NY rev (3m)-6.37%
Revenue NQ rev (1m)3.93%
Revenue NQ rev (3m)5.72%
Revenue NY rev (1m)2.41%
Revenue NY rev (3m)3.24%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 44.22 | ||
| Fwd PE | 29.77 | ||
| P/S | 3.06 | ||
| P/FCF | 8.2 | ||
| P/OCF | 7.29 | ||
| P/B | 13.09 | ||
| P/tB | 13.48 | ||
| EV/EBITDA | 22.04 |
EPS(TTM)39.4
EY2.26%
EPS(NY)58.52
Fwd EY3.36%
FCF(TTM)212.49
FCFY12.2%
OCF(TTM)238.97
OCFY13.72%
SpS569.88
BVpS133.1
TBVpS129.23
PEG (NY)0.91
PEG (5Y)N/A
Graham Number343.5
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.68% | ||
| ROE | 29.59% | ||
| ROCE | 22.81% | ||
| ROIC | 16.97% | ||
| ROICexc | 30.8% | ||
| ROICexgc | 31.6% | ||
| OM | 11.08% | ||
| PM (TTM) | 6.91% | ||
| GM | 44.5% | ||
| FCFM | 37.29% |
ROA(3y)5.96%
ROA(5y)4.44%
ROE(3y)35.22%
ROE(5y)27.5%
ROIC(3y)21.88%
ROIC(5y)17.77%
ROICexc(3y)229.5%
ROICexc(5y)162.58%
ROICexgc(3y)538.3%
ROICexgc(5y)354.16%
ROCE(3y)29.4%
ROCE(5y)23.88%
ROICexgc growth 3Y-33.3%
ROICexgc growth 5YN/A
ROICexc growth 3Y-28.99%
ROICexc growth 5YN/A
OM growth 3Y3.76%
OM growth 5Y28.09%
PM growth 3Y15.63%
PM growth 5YN/A
GM growth 3Y-2.64%
GM growth 5Y0.68%
F-Score5
Asset Turnover0.68
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.68 | ||
| Debt/FCF | 0.85 | ||
| Debt/EBITDA | 1.14 | ||
| Cap/Depr | 164.18% | ||
| Cap/Sales | 4.65% | ||
| Interest Coverage | 5.24 | ||
| Cash Conversion | 301.47% | ||
| Profit Quality | 539.46% | ||
| Current Ratio | 1.17 | ||
| Quick Ratio | 1.15 | ||
| Altman-Z | 2.73 |
F-Score5
WACC8.9%
ROIC/WACC1.91
Cap/Depr(3y)133.57%
Cap/Depr(5y)162.49%
Cap/Sales(3y)4.05%
Cap/Sales(5y)5%
Profit Quality(3y)459.33%
Profit Quality(5y)464.07%
High Growth Momentum
Growth
EPS 1Y (TTM)4.51%
EPS 3Y60.44%
EPS 5YN/A
EPS Q2Q%-12.53%
EPS Next Y48.52%
EPS Next 2Y43.89%
EPS Next 3Y40.95%
EPS Next 5Y35.4%
Revenue 1Y (TTM)39.06%
Revenue growth 3Y38.91%
Revenue growth 5Y48.7%
Sales Q2Q%44.56%
Revenue Next Year32.19%
Revenue Next 2Y27.48%
Revenue Next 3Y24.27%
Revenue Next 5Y19.27%
EBIT growth 1Y21.66%
EBIT growth 3Y44.14%
EBIT growth 5Y90.47%
EBIT Next Year64.21%
EBIT Next 3Y41.72%
EBIT Next 5Y30.45%
FCF growth 1Y52.64%
FCF growth 3Y63.06%
FCF growth 5Y63.03%
OCF growth 1Y53.02%
OCF growth 3Y60.33%
OCF growth 5Y59.26%
MERCADOLIBRE INC / MELI FAQ
What is the fundamental rating for MELI stock?
ChartMill assigns a fundamental rating of 6 / 10 to MELI.
What is the valuation status of MERCADOLIBRE INC (MELI) stock?
ChartMill assigns a valuation rating of 4 / 10 to MERCADOLIBRE INC (MELI). This can be considered as Fairly Valued.
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 6 / 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%.