MERCADOLIBRE INC (MELI) Fundamental Analysis & Valuation
NASDAQ:MELI • US58733R1023
1787.86 USD
+7.5 (+0.42%)
At close: Mar 6, 2026
1754.23 USD
-33.63 (-1.88%)
Pre-Market: 3/9/2026, 4:25:28 AM
This MELI fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
We assign a fundamental rating of 6 out of 10 to MELI. MELI was compared to 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 not overvalued while it is showing excellent growth. This is an interesting combination. 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.
- In the past year MELI had a positive cash flow from operations.
- MELI had positive earnings in each of the past 5 years.
- In the past 5 years MELI always reported a positive cash flow from operatings.
1.2 Ratios
- MELI has a better Return On Assets (4.68%) than 63.33% of its industry peers.
- With an excellent Return On Equity value of 29.59%, MELI belongs to the best of the industry, outperforming 96.67% of the companies in the same industry.
- The Return On Invested Capital of MELI (16.97%) is better than 90.00% of its industry peers.
- MELI had an Average Return On Invested Capital over the past 3 years of 21.88%. This is significantly above the industry average of 9.24%.
- 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.
- MELI's Profit Margin has improved in the last couple of years.
- The Operating Margin of MELI (11.08%) is better than 80.00% 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 44.50%, MELI is in line with its industry, outperforming 56.67% 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 | 11.08% | ||
| 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
- 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 2.77. 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.
- With a Altman-Z score value of 2.77, MELI perfoms like the industry average, outperforming 56.67% of the companies in the same industry.
- MELI has a debt to FCF ratio of 0.85. This is a very positive value and a sign of high solvency as it would only need 0.85 years to pay back of all of its debts.
- The Debt to FCF ratio of MELI (0.85) is better than 83.33% of its industry peers.
- A Debt/Equity ratio of 0.68 indicates that MELI is somewhat dependend on debt financing.
- The Debt to Equity ratio of MELI (0.68) is worse than 63.33% of its industry peers.
- 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 | 2.77 |
ROIC/WACC1.9
WACC8.95%
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.
- With a Current ratio value of 1.17, MELI is not doing good in the industry: 73.33% of the companies in the same industry are doing better.
- 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.
- 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
- The Earnings Per Share has been growing slightly by 4.51% over the past year.
- The Earnings Per Share has been growing by 60.44% 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 39.06%.
- The Revenue has been growing by 48.70% on average over the past years. This is a very strong growth!
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.
- Based on estimates for the next years, MELI will show a quite strong growth in Revenue. The Revenue will grow by 19.27% on average per year.
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
- 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. MELI Valuation Analysis
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 45.38 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 26.29.
- With a Price/Forward Earnings ratio of 30.55, MELI can be considered very expensive at the moment.
- 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.
- When comparing the Price/Forward Earnings ratio of MELI to the average of the S&P500 Index (24.60), we can say MELI is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 45.38 | ||
| Fwd PE | 30.55 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as MELI.
- 80.00% 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 | 8.41 | ||
| EV/EBITDA | 22.62 |
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.
- 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 40.95% in the coming years.
PEG (NY)0.94
PEG (5Y)N/A
EPS Next 2Y43.89%
EPS Next 3Y40.95%
5. MELI Dividend Analysis
5.1 Amount
- No dividends for MELI!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
MELI Fundamentals: All Metrics, Ratios and Statistics
1787.86
+7.5 (+0.42%)
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 Cap90.64B
Revenue(TTM)28.89B
Net Income(TTM)2.00B
Analysts84.52
Price Target2854.36 (59.65%)
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 | 45.38 | ||
| Fwd PE | 30.55 | ||
| P/S | 3.14 | ||
| P/FCF | 8.41 | ||
| P/OCF | 7.48 | ||
| P/B | 13.43 | ||
| P/tB | 13.83 | ||
| EV/EBITDA | 22.62 |
EPS(TTM)39.4
EY2.2%
EPS(NY)58.52
Fwd EY3.27%
FCF(TTM)212.49
FCFY11.88%
OCF(TTM)238.97
OCFY13.37%
SpS569.88
BVpS133.1
TBVpS129.23
PEG (NY)0.94
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 | 2.77 |
F-Score5
WACC8.95%
ROIC/WACC1.9
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%.