2102.89 USD
-47.01 (-2.19%)
Taking everything into account, MELI scores 7 out of 10 in our fundamental rating. 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. With these ratings, MELI could be worth investigating further 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.
MELI had positive earnings in 4 of the past 5 years.
In the past 5 years MELI always reported a positive cash flow from operatings.
1.2 Ratios
With a decent Return On Assets value of 5.66%, MELI is doing good in the industry, outperforming 70.00% of the companies in the same industry.
The Return On Equity of MELI (33.40%) is better than 96.67% of its industry peers.
MELI has a Return On Invested Capital of 18.27%. This is amongst the best in the industry. MELI outperforms 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 9.29%.
| 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's Profit Margin of 7.93% is fine compared to the rest 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.
With an excellent Operating Margin value of 11.96%, MELI belongs to the best of the industry, outperforming 86.67% of the companies in the same industry.
In the last couple of years the Operating Margin of MELI has grown nicely.
MELI has a Gross Margin of 45.14%. This is in the better half of the industry: MELI outperforms 66.67% of its industry peers.
MELI's Gross Margin has been stable in the last couple of years.
| 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.
Compared to 1 year ago, MELI has about the same amount of shares outstanding.
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 3.48. This indicates that MELI is financially healthy and has little risk of bankruptcy at the moment.
MELI's Altman-Z score of 3.48 is fine compared to the rest of the industry. MELI outperforms 73.33% 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.
The Debt to FCF ratio of MELI (0.91) is better than 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.
The Debt to Equity ratio of MELI (0.55) is comparable to the rest of the 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 | 3.48 |
ROIC/WACC2.05
WACC8.91%
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'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.
With a Quick ratio value of 1.15, MELI perfoms like the industry average, outperforming 46.67% of the companies in the same industry.
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
MELI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 44.60%, which is quite impressive.
MELI shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 172.65% yearly.
Looking at the last year, MELI shows a very strong growth in Revenue. The Revenue has grown by 36.94%.
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
Based on estimates for the next years, MELI will show a very strong growth in Earnings Per Share. The EPS will grow by 31.97% on average per year.
The Revenue is expected to grow by 24.56% on average over the next years. This is a very strong growth
EPS Next Y11.76%
EPS Next 2Y27.93%
EPS Next 3Y31.84%
EPS Next 5Y31.97%
Revenue Next Year38.62%
Revenue Next 2Y33.45%
Revenue Next 3Y29.28%
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 51.32, which means the current valuation is very expensive for MELI.
Compared to the rest of the industry, the Price/Earnings ratio of MELI is on the same level as its industry peers.
When comparing the Price/Earnings ratio of MELI to the average of the S&P500 Index (27.25), we can say MELI is valued expensively.
With a Price/Forward Earnings ratio of 34.08, 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.
MELI is valuated rather expensively when we compare the Price/Forward Earnings ratio to 23.98, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 51.32 | ||
| Fwd PE | 34.08 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MELI is valued a bit more expensive than the industry average as 66.67% of the companies are valued more cheaply.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of MELI indicates a somewhat cheap valuation: MELI is cheaper than 73.33% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.38 | ||
| EV/EBITDA | 27.65 |
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 31.84% in the coming years.
PEG (NY)4.37
PEG (5Y)N/A
EPS Next 2Y27.93%
EPS Next 3Y31.84%
5. Dividend
5.1 Amount
No dividends for MELI!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
NASDAQ:MELI (1/13/2026, 9:42:06 AM)
2102.89
-47.01 (-2.19%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)
Earnings (Next)
Inst Owners84.22%
Inst Owner Change0.78%
Ins Owners0.26%
Ins Owner Change0.02%
Market Cap106.62B
Revenue(TTM)26.19B
Net Income(TTM)2.08B
Analysts83.87
Price Target2860.45 (36.02%)
Short Float %1.7%
Short Ratio1.49
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)-1.18%
PT rev (3m)-2.53%
EPS NQ rev (1m)-1.05%
EPS NQ rev (3m)-17.69%
EPS NY rev (1m)-0.51%
EPS NY rev (3m)-8.28%
Revenue NQ rev (1m)0.49%
Revenue NQ rev (3m)2.29%
Revenue NY rev (1m)0.08%
Revenue NY rev (3m)1.43%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 51.32 | ||
| Fwd PE | 34.08 | ||
| P/S | 4.07 | ||
| P/FCF | 12.38 | ||
| P/OCF | 10.84 | ||
| P/B | 17.15 | ||
| P/tB | 17.95 | ||
| EV/EBITDA | 27.65 |
EPS(TTM)40.98
EY1.95%
EPS(NY)61.7
Fwd EY2.93%
FCF(TTM)169.82
FCFY8.08%
OCF(TTM)193.91
OCFY9.22%
SpS516.63
BVpS122.64
TBVpS117.18
PEG (NY)4.37
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 | 3.48 |
F-Score5
WACC8.91%
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 Y11.76%
EPS Next 2Y27.93%
EPS Next 3Y31.84%
EPS Next 5Y31.97%
Revenue 1Y (TTM)36.94%
Revenue growth 3Y43.24%
Revenue growth 5Y55.35%
Sales Q2Q%39.48%
Revenue Next Year38.62%
Revenue Next 2Y33.45%
Revenue Next 3Y29.28%
Revenue Next 5Y24.56%
EBIT growth 1Y45.95%
EBIT growth 3Y80.24%
EBIT growth 5YN/A
EBIT Next Year65.43%
EBIT Next 3Y42.75%
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%.