MERCADOLIBRE INC (MELI) Stock Fundamental Analysis
NASDAQ:MELI • US58733R1023
1708.24 USD
-68.76 (-3.87%)
Last: Mar 3, 2026, 01:29 PM
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 scores excellent on profitability, but there are some minor concerns on its financial health. MELI is not priced too expensively while it is growing strongly. Keep and eye on this one! These ratings would make MELI suitable for growth investing!
1. Profitability
1.1 Basic Checks
- In the past year MELI was profitable.
- In the past year MELI had a positive cash flow from operations.
- Each year in the past 5 years MELI has been profitable.
- In the past 5 years MELI always reported a positive cash flow from operatings.
1.2 Ratios
- MELI's Return On Assets of 4.68% is fine compared to the rest of the industry. MELI outperforms 63.33% of its industry peers.
- 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 has a Return On Invested Capital of 16.97%. This is amongst the best in the industry. MELI outperforms 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 9.25%.
- 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
- With a decent Profit Margin value of 6.91%, MELI is doing good in the industry, outperforming 70.00% of the companies in the same industry.
- 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.
- MELI's Operating Margin has improved in the last couple of years.
- The Gross Margin of MELI (44.50%) is comparable to the rest of the industry.
- MELI's Gross Margin has been stable in the last couple of years.
| 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. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), MELI is creating value.
- The number of shares outstanding for MELI remains at a similar level compared to 1 year ago.
- 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 2.76 indicates that MELI is not a great score, but indicates only limited risk for bankruptcy at the moment.
- MELI has a Altman-Z score of 2.76. This is comparable to the rest of the industry: MELI outperforms 60.00% of its industry peers.
- 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.
- MELI has a better Debt to FCF ratio (0.85) than 83.33% of its industry peers.
- MELI has a Debt/Equity ratio of 0.68. This is a neutral value indicating MELI is somewhat dependend on debt financing.
- MELI's Debt to Equity ratio of 0.68 is on the low side compared to the rest of the industry. MELI is outperformed by 63.33% 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 | 0.68 | ||
| Debt/FCF | 0.85 | ||
| Altman-Z | 2.76 |
ROIC/WACC1.88
WACC9.05%
2.3 Liquidity
- A Current Ratio of 1.17 indicates that MELI should not have too much problems paying its short term obligations.
- With a Current ratio value of 1.17, MELI is not doing good in the industry: 76.67% of the companies in the same industry are doing better.
- 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. Growth
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
- 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
- The Earnings Per Share is expected to grow by 35.40% on average over the next years. This is a very strong growth
- MELI is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 19.27% yearly.
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. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 43.36, the valuation of MELI can be described as expensive.
- MELI's Price/Earnings ratio is in line with the industry average.
- The average S&P500 Price/Earnings ratio is at 27.13. MELI is valued rather expensively when compared to this.
- With a Price/Forward Earnings ratio of 29.19, MELI can be considered very expensive at the moment.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of MELI indicates a slightly more expensive valuation: MELI is more expensive than 63.33% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 28.11, MELI is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 43.36 | ||
| Fwd PE | 29.19 |
4.2 Price Multiples
- 63.33% of the companies in the same industry are cheaper than MELI, based on the Enterprise Value to EBITDA ratio.
- Based on the Price/Free Cash Flow ratio, MELI is valued a bit cheaper than the industry average as 80.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.04 | ||
| EV/EBITDA | 22.48 |
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.
- MELI's earnings are expected to grow with 40.95% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.89
PEG (5Y)N/A
EPS Next 2Y43.89%
EPS Next 3Y40.95%
5. Dividend
5.1 Amount
- MELI does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
NASDAQ:MELI (3/3/2026, 1:29:56 PM)
1708.24
-68.76 (-3.87%)
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 Owners84.22%
Inst Owner Change-1.2%
Ins Owners0.26%
Ins Owner Change0%
Market Cap86.61B
Revenue(TTM)28.89B
Net Income(TTM)2.00B
Analysts84.52
Price Target2854.36 (67.09%)
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)-0.3%
PT rev (3m)-2.22%
EPS NQ rev (1m)1.1%
EPS NQ rev (3m)-6.15%
EPS NY rev (1m)-0.71%
EPS NY rev (3m)-6.49%
Revenue NQ rev (1m)0.92%
Revenue NQ rev (3m)3.38%
Revenue NY rev (1m)0.75%
Revenue NY rev (3m)3.27%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 43.36 | ||
| Fwd PE | 29.19 | ||
| P/S | 3 | ||
| P/FCF | 8.04 | ||
| P/OCF | 7.15 | ||
| P/B | 12.83 | ||
| P/tB | 13.22 | ||
| EV/EBITDA | 22.48 |
EPS(TTM)39.4
EY2.31%
EPS(NY)58.52
Fwd EY3.43%
FCF(TTM)212.49
FCFY12.44%
OCF(TTM)238.97
OCFY13.99%
SpS569.88
BVpS133.1
TBVpS129.23
PEG (NY)0.89
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 | 2.76 |
F-Score5
WACC9.05%
ROIC/WACC1.88
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 Year67.02%
EBIT Next 3Y42.37%
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 5 / 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%.