MERCADOLIBRE INC (MELI) Stock Fundamental Analysis
NASDAQ:MELI • US58733R1023
1757.58 USD
+16.7 (+0.96%)
At close: Feb 27, 2026
1755.05 USD
-2.53 (-0.14%)
After Hours: 2/27/2026, 8:17:55 PM
MELI gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 30 industry peers in the Broadline Retail industry. While MELI belongs to the best of the industry regarding profitability, 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. Profitability
1.1 Basic Checks
- In the past year MELI was profitable.
- MELI had a positive operating cash flow in the past year.
- In the past 5 years MELI has always been profitable.
- MELI had a positive operating cash flow in each of the past 5 years.
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.
- MELI has a better Return On Invested Capital (16.97%) than 93.33% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for MELI is significantly above the industry average of 9.34%.
- The last Return On Invested Capital (16.97%) for MELI is well below the 3 year average (21.88%), which needs to be investigated, but indicates that MELI had better years and this may not be a problem.
| 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's Profit Margin of 6.91% is fine compared to the rest of the industry. MELI outperforms 70.00% of its industry peers.
- MELI's Profit Margin has improved in the last couple of years.
- MELI has a Operating Margin of 11.08%. This is in the better half of the industry: MELI outperforms 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 comparable to the rest of the 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. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so MELI is creating value.
- MELI has about the same amout of shares outstanding than it did 1 year ago.
- The number of shares outstanding for MELI has been increased compared to 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 2.74. 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.
- The Altman-Z score of MELI (2.74) 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 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 has a Debt to Equity ratio of 0.68. This is in the lower half of the industry: MELI underperforms 63.33% 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 | 0.68 | ||
| Debt/FCF | 0.85 | ||
| Altman-Z | 2.74 |
ROIC/WACC1.89
WACC8.98%
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 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.
| 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.
- MELI shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 60.44% yearly.
- The Revenue has grown by 39.06% in the past year. This is a very strong growth!
- MELI shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 48.70% yearly.
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 17.98% yearly.
EPS Next Y55.47%
EPS Next 2Y47.65%
EPS Next 3Y45.29%
EPS Next 5Y35.4%
Revenue Next Year29.7%
Revenue Next 2Y25.59%
Revenue Next 3Y22.52%
Revenue Next 5Y17.98%
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 44.61, the valuation of MELI can be described as expensive.
- The rest of the industry has a similar Price/Earnings ratio as MELI.
- MELI's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 27.07.
- A Price/Forward Earnings ratio of 28.69 indicates a quite expensive valuation of MELI.
- Based on the Price/Forward Earnings ratio, MELI is valued a bit more expensive than 63.33% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 28.05, MELI is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 44.61 | ||
| Fwd PE | 28.69 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of MELI indicates a slightly more expensive valuation: MELI is more expensive than 66.67% of the companies listed in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of MELI indicates a rather cheap valuation: MELI is cheaper than 83.33% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.27 | ||
| EV/EBITDA | 22.24 |
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 45.29% in the coming years.
PEG (NY)0.8
PEG (5Y)N/A
EPS Next 2Y47.65%
EPS Next 3Y45.29%
5. Dividend
5.1 Amount
- No dividends for MELI!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
1757.58
+16.7 (+0.96%)
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 Cap89.11B
Revenue(TTM)28.89B
Net Income(TTM)2.00B
Analysts83.87
Price Target2854.36 (62.4%)
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)-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 | 44.61 | ||
| Fwd PE | 28.69 | ||
| P/S | 3.08 | ||
| P/FCF | 8.27 | ||
| P/OCF | 7.35 | ||
| P/B | 13.21 | ||
| P/tB | 13.6 | ||
| EV/EBITDA | 22.24 |
EPS(TTM)39.4
EY2.24%
EPS(NY)61.26
Fwd EY3.49%
FCF(TTM)212.49
FCFY12.09%
OCF(TTM)238.97
OCFY13.6%
SpS569.88
BVpS133.1
TBVpS129.23
PEG (NY)0.8
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 | 2.74 |
F-Score5
WACC8.98%
ROIC/WACC1.89
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 Y55.47%
EPS Next 2Y47.65%
EPS Next 3Y45.29%
EPS Next 5Y35.4%
Revenue 1Y (TTM)39.06%
Revenue growth 3Y38.91%
Revenue growth 5Y48.7%
Sales Q2Q%44.56%
Revenue Next Year29.7%
Revenue Next 2Y25.59%
Revenue Next 3Y22.52%
Revenue Next 5Y17.98%
EBIT growth 1Y21.66%
EBIT growth 3Y44.14%
EBIT growth 5Y90.47%
EBIT Next Year67.02%
EBIT Next 3Y42.37%
EBIT Next 5Y30.44%
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%.