MERCADOLIBRE INC (MELI) Fundamental Analysis & Valuation
NASDAQ:MELI • US58733R1023
Current stock price
1854.18 USD
-15.9 (-0.85%)
At close:
1861 USD
+6.82 (+0.37%)
After Hours:
This MELI fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
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.
- 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 Return On Assets of 4.68%. This is in the better half of the industry: MELI outperforms 66.67% of its industry peers.
- With an excellent Return On Equity value of 29.59%, MELI belongs to the best of the industry, outperforming 93.33% 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.
- Measured over the past 3 years, the Average Return On Invested Capital for MELI is significantly above the industry average of 8.75%.
- 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 73.33% of its industry peers.
- In the last couple of years the Profit Margin of MELI has grown nicely.
- Looking at the Operating Margin, with a value of 11.08%, MELI is in the better half of the industry, outperforming 80.00% 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 44.50%. This is comparable to the rest of the industry: MELI outperforms 56.67% of 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
- MELI has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it 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.
- MELI has a better debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 2.84 indicates that MELI is not a great score, but indicates only limited risk for bankruptcy at the moment.
- MELI has a Altman-Z score (2.84) which is in line with its industry peers.
- 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 Debt to FCF ratio of 0.85. This is amongst the best in 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.
- 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 | 2.84 |
ROIC/WACC1.83
WACC9.27%
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: 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.
- MELI has a Quick ratio of 1.15. This is comparable to the rest of the industry: MELI outperforms 46.67% of its industry peers.
| 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
- 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
- MELI is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 35.40% yearly.
- The Revenue is expected to grow by 19.27% on average over the next years. This is quite good.
EPS Next Y35.36%
EPS Next 2Y36.63%
EPS Next 3Y37.07%
EPS Next 5Y35.4%
Revenue Next Year34.82%
Revenue Next 2Y29.4%
Revenue Next 3Y25.73%
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
- The Price/Earnings ratio is 47.06, which means the current valuation is very expensive for MELI.
- MELI's Price/Earnings ratio is in line with the industry average.
- The average S&P500 Price/Earnings ratio is at 27.71. MELI is valued rather expensively when compared to this.
- With a Price/Forward Earnings ratio of 34.77, MELI can be considered very expensive at the moment.
- MELI's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. MELI is more expensive than 66.67% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 38.09, MELI is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 47.06 | ||
| Fwd PE | 34.77 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of MELI is on the same level as its industry peers.
- 83.33% 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 | 8.73 | ||
| EV/EBITDA | 23.66 |
4.3 Compensation for Growth
- The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- MELI has an outstanding profitability rating, which may justify a higher PE ratio.
- MELI's earnings are expected to grow with 37.07% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.33
PEG (5Y)N/A
EPS Next 2Y36.63%
EPS Next 3Y37.07%
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
1854.18
-15.9 (-0.85%)
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 Owners82.77%
Inst Owner Change0.14%
Ins Owners0.26%
Ins Owner Change0%
Market Cap94.01B
Revenue(TTM)28.89B
Net Income(TTM)2.00B
Analysts83.87
Price Target2564.08 (38.29%)
Short Float %2.21%
Short Ratio1.8
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)-10.17%
PT rev (3m)-10.44%
EPS NQ rev (1m)-7.64%
EPS NQ rev (3m)-18.76%
EPS NY rev (1m)-8.86%
EPS NY rev (3m)-13.56%
Revenue NQ rev (1m)0.18%
Revenue NQ rev (3m)5.23%
Revenue NY rev (1m)0.46%
Revenue NY rev (3m)4.83%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 47.06 | ||
| Fwd PE | 34.77 | ||
| P/S | 3.25 | ||
| P/FCF | 8.73 | ||
| P/OCF | 7.76 | ||
| P/B | 13.93 | ||
| P/tB | 14.35 | ||
| EV/EBITDA | 23.66 |
EPS(TTM)39.4
EY2.12%
EPS(NY)53.33
Fwd EY2.88%
FCF(TTM)212.49
FCFY11.46%
OCF(TTM)238.97
OCFY12.89%
SpS569.88
BVpS133.1
TBVpS129.23
PEG (NY)1.33
PEG (5Y)N/A
Graham Number343.497 (-81.47%)
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 | 2.84 |
F-Score5
WACC9.27%
ROIC/WACC1.83
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 Y35.36%
EPS Next 2Y36.63%
EPS Next 3Y37.07%
EPS Next 5Y35.4%
Revenue 1Y (TTM)39.06%
Revenue growth 3Y38.91%
Revenue growth 5Y48.7%
Sales Q2Q%44.56%
Revenue Next Year34.82%
Revenue Next 2Y29.4%
Revenue Next 3Y25.73%
Revenue Next 5Y19.27%
EBIT growth 1Y21.66%
EBIT growth 3Y44.14%
EBIT growth 5Y90.47%
EBIT Next Year54.93%
EBIT Next 3Y39.18%
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 Fundamental Analysis FAQ
What is the fundamental rating for MELI stock?
ChartMill assigns a fundamental rating of 6 / 10 to MELI.
What is the valuation status for MELI stock?
ChartMill assigns a valuation rating of 5 / 10 to MERCADOLIBRE INC (MELI). This can be considered as Fairly Valued.
How profitable is MERCADOLIBRE INC (MELI) stock?
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.
What is the earnings growth outlook for MERCADOLIBRE INC?
The Earnings per Share (EPS) of MERCADOLIBRE INC (MELI) is expected to grow by 35.36% in the next year.