MERCADOLIBRE INC (1MELI.MI) Stock Fundamental Analysis
Europe - BIT:1MELI - US58733R1023 - Common Stock
1970.8 EUR
+98.8 (+5.28%)
1MELI gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 13 industry peers in the Broadline Retail industry. 1MELI gets an excellent profitability rating and is at the same time showing great financial health properties. 1MELI shows excellent growth, but is valued quite expensive already. These ratings could make 1MELI a good candidate for growth and quality investing.
1. Profitability
1.1 Basic Checks
1MELI had positive earnings in the past year.
In the past year 1MELI had a positive cash flow from operations.
Of the past 5 years 1MELI 4 years were profitable.
1MELI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
1MELI has a worse Return On Assets (6.23%) than 64.29% of its industry peers.
1MELI has a Return On Equity of 35.94%. This is amongst the best in the industry. 1MELI outperforms 85.71% of its industry peers.
1MELI has a better Return On Invested Capital (18.79%) than 92.86% of its industry peers.
1MELI had an Average Return On Invested Capital over the past 3 years of 20.35%. This is significantly above the industry average of 9.24%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.23% | ||
| ROE | 35.94% | ||
| ROIC | 18.79% |
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
1MELI has a Profit Margin (8.52%) which is in line with its industry peers.
1MELI's Profit Margin has improved in the last couple of years.
The Operating Margin of 1MELI (12.30%) is better than 71.43% of its industry peers.
In the last couple of years the Operating Margin of 1MELI has grown nicely.
1MELI's Gross Margin of 45.87% is in line compared to the rest of the industry. 1MELI outperforms 50.00% of its industry peers.
1MELI's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.3% | ||
| PM (TTM) | 8.52% | ||
| GM | 45.87% |
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), 1MELI is creating value.
Compared to 1 year ago, 1MELI has about the same amount of shares outstanding.
The number of shares outstanding for 1MELI has been increased compared to 5 years ago.
1MELI has a better debt/assets ratio than last year.
2.2 Solvency
1MELI has an Altman-Z score of 3.79. This indicates that 1MELI is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 3.79, 1MELI is doing good in the industry, outperforming 64.29% of the companies in the same industry.
1MELI has a debt to FCF ratio of 0.99. This is a very positive value and a sign of high solvency as it would only need 0.99 years to pay back of all of its debts.
The Debt to FCF ratio of 1MELI (0.99) is better than 92.86% of its industry peers.
1MELI has a Debt/Equity ratio of 0.61. This is a neutral value indicating 1MELI is somewhat dependend on debt financing.
1MELI's Debt to Equity ratio of 0.61 is in line compared to the rest of the industry. 1MELI outperforms 50.00% of its industry peers.
Even though the debt/equity ratio score it not favorable for 1MELI, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | 0.99 | ||
| Altman-Z | 3.79 |
ROIC/WACC2.2
WACC8.54%
2.3 Liquidity
1MELI has a Current Ratio of 1.20. This is a normal value and indicates that 1MELI is financially healthy and should not expect problems in meeting its short term obligations.
1MELI has a Current ratio (1.20) which is comparable to the rest of the industry.
A Quick Ratio of 1.18 indicates that 1MELI should not have too much problems paying its short term obligations.
The Quick ratio of 1MELI (1.18) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.2 | ||
| Quick Ratio | 1.18 |
3. Growth
3.1 Past
1MELI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 46.33%, which is quite impressive.
Measured over the past years, 1MELI shows a very strong growth in Earnings Per Share. The EPS has been growing by 172.65% on average per year.
Looking at the last year, 1MELI shows a very strong growth in Revenue. The Revenue has grown by 35.81%.
The Revenue has been growing by 55.35% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)46.33%
EPS 3Y172.65%
EPS 5YN/A
EPS Q2Q%-1.62%
Revenue 1Y (TTM)35.81%
Revenue growth 3Y43.24%
Revenue growth 5Y55.35%
Sales Q2Q%33.85%
3.2 Future
Based on estimates for the next years, 1MELI will show a very strong growth in Earnings Per Share. The EPS will grow by 32.92% on average per year.
Based on estimates for the next years, 1MELI will show a very strong growth in Revenue. The Revenue will grow by 23.42% on average per year.
EPS Next Y21.85%
EPS Next 2Y33.81%
EPS Next 3Y33.91%
EPS Next 5Y32.92%
Revenue Next Year36.67%
Revenue Next 2Y31.39%
Revenue Next 3Y28.12%
Revenue Next 5Y23.42%
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. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 56.86, the valuation of 1MELI can be described as expensive.
71.43% of the companies in the same industry are cheaper than 1MELI, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 26.10, 1MELI is valued quite expensively.
A Price/Forward Earnings ratio of 34.11 indicates a quite expensive valuation of 1MELI.
Compared to the rest of the industry, the Price/Forward Earnings ratio of 1MELI indicates a slightly more expensive valuation: 1MELI is more expensive than 64.29% of the companies listed in the same industry.
1MELI's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 22.52.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 56.86 | ||
| Fwd PE | 34.11 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, 1MELI is valued a bit more expensive than 64.29% of the companies in the same industry.
1MELI's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. 1MELI is cheaper than 71.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.8 | ||
| EV/EBITDA | 28.54 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates 1MELI does not grow enough to justify the current Price/Earnings ratio.
1MELI has a very decent profitability rating, which may justify a higher PE ratio.
1MELI's earnings are expected to grow with 33.91% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.6
PEG (5Y)N/A
EPS Next 2Y33.81%
EPS Next 3Y33.91%
5. Dividend
5.1 Amount
No dividends for 1MELI!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
BIT:1MELI (10/29/2025, 7:00:00 PM)
1970.8
+98.8 (+5.28%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)
Earnings (Next)
Inst Owners84.47%
Inst Owner ChangeN/A
Ins Owners0.26%
Ins Owner ChangeN/A
Market Cap99.92B
Revenue(TTM)24.10B
Net Income(TTM)2.05B
Analysts83.87
Price TargetN/A
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP0%
Div Incr YearsN/A
Div Non Decr YearsN/A
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.15%
Min EPS beat(2)-15.3%
Max EPS beat(2)14.99%
EPS beat(4)2
Avg EPS beat(4)8.09%
Min EPS beat(4)-23.22%
Max EPS beat(4)55.87%
EPS beat(8)5
Avg EPS beat(8)3.49%
EPS beat(12)9
Avg EPS beat(12)8.5%
EPS beat(16)11
Avg EPS beat(16)-0.01%
Revenue beat(2)1
Avg Revenue beat(2)2.74%
Min Revenue beat(2)-0.1%
Max Revenue beat(2)5.59%
Revenue beat(4)2
Avg Revenue beat(4)1.34%
Min Revenue beat(4)-1.12%
Max Revenue beat(4)5.59%
Revenue beat(8)6
Avg Revenue beat(8)4.34%
Revenue beat(12)9
Avg Revenue beat(12)4.68%
Revenue beat(16)12
Avg Revenue beat(16)4.36%
PT rev (1m)N/A
PT rev (3m)N/A
EPS NQ rev (1m)-1.96%
EPS NQ rev (3m)-3.11%
EPS NY rev (1m)0.75%
EPS NY rev (3m)-7.83%
Revenue NQ rev (1m)-0.36%
Revenue NQ rev (3m)10.61%
Revenue NY rev (1m)0.38%
Revenue NY rev (3m)7.47%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 56.86 | ||
| Fwd PE | 34.11 | ||
| P/S | 4.84 | ||
| P/FCF | 15.8 | ||
| P/OCF | 13.78 | ||
| P/B | 20.43 | ||
| P/tB | 21.44 | ||
| EV/EBITDA | 28.54 |
EPS(TTM)34.66
EY1.76%
EPS(NY)57.78
Fwd EY2.93%
FCF(TTM)124.7
FCFY6.33%
OCF(TTM)143.05
OCFY7.26%
SpS406.87
BVpS96.47
TBVpS91.94
PEG (NY)2.6
PEG (5Y)N/A
Graham Number274.28
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.23% | ||
| ROE | 35.94% | ||
| ROCE | 26.48% | ||
| ROIC | 18.79% | ||
| ROICexc | 59.17% | ||
| ROICexgc | 64% | ||
| OM | 12.3% | ||
| PM (TTM) | 8.52% | ||
| GM | 45.87% | ||
| FCFM | 30.65% |
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-Score4
Asset Turnover0.73
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | 0.99 | ||
| Debt/EBITDA | 0.96 | ||
| Cap/Depr | 159.85% | ||
| Cap/Sales | 4.51% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 232.43% | ||
| Profit Quality | 359.72% | ||
| Current Ratio | 1.2 | ||
| Quick Ratio | 1.18 | ||
| Altman-Z | 3.79 |
F-Score4
WACC8.54%
ROIC/WACC2.2
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)46.33%
EPS 3Y172.65%
EPS 5YN/A
EPS Q2Q%-1.62%
EPS Next Y21.85%
EPS Next 2Y33.81%
EPS Next 3Y33.91%
EPS Next 5Y32.92%
Revenue 1Y (TTM)35.81%
Revenue growth 3Y43.24%
Revenue growth 5Y55.35%
Sales Q2Q%33.85%
Revenue Next Year36.67%
Revenue Next 2Y31.39%
Revenue Next 3Y28.12%
Revenue Next 5Y23.42%
EBIT growth 1Y24.89%
EBIT growth 3Y80.24%
EBIT growth 5YN/A
EBIT Next Year73.75%
EBIT Next 3Y44.79%
EBIT Next 5Y37.08%
FCF growth 1Y79.42%
FCF growth 3Y170.77%
FCF growth 5Y86.33%
OCF growth 1Y86.73%
OCF growth 3Y101.69%
OCF growth 5Y77.37%
MERCADOLIBRE INC / 1MELI.MI FAQ
What is the fundamental rating for 1MELI stock?
ChartMill assigns a fundamental rating of 6 / 10 to 1MELI.MI.
Can you provide the valuation status for MERCADOLIBRE INC?
ChartMill assigns a valuation rating of 2 / 10 to MERCADOLIBRE INC (1MELI.MI). This can be considered as Overvalued.
How profitable is MERCADOLIBRE INC (1MELI.MI) stock?
MERCADOLIBRE INC (1MELI.MI) has a profitability rating of 7 / 10.
What is the earnings growth outlook for MERCADOLIBRE INC?
The Earnings per Share (EPS) of MERCADOLIBRE INC (1MELI.MI) is expected to grow by 21.85% in the next year.
Can you provide the dividend sustainability for 1MELI stock?
The dividend rating of MERCADOLIBRE INC (1MELI.MI) is 0 / 10 and the dividend payout ratio is 0%.