MERCADOLIBRE INC (MELI) Stock Fundamental Analysis
USA - NASDAQ:MELI - US58733R1023 - Common Stock
2480 USD
+33.68 (+1.38%)
We assign a fundamental rating of 7 out of 10 to MELI. MELI was compared to 28 industry peers in the Broadline Retail industry. MELI gets an excellent profitability rating and is at the same time showing great financial health properties. MELI shows excellent growth, but is valued quite expensive already. With these ratings, MELI could be worth investigating further for growth and quality 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.
MELI had positive earnings in 4 of the past 5 years.
MELI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
MELI has a Return On Assets of 6.23%. This is in the better half of the industry: MELI outperforms 67.86% of its industry peers.
With an excellent Return On Equity value of 35.94%, MELI belongs to the best of the industry, outperforming 96.43% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 18.79%, MELI belongs to the top of the industry, outperforming 89.29% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for MELI is significantly above the industry average of 11.01%.
| 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
With a decent Profit Margin value of 8.52%, MELI is doing good in the industry, outperforming 75.00% of the companies in the same industry.
MELI's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 12.30%, MELI belongs to the best of the industry, outperforming 82.14% of the companies in the same industry.
MELI's Operating Margin has improved in the last couple of years.
MELI's Gross Margin of 45.87% is fine compared to the rest of the industry. MELI outperforms 64.29% 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 | 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
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.
Compared to 5 years ago, MELI has more shares outstanding
MELI has a better debt/assets ratio than last year.
2.2 Solvency
MELI has an Altman-Z score of 4.12. This indicates that MELI is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 4.12, MELI is doing good in the industry, outperforming 67.86% of the companies in the same industry.
The Debt to FCF ratio of MELI is 0.99, which is an excellent value as it means it would take MELI, only 0.99 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.99, MELI belongs to the top of the industry, outperforming 82.14% of the companies in the same industry.
A Debt/Equity ratio of 0.61 indicates that MELI is somewhat dependend on debt financing.
The Debt to Equity ratio of MELI (0.61) is worse than 67.86% 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 | 0.61 | ||
| Debt/FCF | 0.99 | ||
| Altman-Z | 4.12 |
ROIC/WACC2.08
WACC9.02%
2.3 Liquidity
MELI has a Current Ratio of 1.20. 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 1.20. This is in the lower half of the industry: MELI underperforms 75.00% of its industry peers.
MELI has a Quick Ratio of 1.18. 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 1.18. This is comparable to the rest of the industry: MELI outperforms 57.14% of its industry peers.
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 | 1.2 | ||
| Quick Ratio | 1.18 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 46.33% over the past year.
Measured over the past years, MELI shows a very strong growth in Earnings Per Share. The EPS has been growing by 172.65% on average per year.
The Revenue has grown by 35.81% 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 55.35% yearly.
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
The Earnings Per Share is expected to grow by 32.89% on average over the next years. This is a very strong growth
MELI is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 22.65% yearly.
EPS Next Y20.94%
EPS Next 2Y33.95%
EPS Next 3Y33.95%
EPS Next 5Y32.89%
Revenue Next Year36.15%
Revenue Next 2Y31.03%
Revenue Next 3Y27.79%
Revenue Next 5Y22.65%
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 61.25, which means the current valuation is very expensive for MELI.
MELI's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 27.20. MELI is valued rather expensively when compared to this.
Based on the Price/Forward Earnings ratio of 36.66, the valuation of MELI can be described as expensive.
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 60.71% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.70, MELI is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 61.25 | ||
| Fwd PE | 36.66 |
4.2 Price Multiples
MELI's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. MELI is more expensive than 60.71% of the companies in the same industry.
MELI's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. MELI is cheaper than 64.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.03 | ||
| EV/EBITDA | 32.66 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates MELI does not grow enough to justify the current Price/Earnings ratio.
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 33.95% in the coming years.
PEG (NY)2.93
PEG (5Y)N/A
EPS Next 2Y33.95%
EPS Next 3Y33.95%
5. Dividend
5.1 Amount
No dividends for MELI!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NASDAQ:MELI (9/18/2025, 9:41:22 AM)
2480
+33.68 (+1.38%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)
Earnings (Next)
Inst Owners84.76%
Inst Owner Change-0.39%
Ins Owners0.26%
Ins Owner Change0.02%
Market Cap125.74B
Analysts83.87
Price Target2925.37 (17.96%)
Short Float %1.82%
Short Ratio2.45
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
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)3.33%
Revenue beat(12)9
Avg Revenue beat(12)3.16%
Revenue beat(16)12
Avg Revenue beat(16)3.22%
PT rev (1m)-0.3%
PT rev (3m)3.71%
EPS NQ rev (1m)-2.51%
EPS NQ rev (3m)-1.18%
EPS NY rev (1m)-9.79%
EPS NY rev (3m)-8.52%
Revenue NQ rev (1m)1.45%
Revenue NQ rev (3m)11.02%
Revenue NY rev (1m)2.43%
Revenue NY rev (3m)4.29%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 61.25 | ||
| Fwd PE | 36.66 | ||
| P/S | 5.22 | ||
| P/FCF | 17.03 | ||
| P/OCF | 14.84 | ||
| P/B | 22.01 | ||
| P/tB | 23.09 | ||
| EV/EBITDA | 32.66 |
EPS(TTM)40.49
EY1.63%
EPS(NY)67.64
Fwd EY2.73%
FCF(TTM)145.66
FCFY5.87%
OCF(TTM)167.1
OCFY6.74%
SpS475.27
BVpS112.68
TBVpS107.4
PEG (NY)2.93
PEG (5Y)N/A
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%
ROICexcg growth 3Y46.42%
ROICexcg 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 | 4.12 |
F-Score4
WACC9.02%
ROIC/WACC2.08
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 Y20.94%
EPS Next 2Y33.95%
EPS Next 3Y33.95%
EPS Next 5Y32.89%
Revenue 1Y (TTM)35.81%
Revenue growth 3Y43.24%
Revenue growth 5Y55.35%
Sales Q2Q%33.85%
Revenue Next Year36.15%
Revenue Next 2Y31.03%
Revenue Next 3Y27.79%
Revenue Next 5Y22.65%
EBIT growth 1Y24.89%
EBIT growth 3Y80.24%
EBIT growth 5YN/A
EBIT Next Year79.86%
EBIT Next 3Y45.4%
EBIT Next 5Y36.87%
FCF growth 1Y79.42%
FCF growth 3Y170.77%
FCF growth 5Y86.33%
OCF growth 1Y86.73%
OCF growth 3Y101.69%
OCF growth 5Y77.37%