MERCADOLIBRE INC (MELI) Stock Fundamental Analysis
NASDAQ:MELI • US58733R1023
1988.26 USD
-18.74 (-0.93%)
At close: Feb 13, 2026
1987.88 USD
-0.38 (-0.02%)
After Hours: 2/13/2026, 8:23:58 PM
Taking everything into account, MELI scores 7 out of 10 in our fundamental rating. MELI was compared to 30 industry peers in the Broadline Retail industry. Both the health and profitability get an excellent rating, making MELI a very profitable company, without any liquidiy or solvency issues. MELI is valued quite expensive, but it does show an excellent growth. These ratings would make MELI suitable for growth and quality 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.
- MELI had positive earnings in 4 of the past 5 years.
- In the past 5 years MELI always reported a positive cash flow from operatings.
1.2 Ratios
- MELI's Return On Assets of 5.66% is fine compared to the rest of the industry. MELI outperforms 70.00% of its industry peers.
- With an excellent Return On Equity value of 33.40%, 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 (18.27%) 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 9.24%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.66% | ||
| ROE | 33.4% | ||
| ROIC | 18.27% |
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
- The Profit Margin of MELI (7.93%) is better than 76.67% of its industry peers.
- MELI's Profit Margin has improved in the last couple of years.
- MELI's Operating Margin of 11.96% is amongst the best of the industry. MELI outperforms 86.67% of its industry peers.
- In the last couple of years the Operating Margin of MELI has grown nicely.
- MELI has a Gross Margin of 45.14%. This is in the better half of the industry: MELI outperforms 66.67% 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 | 11.96% | ||
| PM (TTM) | 7.93% | ||
| GM | 45.14% |
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.
- 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.
- Compared to 1 year ago, MELI has an improved debt to assets ratio.
2.2 Solvency
- MELI has an Altman-Z score of 3.34. This indicates that MELI is financially healthy and has little risk of bankruptcy at the moment.
- MELI has a better Altman-Z score (3.34) than 73.33% of its industry peers.
- MELI has a debt to FCF ratio of 0.91. This is a very positive value and a sign of high solvency as it would only need 0.91 years to pay back of all of its debts.
- With an excellent Debt to FCF ratio value of 0.91, MELI belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
- MELI has a Debt/Equity ratio of 0.55. This is a neutral value indicating MELI is somewhat dependend on debt financing.
- With a Debt to Equity ratio value of 0.55, MELI perfoms like the industry average, outperforming 43.33% of the companies in the same industry.
- 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 | 0.55 | ||
| Debt/FCF | 0.91 | ||
| Altman-Z | 3.34 |
ROIC/WACC2.08
WACC8.78%
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 worse Current ratio (1.17) than 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.
- MELI's Quick ratio of 1.15 is in line compared to the rest of the industry. MELI outperforms 50.00% of its industry peers.
- MELI does not score too well on the current and quick ratio evaluation. However, as it has 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 | 1.17 | ||
| Quick Ratio | 1.15 |
3. Growth
3.1 Past
- MELI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 44.60%, which is quite impressive.
- MELI shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 172.65% yearly.
- MELI shows a strong growth in Revenue. In the last year, the Revenue has grown by 36.94%.
- MELI shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 55.35% yearly.
EPS 1Y (TTM)44.6%
EPS 3Y172.65%
EPS 5YN/A
EPS Q2Q%6.26%
Revenue 1Y (TTM)36.94%
Revenue growth 3Y43.24%
Revenue growth 5Y55.35%
Sales Q2Q%39.48%
3.2 Future
- The Earnings Per Share is expected to grow by 31.97% on average over the next years. This is a very strong growth
- Based on estimates for the next years, MELI will show a very strong growth in Revenue. The Revenue will grow by 24.56% on average per year.
EPS Next Y10.6%
EPS Next 2Y27.47%
EPS Next 3Y31.59%
EPS Next 5Y31.97%
Revenue Next Year38.68%
Revenue Next 2Y33.81%
Revenue Next 3Y29.65%
Revenue Next 5Y24.56%
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 48.52, the valuation of MELI can be described as expensive.
- MELI's Price/Earnings ratio is in line with the industry average.
- When comparing the Price/Earnings ratio of MELI to the average of the S&P500 Index (27.97), we can say MELI is valued expensively.
- MELI is valuated quite expensively with a Price/Forward Earnings ratio of 32.46.
- 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 66.67% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 27.96, MELI is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 48.52 | ||
| Fwd PE | 32.46 |
4.2 Price Multiples
- 70.00% of the companies in the same industry are cheaper than MELI, based on the Enterprise Value to EBITDA ratio.
- MELI's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. MELI is cheaper than 73.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.71 | ||
| EV/EBITDA | 25.77 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- The excellent profitability rating of MELI may justify a higher PE ratio.
- MELI's earnings are expected to grow with 31.59% in the coming years. This may justify a more expensive valuation.
PEG (NY)4.58
PEG (5Y)N/A
EPS Next 2Y27.47%
EPS Next 3Y31.59%
5. Dividend
5.1 Amount
- No dividends for MELI!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
1988.26
-18.74 (-0.93%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)10-29 2025-10-29/amc
Earnings (Next)02-24 2026-02-24/amc
Inst Owners84.22%
Inst Owner Change-0.48%
Ins Owners0.26%
Ins Owner Change0%
Market Cap100.80B
Revenue(TTM)26.19B
Net Income(TTM)2.08B
Analysts83.87
Price Target2864.62 (44.08%)
Short Float %2.14%
Short Ratio1.88
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)-13.97%
Min EPS beat(2)-15.3%
Max EPS beat(2)-12.64%
EPS beat(4)2
Avg EPS beat(4)10.73%
Min EPS beat(4)-15.3%
Max EPS beat(4)55.87%
EPS beat(8)4
Avg EPS beat(8)-0.57%
EPS beat(12)8
Avg EPS beat(12)7.16%
EPS beat(16)10
Avg EPS beat(16)-3.69%
Revenue beat(2)1
Avg Revenue beat(2)0.25%
Min Revenue beat(2)-0.1%
Max Revenue beat(2)0.61%
Revenue beat(4)3
Avg Revenue beat(4)1.77%
Min Revenue beat(4)-0.1%
Max Revenue beat(4)5.59%
Revenue beat(8)6
Avg Revenue beat(8)2.99%
Revenue beat(12)10
Avg Revenue beat(12)3.34%
Revenue beat(16)13
Avg Revenue beat(16)3.38%
PT rev (1m)0.15%
PT rev (3m)-1.71%
EPS NQ rev (1m)-1.7%
EPS NQ rev (3m)-11.55%
EPS NY rev (1m)-1.03%
EPS NY rev (3m)-8.38%
Revenue NQ rev (1m)0.24%
Revenue NQ rev (3m)2.4%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)1.63%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 48.52 | ||
| Fwd PE | 32.46 | ||
| P/S | 3.85 | ||
| P/FCF | 11.71 | ||
| P/OCF | 10.25 | ||
| P/B | 16.21 | ||
| P/tB | 16.97 | ||
| EV/EBITDA | 25.77 |
EPS(TTM)40.98
EY2.06%
EPS(NY)61.26
Fwd EY3.08%
FCF(TTM)169.82
FCFY8.54%
OCF(TTM)193.91
OCFY9.75%
SpS516.63
BVpS122.64
TBVpS117.18
PEG (NY)4.58
PEG (5Y)N/A
Graham Number336.28
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.66% | ||
| ROE | 33.4% | ||
| ROCE | 25.74% | ||
| ROIC | 18.27% | ||
| ROICexc | 37.85% | ||
| ROICexgc | 39.73% | ||
| OM | 11.96% | ||
| PM (TTM) | 7.93% | ||
| GM | 45.14% | ||
| FCFM | 32.87% |
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-Score5
Asset Turnover0.71
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.55 | ||
| Debt/FCF | 0.91 | ||
| Debt/EBITDA | 0.88 | ||
| Cap/Depr | 166.8% | ||
| Cap/Sales | 4.66% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 254.43% | ||
| Profit Quality | 414.54% | ||
| Current Ratio | 1.17 | ||
| Quick Ratio | 1.15 | ||
| Altman-Z | 3.34 |
F-Score5
WACC8.78%
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)44.6%
EPS 3Y172.65%
EPS 5YN/A
EPS Q2Q%6.26%
EPS Next Y10.6%
EPS Next 2Y27.47%
EPS Next 3Y31.59%
EPS Next 5Y31.97%
Revenue 1Y (TTM)36.94%
Revenue growth 3Y43.24%
Revenue growth 5Y55.35%
Sales Q2Q%39.48%
Revenue Next Year38.68%
Revenue Next 2Y33.81%
Revenue Next 3Y29.65%
Revenue Next 5Y24.56%
EBIT growth 1Y45.95%
EBIT growth 3Y80.24%
EBIT growth 5YN/A
EBIT Next Year65.15%
EBIT Next 3Y42.8%
EBIT Next 5Y34.72%
FCF growth 1Y99.63%
FCF growth 3Y170.77%
FCF growth 5Y86.33%
OCF growth 1Y106.79%
OCF growth 3Y101.69%
OCF growth 5Y77.37%
MERCADOLIBRE INC / MELI FAQ
What is the fundamental rating for MELI stock?
ChartMill assigns a fundamental rating of 7 / 10 to MELI.
What is the valuation status of MERCADOLIBRE INC (MELI) stock?
ChartMill assigns a valuation rating of 3 / 10 to MERCADOLIBRE INC (MELI). This can be considered as Overvalued.
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 8 / 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%.