Mercadolibre (MELI) AI Stock Analysis

• Market Cap: $120.65B
• Dividend Yield: N/A
• Average Volume (3M): 345.96K
• Price to Earnings (P/E): 58.6
• Beta (1Y): 1.08
• Revenue Growth: 38.27%
• EPS Growth: 46.21%
• Country: US
• Employees: 84,207
• Sector: Consumer Cyclical
• Sector Strength: 80
• Industry: Specialty Retail
• EPS (TTM): 10.31
• Shares Outstanding: 50,697,376
• 10 Day Avg. Volume: 313,806
• 30 Day Avg. Volume: 345,963
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.10
• Enterprise Value/Revenue: 5.50
• Enterprise Value/Gross Profit: 12.00
• Enterprise Value/Ebitda: 37.49
• 1Y Price Target: $2,916.67
• Price Target Upside: 20.63% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 13

• Rating: 78 Outperform
• Price Target: $2,756.00 ▲(13.99% Upside)

MercadoLibre's strong financial performance and positive earnings call sentiment are the primary drivers of its high score. Technical indicators support a stable outlook, while valuation reflects high growth expectations. Challenges include high leverage and increased marketing expenses, but strategic initiatives in fintech and advertising bolster long-term potential.

Positive Factors

Growth Opportunities

There is a major opportunity for broad scale-up and democratization to some extent, as 6 out of 10 Argentines lack access to a credit card.

Market Expansion

Pago has applied for a full banking license in Argentina, which would allow access to stable, lower-cost funding in both local and foreign currencies.

Product Launch

MELI announced earlier today that it has launched its physical/virtual credit card supported by the Mastercard network.

Negative Factors

Competitive Pressure

The competitive environment in Brazil is intensifying, with Shopee emerging as a strong competitor.

Credit Risk

Delinquencies for 3-month-old cohorts increased significantly, marking the highest pace of increase since July of the previous year.

Profitability Challenges

Near-term margin pressure persists due to elevated marketing spend and a reduced free shipping threshold in Brazil, impacting profitability.

Mercadolibre Business Overview & Revenue Model

Company Description

Mercadolibre, Inc. (MELI) is the leading e-commerce platform in Latin America, providing a marketplace that connects buyers and sellers across the region. Founded in 1999 in Argentina, the company operates in various sectors including e-commerce, digital payments, and logistics. Its core products and services encompass an online marketplace for a wide range of goods, a payment solution called Mercado Pago, and logistics services known as Mercado Envios, enabling seamless transactions and delivery across multiple countries in Latin America.

How the Company Makes Money

Mercadolibre generates revenue through multiple streams, primarily from its e-commerce marketplace, where it earns fees from sellers based on the sales they make. This includes listing fees, transaction fees, and commissions on sales. Additionally, Mercado Pago, the company's digital payments platform, contributes significantly to its revenue by charging transaction fees for payment processing services. The company also earns money from its logistics services, Mercado Envios, which provides shipping solutions for sellers. Strategic partnerships with financial institutions and other businesses enhance its payment services and logistics capabilities, further driving growth and revenue. Overall, Mercadolibre's diversified revenue model, focusing on e-commerce, fintech, and logistics, positions it well in the rapidly growing Latin American market.

Mercadolibre Financial Statement Overview

Summary

Mercadolibre exhibits strong financial performance with consistent revenue growth and solid profitability. The company maintains healthy margins and cash flows, though high leverage poses a risk. Effective returns on equity and cash flow generation support its financial stability.

Income Statement

Mercadolibre has demonstrated strong revenue growth with a 7.67% increase in TTM, building on consistent annual growth. The company maintains healthy margins, with a gross profit margin of 45.87% and a net profit margin of 8.52% in TTM. EBIT and EBITDA margins are solid, indicating efficient operations. However, slight declines in margins compared to previous years suggest potential cost pressures.

Balance Sheet

The balance sheet shows a high debt-to-equity ratio of 2.03, indicating significant leverage, which could pose risks if not managed carefully. However, the return on equity is strong at 43.06%, reflecting effective use of equity to generate profits. The equity ratio is moderate, suggesting a balanced asset structure.

Cash Flow

Mercadolibre's cash flow is robust, with a 13.23% growth in free cash flow in TTM. The operating cash flow to net income ratio is healthy, indicating strong cash generation relative to profits. The free cash flow to net income ratio of 0.90 suggests efficient conversion of profits into cash, supporting financial flexibility.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	24.10B	20.78B	15.11B	10.54B	7.07B	3.97B
Gross Profit	11.05B	9.28B	7.33B	4.96B	2.91B	1.64B
EBITDA	3.54B	3.06B	2.14B	1.36B	614.28M	269.30M
Net Income	2.05B	1.91B	987.00M	482.00M	83.00M	-707.00K
Balance Sheet
Total Assets	32.95B	25.20B	17.61B	13.74B	10.10B	6.53B
Cash, Cash Equivalents and Short-Term Investments	11.52B	9.18B	7.33B	5.70B	4.46B	3.75B
Total Debt	11.61B	8.81B	6.42B	5.90B	4.32B	1.71B
Total Liabilities	27.23B	20.84B	14.54B	11.91B	8.57B	4.87B
Stockholders Equity	5.71B	4.35B	3.07B	1.83B	1.53B	1.65B
Cash Flow
Free Cash Flow	7.21B	7.06B	4.63B	2.48B	355.55M	935.41M
Operating Cash Flow	8.00B	7.92B	5.14B	2.94B	965.04M	1.18B
Investing Cash Flow	-7.68B	-8.29B	-3.45B	-3.87B	-1.60B	-252.18M
Financing Cash Flow	2.83B	1.96B	-267.00M	916.00M	1.93B	242.27M

Mercadolibre Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2417.80
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MELI, the sentiment is Positive. The current price of 2417.8 is above the 20-day moving average (MA) of 2376.22, above the 50-day MA of 2407.48, and above the 200-day MA of 2169.51, indicating a bullish trend. The MACD of 8.36 indicates Negative momentum. The RSI at 53.09 is Neutral, neither overbought nor oversold. The STOCH value of 36.14 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MELI.

Mercadolibre Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PDD	79 Outperform	$169.00B	13.56	31.78%	―	20.09%	-1.83%
MELI	78 Outperform	$120.65B	58.60	43.83%	―	38.27%	46.21%
SE	78 Outperform	$110.44B	90.71	14.48%	―	34.12%	―
EBAY	77 Outperform	$41.08B	19.86	42.63%	1.23%	3.05%	-10.82%
CPNG	62 Neutral	$51.79B	142.65	8.55%	―	18.69%	-65.55%
Sector *	61 Neutral	$17.96B	13.14	-5.36%	3.00%	1.25%	-13.95%
ETSY	57 Neutral	$5.25B	41.35	-39.97%	―	2.38%	-38.88%

Mercadolibre Corporate Events

MercadoLibre Approves Director Compensation and Stock Buyback

On July 29, 2025, MercadoLibre’s Board of Directors approved a compensation plan for independent directors, which includes a cash retainer and equity awards based on the company’s stock market value. Additionally, the Board authorized a stock repurchase program with a budget of up to $4,050,000, intended to support the compensation plan and other corporate purposes, with flexibility in timing and conditions based on market factors.

MercadoLibre Holds Annual Stockholders Meeting 2025

On June 17, 2025, MercadoLibre, Inc. held its Annual Meeting of Stockholders to elect Class I and Class III directors, approve executive compensation for fiscal year 2024, and ratify the appointment of its independent public accounting firm for 2025. The stockholders successfully elected all director nominees, approved the executive compensation, and ratified the accounting firm appointment, indicating strong shareholder support for the company’s governance and financial oversight.