Mercadolibre (MELI) AI Stock Analysis

• Market Cap: $124.75B
• Dividend Yield: N/A
• Average Volume (3M): 363.17K
• Price to Earnings (P/E): 61.6
• Beta (1Y): 1.03
• Revenue Growth: 38.27%
• EPS Growth: 46.21%
• Country: US
• Employees: 84,207
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Specialty Retail
• EPS (TTM): 10.31
• Shares Outstanding: 50,697,376
• 10 Day Avg. Volume: 390,647
• 30 Day Avg. Volume: 363,168
• 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: 1.06
• Enterprise Value/Revenue: 5.50
• Enterprise Value/Gross Profit: 12.00
• Enterprise Value/Ebitda: 37.49
• 1Y Price Target: $2,933.33
• Price Target Upside: 16.82% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 13

• Rating: 74 Outperform
• Price Target: $2,677.00 ▲(6.61% Upside)

MercadoLibre's strong financial performance and positive earnings call are the most significant factors driving the score. However, high valuation and mixed technical indicators temper the overall outlook. The company's strategic initiatives in FinTech and advertising are promising, but managing marketing expenses and credit quality will be key to sustaining growth.

Positive Factors

Revenue Growth

The company's robust revenue growth underscores its expanding market presence and effective business model, positioning it well for sustained long-term success in the Latin American e-commerce sector.

FinTech Expansion

The significant growth in Mercado Pago highlights the company's successful expansion in the fintech sector, enhancing revenue diversification and strengthening its competitive position in digital payments.

Advertising Revenue Growth

The increase in advertising revenue, supported by strategic partnerships, indicates a strong potential for future growth, enhancing the company's revenue streams and market influence.

Negative Factors

High Leverage

High leverage can pose risks to financial stability, potentially impacting the company's ability to invest in growth opportunities and manage economic downturns effectively.

Increased Marketing Expenses

Rising marketing expenses may pressure margins, challenging the company's ability to maintain profitability while pursuing aggressive growth strategies.

Elevated NPL Ratio

An elevated NPL ratio indicates potential credit risk, which could affect the company's financial health and limit its ability to expand its credit portfolio sustainably.

Mercadolibre Business Overview & Revenue Model

Company Description

MercadoLibre, Inc. operates online commerce platforms in Latin America. It operates Mercado Libre Marketplace, an automated online commerce platform that enables businesses, merchants, and individuals to list merchandise and conduct sales and purchases online; and Mercado Pago FinTech platform, a financial technology solution platform, which facilitates transactions on and off its marketplaces by providing a mechanism that allows its users to send and receive payments online, as well as allows users to transfer money through their websites or on the apps. The company also offers Mercado Fondo that allows users to invest funds deposited in their Mercado Pago accounts; Mercado Credito, which extends loans to certain merchants and consumers; and Mercado Envios logistics solution that enables sellers on its platform to utilize third-party carriers and other logistics service providers, as well as fulfillment and warehousing services for sellers. In addition, it provides Mercado Libre Classifieds, an online classified listing service, where users can list and purchase motor vehicles, real estate, and services; Mercado Libre Ads, an advertising platform, which enables large retailers and brands to promote their products and services on the Internet; and Mercado Shops, an online storefronts solution that enables users to set-up, manage, and promote their own digital stores. MercadoLibre, Inc. was incorporated in 1999 and is headquartered in Montevideo, Uruguay.

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: 2510.97
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 2510.97 is above the 20-day moving average (MA) of 2413.01, above the 50-day MA of 2386.57, and above the 200-day MA of 2200.15, indicating a bullish trend. The MACD of 25.05 indicates Negative momentum. The RSI at 63.63 is Neutral, neither overbought nor oversold. The STOCH value of 82.33 is Negative, 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	181.87B	14.28	27.06%	―	20.09%	-1.83%
SE	78 Outperform	110.01B	94.29	12.43%	―	34.12%	―
EBAY	77 Outperform	42.67B	20.12	45.99%	1.22%	3.05%	-10.82%
MELI	74 Outperform	$124.75B	61.60	43.83%	―	38.27%	46.21%
CPNG	62 Neutral	58.41B	161.33	7.79%	―	18.69%	-65.55%
ETSY	59 Neutral	6.35B	51.22	-14.58%	―	2.38%	-38.88%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

Mercadolibre Corporate Events

MercadoLibre Amends Revolving Credit Agreement with Citibank

On September 12, 2025, MercadoLibre, Inc. entered into an Amendment No. 1 to its Amended and Restated Revolving Credit Agreement with Citibank, N.A. as the administrative agent. This amendment, which involves several of MercadoLibre’s subsidiaries as guarantors, signifies a strategic financial move that could enhance the company’s liquidity and operational flexibility, potentially impacting its market positioning and stakeholder interests.

The most recent analyst rating on (MELI) stock is a Buy with a $3000.00 price target. To see the full list of analyst forecasts on Mercadolibre stock, see the MELI Stock Forecast page.