Mercadolibre (MELI) AI Stock Analysis

• Market Cap: $104.18B
• Dividend Yield: N/A
• Average Volume (3M): 574.75K
• Price to Earnings (P/E): 50.2
• Beta (1Y): 0.91
• Revenue Growth: 38.01%
• EPS Growth: 44.52%
• Country: US
• Employees: 84,207
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Specialty Retail
• EPS (TTM): 8.32
• Shares Outstanding: 50,697,180
• 10 Day Avg. Volume: 616,868
• 30 Day Avg. Volume: 574,750
• PEG Ratio: 0.49
• Price to Book (P/B): 19.81
• Price to Sales (P/S): 4.15
• P/FCF Ratio: 12.21
• Enterprise Value/Market Cap: 1.14
• Enterprise Value/Revenue: 4.52
• Enterprise Value/Gross Profit: 10.02
• Enterprise Value/Ebitda: 35.74
• 1Y Price Target: $2,810.83
• Price Target Upside: 39.92% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 12
• EPS Forecast (FY): 41.33
• Revenue Forecast (FY): $28.56B

• Rating: 71 Outperform
• Price Target: $2,312.00 ▲(15.09% Upside)

Mercadolibre's strong financial performance and positive earnings call sentiment are the primary drivers of its score. However, technical analysis indicates bearish trends, and valuation metrics suggest the stock may be overvalued. Macroeconomic challenges in Argentina and margin pressures in Brazil are notable risks.

Positive Factors

Revenue Growth

Sustained revenue growth over multiple quarters indicates strong market demand and effective business strategies, enhancing long-term stability.

User Base Expansion

A growing user base strengthens network effects, increasing platform value and potential for monetization, supporting future growth.

Logistics Efficiency

Improved logistics efficiency reduces costs and enhances service quality, providing a competitive edge in the e-commerce sector.

Negative Factors

High Debt Levels

High debt levels can limit financial flexibility and increase risk, potentially impacting long-term financial health if not managed well.

Macroeconomic Challenges

Economic instability in key markets like Argentina can affect revenue and profitability, posing a challenge to consistent performance.

Margin Pressure in Brazil

Margin pressures from strategic investments can strain profitability, requiring careful management to ensure long-term financial health.

Mercadolibre Business Overview & Revenue Model

Company Description

Mercadolibre, Inc. (MELI) is the largest e-commerce platform in Latin America, operating across various sectors including online marketplaces, fintech, and logistics. Founded in 1999, the company offers a wide array of services such as e-commerce transactions, digital payments through Mercado Pago, and shipping solutions via Mercado Envios. Its platform connects millions of buyers and sellers, providing a comprehensive ecosystem for online commerce across multiple countries in the region.

How the Company Makes Money

Mercadolibre generates revenue through several key streams. The primary source is the fees charged to sellers for listing products and for transactional services on its marketplace platform. These fees include a percentage of the sale price and additional charges for premium listings. The company also earns significant revenue from its fintech operations, particularly through Mercado Pago, which offers payment processing services, digital wallets, and credit services. This segment has seen substantial growth as digital payments become increasingly popular in the region. Additionally, Mercadolibre benefits from logistics and shipping services through Mercado Envios, where it charges sellers for shipping and fulfillment solutions. Strategic partnerships with banks, payment processors, and logistic providers further enhance its revenue potential, allowing the company to capitalize on the growing e-commerce and digital payment markets in Latin America.

Mercadolibre Financial Statement Overview

Summary

Mercadolibre exhibits strong financial health with impressive revenue and profit growth, supported by effective cost management. While the high debt-to-equity ratio warrants attention, the company maintains a strong return on equity and robust cash flow generation. Continued focus on operational efficiency and debt management will be crucial for sustaining its financial performance.

Income Statement

Mercadolibre has demonstrated strong revenue growth with an 8.7% increase in the TTM period, supported by a solid gross profit margin of 45.9%. The net profit margin is healthy at 8.5%, indicating effective cost management. However, there is a slight decline in EBIT and EBITDA margins compared to previous years, suggesting potential pressure on operational efficiency.

Balance Sheet

The company's balance sheet shows a high debt-to-equity ratio of 1.57, which could pose a risk if not managed carefully. However, the return on equity is impressive at 47.1%, reflecting strong profitability relative to shareholder investments. The equity ratio is moderate, indicating a balanced approach to financing.

Cash Flow

Mercadolibre's cash flow is robust, with a significant free cash flow growth of 32.16% in the TTM period. The operating cash flow to net income ratio is 0.37, suggesting efficient cash generation from operations. The free cash flow to net income ratio of 0.90 indicates strong cash conversion, although there is room for improvement in operating cash flow coverage.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	26.19B	20.78B	15.11B	10.78B	7.07B	3.97B
Gross Profit	11.82B	9.58B	7.59B	5.20B	3.00B	1.71B
EBITDA	3.32B	3.21B	2.25B	1.32B	674.00M	293.00M
Net Income	2.08B	1.91B	987.00M	482.00M	83.00M	-1.00M
Balance Sheet
Total Assets	36.69B	25.20B	17.61B	13.74B	10.10B	6.53B
Cash, Cash Equivalents and Short-Term Investments	12.91B	3.69B	3.75B	3.03B	2.79B	2.46B
Total Debt	2.04B	6.88B	5.35B	5.43B	3.98B	1.71B
Total Liabilities	30.47B	20.84B	14.54B	11.91B	8.57B	4.87B
Stockholders Equity	6.22B	4.35B	3.07B	1.83B	1.53B	1.65B
Cash Flow
Free Cash Flow	7.94B	7.06B	4.63B	2.48B	355.55M	935.41M
Operating Cash Flow	9.05B	7.92B	5.14B	2.94B	965.04M	1.18B
Investing Cash Flow	-5.84B	-8.29B	-3.45B	-3.87B	-1.60B	-252.18M
Financing Cash Flow	2.11B	1.96B	-267.00M	916.00M	1.93B	242.27M

Mercadolibre Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2008.92
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MELI, the sentiment is Negative. The current price of 2008.92 is below the 20-day moving average (MA) of 2118.34, below the 50-day MA of 2201.09, and below the 200-day MA of 2274.72, indicating a bearish trend. The MACD of -58.51 indicates Positive momentum. The RSI at 43.27 is Neutral, neither overbought nor oversold. The STOCH value of 61.60 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MELI.

Mercadolibre Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MELI	71 Outperform	$104.18B	50.16	40.65%	―	38.01%	44.52%
EBAY	70 Outperform	$37.29B	17.95	42.43%	1.40%	4.89%	17.30%
PDD	70 Outperform	$161.21B	12.09	30.03%	―	11.25%	-7.28%
SE	69 Neutral	$80.69B	58.29	15.66%	―	35.85%	1336.48%
CPNG	66 Neutral	$50.71B	131.38	8.73%	―	16.63%	-62.54%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
ETSY	55 Neutral	$5.33B	37.74	―	―	1.98%	-20.98%

Mercadolibre Corporate Events

MercadoLibre’s Earnings Call Highlights Growth Amid Challenges

MercadoLibre’s recent earnings call painted a picture of robust growth and strategic advancements, despite some regional challenges. The overall sentiment was positive, with the company showcasing impressive revenue growth and strategic market expansions. However, macroeconomic challenges in Argentina and margin pressures in Brazil due to strategic investments were acknowledged as significant hurdles.

MercadoLibre Reports Strong Q3 2025 Financial Results

MercadoLibre, Inc. is a leading e-commerce and fintech company in Latin America, providing a comprehensive suite of technology solutions to democratize access to commerce and financial services.

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.