Mercadolibre (MELI) AI Stock Analysis

• Market Cap: $121.22B
• Dividend Yield: N/A
• Average Volume (3M): 296.70K
• Price to Earnings (P/E): 58.8
• Beta (1Y): 1.12
• Revenue Growth: 41.92%
• EPS Growth: 81.11%
• Country: US
• Employees: 84,207
• Sector: Consumer Cyclical
• Sector Strength: 64
• Industry: Specialty Retail
• EPS (TTM): 9.74
• Shares Outstanding: 50,697,376
• 10 Day Avg. Volume: 266,617
• 30 Day Avg. Volume: 296,696
• PEG Ratio: 7.53
• Price to Book (P/B): 24.28
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 16.04
• Enterprise Value/Market Cap: 1.04
• Enterprise Value/Revenue: 1.59
• Enterprise Value/Gross Profit: 12.20
• Enterprise Value/Ebitda: 10.60
• 1Y Price Target: $2,865.38
• Price Target Upside: 21.28% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 14

• Rating: 75 Outperform
• Price Target: $2,676.00 ▲(13.27%Upside)

Mercadolibre's strong financial performance and positive earnings call sentiment are the most significant strengths, supporting its potential for continued growth. However, technical indicators and a high P/E ratio suggest caution, as the stock may be overvalued with some bearish momentum.

Positive Factors

Advertising Strategy

The integration with Google Authorized Buyers allows MELI to offer display advertisers access to about 30,000 off-platform sites and apps, enhancing programmatic ad reach.

Financial Performance

Argentina operations are a key upside driver, with significant growth in items sold and contribution profits, supporting overall margin.

Revenue Growth

Management is increasing its commitment to expanding its credit card program and reach, which could add to Fintech revenue growth and consolidated revenue growth.

Negative Factors

Competition

MELI's ad platform continues to face considerable competition from other digital advertising alternatives, impacting its advertising penetration rates.

Earnings

Expanded Brazil shipping investments are seen as a headwind to earnings, with upfront costs due to new free shipping policies.

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 makes money primarily through its e-commerce platform by charging transaction fees to sellers on its marketplace. The company also generates significant revenue from its fintech arm, Mercado Pago, which offers payment processing solutions and financial services such as credit lines and investment products. Additionally, Mercado Envios contributes to revenue by providing logistics and fulfillment services. Digital advertising on the platform represents another growing revenue stream, as businesses pay to promote their products to MercadoLibre's vast user base. Strategic partnerships with financial institutions and other technology providers further enhance its service offerings and contribute to its earnings.

Mercadolibre Financial Statement Overview

Summary

MercadoLibre demonstrates strong financial performance with consistent revenue growth, healthy profitability margins, and robust cash flow generation. The company's low leverage and high return on equity indicate efficient financial management, supporting continued growth and resilience against industry challenges.

Income Statement

Mercadolibre demonstrates strong revenue growth with a TTM revenue increase from $20.8B to $21.8B, showing consistent expansion. The gross profit margin is robust at 47.4%, and the net profit margin is healthy at 9.5%, indicating effective cost management and profitability. EBITDA and EBIT margins are solid at 15.3% and 13.2%, respectively, showcasing operational efficiency. The company's consistent revenue growth and profitability margins position it well within its industry.

Balance Sheet

The balance sheet reflects a stable financial position with a manageable debt-to-equity ratio of 0.26, suggesting low leverage. The return on equity of 41.2% indicates excellent profitability relative to shareholder equity, driven by strong net income. The equity ratio stands at 18.1%, showing moderate reliance on equity financing. While the company maintains a strong equity position, greater equity financing could enhance financial stability.

Cash Flow

Mercadolibre's cash flow is strong, with a free cash flow of $7.57B, reflecting a significant increase from $7.06B, and an impressive operating cash flow to net income ratio of 3.75, indicating robust cash generation from operations. The free cash flow to net income ratio of 3.67 highlights efficient conversion of income to cash. The company's ability to generate substantial cash flow supports its financial flexibility and growth potential.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	20.78B	14.47B	10.54B	7.07B	3.97B
Gross Profit	9.58B	7.21B	5.16B	3.01B	1.71B
EBITDA	3.25B	2.29B	1.36B	614.28M	269.30M
Net Income	1.91B	987.00M	482.00M	83.00M	-707.00K
Balance Sheet
Total Assets	25.20B	17.65B	13.74B	10.10B	6.53B
Cash, Cash Equivalents and Short-Term Investments	3.75B	7.33B	3.03B	2.79B	2.46B
Total Debt	6.85B	5.33B	5.41B	3.98B	1.71B
Total Liabilities	20.84B	14.57B	11.91B	8.57B	4.87B
Stockholders Equity	4.35B	3.07B	1.83B	1.53B	1.65B
Cash Flow
Free Cash Flow	7.06B	4.63B	2.48B	355.55M	935.41M
Operating Cash Flow	7.92B	5.14B	2.94B	965.04M	1.18B
Investing Cash Flow	-8.29B	-3.45B	-3.87B	-1.60B	-252.18M
Financing Cash Flow	1.96B	-267.00M	916.00M	1.93B	242.27M

Mercadolibre Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2362.56
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• 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 2362.56 is below the 20-day moving average (MA) of 2437.87, below the 50-day MA of 2482.42, and above the 200-day MA of 2120.71, indicating a neutral trend. The MACD of -25.01 indicates Positive momentum. The RSI at 41.50 is Neutral, neither overbought nor oversold. The STOCH value of 45.38 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
BABA	79 Outperform	$292.45B	16.05	13.04%	0.01%	5.17%	74.55%
SE	78 Outperform	$93.46B	111.02	11.13%	―	30.18%	1995.22%
EBAY	77 Outperform	$38.01B	19.71	36.48%	1.38%	2.04%	-15.61%
MELI	75 Outperform	$121.22B	58.82	49.11%	―	41.92%	81.11%
CPNG	74 Outperform	$54.72B	217.93	6.06%	―	20.88%	-80.08%
ETSY	73 Outperform	$6.67B	45.45	-39.97%	―	2.18%	-32.87%
Sector *	57 Neutral	HK$26.40B	4.11	-2.03%	5.49%	-0.23%	-68.02%

Mercadolibre Corporate Events

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.

The most recent analyst rating on (MELI) stock is a Buy with a $2250.00 price target. To see the full list of analyst forecasts on Mercadolibre stock, see the MELI Stock Forecast page.

MercadoLibre Announces Leadership Transition Effective 2026

On May 16, 2025, MercadoLibre, Inc. announced a leadership transition effective January 1, 2026. Marcos Galperin will move to a strategic role as Executive Chairman, while Ariel Szarfsztejn, currently the Commerce President, will assume the role of President and CEO. Szarfsztejn, who joined the company in 2017, has held various leadership roles, and his appointment signals a continued focus on strategic growth and development within the company.

The most recent analyst rating on (MELI) stock is a Buy with a $2250.00 price target. To see the full list of analyst forecasts on Mercadolibre stock, see the MELI Stock Forecast page.