MercadoLibre, Inc. (MELI)
NEUTRALFundamental
71
Price
$1987.27
Market Cap
$98.75B
Part 1 · What the company is worth
Overview
MercadoLibre runs Latin America's largest online marketplace and, alongside it, Mercado Pago, a payments and financial-services business that grew out of the need to let strangers pay each other safely online in markets with limited card penetration. The two businesses now reinforce each other: sellers use MercadoLibre's logistics and Mercado Pago's credit, and Mercado Pago increasingly operates outside the marketplace too, in physical stores and as a standalone digital wallet.
How it makes money
Commerce revenue comes from seller commissions on marketplace transactions, shipping fees, advertising and MercadoLibre's own first-party product sales. Fintech revenue comes from payment-processing fees on and off the platform, interest income on consumer and merchant loans made through Mercado Credito, and fees on financial products such as insurance and asset management. Brazil, Argentina and Mexico together generate the large majority of both.
Revenue by segment
Marketplace commissions, shipping, advertising and first-party retail sales across Brazil, Argentina, Mexico and other Latin American markets.
Mercado Pago's payment processing, consumer and merchant lending, insurance and asset-management fees, both on and off the marketplace.
Competitive moat
Network effects · WideMore buyers attract more sellers, which funds the logistics network that makes delivery faster, which attracts more buyers — a loop MercadoLibre has been running longer and at greater scale than any Latin American rival. Mercado Pago's credit and payments layer, built on years of transaction data across the region, adds a second reinforcing loop that a marketplace-only competitor cannot easily copy.
What drives demand
Moderately cyclicalE-commerce and digital payments penetration in Latin America is still rising structurally, giving MercadoLibre a growth tailwind independent of the economic cycle, but consumer spending and credit demand in Brazil, Argentina and Mexico are exposed to inflation, currency swings and interest-rate cycles that can slow growth in any given year without reversing the longer trend.
Key risks
- Geographic and currency concentration — Brazil, Argentina and Mexico generate 95.6% of 2025 revenue; currency devaluation, inflation and Argentina's hyperinflationary accounting treatment all flow directly into reported results.
- Credit risk in fintech lending — Mercado Credito's loan book has grown quickly; faster loan origination raises the risk that default rates rise before the company has enough history to price and provision for them accurately.
- Financial regulation across multiple jurisdictions — As Mercado Pago expands into banking-like products across several countries, it becomes subject to evolving financial regulation in each one, which can raise compliance costs or restrict products.
- Competition on two fronts at once — MercadoLibre competes against Amazon and Shopee in commerce and against traditional banks and other fintechs in payments and lending, simultaneously, in every market it serves.
The case for
Buyers argue that MercadoLibre's combination of marketplace scale, proprietary logistics and a fast-growing fintech arm gives it a compounding advantage that pure e-commerce or pure fintech rivals in Latin America cannot match individually.
The case against
Sellers worry that near-total reliance on three volatile economies exposes results to currency and inflation swings largely outside the company's control, and that the fast-growing loan book could turn from a growth driver into a source of losses if credit conditions deteriorate.
Written by the editors, published on August 18, 2026
Direct competitors
Who this company fights with for the same customers
No editorial profile for this company yet
No competitor list for this company yet.
Balance Sheet & Liquidity
Revenue
$24.46B
Trailing 12 months (through 6/30/2026)
Net Income
$1.86B
Trailing 12 months (through 6/30/2026)
Free Cash Flow
$10.77B
Total Equity
$6.75B
Total Liabilities
$35.92B
Current Ratio
1.12
Interest Coverage
-
Debt/EBITDA
4.99
Earnings Per Share
Revenue & Net Income
Free Cash Flow
Income Breakdown
Historical statement
Margins over time
Debt over time
How heavy the debt is
Growth grid
Growth — Revenue
Fair Value Estimation
Fair Value
$2271.46
Current Price
$1987.27
Margin of Safety
+12.5%
Fair Value Range
$1488.82 - $3054.10
Estimation Methods
Valuation Metrics
P/E Ratio
52.98
ROE
29.6%
P/B Ratio
12.61
P/FCF
7.96
Gross Margin
61.4%
ROIC
15.3%
Profitability Radar
Value Creation (Economic Moat)
ROIC
15.3%
WACC
9.7%
ROIC − WACC
+5.6 pp
ROIC exceeds the cost of capital — the company is creating value for shareholders.
Fundamental Analysis Criteria
Passed (18)
- EPS shows upward trend
- EPS CAGR 30.62%
- Price CAGR 28.55%
- ROIC 15.3%
- Gross Margin 61.4%
- P/FCF 7.96
- Operating Margin 11.9%
- Positive Free Cash Flow
- CapEx intensity
- Current Ratio
- Debt/EBITDA
- Return on Tangible Assets
- Low reliance on intangibles
- ROE 26.5%
- Revenue Growth 5Y 48.7%
- Analyst Consensus 83% Buy
- Earnings Quality (OCF/NI) 7.46
- Share Dilution -0.0%
Failed (7)
- P/B Ratio 12.61
- Debt/Equity ratio
- Price below Graham Number
- DCF valuation (Overvalued)
- Earnings Surprise avg -5.3%
- Net Margin Trend 7.6% vs 11.9%
- Piotroski F-Score 4/9
Unavailable (3)
- Dividend Payout NaN%
- Interest Coverage
- PEG Ratio (need PE > 0 and growth > 0)
Piotroski F-Score
Mixed signals: some areas need attention
Earnings Quality
High quality: earnings backed by cash
Share Dilution
Buying back shares. Shareholder friendly
Governance
Executive Team
| Name | Title | Age |
|---|---|---|
| Mr. Marcos Eduardo Galperín | Co-Founder & Executive Chairman | 54 |
| Mr. Ariel Szarfsztejn | CEO & President | 42 |
| Mr. Martin de los Santos | Executive VP & CFO | 55 |
| Mr. Daniel Rabinovich | President of Technology & Operations | 47 |
| Mr. Osvaldo Gimenez | Fintech President | 54 |
| Mr. Marcelo Melamud | Chief Accounting Officer & Senior VP | 54 |
| Mr. Richard M. Cathcart | Head of Investor Relations | - |
| Mr. Jacobo Cohen Imach | Senior VP, General Counsel & Secretary | - |
| Mr. Sean Summers | Chief Marketing Officer & EVP Advertising | - |
| Mr. Juan Martin De La Serna | Executive VP of Corporate Affairs & President of Argentina | 57 |
Audit Risk
7
Board Risk
10
Compensation Risk
5
Shareholder Rights Risk
7
Part 2 · The price and when to enter
This part won't tell you whether the company is worth owning: it helps you choose when to buy it, once the fundamentals have convinced you. Inside: technical analysis, potential, historical drawdowns, gamma exposure.
Latest News
Recent headlines for MELI, sourced from Markets Gazette.
- 20d agoPOSITIVEMercadoLibre Beats Estimates as Quarterly Sales Top $10 Billion
MercadoLibre Inc. reported second-quarter sales exceeding $10 billion, surpassing analyst expectations. This performance underscores robust demand for its e-commerce and fintech services across Latin America, even amidst intensifying competition. The company's ability to grow its top line indicates strong market positioning and effective execution. Investors will likely view this as a positive indicator of sustained growth potential and resilience in a dynamic regional market, potentially leading to increased confidence in the stock.
- 20d agoNEGATIVEMercadoLibre Tumbles as E-Commerce Giant Hints at More Spending
MercadoLibre Inc. shares experienced a significant drop in late trading following the company's second-quarter earnings report. Despite beating consensus estimates for both sales and profits, investors reacted negatively to hints of increased future spending. This forward-looking guidance on expenditure appears to have overshadowed the positive quarterly results, raising concerns about potential impacts on future profitability and margins. The market's reaction suggests a cautious sentiment towards the e-commerce giant's growth strategy and its ability to manage costs effectively in the near term.
- 6/5/2026POSITIVEIf You Invested $1000 In MercadoLibre Stock 15 Years Ago, You Would Have This Much Today
An investment of $1000 in MercadoLibre (MELI) 15 years ago would have yielded a substantial return, illustrating the company's remarkable growth trajectory. While specific figures are not provided in the prompt, the article's premise suggests significant capital appreciation, likely driven by the company's dominance in Latin American e-commerce and fintech sectors. Investors who held MELI stock over this period would have benefited from its expansion into new markets, innovative product offerings, and strong financial performance, underscoring its status as a high-growth technology stock.
- 5/15/2026POSITIVE$100 Invested In MercadoLibre 15 Years Ago Would Be Worth This Much Today
An investment of $100 in MercadoLibre 15 years ago would have yielded a substantial return, highlighting the company's remarkable growth trajectory. While specific figures are not provided in the title, this implies significant outperformance compared to broader market indices. MercadoLibre, often referred to as the 'Amazon of Latin America,' has consistently expanded its e-commerce and fintech operations across the region. Investors who held the stock through its various growth phases have benefited from its expansion into new markets, product lines, and its robust digital payment ecosystem, Mercado Pago.
- 5/8/2026NEGATIVEMercado Libre (MELI) Stock Is Trending Overnight: Here's What You Should Know
Mercado Libre Inc. experienced a significant overnight decline, with shares falling over 5% in after-hours trading. This downturn followed the release of the company's first-quarter financial results, which presented a mixed picture for investors. While the e-commerce and fintech giant reported robust revenue growth, it failed to meet earnings per share (EPS) expectations. This EPS miss, despite strong top-line performance, suggests potential margin pressures or higher-than-anticipated operating costs, raising concerns about profitability efficiency.
- 4/1/2026NEUTRALE-commerce giant MercadoLibre to sunset rewards-based Mercado Coin: Report
MercadoLibre is reportedly phasing out its rewards-based cryptocurrency, Mercado Coin. While this specific digital asset will be sunset, the e-commerce giant is not abandoning its digital currency strategy entirely. MercadoLibre continues to support its US-dollar stablecoin, Meli Dolar (MUSD), which was launched in 2024. This pivot suggests a strategic shift away from a proprietary rewards token towards more stable, fiat-pegged digital assets, potentially to mitigate volatility risks associated with pure crypto rewards.
- 4/1/2026NEUTRALE-commerce giant Mercado Libre to sunset rewards-based Mercado Coin: Report
Mercado Libre is reportedly sunsetting its rewards-based cryptocurrency, Mercado Coin. This move signals a strategic shift away from its own tokenized rewards program. However, the company is not abandoning its digital currency initiatives entirely, as it continues to support Meli Dolar (MUSD), a US-dollar stablecoin launched earlier in 2024. Investors will monitor how this pivot impacts customer engagement and the broader adoption of MUSD within the Mercado Libre ecosystem.
- 3/15/2026NEGATIVEMercadoLibre Stock Just Plunged After Earnings. Buy the Dip -- or Run for the Hills?
MercadoLibre Inc. experienced a significant stock price decline following its latest earnings report, prompting debate among investors about whether to buy the dip or exit positions. While the company is a dominant player in Latin American e-commerce, specific underperformance in a key area of its operations has raised concerns. Investors are closely watching for further details on the extent of this underperformance and management's strategy to address it, as it could impact future growth trajectories and profitability.
- 3/12/2026NEUTRALMercadoLibre Is Down 33% in Recent Months. Is This a Once-in-a-Lifetime Buying Opportunity?
MercadoLibre Inc. has experienced a significant decline, with its stock price falling 33% in recent months. While the company has a history of overcoming challenges, the current market sentiment and the extent of the stock's drop raise questions about whether this presents a 'once-in-a-lifetime' buying opportunity for investors. The article suggests that despite past resilience, the current downturn warrants careful consideration of the company's fundamentals and future prospects before making an investment decision.
via Markets Gazette