Mercadolibre (MELI) AI Stock Analysis

• Market Cap: $116.40B
• Dividend Yield: N/A
• Average Volume (3M): 497.12K
• Price to Earnings (P/E): 56.7
• Beta (1Y): 0.95
• Revenue Growth: 38.27%
• EPS Growth: 46.21%
• Country: US
• Employees: 84,207
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Specialty Retail
• EPS (TTM): 8.32
• Shares Outstanding: 50,697,376
• 10 Day Avg. Volume: 493,075
• 30 Day Avg. Volume: 497,118
• 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: 5.50
• Enterprise Value/Gross Profit: 12.00
• Enterprise Value/Ebitda: 37.49
• 1Y Price Target: $2,816.07
• Price Target Upside: 22.66% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 14

• Rating: 73 Outperform
• Price Target: $2,545.00 ▲(10.85% Upside)

Mercadolibre's strong financial performance and positive earnings call are the most significant factors driving the score. However, technical indicators suggest mixed momentum, and the high P/E ratio indicates potential overvaluation. The company's strategic initiatives in FinTech and advertising are promising, but increased marketing expenses and credit quality concerns, particularly in Argentina, pose risks.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business strategies, reinforcing MercadoLibre's leading position in Latin America.

FinTech Expansion

The rapid growth of Mercado Pago enhances MercadoLibre's ecosystem, providing a competitive edge in digital payments and increasing customer retention.

Advertising Revenue Growth

Strong growth in advertising revenue diversifies income streams and leverages MercadoLibre's platform for additional monetization opportunities.

Negative Factors

High Debt Levels

High leverage can increase financial risk, potentially impacting cash flow and limiting strategic flexibility if not managed carefully.

Increased Marketing Expenditures

Rising marketing costs may pressure margins, requiring careful management to ensure long-term profitability and cost efficiency.

Elevated NPL Ratios

High non-performing loan ratios could impact the credit portfolio's profitability, necessitating improved credit risk management strategies.

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 demonstrates strong financial performance with consistent revenue growth and solid profitability. High leverage poses some risk, but the company effectively generates returns on equity and maintains healthy cash flows. Continued focus on managing debt and sustaining margins is crucial for future 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: 2295.92
• 50DMA: Negative
• 100DMA: Negative
• 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 2295.92 is above the 20-day moving average (MA) of 2165.85, below the 50-day MA of 2309.41, and above the 200-day MA of 2253.02, indicating a neutral trend. The MACD of -22.80 indicates Negative momentum. The RSI at 55.79 is Neutral, neither overbought nor oversold. The STOCH value of 93.21 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
EBAY	―	$45.49B	22.01	42.63%	1.15%	3.05%	-10.82%
PDD	―	$191.76B	15.06	31.78%	―	20.09%	-1.83%
MELI	―	$116.40B	56.70	43.83%	―	38.27%	46.21%
SE	―	$92.31B	79.12	14.48%	―	34.12%	―
ETSY	―	$7.41B	59.80	―	―	2.38%	-38.88%
CPNG	―	$58.19B	160.73	8.55%	―	18.69%	-65.55%
Sector *	―	$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.

MercadoLibre’s Earnings Call Highlights Robust Growth

MercadoLibre’s recent earnings call painted a picture of robust growth and strategic success, particularly in its revenue, fintech services, and advertising sectors. The company showcased its strong performance in Brazil and Mexico, although it acknowledged challenges such as increased marketing expenses and credit quality concerns, especially in Argentina.

MercadoLibre Reports Strong Q2 2025 Financial Growth

MercadoLibre, Inc., a leading e-commerce and fintech company in Latin America, focuses on enabling digital commerce and financial services across the region.

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.

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.