MercadoLibre (MELI) Stock Analysis
This is a peer-relative look at MercadoLibre (MELI): its performance, risk, profitability, growth, financial strength, dividend, and valuation are each measured against its Consumer Discretionary Distribution & Retail peers, so every number reads in context rather than in isolation.
Company Profile
| Profile Item | MELI |
|---|---|
| Name | MercadoLibre, Inc. |
| Country/Region | Uruguay |
| GICS Sector | Consumer Discretionary |
| GICS Industry Group | Consumer Discretionary Distribution & Retail |
| GICS Industry | Broadline Retail |
| GICS Sub-Industry | Broadline Retail |
| Market Capitalization | 92.40 billion USD |
| Currency | USD |
| Exchange | Nasdaq |
| Listing Date | August 10, 2007 |
| Security Type | Common Stock |
Price Performance
Cumulative Growth
Trailing Returns
Calendar-Year Returns
Performance Metrics
| Metric | Current stock: MELI | Industry group median |
|---|---|---|
| Total Return (1Y) | -23.39% | -1.01% |
| Total Return (3Y, Annualized) | 14.29% | 3.98% |
| Total Return (5Y, Annualized) | 3.29% | -4.22% |
Risk Profile
Drawdown History
Return Distribution
Risk Metrics
| Metric | Current stock: MELI | Industry group median |
|---|---|---|
| Volatility (1Y, Annualized) | 39.80% | 47.87% |
| Beta (5Y) | 1.34 | 1.10 |
| Max Drawdown (5Y) | -68.64% | -69.65% |
Risk-Adjusted Performance
Risk-Return Positioning
Risk-Adjusted Metrics
| Metric | Current stock: MELI | Industry group median |
|---|---|---|
| Sharpe Ratio (1Y) | -0.69 | -0.13 |
| Sortino Ratio (1Y) | -0.89 | -0.19 |
Profitability
ROE (TTM)
MercadoLibre (MELI) posts ROE of 31.26%, roughly around the peer group’s normal range. Shareholders’ equity is producing a return that looks broadly typical for the industry.
MELI
Consumer Discretionary Distribution & Retail industry group
31.26%
Group distribution
- Max
- 63.82%
- Q3
- 31.99%
- MELI
- 31.26%
- Median
- 14.10%
- Q1
- 5.79%
- Min
- -29.94%
Largest peers
- HD
- 128.38%
- TJX
- 61.25%
- MELI
- 31.26%
- PDD
- 25.40%
- AMZN
- 24.29%
- BABA
- 9.22%
- LOW
- --
Net Margin (TTM)
MercadoLibre (MELI) keeps 6.04% of revenue as net profit, roughly in line with the peer group’s normal net margin range. Its full cost stack is taking a typical share of sales for the industry.
MELI
Consumer Discretionary Distribution & Retail industry group
6.04%
Group distribution
- Max
- 20.45%
- Q3
- 8.98%
- MELI
- 6.04%
- Median
- 3.75%
- Q1
- 0.80%
- Min
- -11.15%
Largest peers
- PDD
- 21.62%
- AMZN
- 12.22%
- BABA
- 10.12%
- TJX
- 9.40%
- HD
- 8.41%
- LOW
- 7.51%
- MELI
- 6.04%
Operating Margin (TTM)
MercadoLibre (MELI) turns 6.91% of revenue into operating profit, roughly in line with the peer group’s normal operating margin range. Its core cost structure looks typical for the industry.
MELI
Consumer Discretionary Distribution & Retail industry group
6.91%
Group distribution
- Max
- 23.15%
- Q3
- 11.13%
- MELI
- 6.91%
- Median
- 4.82%
- Q1
- 1.65%
- Min
- -8.71%
Largest peers
- PDD
- 18.42%
- AMZN
- 13.14%
- HD
- 11.93%
- TJX
- 11.77%
- LOW
- 11.07%
- MELI
- 6.91%
- BABA
- 1.02%
Profitability Metrics
| Metric | Current stock: MELI | Industry group median |
|---|---|---|
| ROE (TTM) | 31.26% | 14.10% |
| ROA (TTM) | 5.11% | 5.85% |
| Net Margin (TTM) | 6.04% | 3.75% |
| Operating Margin (TTM) | 6.91% | 4.82% |
| Gross Margin (TTM) | 49.47% | 38.73% |
Growth
Revenue Growth
MercadoLibre (MELI) grew revenue 39.06%, above the industry benchmark range. Demand is expanding faster than at any typical peer, though growth that far ahead of the group is worth checking for acquisitions or other one-off contributions.
EPS Growth
MercadoLibre (MELI) grew earnings per share 4.54%, roughly around the peer group's normal range. Bottom-line momentum looks broadly typical for the industry.
Growth Metrics
| Metric | Current stock: MELI | Industry group median |
|---|---|---|
| Revenue Growth (YoY) | 39.06% | 5.15% |
| Revenue Growth (3Y CAGR) | 38.91% | 3.22% |
| EPS Growth (YoY) | 4.54% | 0.00% |
| EPS Growth (3Y CAGR) | 60.50% | -4.99% |
Financial Strength
Current Ratio (MRQ)
MercadoLibre (MELI) has current ratio of 1.16, in the healthier middle range for its industry. The short-term asset cushion looks balanced relative to peers rather than stretched thin.
MELI
Consumer Discretionary Distribution & Retail industry group
1.16
Group distribution
- Max
- 2.97
- Q3
- 1.87
- Median
- 1.38
- MELI
- 1.16
- Q1
- 1.03
- Min
- 0.46
Largest peers
- PDD
- 2.54
- BABA
- 1.28
- AMZN
- 1.18
- MELI
- 1.16
- TJX
- 1.14
- LOW
- 1.09
- HD
- 1.05
Debt / Equity (MRQ)
MercadoLibre (MELI) has debt-to-equity ratio of 1.70, roughly in line with the peer group’s normal leverage range. Its mix of debt and equity looks typical for the industry.
MELI
Consumer Discretionary Distribution & Retail industry group
1.70
Group distribution
- Max
- 3.37
- Q3
- 1.84
- MELI
- 1.70
- Median
- 1.10
- Q1
- 0.72
- Min
- 0.01
Largest peers
- HD
- 4.59
- MELI
- 1.70
- TJX
- 1.36
- AMZN
- 0.53
- BABA
- 0.25
- PDD
- 0.01
- LOW
- --
Financial Strength Metrics
| Metric | Current stock: MELI | Industry group median |
|---|---|---|
| Current Ratio (MRQ) | 1.16 | 1.38 |
| Debt / Equity (MRQ) | 1.70 | 1.10 |
| Net Debt / EBITDA | 1.70 | 2.42 |
Dividends
Dividend Yield (TTM)
MercadoLibre (MELI) pays no dividend, leaving dividend yield at 0.00% this period. Shareholders may still receive value through reinvestment or buybacks, but there is no dividend income to compare here.
MELI
Consumer Discretionary Distribution & Retail industry group
0.00%
Group distribution
- Max
- 5.11%
- Q3
- 2.34%
- MELI
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
Largest peers
- BABA
- 6.02%
- LOW
- 2.34%
- HD
- 2.08%
- TJX
- 1.13%
- MELI
- 0.00%
- AMZN
- 0.00%
- PDD
- 0.00%
Dividend Payout Ratio (TTM)
MercadoLibre (MELI) paid no earnings out as dividends this period, leaving payout ratio at 0.00%. There is no dividend payout to size against earnings.
MELI
Consumer Discretionary Distribution & Retail industry group
0.00%
Group distribution
- Max
- 78.51%
- Q3
- 33.07%
- MELI
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
Largest peers
- HD
- 65.55%
- LOW
- 40.57%
- TJX
- 33.07%
- BABA
- 17.12%
- MELI
- 0.00%
- AMZN
- 0.00%
- PDD
- 0.00%
Dividend Metrics
| Metric | Current stock: MELI | Industry group median |
|---|---|---|
| Dividend Yield (TTM) | 0.00% | 0.00% |
| Dividend Payout Ratio (TTM) | 0.00% | 0.00% |
Valuation
P/E Ratio (TTM)
MercadoLibre (MELI) trades at P/E ratio of 48.31, in the richer earnings-multiple quartile for its industry. That premium needs support from growth, durable earnings, or stronger business quality.
MELI
Consumer Discretionary Distribution & Retail industry group
48.31
Group distribution
- Max
- 55.02
- MELI
- 48.31
- Q3
- 32.16
- Median
- 20.42
- Q1
- 12.25
- Min
- 1.08
Largest peers
- MELI
- 48.31
- TJX
- 30.28
- AMZN
- 29.93
- HD
- 23.64
- BABA
- 18.58
- LOW
- 17.31
- PDD
- 9.06
P/S Ratio (TTM)
MercadoLibre (MELI) trades at 2.91 on P/S ratio, in the higher sales-valuation quartile. Investors are paying up for each dollar of revenue, so stronger margins, growth, or revenue quality need to carry that price.
MELI
Consumer Discretionary Distribution & Retail industry group
2.91
Group distribution
- Max
- 4.00
- MELI
- 2.91
- Q3
- 1.91
- Median
- 0.78
- Q1
- 0.31
- Min
- 0.03
Largest peers
- AMZN
- 3.59
- MELI
- 2.91
- TJX
- 2.78
- HD
- 1.98
- LOW
- 1.29
- BABA
- 0.28
- PDD
- 0.27
P/B Ratio (MRQ)
MercadoLibre (MELI) trades at 12.69 on P/B ratio, in the higher book-value quartile. The market is paying a premium to book, so stronger ROE, cleaner assets, or a better growth profile need to justify it.
MELI
Consumer Discretionary Distribution & Retail industry group
12.69
Group distribution
- MELI
- 12.69
- Max
- 12.69
- Q3
- 6.02
- Median
- 2.27
- Q1
- 1.18
- Min
- -4.00
Largest peers
- HD
- 23.83
- TJX
- 16.47
- MELI
- 12.69
- AMZN
- 6.02
- PDD
- 1.91
- BABA
- 1.75
- LOW
- -12.32
Valuation Metrics
| Metric | Current stock: MELI | Industry group median |
|---|---|---|
| P/E Ratio (TTM) | 48.31 | 20.42 |
| P/S Ratio (TTM) | 2.91 | 0.78 |
| P/B Ratio (MRQ) | 12.69 | 2.27 |
| Free Cash Flow Yield (TTM) | -4.44% | 3.60% |