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 | 91.77 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) | -15.74% | -4.30% |
| Total Return (3Y, Annualized) | 15.33% | 9.57% |
| Total Return (5Y, Annualized) | 3.78% | -2.41% |
Risk Profile
Drawdown History
Return Distribution
Risk Metrics
| Metric | Current stock: MELI | Industry group median |
|---|---|---|
| Volatility (1Y, Annualized) | 40.18% | 46.90% |
| Beta (5Y) | 1.40 | 1.14 |
| Max Drawdown (5Y) | -64.17% | -68.83% |
Risk-Adjusted Performance
Risk-Return Positioning
Risk-Adjusted Metrics
| Metric | Current stock: MELI | Industry group median |
|---|---|---|
| Sharpe Ratio (1Y) | -0.50 | -0.20 |
| Sortino Ratio (1Y) | -0.68 | -0.29 |
Profitability
ROE (TTM)
MercadoLibre (MELI) posts ROE of 27.50%, 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
27.50%
Group distribution
- Max
- 62.17%
- Q3
- 30.47%
- MELI
- 27.50%
- Median
- 14.86%
- Q1
- 6.52%
- Min
- -20.00%
Largest peers
- HD
- 104.30%
- TJX
- 62.17%
- AMZN
- 30.56%
- MELI
- 27.50%
- PDD
- 22.75%
- BABA
- 6.36%
- LOW
- --
Net Margin (TTM)
MercadoLibre (MELI) keeps 5.30% 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
5.30%
Group distribution
- Max
- 18.57%
- Q3
- 8.30%
- MELI
- 5.30%
- Median
- 3.37%
- Q1
- 1.06%
- Min
- -9.41%
Largest peers
- PDD
- 20.43%
- AMZN
- 17.44%
- TJX
- 9.73%
- HD
- 8.41%
- LOW
- 7.35%
- BABA
- 7.04%
- MELI
- 5.30%
Operating Margin (TTM)
MercadoLibre (MELI) turns 6.72% 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
6.72%
Group distribution
- Max
- 21.57%
- Q3
- 11.49%
- MELI
- 6.72%
- Median
- 6.15%
- Q1
- 2.69%
- Min
- -6.28%
Largest peers
- PDD
- 24.71%
- AMZN
- 13.69%
- LOW
- 13.37%
- HD
- 12.86%
- TJX
- 10.91%
- BABA
- 7.30%
- MELI
- 6.72%
Profitability Metrics
| Metric | Current stock: MELI | Industry group median |
|---|---|---|
| ROE (TTM) | 27.50% | 14.86% |
| ROA (TTM) | 4.31% | 5.32% |
| Net Margin (TTM) | 5.30% | 3.37% |
| Operating Margin (TTM) | 6.72% | 6.15% |
| Gross Margin (TTM) | 47.75% | 38.81% |
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% | 5.18% |
| Revenue Growth (3Y CAGR) | 38.91% | 3.32% |
| EPS Growth (YoY) | 4.54% | 0.00% |
| EPS Growth (3Y CAGR) | 60.50% | -5.08% |
Financial Strength
Current Ratio (MRQ)
MercadoLibre (MELI) has current ratio of 1.12, 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
1.12
Group distribution
- Max
- 2.62
- Q3
- 1.79
- Median
- 1.36
- MELI
- 1.12
- Q1
- 1.02
- Min
- 0.49
Largest peers
- PDD
- 2.62
- BABA
- 1.36
- TJX
- 1.15
- MELI
- 1.12
- LOW
- 1.11
- HD
- 1.08
- AMZN
- 1.03
Debt / Equity (MRQ)
MercadoLibre (MELI) has debt-to-equity ratio of 1.69, 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
1.69
Group distribution
- Max
- 3.93
- Q3
- 2.05
- MELI
- 1.69
- Median
- 1.25
- Q1
- 0.71
- Min
- 0.01
Largest peers
- HD
- 3.80
- MELI
- 1.69
- TJX
- 1.34
- AMZN
- 0.46
- BABA
- 0.24
- PDD
- 0.01
- LOW
- --
Financial Strength Metrics
| Metric | Current stock: MELI | Industry group median |
|---|---|---|
| Current Ratio (MRQ) | 1.12 | 1.36 |
| Debt / Equity (MRQ) | 1.69 | 1.25 |
| Net Debt / EBITDA | 1.92 | 2.62 |
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
- 5.34%
- Q3
- 2.62%
- MELI
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
Largest peers
- BABA
- 7.11%
- LOW
- 2.37%
- HD
- 1.41%
- TJX
- 1.23%
- 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
- 72.73%
- Q3
- 31.36%
- MELI
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
Largest peers
- HD
- 64.80%
- LOW
- 41.00%
- TJX
- 32.50%
- BABA
- 25.44%
- 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 49.23, above the peer range for its industry. The market is paying unusually heavily for TTM earnings relative to comparable companies.
MELI
Consumer Discretionary Distribution & Retail industry group
49.23
Group distribution
- MELI
- 49.23
- Max
- 39.05
- Q3
- 25.20
- Median
- 18.67
- Q1
- 12.65
- Min
- 4.22
Largest peers
- MELI
- 49.23
- TJX
- 26.86
- BABA
- 24.13
- HD
- 21.45
- AMZN
- 19.95
- LOW
- 16.79
- PDD
- 8.89
P/S Ratio (TTM)
MercadoLibre (MELI) trades at 2.61 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
2.61
Group distribution
- Max
- 3.92
- MELI
- 2.61
- Q3
- 1.79
- Median
- 0.69
- Q1
- 0.27
- Min
- 0.03
Largest peers
- AMZN
- 3.45
- MELI
- 2.61
- TJX
- 2.56
- HD
- 1.89
- LOW
- 1.23
- PDD
- 0.25
- BABA
- 0.24
P/B Ratio (MRQ)
MercadoLibre (MELI) trades at 11.71 on P/B ratio, above the industry benchmark range. Investors are putting an unusually rich price on each dollar of book equity relative to peers.
MELI
Consumer Discretionary Distribution & Retail industry group
11.71
Group distribution
- MELI
- 11.71
- Max
- 10.32
- Q3
- 4.92
- Median
- 1.89
- Q1
- 1.03
- Min
- -4.01
Largest peers
- HD
- 19.21
- TJX
- 15.00
- MELI
- 11.71
- AMZN
- 4.85
- PDD
- 1.66
- BABA
- 1.48
- LOW
- -14.99
Valuation Metrics
| Metric | Current stock: MELI | Industry group median |
|---|---|---|
| P/E Ratio (TTM) | 49.23 | 18.67 |
| P/S Ratio (TTM) | 2.61 | 0.69 |
| P/B Ratio (MRQ) | 11.71 | 1.89 |
| Free Cash Flow Yield (TTM) | 0.39% | 3.94% |