What are the investment strengths of MercadoLibre Inc (MELI)?

Dominant LatAm ecosystem with 39% YoY revenue growth TTM and 70% 5Y EPS CAGR - network effects compounding as e-commerce and fintech reinforce each other FCF machine generating 8.6B TTM (8.1% yield on EV) with minimal capex (1.2B) funds reinvestment without dilution or debt

What are the investment risks for MercadoLibre Inc (MELI)?

P/E 45.7x vs median 36.8x and P/S 4.0x vs 1.4x median prices in sustained hyper-growth - multiple compression risk if growth decelerates FX exposure material: 202M currency loss TTM with LatAm volatility; debt/equity 1.59x amplifies balance sheet risk

MercadoLibre Inc

MELI

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MercadoLibre Inc AI Insights

Informational only. Not investment advice.

As of 2025-12-08

Snapshot

ROE of 40.6% TTM vs industry median 10.9% - 3.7x capital efficiency advantage despite 1.59x debt/equity leverage[Return on Equity]
Revenue 5Y CAGR 46% with EPS 5Y CAGR 70% - operating leverage converting growth to earnings at 1.5x rate[EPS Growth 5yr]
FCF of 8.6B TTM on 26.2B revenue (33% margin) vs industry median 4.5% - 7x cash conversion advantage[Free Cash Flow]

Watch Triggers

Provision for Doubtful Accounts: Exceeds 5% of revenue (currently 3.1%) — Credit quality deterioration would signal fintech thesis breaking down
Total Revenue 1yr Growth: Falls below 25% YoY — Premium valuation requires sustained hyper-growth; deceleration reprices multiple
Operating Margin: Compresses below 10% TTM — Would indicate competitive pressure eroding unit economics

Bull Case

Dominant LatAm ecosystem with 39% YoY revenue growth TTM and 70% 5Y EPS CAGR - network effects compounding as e-commerce and fintech reinforce each other

Total Revenue 1yr GrowthEPS Growth 5yrROIC

FCF machine generating 8.6B TTM (8.1% yield on EV) with minimal capex (1.2B) funds reinvestment without dilution or debt

Free Cash FlowCapital ExpenditureEnterprise Value

Bear Case

P/E 45.7x vs median 36.8x and P/S 4.0x vs 1.4x median prices in sustained hyper-growth - multiple compression risk if growth decelerates

PE RatioPS RatioTotal Revenue 1yr Growth

FX exposure material: 202M currency loss TTM with LatAm volatility; debt/equity 1.59x amplifies balance sheet risk

Net Foreign Currency Exchange Gain LossDebt to EquityTotal Debt

Bull vs Bear Balance

AI-generated sentiment analysis based on fundamental metrics and market conditions.

62%

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Forward Thesis

Fintech flywheel to drive margin expansion as credit scales with lower CAC

1-3ymed

R&D at 2.2B (8.4% of revenue) building lending infrastructure
Operating margin 12% vs 1.9% median with room to expand
Asset turnover 0.88x improving as digital services scale

ROIC 15.7% TTM vs 6.6% medianGross margin 45% stable while revenue grew 39% YoYProvision for doubtful accounts 815M manageable at 3.1% of revenue

Valuation Context

Caveats

Public Strategies Rankings

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MELI Fundamentals

Retail Trade → Nonstore Retailers

Metric	Value	YoY Growth	Industry Percentile
Market Cap	$88.33B		—
Enterprise Value	$96.05B		—
P/E Ratio	44		—
Total Revenue - TTM	$28.89B	+39.1%	—
Earnings Per Share (diluted) - TTM	$39.40	+8.8%	—
Operating Margin - TTM	11.1%	-1.6%	—
Net Margin - TTM	6.91%	-2.3%	—
Free Cash Flow - TTM	$10.77B	+52.6%	—
Return on Common Equity - TTM	36.0%	-15.5%	—
Beta 5Y (Monthly)	unknown		—

MELI Dividend History

28 dividends

2017

$0.6000

12/28/17$0.1500

09/28/17$0.1500

06/28/17$0.1500

03/29/17$0.1500

2016

$0.6000

12/28/16$0.1500

09/28/16$0.1500

06/28/16$0.1500

03/29/16$0.1500

2015

$0.4120

12/29/15$0.1030

09/28/15$0.1030

06/26/15$0.1030

03/27/15$0.1030

2014

$0.6640

12/29/14$0.1660

09/26/14$0.1660

06/26/14$0.1660

03/27/14$0.1660

2013

$0.5720

12/27/13$0.1430

09/26/13$0.1430

06/26/13$0.1430

03/26/13$0.1430

2012

$0.4360

12/27/12$0.1090

09/26/12$0.1090

06/27/12$0.1090

03/28/12$0.1090

2011

$0.3200

12/28/11$0.0800

09/28/11$0.0800

06/28/11$0.0800

03/29/11$0.0800

MELI Stock Splits

No stock splits

MELI SEC Filings

Filing Date	Report Date	Report Type	Filing Link
02/25/26	12/31/25	Unknown	0001099590-26-000006
10/30/25	09/30/25	10-Q	0001099590-25-000051
08/05/25	06/30/25	10-Q	0001099590-25-000044
05/08/25	03/31/25	10-Q	0001099590-25-000028
02/21/25	12/31/24	Unknown	0001099590-25-000007
11/07/24	09/30/24	10-Q	0001099590-24-000042
08/02/24	06/30/24	10-Q	0001099590-24-000026
05/03/24	03/31/24	10-Q	0001099590-24-000017
02/23/24	12/31/23	10-K	0001099590-24-000008
11/02/23	09/30/23	10-Q	0001099590-23-000033
08/03/23	06/30/23	10-Q	0001099590-23-000020
05/04/23	03/31/23	10-Q	0001099590-23-000013
02/24/23	12/31/22	10-K	0001099590-23-000007
11/04/22	09/30/22	10-Q	0001562762-22-000430
08/04/22	06/30/22	10-Q	0001562762-22-000334
05/06/22	03/31/22	10-Q	0001562762-22-000223
02/23/22	12/31/21	10-K	0001562762-22-000049
11/05/21	09/30/21	10-Q	0001562762-21-000420
08/05/21	06/30/21	10-Q	0001562762-21-000313
05/06/21	03/31/21	10-Q	0001562762-21-000200
03/01/21	12/31/20	10-K	0001562762-21-000079
11/05/20	09/30/20	10-Q	0001562762-20-000390
08/10/20	06/30/20	10-Q	0001562762-20-000324
05/06/20	03/31/20	10-Q	0001562762-20-000170
02/14/20	12/31/19	10-K	0001562762-20-000055
11/01/19	09/30/19	10-Q	0001562762-19-000273
08/08/19	06/30/19	10-Q	0001562762-19-000186
05/03/19	03/31/19	10-Q	0001562762-19-000123
02/28/19	12/31/18	10-K	0001562762-19-000047
11/02/18	09/30/18	10-Q	0001562762-18-000323
08/09/18	06/30/18	10-Q	0001562762-18-000229
05/10/18	03/31/18	10-Q	0001562762-18-000158
02/23/18	12/31/17	10-K	0001562762-18-000040
12/23/20	12/31/17	10-K/A	0001562762-20-000435
11/03/17	09/30/17	10-Q	0001562762-17-000173
08/04/17	06/30/17	10-Q	0001562762-17-000120
05/05/17	03/31/17	10-Q	0001562762-17-000054
02/24/17	12/31/16	10-K	0001562762-17-000024
11/04/16	09/30/16	10-Q	0001562762-16-000445
08/05/16	06/30/16	10-Q	0001562762-16-000414
05/06/16	03/31/16	10-Q	0001562762-16-000383
02/26/16	12/31/15	10-K	0001562762-16-000352
11/05/15	09/30/15	10-Q	0001562762-15-000287
08/06/15	06/30/15	10-Q	0001562762-15-000219
05/07/15	03/31/15	10-Q	0001562762-15-000125
02/27/15	12/31/14	10-K	0001193125-15-069727
11/03/14	09/30/14	10-Q	0001193125-14-394339
08/11/14	06/30/14	10-Q	0001193125-14-303451
05/09/14	03/31/14	10-Q	0001193125-14-192809
03/03/14	12/31/13	10-K	0001193125-14-078151
11/08/13	09/30/13	10-Q	0001193125-13-433300
08/07/13	06/30/13	10-Q	0001193125-13-322069
05/07/13	03/31/13	10-Q	0001193125-13-204750
02/28/13	12/31/12	10-K	0001193125-13-081326
11/05/12	09/30/12	10-Q	0001193125-12-452129
08/03/12	06/30/12	10-Q	0001193125-12-334988
05/09/12	03/31/12	10-Q	0001193125-12-219429
02/28/12	12/31/11	10-K	0001193125-12-085292
11/04/11	09/30/11	10-Q	0000950123-11-095331
08/09/11	06/30/11	10-Q	0000950123-11-074527
05/06/11	03/31/11	10-Q	0000950123-11-046626
02/25/11	12/31/10	10-K	0000950123-11-018724
11/05/10	09/30/10	10-Q	0000950123-10-101713
08/06/10	06/30/10	10-Q	0000950123-10-074327
05/07/10	03/31/10	10-Q	0000950123-10-046424
02/26/10	12/31/09	10-K	0000950123-10-018199
11/06/09	09/30/09	10-Q	0000950123-09-059348
08/07/09	06/30/09	10-Q	0000950123-09-032127
05/11/09	03/30/09	10-Q	0001362310-09-007080
02/27/09	12/31/08	10-K	0001362310-09-002931
11/12/08	09/30/08	10-Q	0001193125-08-233617
08/13/08	06/30/08	10-Q	0001193125-08-176444
05/15/08	03/30/08	Unknown	--
03/31/08	12/31/07	10-K	0001193125-08-070409
11/14/07	09/30/07	10-Q	0001193125-07-247504
09/20/07	06/30/07	10-Q	0001193125-07-203970
03/31/07	03/30/07	Unknown	--
12/31/06	12/31/06	Unknown	--
09/30/06	09/30/06	Unknown	--
06/30/06	06/30/06	Unknown	--
03/31/06	03/30/06	Unknown	--
12/31/05	12/31/05	Unknown	--
09/30/05	09/30/05	Unknown	--
06/30/05	06/30/05	Unknown	--
03/31/05	03/30/05	Unknown	--