MercadoLibre, Inc.MELI
NASDAQ • Consumer Cyclical
$1562.00
P/E
41.24
PEG
—
FCF Yield
—
Rev Growth YoY
+49.0% YoY
Gross Margin
43.7%
Health Score
7/10
D/E Ratio
1.69
Confidence
MEDIUM
Business Snapshot
MercadoLibre operates the largest e-commerce and fintech ecosystem in Latin America, generating revenue from marketplace commissions, advertising, logistics, and its Mercado Pago digital payments platform. It holds a dominant competitive position across the region, benefiting from network effects that connect millions of buyers, sellers, and merchants. With trailing twelve-month revenue of $31.80B, the company operates at a scale that places it among the largest e-commerce players globally. Its defining characteristic is the integrated financial services layer that drives higher user engagement and monetisation per transaction, creating a moat that is difficult for local competitors to replicate.
Financial Health
Gross margin of 43.7% improved slightly from 43.2% in the prior year, while net margin stood at 6.0%. The balance sheet shows a debt/equity ratio of 1.69x, indicating moderate leverage, and a current ratio of 1.17x, suggesting adequate short-term liquidity...
Risk Assessment
- VALUATION — P/E of 41.24x is 72% above the sector average of 24x, exposing the stock to multiple compression if growth disappoints.
- EARNINGS QUALITY — The company has beaten estimates in 0 out of the last 4 quarters, indicating a pattern of weaker-than-expected reported results.
- REVENUE DECELERATION — Quarter-over-quarter revenue growth of just 1.0% is dramatically below the 49.0% year-over-year rate, suggesting a sharp slowdown in recent momentum.
- DEBT — Debt/equity of 1.69x indicates moderate leverage that could constrain financial flexibility during economic downturns.
- 52-WEEK POSITION — The current price of $1,562.00 sits well below the 52-week midpoint of $2,070.11 and is $1,083.22 below the high of $2,645.22, reflecting weak recent price action.
- TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed....
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