MELIMELI
US • —
$1753.40
P/E
46.29
PEG
—
FCF Yield
—
Rev Growth YoY
+42.1% YoY
Gross Margin
43.9%
Health Score
5/10
D/E Ratio
1.36
Confidence
MEDIUM
Business Snapshot
MercadoLibre is the dominant e-commerce and fintech platform in Latin America, generating revenue primarily through its marketplace operations and Mercado Pago payments ecosystem. The company operates as the clear market leader across multiple countries, benefiting from strong network effects between its buyer, seller, and financial services user base. While its exact market cap tier and TTM revenue are not available in this data, its P/E ratio of 46.29x reflects the market's expectation of continued premium growth. The defining characteristic that sets MercadoLibre apart is its integrated logistics and digital payments infrastructure, creating a wide competitive moat that new entrants find difficult to replicate.
Financial Health
Gross margin stands at 43.9%, though prior-year comparison is unavailable to assess direction, while net margin (TTM) is relatively low at 6.0%. The balance sheet shows a debt/equity ratio of 1.36x, indicating moderate leverage that is manageable but not conservative...
Risk Assessment
- VALUATION — P/E of 46.29x trades at more than double the sector average of 22x, requiring flawless execution to justify the premium.
- EARNINGS QUALITY — Earnings have declined 6.8% YoY despite 42.1% revenue growth, and the company has beaten estimates in 0 of the last 4 quarters, indicating poor earnings predictability and potential guidance issues.
- TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed.
- FCF / CASH BURN — Free cash flow is not reported, and the Python DCF could not be calculated due to negative or unavailable FCF, raising questions about cash generation sustainability.
- DEBT / LIQUIDITY — Debt/equity of 1.36x is elevated and the current ratio of 1.17x provides only a thin liquidity cushion for a high-growth business....
Gross margin stands at 43.9%, though prior-year comparison is unavailable to assess direction, while net margin (TTM) is relatively low at 6.0%. The balance sheet shows a debt/equity ratio of 1.36x, indicating moderate leverage that is manageable but not conservative. The current ratio of 1.17x suggests adequate short-term liquidity, though it is not a position of significant strength. Free cash flow is not available in the data, making it impossible to assess whether the company is generating cash or burning through it. Overall financial health is acceptable for a high-growth company but does not provide a strong safety buffer, limiting dividend capacity and increasing reliance on external capital for reinvestment.
- VALUATION — P/E of 46.29x trades at more than double the sector average of 22x, requiring flawless execution to justify the premium. - EARNINGS QUALITY — Earnings have declined 6.8% YoY despite 42.1% revenue growth, and the company has beaten estimates in 0 of the last 4 quarters, indicating poor earnings predictability and potential guidance issues. - TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed. - FCF / CASH BURN — Free cash flow is not reported, and the Python DCF could not be calculated due to negative or unavailable FCF, raising questions about cash generation sustainability. - DEBT / LIQUIDITY — Debt/equity of 1.36x is elevated and the current ratio of 1.17x provides only a thin liquidity cushion for a high-growth business.
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