MELINEUTRAL

MELI Gross Margin Analysis

43.7%

Higher than 59% of Consumer Cyclical sector peers

Updated 70h ago·SEC filings & market data

Key Takeaway

Gross margin measures the percentage of revenue a company keeps after paying for the direct costs of its products or services; at 43.7%, MELI retains nearly 44 cents of every sales dollar.

Sector Performance

59th percentile

MELI

43.7%

Sector Median

36.5%

Sector Avg

30.1%

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Deep Analysis

Gross margin measures the percentage of revenue a company keeps after paying for the direct costs of its products or services; at 43.7%, MELI retains nearly 44 cents of every sales dollar.

That figure sits above the sector median of 36.5%, placing MELI in the 59th percentile among Consumer Cyclical peers, meaning it outperforms roughly three-fifths of comparable companies. Because a year-over-year change and a quarter-over-quarter change are both N/A, and the only available historical value is the current 43.7%, there is no trend to evaluate — the data are insufficient to show whether margins are rising or falling. The above-median margin indicates a competitive cost advantage, but the absence of any directional movement means investors cannot gauge momentum, tempering both bullish and bearish conclusions. This metric supports the overall NEUTRAL verdict: a solid margin level is positive, yet the lack of trend data prevents it from shifting the rating toward bullish or bearish.

Frequently Asked Questions

What does the Gross Margin tell investors about MELI?

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.

How is the Gross Margin calculated?

Gross Margin is calculated as: Gross Profit / Revenue.

How does MELI's Gross Margin compare to its sector?

MELI's Gross Margin of 43.7% compares to a Consumer Cyclical sector median of 36.5%, placing it in the 59th percentile.

Who are MELI's closest peers by Gross Margin?

The closest Consumer Cyclical peers by Gross Margin include: URBN (36.6%), QSR (33.7%), CAVA (25.4%), BBY (23.5%), ROL (50.8%).

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Learn More About Gross Margin

Gross Margin vs Net Margin: Why the Gap Between Them Tells You Everything

Gross margin vs net margin: learn what the spread between them reveals about operating leverage, cost structure, and early warning signs in any stock.

The Formula

Gross Profit / Revenue

Why It Matters

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.