MELINEUTRAL

MELI Return on Equity (ROE) Analysis

31.3%

Higher than 83% of Consumer Cyclical sector peers

Updated 70h ago·SEC filings & market data

Key Takeaway

MELI’s Return on Equity (ROE) of 31.3% means that for every dollar of shareholders’ equity, the company generated $0.313 in net income over the past year—a measure of how efficiently it turns investor capital into profit.

Sector Performance

83th percentile

MELI

31.3%

Sector Median

8.5%

Sector Avg

-20.0%

Prior Period

29.6%(May 2026)

↑ Improving

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Deep Analysis

This figure far exceeds the Consumer Cyclical sector median of 8.2%, placing MELI in the 84th percentile among its peers, indicating top-quartile profitability relative to the industry. Year-over-year change is not available, but quarter-over-quarter ROE rose by 5.7%, moving from 29.6% to 31.3%. With only two data points, the trend is very limited, but the combination of a very high current ROE and a recent upward move suggests strong current earnings efficiency with no sign of deterioration. For an investor, this level plus the positive quarter-over-quarter change points to low short-term risk from profitability erosion, though the lack of longer history limits the confidence in sustainability. This metric supports the overall NEUTRAL verdict because while MELI’s ROE is exceptional, the limited trend data prevents a more bullish or bearish tilt.

Frequently Asked Questions

What does the Return on Equity (ROE) tell investors about MELI?

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.

How is the Return on Equity (ROE) calculated?

Return on Equity (ROE) is calculated as: Net Income / Shareholders' Equity.

How does MELI's Return on Equity (ROE) compare to its sector?

MELI's Return on Equity (ROE) of 31.3% compares to a Consumer Cyclical sector median of 8.5%, placing it in the 83th percentile.

Who are MELI's closest peers by Return on Equity (ROE)?

The closest Consumer Cyclical peers by Return on Equity (ROE) include: PVH (3.3%), APTV (1.8%), LI (-2.5%), HMC (-3.8%), CROX (-6.1%).

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Learn More About Return on Equity (ROE)

What Is Return on Equity (ROE) and Is Higher Always Better?

Return on equity ROE measures how efficiently a company generates profit from shareholder capital. Learn how to decompose ROE using DuPont analysis and why high leverage can make it dangerous—with Apple and JPMorgan examples.

The Formula

Net Income / Shareholders' Equity

Why It Matters

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.