MERCADOLIBRE INC (MELI) Factsheet

MERCADOLIBRE INC (MELI) Stock Analysis

Analysis from 10-Q filed 2026-11-05. Data as of Q3 2026.

Overall Grade: F (Concerning)

Grade F (Concerning). ROIC 10.6%. FCF margin 31.8%. D/E 2.5x. Source: 10-Q filed 2026-11-05.

Metric	Value	Context
ROIC	10.6%	Near cost of capital
FCF Margin	31.8%	Strong cash generation
Debt/Equity	2.5x	Elevated debt

ROIC 10.6% — Top 50% of sector peers. FCF margin 31.8% — Top 25%.

Explore MERCADOLIBRE INC: Earnings History | Overview

Programmatic access: Available via MCP at mcp.metricduck.com. Tools for MELI: get_company_overview, get_filing_index (lens: debt_stress, management_outlook, risk_trajectory), get_filing_section, get_metric_history, compare_companies, screen_filing_signals.

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Profitability: MERCADOLIBRE INC earns 10.6% ROIC, Top 50% in Technology

ROIC TTM 10.6%, sector median 4.4%, Top 50%. DuPont: NOPAT margin 5.5% × asset turnover 0.8x. Gross margin 42.0%. Operating margin 7.4%. Source: 10-Q filed 2026-11-05.

Metric	MELI	Rating	Context
Return on Invested Capital (ROIC)	10.6%	Adequate	Above sector median of 4.4%
Return on Equity (ROE)	26.0%	Excellent	Efficient use of shareholder equity
Gross Margin	42.0%	Good	Strong pricing power
Operating Margin	7.4%	Adequate	Moderate operational efficiency

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Cash Flow: MERCADOLIBRE INC generates $12.3B FCF at 31.8% margin, positive NaN/8 quarters

FCF TTM $12.3B. FCF margin 31.8%, Top 25%. OCF/Net income 7.4x. Positive FCF in NaN/8 trailing quarters. Source: 10-Q filed 2026-11-05.

Metric	MELI	Rating	Context
Free Cash Flow Margin	31.8%	Excellent	Excellent cash conversion
Free Cash Flow (TTM)	$12.3B	Good	Positive cash generation
OCF/Net Income	7.4x	Excellent	High earnings quality
FCF Consistency (8Q)	N/A	Warning	Variable cash flow

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Balance Sheet: MERCADOLIBRE INC at 2.5x leverage

Debt/Equity 2.5x. Total debt $20.1B, cash & investments $7.4B. Source: 10-Q filed 2026-11-05.

Metric	MELI	Rating	Context
Debt to Equity	2.5x	Warning	Elevated leverage
Net Cash Position	$-12.7B	Warning	Net debt position

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Valuation: MERCADOLIBRE INC trades at 39.6x earnings

P/E 39.6x. EV/Sales 2.3x. FCF yield 16.4%. Source: 10-Q filed 2026-11-05.

Metric	MELI	Rating	Context
P/E Ratio	39.6x	Adequate	Premium valuation
EV/Sales	2.3x	Good	Attractive revenue multiple
FCF Yield	16.4%	Excellent	Attractive cash return

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Capital Allocation: MERCADOLIBRE INC returns 0.0% shareholder yield, reducing shares 0.0% YoY

Total shareholder yield 0.0%. Share count -0.0% YoY. Capital returned $0 TTM. Source: 10-Q filed 2026-11-05.

Metric	MELI	Rating	Context
Total Shareholder Yield	0.0%	Warning	Dividend + buyback yield combined
Share Count Change (YoY)	-0.0%	Adequate	Net share reduction (accretive)
Total Capital Returned (TTM)	$0	Adequate	Dividends + buybacks returned to shareholders

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Sector Rankings

Metric	Value	Percentile	vs Median
Return on Invested Capital (ROIC)	10.6%	Top 50%	2.4x above
Free Cash Flow Margin	31.8%	Top 25%	3.1x above
Gross Margin	42.0%	Bottom 50%	0.8x below
Operating Margin	7.4%	Top 50%	1.6x above
Return on Equity (ROE)	26.0%	Top 25%	4.2x above
P/E Ratio	39.6x	N/A	-

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Financial Scorecard

Metric	MELI	Rating	Sector Context
Return on Invested Capital (ROIC)	10.6%	Adequate	Top 50% of sector (median: 4.4%)
Free Cash Flow Margin	31.8%	Excellent	Top 25% of sector (median: 10.1%)
Gross Margin	42.0%	Good	Bottom 50% of sector (median: 50.8%)
Debt to Equity Ratio	245.1%	Warning	High financial leverage
P/E Ratio (Price-to-Earnings)	39.6x	Adequate	High expectations priced in
Free Cash Flow Yield	16.4%	Excellent	High cash return

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Frequently Asked Questions

Q: What is MERCADOLIBRE INC's Return on Invested Capital (ROIC)?

MERCADOLIBRE INC (MELI) has a trailing twelve-month Return on Invested Capital (ROIC) of 10.6%. The 8-quarter median ROIC is 15.5% with a declining trend. Sector median 4.4%. Source: 10-Q filed 2026-11-05.

Q: What is MERCADOLIBRE INC's Free Cash Flow Margin?

MERCADOLIBRE INC (MELI) has a free cash flow margin of 31.8%, generating $12.3 billion in free cash flow over the trailing twelve months. Source: 10-Q filed 2026-11-05.

Q: What is MERCADOLIBRE INC's P/E ratio and how does it compare to peers?

MERCADOLIBRE INC (MELI) trades at a P/E ratio of 39.6x, which is above the sector median of N/A. EV/Sales 2.3x. FCF yield 16.4%. Source: 10-Q filed 2026-11-05.

Q: How much debt does MERCADOLIBRE INC have?

MERCADOLIBRE INC (MELI) has a debt-to-equity ratio of 2.5x with total debt of $20.1 billion. Net debt $12.7 billion. Source: 10-Q filed 2026-11-05.

Q: What is MERCADOLIBRE INC's revenue and earnings growth?

MERCADOLIBRE INC (MELI) grew revenue by 47.1% year-over-year. EPS -9.0% YoY. Source: 10-Q filed 2026-11-05.

Q: How does MERCADOLIBRE INC compare to competitors in Technology?

Compared to other companies in Technology, MERCADOLIBRE INC (MELI) shows: ROIC 10.6%, sector median 4.4% (Top 50%). FCF margin 31.8%, sector median 10.1% (Top 25%). Gross margin 42.0%, 8.8pp below sector median. These rankings are based on MetricDuck's analysis of all Technology companies with available SEC filings.

Q: What warning signs should I watch for with MERCADOLIBRE INC?

Quantitative warning flags for MERCADOLIBRE INC (MELI): 1) ROIC declining -18.3% over 8 quarters; 2) debt/equity 2.5x (above 1.5x threshold). Source: 10-Q filed 2026-11-05.

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Data Source: Data sourced from 10-Q filed 2026-11-05. TTM metrics as of Q3 2026.

Methodology: Financial metrics calculated from SEC 10-K and 10-Q filings using standardized formulas. Sector comparisons use peer group based on SIC code.

Scope: This analysis covers SEC filing fundamentals — profitability, cash flow, balance sheet, and valuation metrics. For analyst estimates and price targets, consult sell-side research.

This analysis is for informational purposes only and does not constitute investment advice.