MERCADOLIBRE INC (MELI) Stock Analysis

Analysis from 10-Q filed 2025-10-30. Data as of Q2 2026.

Overall Grade: F (Concerning)

Grade F (Concerning). ROIC 9.7%. FCF margin 35.3%. D/E 3.0x. Source: 10-Q filed 2025-10-30.

Metric	Value	Context
ROIC	9.7%	Near cost of capital
FCF Margin	35.3%	Strong cash generation
Debt/Equity	3.0x	Elevated debt

ROIC 9.7% — Top 50% of sector peers. FCF margin 35.3% — Top 5%.

Explore MERCADOLIBRE INC: Earnings History | Filings

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_changes, get_metric_history, compare_companies, screen_filing_signals.

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Profitability: MERCADOLIBRE INC earns 9.7% ROIC, Top 50% in Technology

ROIC TTM 9.7%, sector median 3.9%, Top 50%. DuPont: NOPAT margin 5.9% × asset turnover 0.8x. Gross margin 42.7%. Operating margin 8.3%. Source: 10-Q filed 2025-10-30.

Metric	MELI	Rating	Context
Return on Invested Capital (ROIC)	9.7%	Adequate	Above sector median of 3.9%
Return on Equity (ROE)	27.6%	Excellent	Efficient use of shareholder equity
Gross Margin	42.7%	Good	Strong pricing power
Operating Margin	8.3%	Adequate	Moderate operational efficiency

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Cash Flow: MERCADOLIBRE INC generates $12.4B FCF at 35.3% margin, positive NaN/8 quarters

FCF TTM $12.4B. FCF margin 35.3%, Top 5%. OCF/Net income 7.5x. Positive FCF in NaN/8 trailing quarters. Source: 10-Q filed 2025-10-30.

Metric	MELI	Rating	Context
Free Cash Flow Margin	35.3%	Excellent	Excellent cash conversion
Free Cash Flow (TTM)	$12.4B	Good	Positive cash generation
OCF/Net Income	7.5x	Excellent	High earnings quality
FCF Consistency (8Q)	N/A	Warning	Variable cash flow

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Balance Sheet: MERCADOLIBRE INC at 3.0x leverage

Debt/Equity 3.0x. Total debt $23.6B, cash & investments $5.7B. Source: 10-Q filed 2025-10-30.

Metric	MELI	Rating	Context
Debt to Equity	3.0x	Red flag	Elevated leverage
Net Cash Position	$-17.9B	Warning	Net debt position

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Valuation: MERCADOLIBRE INC trades at 46.2x earnings

P/E 46.2x. EV/Sales 3.4x. FCF yield 14.4%. Source: 10-Q filed 2025-10-30.

Metric	MELI	Rating	Context
P/E Ratio	46.2x	Adequate	Premium valuation
EV/Sales	3.4x	Good	Growth premium priced in
FCF Yield	14.4%	Excellent	Attractive cash return

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Capital Allocation: MERCADOLIBRE INC returns 0.0% shareholder yield

Total shareholder yield 0.0%. Capital returned $0 TTM. Source: 10-Q filed 2025-10-30.

Metric	MELI	Rating	Context
Total Shareholder Yield	0.0%	Warning	Dividend + buyback yield combined
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)	9.7%	Top 50%	2.5x above
Free Cash Flow Margin	35.3%	Top 5%	4.2x above
Gross Margin	42.7%	Bottom 50%	0.8x below
Operating Margin	8.3%	Top 50%	1.7x above
Return on Equity (ROE)	27.6%	Top 25%	5.4x above
P/E Ratio	46.2x	N/A	-

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Financial Scorecard

Metric	MELI	Rating	Sector Context
Return on Invested Capital (ROIC)	9.7%	Adequate	Top 50% of sector (median: 3.9%)
Free Cash Flow Margin	35.3%	Excellent	Top 5% of sector (median: 8.5%)
Gross Margin	42.7%	Good	Bottom 50% of sector (median: 50.6%)
Debt to Equity Ratio	301.1%	Red flag	High financial leverage
P/E Ratio (Price-to-Earnings)	46.2x	Adequate	High expectations priced in
Free Cash Flow Yield	14.4%	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 9.7%. Sector median 3.9%. Source: 10-Q filed 2025-10-30.

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

MERCADOLIBRE INC (MELI) has a free cash flow margin of 35.3%, generating $12.4 billion in free cash flow over the trailing twelve months. Source: 10-Q filed 2025-10-30.

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 46.2x, which is above the sector median of N/A. EV/Sales 3.4x. FCF yield 14.4%. Source: 10-Q filed 2025-10-30.

Q: How much debt does MERCADOLIBRE INC have?

MERCADOLIBRE INC (MELI) has a debt-to-equity ratio of 3.0x with total debt of $23.6 billion. Net debt $17.9 billion. Source: 10-Q filed 2025-10-30.

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

MERCADOLIBRE INC (MELI) grew revenue by 46.0% year-over-year. EPS -9.3% YoY. Source: 10-Q filed 2025-10-30.

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

Compared to other companies in Technology, MERCADOLIBRE INC (MELI) shows: ROIC 9.7%, sector median 3.9% (Top 50%). FCF margin 35.3%, sector median 8.5% (Top 5%). Gross margin 42.7%, 7.9pp 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 -11.3% over 8 quarters; 2) debt/equity 3.0x (above 1.5x threshold). Source: 10-Q filed 2025-10-30.

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Data Source: Data sourced from 10-Q filed 2025-10-30. TTM metrics as of Q2 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.