MercadoLibre Inc. Common Stock (MELI)

FairStock Score: 36/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I approach MercadoLibre as a good business that the market already prizes. Based on FairStock calculations at the 2026-10-26 close of $1,668.72, the market value is $84.6B, P/E 45.32, P/B 10.80, and EV/EBITDA 26.64. The Graham Number is only $357.80, leaving a negative margin of safety of -405.91%, so Graham would not call this cheap. The operating record is vigorous: in fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $7.1B versus $4.8B in fiscal Q2 2025, and net income was $466.0M versus $523.0M; diluted EPS was $9.19 versus $10.31. For FY2025, revenue was $20.3B, net income $2.0B, and diluted EPS $39.40, up from FY2023 revenue of $10.5B and net income of $987.0M. FairStock shows revenue growth of 49.03% but profit growth of -15.59%, and the Lynch category is FAST GROWER from 121.5% annual profit growth over four years and 37.4% revenue growth. ROE is 27.50%, but ROCE is only 4.31% and D/E is 1.69, so leverage may be flattering returns. TTM free cash flow is $12.4B, a 14.7% FCF yield, which is attractive. Piotroski is 7/9, while Altman Z is 1.79. My conclusion: a strong franchise and cash generator, but the price demands continued rapid growth and a profit rebound; I would want a much larger margin of safety.

In plain English: MercadoLibre runs online shopping marketplaces and a payments platform, mainly in Latin America. Sales are growing quickly and it produces a lot of cash, but profit recently fell and it carries substantial debt. At $1,668.72, the shares look expensive compared with its profits and accounting value, even though cash flow is strong.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-26 close · note generated 2026-10-28 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer