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Added to YB: 2026-05-18

Pitch date: 2026-05-14

MELI [bullish]

MercadoLibre, Inc.

+0.24%

current return

Author Info

Compounding Your Wealth dives into detailed analyses of earnings reports, shares transparent reviews, and cultivates a long-term mindset essential for understanding company fundamentals, business models, and diverse investment styles. My goal is to nurture a multibagger portfolio by focusing on growth companies, adopting a long-term perspective, and employing a systematic, process-driven approach. Sign up for the newsletter.

Company Info

MercadoLibre, Inc. operates online commerce platforms in Brazil, Mexico, Argentina, and internationally.

Market Cap

$78.4B

Pitch Price

$1.6K

Price Target

N/A

Dividend

N/A

EV/EBITDA

19.03

P/E

40.84

EV/Sales

2.68

Sector

Broadline Retail

Category

value

Show full summary:
MercadoLibre: Margin Pressure or Moat Expansion?

MELI (increased position): LatAm e-commerce/fintech leader at historic valuation lows—Forward EV/Sales 2.5x vs avg 7.4x, P/E 38.9x on +49% YoY rev growth. Mexico +62%, Brazil +55%, GMV +42%, TPV +50%. Margin pressure from free shipping, logistics, credit card expansion strengthens moat. Credit portfolio $14.6B (+88% YoY), NPL >90d stable at 17.6%. Commerce take rate +25.7%, Fintech take rate 4.56% rising. 2027 PEG 0.8x signals undervaluation. Wide moat via logistics density, network effects, proprietary data. 82.9M fintech MAUs. Risks: $14.6B credit book, provisioning drag, LatAm macro. Analysts forecast +34% rev growth (highest in e-commerce). Author increased position to 9.1% of portfolio.

Read full article (15 min)