Added to YB: 2026-05-18
Pitch date: 2026-05-14
MELI [bullish]
MercadoLibre, Inc.
+0.24%
current return
Author Info
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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
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)