Added to YB: 2026-05-19
Pitch date: 2026-05-15
MELI [neutral]
MercadoLibre, Inc.
+0.69%
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
growth
MELI’s Q1 Bad Debt ≠ Bad Debt.
MELI (earnings): Q1 op margin -600bps on $1.244B provisions (vs $603M YoY) but not credit deterioration—IFRS 9 front-loads lifetime loss at origination. Loan portfolio +87% YoY to $14.6B drove mechanical provision surge. Extended duration 5→8mo + downmarket expansion = higher day-one reserves despite 15-90d NPL flat at 8%. NIMAL 17.8% (vs 22.7% YoY) still 2x trad lenders, signals credit quality holds. Risk: NIMAL compression trajectory; <15% impairs thesis.
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