MercadoLibre, Inc. (MELI) on Decifer

Decifer ranks MELI number 166 of 277 tracked names on durable business quality.

Why it ranks here

• It earns solid returns on the money it puts to work, around 12% and those returns have been improving and it turns most of its profit into real cash.
• Revenue is growing about 39% a year, profits grew 5% over the past year, and growth is speeding up, not slowing down.
• It keeps a healthy share of every sale as profit, and that has stayed steady over the years, a sign of real pricing power, with profitability widening as it grows.
• It is riding an active market tailwind and has the balance sheet to fund its growth.
• And it returns cash to shareholders and its own insiders have been buying.
• Revenue growing about 39% with insiders buying is encouraging, but returns near 12%, momentum of 4 out of 35, and no worldview role keep it in the middle.

The current read

The evidence on MELI lines up on the supportive side: research view: MELI is a high-conviction name in Consumer Cyclical. The independent signals we track are telling the same story.

Themes

• Consumer & Retail: MercadoLibre, Inc. operates in specialty retail. That places it inside the Consumer & Retail story.

Read the full MELI research brief · See all quality rankings

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