Is the business good?
How good a business is MELI?
MercadoLibre, Inc. earns 20% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
20%
Return on invested capital · cost of capital 9.0% · 11 points above what the capital costs: growth creates value
- Operating margin
- 9.6%
Operating margin · Internet Retail median 7.6% · 12 months to Q1 2026
- Share count, year on year
- 0.00%
Share count, year on year · flat: no meaningful dilution
- R&D as % of revenue
- 7.6%
R&D as % of revenue
| Year | Operating margin |
|---|---|
| FY2020 | 3.2% |
| FY2021 | 6.2% |
| FY2022 | 9.9% |
| FY2023 | 15% |
| FY2024 | 13% |
| FY2025 | 11% |
Details›
- Gross margin12 months to Q1 2026
- 44%
- Operating margin12 months to Q1 2026
- 9.6%
- Net margin12 months to Q1 2026
- 6.0%
- Free cash flow margin
- 37%
- R&D as % of revenue
- 7.6%
- Revenue, trailing twelve months
- $31.8B
- Free cash flow, trailing twelve months
- $11.8B
- Net income, trailing twelve months
- $1.92B
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 20%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion from the cash flow statement.
Internet Retail
Ranks #8 of 18 by Smart Score