What moat does MercadoLibre have?

The advantage is the seller who already gets paid in Mercado Pago and the buyer who already expects the shipment. The seller can leave for another marketplace. The moat narrows if the credit is not collected, or if the exchange rate eats the profit.

How do you read the MercadoLibre radar?

Health separates the company's debt from the credit book, which can fail. Quality separates the marketplace commission from the shipping margin and from credit. Growth follows purchase and payment volume, not a licence. P/E is read against a year of strong consumption and a favourable currency, not against that year as normal. Shareholder return, if any, has to fit after the credit. Do not call it a closed network effect.

Which multiples matter for MercadoLibre?

The P/E of a year of heavy consumption in Brazil is not normal earnings. EV/EBITDA is read with the credit inside: a loss is not a marketing expense. Do not use Amazon's multiple as if shipping and the cloud were the same business. A dash if MELI is missing.

What does this MercadoLibre analysis leave out?

Not advice on Mercado Libre. Vaultflake does not split marketplace, shipping and credit and does not treat delivery as immediate. This is not the absolute leader. Read the filings. The table is a snapshot, not a target price.

MercadoLibre (MELI) analysis

MercadoLibre, Inc.

Sector:Consumer Discretionary · Latin American Commerce and Payments

Country:Latin America / United States

Profile and moat

Mercado Libre puts together the marketplace, Mercado Envíos logistics and the payments and credit of Mercado Pago. The weight is in Brazil, Mexico and Argentina. Amazon and Shopee sell in the same region. It is not the absolute leader and not a logistics network nobody else can match.

Credit looks like a bank: what is not collected is a loss, not growth. The exchange rate, especially in Argentina and in Brazil, moves dollar profit. Fast delivery is a cost. This report does not say it arrives in under 24 hours. A year of heavy consumption is not normal earnings.

The result comes from the marketplace commission, from shipping and from the financial margin. It is not a single toll.

MercadoLibre (MELI) analysis

MercadoLibre, Inc.

Sector:Consumer Discretionary · Latin American Commerce and Payments

Country:Latin America / United States

Profile and moat

The result comes from the marketplace commission, from shipping and from the financial margin. It is not a single toll.

MercadoLibre (MELI) analysis

Profile and moat

MercadoLibre (MELI) analysis

Profile and moat

Radar axes

Limits of this report

Questions from this report

What moat does MercadoLibre have?

How do you read the MercadoLibre radar?

Which multiples matter for MercadoLibre?

What does this MercadoLibre analysis leave out?

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