MercadoLibreMEX:MELIN -3.44%71 Gross Margin % is 43.66% as of Mar. 2026, which is 9% below its 10-year median of 48.11. GuruFocus rates MEX:MELIN with a GF Score™ of 71/100 and a GF Value™ of MXN62,310.44 (Significantly Undervalued). The stock has 3 warning signs investors should review. Among 1,117 Retail - Cyclical companies, MercadoLibre ranks better than 64.19% on this metric.
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
MercadoLibre had a gross margin of 43.66% for the quarter that ended in Mar. 2026 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
MercadoLibre Gross Margin % Related Terms
MercadoLibre Gross Margin % Historical Data
* Premium members only.
The historical data trend for MercadoLibre's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
MEX:MELIN vs DASH, SE, PDD: Gross Margin % Comparison
For the Internet Retail subindustry, MercadoLibre's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
MercadoLibre Gross Margin % vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, MercadoLibre's Gross Margin % distribution charts can be found below:
* The bar in red indicates where MercadoLibre's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
MercadoLibre (MEX:MELIN) has a Gross Margin % of 43.66% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on MercadoLibre and its competitors. This is near median its historical median of 48.11. Over the past decade, MercadoLibre's Gross Margin % has ranged from 42.51 to 63.58. According to the industry distribution chart, MercadoLibre ranks #400 out of 1117 companies in the Retail - Cyclical industry, placing it in the top 35.8%.
Is MercadoLibre's Gross Margin % too high?
MercadoLibre's current Gross Margin % of 43.66% is near median its 10-year median of 48.11. Over the past 10 years, this metric has ranged from a low of 42.51 to a high of 63.58. The Retail - Cyclical industry median Gross Margin % is 36.23. MercadoLibre's value of 43.66% is 20.5% above this industry median. Based on the distribution chart, MercadoLibre ranks #400 out of 1117 companies in the Retail - Cyclical industry, which is above the industry midpoint. Overall, MercadoLibre has a GF Score™ of 71/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does MercadoLibre's Gross Margin % compare to DASH and SE?
According to the Retail - Cyclical industry distribution chart, MercadoLibre ranks #400 out of 1117 companies for Gross Margin %. This puts MercadoLibre in the upper half of its industry. The industry median Gross Margin % is 36.23. MercadoLibre's value of 43.66% is 20.5% above this benchmark. Historically, MercadoLibre's own Gross Margin % has ranged from 42.51 to 63.58 over the past decade. While the company's 10-year median is 48.11 vs. the industry median of 36.23, MercadoLibre has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Retail - Cyclical company?
The median Gross Margin % among Retail - Cyclical companies is 36.23, based on 1,117 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. MercadoLibre's current Gross Margin % of 43.66% is 20.5% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on MercadoLibre and its competitors. For the Retail - Cyclical industry, the median Gross Margin % is 36.23 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. MercadoLibre's current Gross Margin % is 43.66%, which is near median its own 10-year median of 48.11. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is MercadoLibre stock overvalued right now?
Based on GuruFocus' analysis, MercadoLibre (MEX:MELIN) is currently considered Significantly Undervalued. The stock's GF Value™ is MXN62,310.44, compared to a current price of MXN28,406.70 — trading 54.4% below its estimated fair value. The current Gross Margin % is 43.66%, which is near median its 10-year median of 48.11 and 20.5% above the Retail - Cyclical industry median of 36.23. MercadoLibre's overall GF Score™ is 71/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For MercadoLibre (MEX:MELIN), the current Gross Margin % is 43.66% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is MercadoLibre (MEX:MELIN) Overvalued in 2026?
Based on GuruFocus' analysis, MercadoLibre stock appears to be undervalued.
The current stock price of MXN28,406.70 is trading 54.4% below its estimated GF Value™ of MXN62,310.44.
GuruFocus considers MercadoLibre to be Significantly Undervalued.
Key valuation signals for MEX:MELIN:
Gross Margin %: 43.66% (near median its 10-year median of 48.11)
GF Value™: MXN62,310.44 vs. price of MXN28,406.70 (54.4% below fair value)
Industry Position: 20.5% above the Retail - Cyclical median (#400 of 1117)
No single metric tells the full story. See the MEX:MELIN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
MercadoLibre is the largest e-commerce marketplace in Latin America, with more than 120 million unique active buyers and 1 million active sellers at the end of 2025. The company is roughly split between its e-commerce business, which includes its fulfillment and advertising services, and its fintech segment, which comprises its rapidly expanding payment and digital wallet platform (Mercado Pago) and its lending business (Mercado Credito). While the company operates in 18 countries, its primary markets are Brazil, Argentina, and Mexico, which account for more than 95% of its revenue.
71GF Score
Get the complete analysis for MEX:MELIN
Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
MEX:MELIN has been successfully added to your 
