MercadoLibreMEX:MELIN -3.44%71 Net Margin % is 4.71% as of Mar. 2026, which is 67% above its 10-year median of 2.82. GuruFocus rates MEX:MELIN with a GF Score™ of 71/100 and a GF Value™ of MXN62,504.41 (Significantly Undervalued). The stock has 3 warning signs investors should review. Among 1,128 Retail - Cyclical companies, MercadoLibre ranks better than 72.43% on this metric.
Net margin is calculated as Net Income divided by its Revenue. MercadoLibre's Net Income for the
three
months ended in Mar. 2026 was MXN7,520 Mil. MercadoLibre's Revenue for the
three
months ended in Mar. 2026 was MXN159,499 Mil. Therefore, MercadoLibre's net margin for the quarter that ended in Mar. 2026 was 4.71%.
The historical rank and industry rank for MercadoLibre's Net Margin % or its related term are showing as below:
MEX:MELIN'
s Net Margin % Range Over the Past 10 Years
Min: -7.49 Med: 2.82 Max: 16.15
Current: 6.04
MEX:MELIN's Net Margin % is ranked better than 72.43% of 1128
companies
in the Retail - Cyclical industry
Industry Median: 2.33
vs MEX:MELIN: 6.04
MercadoLibre (MEX:MELIN) Net Margin % Explanation
Although Net Income and Earnings-per-Share (EPS) are the most widely used parameter in measuring a company's profitability and valuation, it is the least reliable. The reason is that reported earnings can be manipulated easily by adjusting any numbers such as Depreciation, Depletion and Amotorization and non-recurring items.
But the long term trend of the net margin is a good indicator of the competitiveness and health of the business.
MercadoLibre Net Margin % Related Terms
MercadoLibre Net Margin % Historical Data
* Premium members only.
The historical data trend for MercadoLibre's Net 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: Net Margin % Comparison
For the Internet Retail subindustry, MercadoLibre's Net Margin %, along with its competitors' market caps and Net 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 Net Margin % vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, MercadoLibre's Net Margin % distribution charts can be found below:
* The bar in red indicates where MercadoLibre's Net 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.
MercadoLibre (MEX:MELIN) has a Net Margin % of 4.71% as of Mar. 2026. Net margin is the ratio of total net income to net sales. View historical data on MercadoLibre and its competitors. This is 67% above median its historical median of 2.82. According to the industry distribution chart, MercadoLibre ranks #311 out of 1128 companies in the Retail - Cyclical industry, placing it in the top 27.6%.
Is MercadoLibre's Net Margin % too high?
MercadoLibre's current Net Margin % of 4.71% is 67% above median its 10-year median of 2.82. The Retail - Cyclical industry median Net Margin % is 2.33. MercadoLibre's value of 4.71% is 102.1% above this industry median. Based on the distribution chart, MercadoLibre ranks #311 out of 1128 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 Net Margin % compare to DASH and SE?
According to the Retail - Cyclical industry distribution chart, MercadoLibre ranks #311 out of 1128 companies for Net Margin %. This puts MercadoLibre in the upper half of its industry. The industry median Net Margin % is 2.33. MercadoLibre's value of 4.71% is 102.1% above this benchmark. While the company's 10-year median is 2.82 vs. the industry median of 2.33, 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 Net Margin % for a Retail - Cyclical company?
The median Net Margin % among Retail - Cyclical companies is 2.33, based on 1,128 companies in the industry. Companies in the top quartile (top 25%) have a Net Margin % significantly above this median, while those in the bottom quartile fall well below. However, Net Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. MercadoLibre's current Net Margin % of 4.71% is 102.1% 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 Net Margin % mean?
A high Net Margin % can signal that a stock is expensive relative to its fundamentals. Net margin is the ratio of total net income to net sales. View historical data on MercadoLibre and its competitors. For the Retail - Cyclical industry, the median Net Margin % is 2.33 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. MercadoLibre's current Net Margin % is 4.71%, which is 67% above median its own 10-year median of 2.82. 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 MXN62,504.41, compared to a current price of MXN28,406.70 — trading 54.6% below its estimated fair value. The current Net Margin % is 4.71%, which is 67% above median its 10-year median of 2.82 and 102.1% above the Retail - Cyclical industry median of 2.33. 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 Net Margin % calculated?
Net Margin % is calculated from a company's financial statements. For MercadoLibre (MEX:MELIN), the current Net Margin % is 4.71% 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 54.6% below its estimated GF Value™ of MXN62,504.41.
GuruFocus considers MercadoLibre to be Significantly Undervalued.
Key valuation signals for MEX:MELIN:
Net Margin %: 4.71% (67% above median its 10-year median of 2.82)
GF Value™: MXN62,504.41 vs. price of MXN28,406.70 (54.6% below fair value)
Industry Position: 102.1% above the Retail - Cyclical median (#311 of 1128)
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
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