Is MERCADOLIBRE INC (MELI) Halal?

NASDAQ Consumer Cyclical Uruguay $81.1B
✓ HALAL
Confidence: 95/100
MERCADOLIBRE INC (MELI) is Halal under 4 of 5 Shariah screening standards, including AAOIFI Standard 21. With a debt ratio of just 12.6% against the AAOIFI threshold of 30%, MERCADOLIBRE INC comfortably passes the key financial ratio tests. The company operates in the Consumer Cyclical sector (Internet Retail), which is not a prohibited industry under Islamic finance principles.

Shariah Screening — 5 Standards

Based on financial data from December 2025

Standard Debt Ratio Cash Ratio Receivables Income Status
AAOIFI 12.6%
/ 30%
6.1%
/ 30%
18.3%
/ 30%
0.48%
/ 5%
✓ HALAL
DJIM 12.6%
/ 33%
6.1%
/ 33%
18.3%
/ 33%
0.48%
/ 5%
✓ HALAL
MSCI 26.7%
/ 33%
12.9%
/ 33%
38.9%
/ 33%
0.48%
/ 5%
✗ NOT HALAL
S&P 12.6%
/ 33%
6.1%
/ 33%
18.3%
/ 33%
0.48%
/ 5%
✓ HALAL
FTSE 26.7%
/ 33%
12.9%
/ 33%
38.9%
/ 50%
0.48%
/ 5%
✓ HALAL

Financial Highlights

P/E Ratio
40.6
Forward: 21.8
EPS
$39.35
P/B Ratio
12.0
EV/EBITDA
21.4
EV: $86.2B
Revenue
$28.9B
Growth: 44.6%
Beta
1.5
High volatility
Current Ratio
1.2

Profitability

Gross Margin 50.7%
Operating Margin 10.2%
Net Margin 6.9%
Return on Equity (ROE) 36.0%
Return on Assets (ROA) 5.9%

Cash Flow & Balance Sheet

Operating Cash Flow$12.1B
Free Cash Flow$10.8B
Total Debt$11.4B
Debt-to-Equity169.2
Current Ratio1.2
Total Assets$42.7B

Price & Trading

Last Close$1,630.99
50-Day MA$1,903.35
200-Day MA$2,172.08
Avg Volume576K
Beta1.5
52-Week Range
$1,593.21
$2,645.22

About MERCADOLIBRE INC (MELI)

CEO
Mr. Ariel Szarfsztejn
Employees
123,670
Sector
Consumer Cyclical
Industry
Internet Retail
Country
Uruguay
Exchange
NASDAQ
Market Cap
$81.1B
Currency
USD

MercadoLibre, Inc. operates online commerce platforms in Brazil, Mexico, Argentina, and internationally. The company operates Mercado Libre Marketplace, an online commerce platform that can be accessed through mobile app or website; and Mercado Pago, a financial technology solution platform, which offers comprehensive set of financial technology services to users and other users of its e-commerce platform. It also provides Mercado Fondo that allows users to invest funds deposited in their Mercado Pago accounts; Mercado Credito, which grants loans and obtains better funding alternatives; and Mercado Mercado Envios that facilitates the shipping of goods from the Company and sellers to buyers. In addition, the company provides Mercado Libre Classifieds, where users can list vehicles, properties, and services; Mercado Ads, an advertising platform, which enables retailers and brands to promote their products and services on the platform. MercadoLibre, Inc. was incorporated in 1999 and is headquartered in Montevideo, Uruguay.

Purification Calculator

As a halal stock with 0.48% impermissible income, you need to purify your dividends.

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Frequently Asked Questions

Is MERCADOLIBRE INC (MELI) halal to invest in?

Based on our screening using AAOIFI Standard 21 (the strictest methodology), MERCADOLIBRE INC is Halal. The company passes all financial ratio thresholds for debt, cash, receivables, and impermissible income. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.

What is MERCADOLIBRE INC's debt ratio?

MERCADOLIBRE INC's debt ratio is 12.6% under the AAOIFI standard (which uses market capitalization as the denominator). The AAOIFI threshold is 30%. Under MSCI and FTSE (which use total assets as the denominator), the debt ratio is 26.7%.

Does MERCADOLIBRE INC require dividend purification?

Yes, MERCADOLIBRE INC has an impermissible income ratio of 0.48%, which means 0.48% of any dividends received should be donated to charity as purification. This is because a small portion of the company's revenue comes from non-Shariah-compliant sources.

What are MERCADOLIBRE INC's key financial metrics?

MERCADOLIBRE INC has a market capitalization of $81.1B, trailing P/E ratio of 40.6, and revenue of $28.9B. The company maintains a gross margin of 50.7% and a net margin of 6.9%. Return on equity stands at 36.0%.

How often is the screening data updated?

Our screening data is updated regularly using the latest available financial statements and market data. Stock prices and market caps are refreshed frequently, while financial statements are updated quarterly when companies report earnings.

Disclaimer: HalalStockGuide.com provides Shariah compliance screening for educational and informational purposes only. This is not a fatwa, financial advice, or a recommendation to buy or sell any security. Screening results are based on publicly available financial data and established methodologies. Always consult a qualified Islamic scholar and a licensed financial advisor before making investment decisions.