Latin America: MELI, AFYA and TOTVS, the only 3 10/10s
2026-06-23 · By Lubin Danilo, founder of Lubin Investment
Among 5,000+ stocks in our screener, only three Latin American companies score 10/10: MercadoLibre (MELI), Latin America's e-commerce/fintech leader; Afya (AFYA), Brazil's medical education leader; and TOTVS (TOTS3.SA), Brazil's dominant ERP software for SMEs.
Why so few 10/10s in Latin America?
Latin America represents 650M people and ~5% of world GDP. Yet only 3 of 5,000 analyzed stocks from the region score 10/10. Reasons: structural FX risk (volatile peso, real), frequent regulatory instability, lower average ROIC vs Asia or Northern Europe, and shallower capital markets limiting financial discipline.
The only 3 Latin American 10/10s
| Company | Ticker | Country | Sector | Score | P/FCF |
|---|---|---|---|---|---|
| MercadoLibre | MELI (Nasdaq) | Argentina/LatAm | E-commerce & Fintech | 10/10 | 6.82× |
| Afya | AFYA (Nasdaq) | Brazil | Medical Education | 10/10 | 1.11× |
| TOTVS | TOTS3.SA (B3) | Brazil | ERP Software for SMEs | 10/10 | 20.94× |
MercadoLibre (MELI): Latin America's Amazon + PayPal
MercadoLibre is Latin America's largest e-commerce and fintech company — present in 18 countries. Its MELI platform combines a marketplace (like Amazon), a payment solution (MercadoPago — like PayPal), logistics (MercadoEnvíos), and merchant lending. P/FCF of 6.82× — one of the most attractive valuations among our 10/10s globally. Current price $1,589 is below our target of $2,884.
Afya (AFYA): the Harvard of Brazilian medicine
Afya is Brazil's largest private medical education group — medical universities + continuing education for doctors + digital health solutions. The Brazilian medical market is regulated (government student quotas), creating a structural barrier to entry. Afya operates in a de facto oligopoly. Its P/FCF of 1.11× is very low — verify with current financial statements.
TOTVS (TOTS3.SA): the Oracle of Brazilian SMEs
TOTVS is the leading ERP software vendor for small and medium Brazilian businesses — 300,000+ SME clients, ~50% market share in its segment. Its recurring SaaS model, deep roots in the Brazilian SME ecosystem, and low dollar exposure give it remarkable resilience to currency crises. P/FCF 20.94×, listed only on the São Paulo Stock Exchange (B3).
FAQ
How do I invest in TOTVS from outside Brazil?
TOTVS is listed only on B3 (São Paulo Stock Exchange) under TOTS3.SA. Accessible via Interactive Brokers (Brazilian market access). Not available on standard European brokers. BRL/USD conversion involves FX risk.
Is MercadoLibre also a bank?
Yes. MercadoPago, the fintech arm, has become a neo-bank in several countries — merchant lending, savings accounts, prepaid cards, insurance. Fintech revenues now represent 50%+ of MELI's total revenue. The transformation from pure e-commerce to dominant fintech conglomerate is remarkable.
Is the FX risk manageable for MELI?
MELI is Nasdaq-listed in USD — that's your direct exposure. Underlying revenues are in local currencies (pesos, reais), but MELI actively hedges this risk. Argentine peso devaluation has had one-time P&L impacts, but the underlying business economics remain very healthy.
Is Afya really at 1.11× P/FCF?
Our screener shows 1.11× P/FCF as of June 23, 2026. This very low multiple should be verified with Afya's recent financial statements — it may reflect exceptional FCF or a calculation anomaly. Always cross-check with Morningstar, Bloomberg, or official filings before any decision.
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About the author
Written by Lubin Danilo, founder of Lubin Investment. A self-taught individual investor, I have analyzed stocks through their fundamentals for several years and invest my own money with this method. I codified it into a tool that judges a company's quality and its price separately, using criteria drawn from the financial literature (Warren Buffett, Michael Mauboussin, Aswath Damodaran).