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Melon S.A (MELON) Fair Value & Analysis

Basic Materials · CL · Market cap 190B CLP

MS Melon S.A MELON · SN
Price0.6800 CLP
Fair Value0.5903 CLP
Upside-13.2%
Quality56/100
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Mixed Growth
Thin margins · 4.7% net margin
Low debt · generates free cash flow
1.32% dividend yield
Mixed vs. peers (6/14)
Narrow moat 26/100
Evidence: High Range 0.4469 CLP – 0.7393 CLP Share as image

Fair value as of: Jul 18, 2026

From 23 valuation models · updated 24 days ago

Fair value updated Jul 18, 2026, revised from 1.07 CLP to 0.5903 CLP (−44.8%) since Jun 24, 2026.

A solid business, but screening 13% overvalued on our models.

What matters now

  • Solid but not exceptional quality (56/100) and above fair value, neither a clear bargain nor a standout compounder.
  • Our model range runs from 0.4469 CLP (bear) to 0.7393 CLP (bull), base 0.5903 CLP. The closer the price sits to the lower half, the larger the margin of safety.
  • Quality 56/100 (solid quality) with high evidence: the data supports the verdict.
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Price vs Fair Value (5 years)

0.6800 CLP 0.1886 CLP Fair Value 0.5903 CLP Jun 2015 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 18, 2026.

How to read this chart

60‑month range 0.1886 CLP – 0.6800 CLP · fair‑value band 0.4469 CLP – 0.7393 CLP · the 0.6800 CLP price screens above the 0.5903 CLP fair value. Dashed = 300-day average. As of Jul 18, 2026.

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Analysis

Melon S.A (MELON) currently trades at 0.6800 CLP, while our model-based Fair Value estimate is 0.5903 CLP, implying the stock looks roughly 13.2% overvalued today. The Quality Score stands at 56/100 (solid quality), in the Basic Materials sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: high).

Over the trailing twelve months, Melon S.A generated revenue of 260B CLP at a net margin of 4.7%. Revenue declined 2.6% year over year. It earns a return on equity of 6.2%. Net debt stands at 65.9B CLP. Fundamentals as of Jul 18, 2026

Our scenario range runs from 0.4469 CLP (bear case) to 0.7393 CLP (bull case); at 0.6800 CLP, the current price sits within that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 9% below its 52-week high and 91% above its 52-week low, currently above its 200-day average. For context, the median of 10 Basic Materials peers we cover trades at -59% fair-value upside, at -13%, MELON screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
Growth DCF 1.13 CLP 1.61 CLP 2.26 CLP 80
Residual Income 0.6100 CLP 0.6600 CLP 0.8800 CLP 76
Rev-Margin DCF 0.6900 CLP 1.01 CLP 1.37 CLP 74
All 23 models by family
DCF Models
FCF DCF 1.09 CLP 1.60 CLP 2.33 CLP 38
Owner Earnings 1.26 CLP 1.84 CLP 2.67 CLP 31
5Y Revenue Exit 0.6900 CLP 1.00 CLP 1.36 CLP 39
5Y EBITDA Exit 0.9800 CLP 1.51 CLP 2.10 CLP 41
5Y P/E Exit 0.7900 CLP 1.17 CLP 1.54 CLP 38
10Y Revenue Exit 0.8100 CLP 1.11 CLP 1.47 CLP 36
10Y EBITDA Exit 1.01 CLP 1.46 CLP 2.00 CLP 37
10Y P/E Exit 0.8900 CLP 1.23 CLP 1.60 CLP 35
Earnings-Based
Graham-Dodd 0.4300 CLP 0.9800 CLP 1.26 CLP 54
PEG = 1.0 0.1600 CLP 0.2300 CLP 0.3000 CLP 46
EPV 0.4600 CLP 0.5600 CLP 0.6400 CLP 59
Multiples
P/E Multiple 0.8100 CLP 1.07 CLP 1.34 CLP 63
P/S Multiple 0.8100 CLP 1.07 CLP 1.34 CLP 58
P/B Multiple 0.8100 CLP 1.07 CLP 1.34 CLP 55
EV/EBIT 0.5900 CLP 0.8100 CLP 1.04 CLP 53
EV/EBITDA 1.07 CLP 1.45 CLP 1.84 CLP 54
EV/Revenue 0.5000 CLP 0.7500 CLP 1.00 CLP 43
Asset-Based
NCAV (Graham) 0.3600 CLP 0.4800 CLP 0.7100 CLP 50
Growth DCF
Growth DCF 1.13 CLP 1.61 CLP 2.26 CLP 80
Rev-Margin DCF 0.6900 CLP 1.01 CLP 1.37 CLP 74
Economic Profit
Residual Income 0.6100 CLP 0.6600 CLP 0.8800 CLP 76
ROIC Compounder 0.4600 CLP 0.5600 CLP 0.6400 CLP 72
Growth Earnings
Growth-Adj P/E 0.6100 CLP 0.8800 CLP 1.14 CLP 68

Widest divergence: DCF Models (1.23 CLP) versus Asset-Based (0.4800 CLP). Highest evidence: Growth DCF (80).

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Key figures & financial health

Revenue (TTM) 260B CLP
Revenue growth (YoY) -2.6%
Net margin 4.7%
Return on equity 6.2%
Free cash flow 31.2B CLP FY2025
P/E ratio 17.0
More key figures
Operating margin -2.3%
EPS (TTM) 0.0400 CLP
Dividend yield 1.3%
EPS growth (YoY) -64.0%
Net debt 65.9B CLP FY2025

Figures from reported company fundamentals · as of Jul 18, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 56/100

Of which business quality 53 · Market factors (momentum, volatility) 81

Profitability 40
Margins and returns on capital today
Quality Growth 57
Are margins and returns improving?
Cashflow 35
Earnings quality: real cash, not paper profit
Fin. Strength 39
Balance sheet, leverage, solvency risk
Investment 98
Disciplined investing over empire-building
Low Volatility 67
Calm price path (market factor)
Momentum 84
Price trend over the last 3–12 months (market factor)
52W Momentum 91
Distance to the 52-week high (market factor)
Net Issuance 82
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

Melon S.A., through its subsidiaries, produces, markets, and supplies cement, ready-mix concrete, and aggregates in Chile. It operates through two segments, Cement and Aggregates. The company's products are used in high-rise buildings, civil and industrial works, mining and port works, and household.

Full company description

Melon S.A., through its subsidiaries, produces, markets, and supplies cement, ready-mix concrete, and aggregates in Chile. It operates through two segments, Cement and Aggregates. The company's products are used in high-rise buildings, civil and industrial works, mining and port works, and household. It serves construction material distributors; construction companies; and the real estate, infrastructure, civil works, mining and concrete sectors. The company was formerly known as Lafarge Chile SA and changed its name to Melon S.A. in October 2009. Melon S.A. was founded in 1906 and is headquartered in Santiago, Chile. Melon S.A. operates as a subsidiary of Inversiones Cordillera del Sur II Spa.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Melon S.A reported revenue of 262B CLP in FY2025 versus 240B CLP in FY2021, a compound +2.3%/yr. Reported net income was 17.7B CLP in FY2025, compounding +9.5%/yr from FY2021.

Growth Quality 61/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Latest Revenue (FY 2025)
262B CLP
Latest YoY
+5.0%
Avg. growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+2.3%
Avg. growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+6.9%
Avg. growth/yr (10Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+2.2%
Revenue +2.3%/yr
FY21 240B CLP
FY22 245B CLP
FY23 242B CLP
FY24 250B CLP
FY25 262B CLP
Net income +9.5%/yr
FY21 12.3B CLP
FY22 −9.7B CLP
FY23 486M CLP
FY24 −12.7B CLP
FY25 17.7B CLP

MELON screens 13% overvalued. Compare with CRH plc →

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Cite: Fair Value Calculator (2026). "Melon S.A Fair Value". https://www.fairvalue-calculator.com/stock/MELON

Peer Group

Building Materials · 253 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 56 · Above median
Fair Value upside −13% · Below median
Return on equity (TTM) 6% · Above median
Return on assets -1% · Bottom 25%
Net margin (TTM) 5% · Above median
Operating margin (TTM) -2% · Below median
Revenue growth -3% · Below median
Dividend yield (TTM) 1.3% · Below median
Debt / equity 0.16× · Higher than median

Valuation Multiples vs Building Materials median · lower = cheaper

P/E (TTM) 17.0× · Cheaper than median
P/B 0.96× · Pricier than median
P/S (TTM) 0.73× · Cheaper than median
P/FCF 0.0× · Cheaper than 75% of peers
EV/EBITDA 24.0× · Pricier than 75% of peers

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 16 · sector 27
FUTURE 0 · sector 2
PAST 25 · sector 15
HEALTH 92 · sector 92
DIVIDEND 26 · sector 42

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Building Materials stocks, each showing price versus our Fair Value estimate (as of Jul 18, 2026).

Stock Price Fair Value vs Fair Value
CRH plc CRH $102.92 $70.57 -31%
UltraTech Cement Limited ULTRACEMCO ₹11,711 ₹4,719 -60%
China Jushi Co 600176 ¥54.52 ¥13.95 -74%
Grasim Industries Limited GRASIM ₹3,073 ₹1,245 -59%
CEMEX, S.A. CEMEXCPO 21.71 MXN 15.42 MXN -29%
Anhui Conch Cement Company 600585 ¥16.99 ¥26.14 +54%
Ambuja Cements Limited AMBUJACEM ₹435.25 ₹227.96 -48%
Shree Cement Limited SHREECEM ₹26,930 ₹8,215 -69%
TCC Group 1101B 43.70 TWD 10.48 TWD -76%
Taiwan Glass Ind. Corp 1802 53.30 TWD 13.98 TWD -74%

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Frequently asked questions

Is Melon S.A (MELON) overvalued or undervalued?
As of Jul 18, 2026, our model estimates a fair value of 0.5903 CLP versus a price of 0.6800 CLP, about −13% (overvalued).
What is the fair value of MELON?
Our model-based fair value for Melon S.A is 0.5903 CLP (as of Jul 18, 2026), built from audited fundamentals. The current price is 0.6800 CLP.
What is the quality score of MELON?
Melon S.A has a Quality Score of 56/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Melon S.A (MELON)?
Melon S.A reported trailing-twelve-month revenue of about 260B CLP (latest available figure, as of Jul 18, 2026).
What is the net profit margin of MELON?
The net profit margin of Melon S.A is about 4.7%, meaning it keeps roughly 4.7% of revenue as net income. Based on the latest reported figures.
Does Melon S.A pay a dividend?
Melon S.A currently shows a dividend yield of about 1.32% relative to its recent price (as of Jul 18, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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