MEG Energy Corp (MEG.CA) Fundamental Analysis & Valuation

TSX:MEG • CA5527041084

Current stock price

30.89 CAD
+0.22 (+0.72%)
Last:

This MEG.CA fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

8

1. MEG.CA Profitability Analysis

1.1 Basic Checks

  • MEG had positive earnings in the past year.
  • MEG had a positive operating cash flow in the past year.
  • MEG had positive earnings in 4 of the past 5 years.
  • MEG had a positive operating cash flow in each of the past 5 years.
MEG.CA Yearly Net Income VS EBIT VS OCF VS FCFMEG.CA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 500M -500M 1B 1.5B

1.2 Ratios

  • Looking at the Return On Assets, with a value of 7.78%, MEG belongs to the top of the industry, outperforming 90.09% of the companies in the same industry.
  • MEG's Return On Equity of 11.41% is amongst the best of the industry. MEG outperforms 82.08% of its industry peers.
  • MEG has a better Return On Invested Capital (10.05%) than 91.98% of its industry peers.
  • Measured over the past 3 years, the Average Return On Invested Capital for MEG is significantly above the industry average of 6.78%.
Industry RankSector Rank
ROA 7.78%
ROE 11.41%
ROIC 10.05%
ROA(3y)9.53%
ROA(5y)5.48%
ROE(3y)14.76%
ROE(5y)8.31%
ROIC(3y)13.52%
ROIC(5y)N/A
MEG.CA Yearly ROA, ROE, ROICMEG.CA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 10 -10 20

1.3 Margins

  • Looking at the Profit Margin, with a value of 12.79%, MEG is in the better half of the industry, outperforming 74.06% of the companies in the same industry.
  • MEG's Profit Margin has improved in the last couple of years.
  • MEG has a better Operating Margin (20.16%) than 74.06% of its industry peers.
  • In the last couple of years the Operating Margin of MEG has grown nicely.
  • Looking at the Gross Margin, with a value of 39.44%, MEG is in line with its industry, outperforming 54.72% of the companies in the same industry.
  • MEG's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 20.16%
PM (TTM) 12.79%
GM 39.44%
OM growth 3Y-6.62%
OM growth 5Y13.34%
PM growth 3Y14.56%
PM growth 5YN/A
GM growth 3Y-3.24%
GM growth 5Y-0.34%
MEG.CA Yearly Profit, Operating, Gross MarginsMEG.CA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 -20 40

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8

2. MEG.CA Health Analysis

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so MEG is still creating some value.
  • MEG has less shares outstanding than it did 1 year ago.
  • MEG has less shares outstanding than it did 5 years ago.
  • MEG has a better debt/assets ratio than last year.
MEG.CA Yearly Shares OutstandingMEG.CA Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 100M 200M 300M
MEG.CA Yearly Total Debt VS Total AssetsMEG.CA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B 8B

2.2 Solvency

  • An Altman-Z score of 3.22 indicates that MEG is not in any danger for bankruptcy at the moment.
  • MEG's Altman-Z score of 3.22 is amongst the best of the industry. MEG outperforms 81.60% of its industry peers.
  • MEG has a debt to FCF ratio of 2.58. This is a good value and a sign of high solvency as MEG would need 2.58 years to pay back of all of its debts.
  • With an excellent Debt to FCF ratio value of 2.58, MEG belongs to the best of the industry, outperforming 87.26% of the companies in the same industry.
  • A Debt/Equity ratio of 0.22 indicates that MEG is not too dependend on debt financing.
  • Looking at the Debt to Equity ratio, with a value of 0.22, MEG is in the better half of the industry, outperforming 62.74% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.22
Debt/FCF 2.58
Altman-Z 3.22
ROIC/WACC1.33
WACC7.55%
MEG.CA Yearly LT Debt VS Equity VS FCFMEG.CA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 1B 2B 3B 4B 5B

2.3 Liquidity

  • A Current Ratio of 1.73 indicates that MEG should not have too much problems paying its short term obligations.
  • MEG has a Current ratio of 1.73. This is in the better half of the industry: MEG outperforms 75.94% of its industry peers.
  • MEG has a Quick Ratio of 1.17. This is a normal value and indicates that MEG is financially healthy and should not expect problems in meeting its short term obligations.
  • The Quick ratio of MEG (1.17) is better than 67.92% of its industry peers.
Industry RankSector Rank
Current Ratio 1.73
Quick Ratio 1.17
MEG.CA Yearly Current Assets VS Current LiabilitesMEG.CA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M 800M 1B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

5

3. MEG.CA Growth Analysis

3.1 Past

  • MEG shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 13.51%, which is quite good.
  • MEG shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 13.92% yearly.
  • Looking at the last year, MEG shows a very negative growth in Revenue. The Revenue has decreased by -22.02% in the last year.
  • Measured over the past years, MEG shows a small growth in Revenue. The Revenue has been growing by 5.55% on average per year.
EPS 1Y (TTM)13.51%
EPS 3Y25.99%
EPS 5Y13.92%
EPS Q2Q%0%
Revenue 1Y (TTM)-22.02%
Revenue growth 3Y6.02%
Revenue growth 5Y5.55%
Sales Q2Q%-6.64%

3.2 Future

  • MEG is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 26.02% yearly.
  • MEG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.72% yearly.
EPS Next Y1.09%
EPS Next 2Y-8.37%
EPS Next 3Y4.57%
EPS Next 5Y26.02%
Revenue Next Year-5.5%
Revenue Next 2Y3.07%
Revenue Next 3Y5.27%
Revenue Next 5Y5.72%

3.3 Evolution

  • When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
  • When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
MEG.CA Yearly Revenue VS EstimatesMEG.CA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2B 4B 6B
MEG.CA Yearly EPS VS EstimatesMEG.CA Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 0 2 -2 4 6

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4

4. MEG.CA Valuation Analysis

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 14.71, which indicates a correct valuation of MEG.
  • Based on the Price/Earnings ratio, MEG is valued a bit cheaper than 66.04% of the companies in the same industry.
  • MEG's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.61.
  • Based on the Price/Forward Earnings ratio of 19.57, the valuation of MEG can be described as rather expensive.
  • MEG's Price/Forward Earnings is on the same level as the industry average.
  • MEG's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.79.
Industry RankSector Rank
PE 14.71
Fwd PE 19.57
MEG.CA Price Earnings VS Forward Price EarningsMEG.CA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • MEG's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. MEG is cheaper than 79.72% of the companies in the same industry.
  • MEG's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. MEG is cheaper than 64.15% of the companies in the same industry.
Industry RankSector Rank
P/FCF 18.8
EV/EBITDA 6.87
MEG.CA Per share dataMEG.CA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10 15

4.3 Compensation for Growth

  • The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates MEG does not grow enough to justify the current Price/Earnings ratio.
  • MEG has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)13.55
PEG (5Y)1.06
EPS Next 2Y-8.37%
EPS Next 3Y4.57%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

2

5. MEG.CA Dividend Analysis

5.1 Amount

  • With a Yearly Dividend Yield of 1.42%, MEG has a reasonable but not impressive dividend return.
  • MEG's Dividend Yield is comparable with the industry average which is at 4.47.
  • Compared to the average S&P500 Dividend Yield of 1.89, MEG is paying slightly less dividend.
Industry RankSector Rank
Dividend Yield 1.42%

5.2 History

  • MEG is new to the dividend game and has less than 3 years of track record.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years1
MEG.CA Yearly Dividends per shareMEG.CA Yearly Dividends per shareYearly Dividends per share 2024 2025 0.1 0.2 0.3

5.3 Sustainability

  • MEG pays out 19.34% of its income as dividend. This is a sustainable payout ratio.
DP19.34%
EPS Next 2Y-8.37%
EPS Next 3Y4.57%
MEG.CA Yearly Income VS Free CF VS DividendMEG.CA Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 500M 1B 1.5B
MEG.CA Dividend Payout.MEG.CA Dividend Payout, showing the Payout Ratio.MEG.CA Dividend Payout.PayoutRetained Earnings

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MEG.CA Fundamentals: All Metrics, Ratios and Statistics

MEG Energy Corp

TSX:MEG (11/14/2025, 7:00:00 PM)

30.89

+0.22 (+0.72%)

Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)11-10
Earnings (Next)02-25
Inst Owners47.35%
Inst Owner ChangeN/A
Ins Owners0.51%
Ins Owner ChangeN/A
Market Cap7.86B
Revenue(TTM)4.25B
Net Income(TTM)543.00M
Analysts70.77
Price Target30.22 (-2.17%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 1.42%
Yearly Dividend0.1
Dividend Growth(5Y)N/A
DP19.34%
Div Incr Years0
Div Non Decr Years1
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)52.46%
Min EPS beat(2)24.26%
Max EPS beat(2)80.65%
EPS beat(4)3
Avg EPS beat(4)22.54%
Min EPS beat(4)-34.35%
Max EPS beat(4)80.65%
EPS beat(8)3
Avg EPS beat(8)-2.68%
EPS beat(12)4
Avg EPS beat(12)-3.64%
EPS beat(16)6
Avg EPS beat(16)-0.57%
Revenue beat(2)1
Avg Revenue beat(2)-6.34%
Min Revenue beat(2)-13.03%
Max Revenue beat(2)0.34%
Revenue beat(4)2
Avg Revenue beat(4)-6.5%
Min Revenue beat(4)-16.34%
Max Revenue beat(4)3.01%
Revenue beat(8)5
Avg Revenue beat(8)3.61%
Revenue beat(12)7
Avg Revenue beat(12)3.44%
Revenue beat(16)10
Avg Revenue beat(16)3.55%
PT rev (1m)3.17%
PT rev (3m)3.74%
EPS NQ rev (1m)7.47%
EPS NQ rev (3m)7.47%
EPS NY rev (1m)0.55%
EPS NY rev (3m)1.3%
Revenue NQ rev (1m)-1.23%
Revenue NQ rev (3m)-1.23%
Revenue NY rev (1m)-0.41%
Revenue NY rev (3m)-1.42%
Valuation
Industry RankSector Rank
PE 14.71
Fwd PE 19.57
P/S 1.85
P/FCF 18.8
P/OCF 7.3
P/B 1.65
P/tB 1.65
EV/EBITDA 6.87
EPS(TTM)2.1
EY6.8%
EPS(NY)1.58
Fwd EY5.11%
FCF(TTM)1.64
FCFY5.32%
OCF(TTM)4.23
OCFY13.69%
SpS16.7
BVpS18.71
TBVpS18.7
PEG (NY)13.55
PEG (5Y)1.06
Graham Number29.73
Profitability
Industry RankSector Rank
ROA 7.78%
ROE 11.41%
ROCE 13.26%
ROIC 10.05%
ROICexc 10.25%
ROICexgc 10.26%
OM 20.16%
PM (TTM) 12.79%
GM 39.44%
FCFM 9.84%
ROA(3y)9.53%
ROA(5y)5.48%
ROE(3y)14.76%
ROE(5y)8.31%
ROIC(3y)13.52%
ROIC(5y)N/A
ROICexc(3y)13.9%
ROICexc(5y)N/A
ROICexgc(3y)13.91%
ROICexgc(5y)N/A
ROCE(3y)17.84%
ROCE(5y)N/A
ROICexgc growth 3Y0.59%
ROICexgc growth 5Y23.57%
ROICexc growth 3Y0.6%
ROICexc growth 5Y23.59%
OM growth 3Y-6.62%
OM growth 5Y13.34%
PM growth 3Y14.56%
PM growth 5YN/A
GM growth 3Y-3.24%
GM growth 5Y-0.34%
F-Score8
Asset Turnover0.61
Health
Industry RankSector Rank
Debt/Equity 0.22
Debt/FCF 2.58
Debt/EBITDA 0.82
Cap/Depr 154.46%
Cap/Sales 15.49%
Interest Coverage 17.47
Cash Conversion 83.93%
Profit Quality 76.98%
Current Ratio 1.73
Quick Ratio 1.17
Altman-Z 3.22
F-Score8
WACC7.55%
ROIC/WACC1.33
Cap/Depr(3y)79.29%
Cap/Depr(5y)69.56%
Cap/Sales(3y)8.24%
Cap/Sales(5y)7.78%
Profit Quality(3y)160.67%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)13.51%
EPS 3Y25.99%
EPS 5Y13.92%
EPS Q2Q%0%
EPS Next Y1.09%
EPS Next 2Y-8.37%
EPS Next 3Y4.57%
EPS Next 5Y26.02%
Revenue 1Y (TTM)-22.02%
Revenue growth 3Y6.02%
Revenue growth 5Y5.55%
Sales Q2Q%-6.64%
Revenue Next Year-5.5%
Revenue Next 2Y3.07%
Revenue Next 3Y5.27%
Revenue Next 5Y5.72%
EBIT growth 1Y-0.12%
EBIT growth 3Y-1.01%
EBIT growth 5Y19.63%
EBIT Next Year60.45%
EBIT Next 3Y19.45%
EBIT Next 5Y13.54%
FCF growth 1Y-52.93%
FCF growth 3Y30.18%
FCF growth 5Y12.84%
OCF growth 1Y-19.64%
OCF growth 3Y24.76%
OCF growth 5Y16.26%

MEG Energy Corp / MEG.CA Fundamental Analysis FAQ

What is the fundamental rating for MEG stock?

ChartMill assigns a fundamental rating of 6 / 10 to MEG.CA.


Can you provide the valuation status for MEG Energy Corp?

ChartMill assigns a valuation rating of 5 / 10 to MEG Energy Corp (MEG.CA). This can be considered as Fairly Valued.


What is the profitability of MEG stock?

MEG Energy Corp (MEG.CA) has a profitability rating of 8 / 10.


What is the financial health of MEG Energy Corp (MEG.CA) stock?

The financial health rating of MEG Energy Corp (MEG.CA) is 8 / 10.


What is the expected EPS growth for MEG Energy Corp (MEG.CA) stock?

The Earnings per Share (EPS) of MEG Energy Corp (MEG.CA) is expected to grow by 1.09% in the next year.