MEG Energy Corp (MEG.CA) Stock Fundamental Analysis
Canada • Toronto Stock Exchange • TSX:MEG • CA5527041084
30.89 CAD
+0.22 (+0.72%)
Last: Nov 14, 2025, 07:00 PM
Overall MEG gets a fundamental rating of 7 out of 10. We evaluated MEG against 216 industry peers in the Oil, Gas & Consumable Fuels industry. Both the health and profitability get an excellent rating, making MEG a very profitable company, without any liquidiy or solvency issues. MEG has a correct valuation and a medium growth rate. These ratings could make MEG a good candidate for quality investing.
1. Profitability
1.1 Basic Checks
- In the past year MEG was profitable.
- In the past year MEG had a positive cash flow from operations.
- MEG had positive earnings in 4 of the past 5 years.
- In the past 5 years MEG always reported a positive cash flow from operatings.
1.2 Ratios
- MEG has a better Return On Assets (7.78%) than 90.09% of its industry peers.
- Looking at the Return On Equity, with a value of 11.41%, MEG belongs to the top of the industry, outperforming 82.08% of the companies in the same industry.
- Looking at the Return On Invested Capital, with a value of 10.05%, MEG belongs to the top of the industry, outperforming 91.98% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for MEG is significantly above the industry average of 6.50%.
| Industry Rank | Sector 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
1.3 Margins
- MEG has a better Profit Margin (12.79%) than 74.06% of its industry peers.
- MEG's Profit Margin has improved in the last couple of years.
- The Operating Margin of MEG (20.16%) is better than 74.06% of its industry peers.
- MEG's Operating Margin has improved in the last couple of years.
- MEG has a Gross Margin of 39.44%. This is comparable to the rest of the industry: MEG outperforms 54.72% of its industry peers.
- MEG's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector 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%
2. Health
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.
- Compared to 1 year ago, MEG has less shares outstanding
- Compared to 5 years ago, MEG has less shares outstanding
- Compared to 1 year ago, MEG has an improved debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 3.22 indicates that MEG is not in any danger for bankruptcy at the moment.
- With an excellent Altman-Z score value of 3.22, MEG belongs to the best of the industry, outperforming 81.60% of the companies in the same industry.
- 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.
- The Debt to FCF ratio of MEG (2.58) is better than 87.26% of its industry peers.
- MEG has a Debt/Equity ratio of 0.22. This is a healthy value indicating a solid balance between debt and equity.
- 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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.22 | ||
| Debt/FCF | 2.58 | ||
| Altman-Z | 3.22 |
ROIC/WACC1.33
WACC7.55%
2.3 Liquidity
- MEG has a Current Ratio of 1.73. This is a normal value and indicates that MEG is financially healthy and should not expect problems in meeting 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.
- Looking at the Quick ratio, with a value of 1.17, MEG is in the better half of the industry, outperforming 67.92% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.73 | ||
| Quick Ratio | 1.17 |
3. Growth
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.
- The Revenue for MEG has decreased by -22.02% in the past year. This is quite bad
- 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
- Based on estimates for the next years, MEG will show a very strong growth in Earnings Per Share. The EPS will grow by 26.02% on average per year.
- 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.
- The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 14.71, the valuation of MEG can be described as correct.
- Based on the Price/Earnings ratio, MEG is valued a bit cheaper than 66.04% of the companies in the same industry.
- MEG is valuated rather cheaply when we compare the Price/Earnings ratio to 28.32, which is the current average of the S&P500 Index.
- MEG is valuated rather expensively with a Price/Forward Earnings ratio of 19.57.
- MEG's Price/Forward Earnings is on the same level as the industry average.
- MEG's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.57.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.71 | ||
| Fwd PE | 19.57 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, MEG is valued a bit cheaper than 79.72% of the companies in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of MEG indicates a somewhat cheap valuation: MEG is cheaper than 64.15% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.8 | ||
| EV/EBITDA | 6.87 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- The excellent profitability rating of MEG may justify a higher PE ratio.
PEG (NY)13.55
PEG (5Y)1.06
EPS Next 2Y-8.37%
EPS Next 3Y4.57%
5. Dividend
5.1 Amount
- MEG has a Yearly Dividend Yield of 1.42%.
- MEG's Dividend Yield is comparable with the industry average which is at 3.01.
- MEG's Dividend Yield is slightly below the S&P500 average, which is at 1.83.
| Industry Rank | Sector 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
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 Energy Corp / MEG.CA 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.