MEG ENERGY CORP (MEG.CA) Stock Fundamental Analysis
Canada - TSX:MEG - CA5527041084 - Common Stock
28.71 CAD
-0.29 (-1%)
MEG gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 216 industry peers in the Oil, Gas & Consumable Fuels industry. MEG scores excellent points on both the profitability and health parts. This is a solid base for a good stock. MEG has a correct valuation and a medium growth rate. With these ratings, MEG could be worth investigating further 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 (8.13%) than 90.74% of its industry peers.
With an excellent Return On Equity value of 11.93%, MEG belongs to the best of the industry, outperforming 83.80% of the companies in the same industry.
MEG's Return On Invested Capital of 9.80% is amongst the best of the industry. MEG outperforms 91.20% of its industry peers.
The Average Return On Invested Capital over the past 3 years for MEG is significantly above the industry average of 6.93%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.13% | ||
| ROE | 11.93% | ||
| ROIC | 9.8% |
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
With a decent Profit Margin value of 12.72%, MEG is doing good in the industry, outperforming 74.07% of the companies in the same industry.
In the last couple of years the Profit Margin of MEG has grown nicely.
MEG has a Operating Margin of 18.68%. This is in the better half of the industry: MEG outperforms 73.15% of its industry peers.
In the last couple of years the Operating Margin of MEG has grown nicely.
With a Gross Margin value of 38.88%, MEG perfoms like the industry average, outperforming 54.17% of the companies in the same industry.
MEG's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.68% | ||
| PM (TTM) | 12.72% | ||
| GM | 38.88% |
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), MEG is creating some value.
The number of shares outstanding for MEG has been reduced compared to 1 year ago.
The number of shares outstanding for MEG has been reduced compared to 5 years ago.
Compared to 1 year ago, MEG has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.08 indicates that MEG is not in any danger for bankruptcy at the moment.
The Altman-Z score of MEG (3.08) is better than 80.56% of its industry peers.
MEG has a debt to FCF ratio of 1.48. This is a very positive value and a sign of high solvency as it would only need 1.48 years to pay back of all of its debts.
MEG has a better Debt to FCF ratio (1.48) than 89.35% 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.
MEG has a Debt to Equity ratio of 0.22. This is in the better half of the industry: MEG outperforms 62.96% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.22 | ||
| Debt/FCF | 1.48 | ||
| Altman-Z | 3.08 |
ROIC/WACC1.26
WACC7.81%
2.3 Liquidity
A Current Ratio of 1.37 indicates that MEG should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.37, MEG is in the better half of the industry, outperforming 70.37% of the companies in the same industry.
A Quick Ratio of 0.75 indicates that MEG may have some problems paying its short term obligations.
The Quick ratio of MEG (0.75) is comparable to the rest of the industry.
The current and quick ratio evaluation for MEG is rather negative, while it does have excellent solvency and profitability. These ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.37 | ||
| Quick Ratio | 0.75 |
3. Growth
3.1 Past
MEG shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 0.48%.
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 -22.92% 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)0.48%
EPS 3Y25.99%
EPS 5Y13.92%
EPS Q2Q%-48%
Revenue 1Y (TTM)-22.92%
Revenue growth 3Y6.02%
Revenue growth 5Y5.55%
Sales Q2Q%-44.87%
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 5.23% yearly.
EPS Next Y-0.21%
EPS Next 2Y-9.42%
EPS Next 3Y1.8%
EPS Next 5Y26.02%
Revenue Next Year-5.11%
Revenue Next 2Y3.07%
Revenue Next 3Y5.27%
Revenue Next 5Y5.23%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 13.67 indicates a correct valuation of MEG.
Based on the Price/Earnings ratio, MEG is valued a bit cheaper than the industry average as 65.28% of the companies are valued more expensively.
MEG's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.20.
Based on the Price/Forward Earnings ratio of 18.61, the valuation of MEG can be described as rather expensive.
The rest of the industry has a similar Price/Forward Earnings ratio as MEG.
MEG's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.70.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.67 | ||
| Fwd PE | 18.61 |
4.2 Price Multiples
79.63% of the companies in the same industry are more expensive than MEG, based on the Enterprise Value to EBITDA ratio.
MEG's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. MEG is cheaper than 77.78% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.27 | ||
| EV/EBITDA | 6.34 |
4.3 Compensation for Growth
The excellent profitability rating of MEG may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.98
EPS Next 2Y-9.42%
EPS Next 3Y1.8%
5. Dividend
5.1 Amount
MEG has a Yearly Dividend Yield of 1.53%.
Compared to an average industry Dividend Yield of 5.90, MEG has a dividend in line with its industry peers.
MEG's Dividend Yield is slightly below the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.53% |
5.2 History
MEG does not have a reliable dividend history as it only pays dividend since a couple or years.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years1
5.3 Sustainability
14.34% of the earnings are spent on dividend by MEG. This is a low number and sustainable payout ratio.
DP14.34%
EPS Next 2Y-9.42%
EPS Next 3Y1.8%
TSX:MEG (9/17/2025, 7:00:00 PM)
28.71
-0.29 (-1%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners48.65%
Inst Owner ChangeN/A
Ins Owners0.51%
Ins Owner ChangeN/A
Market Cap7.30B
Analysts72.73
Price Target29.29 (2.02%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.53% |
Yearly Dividend0.1
Dividend Growth(5Y)N/A
DP14.34%
Div Incr Years0
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)50.13%
Min EPS beat(2)19.61%
Max EPS beat(2)80.65%
EPS beat(4)2
Avg EPS beat(4)12.25%
Min EPS beat(4)-34.35%
Max EPS beat(4)80.65%
EPS beat(8)2
Avg EPS beat(8)-6.46%
EPS beat(12)3
Avg EPS beat(12)-9.27%
EPS beat(16)5
Avg EPS beat(16)-3.63%
Revenue beat(2)1
Avg Revenue beat(2)-5.01%
Min Revenue beat(2)-13.03%
Max Revenue beat(2)3.01%
Revenue beat(4)1
Avg Revenue beat(4)-8.59%
Min Revenue beat(4)-16.34%
Max Revenue beat(4)3.01%
Revenue beat(8)4
Avg Revenue beat(8)3.27%
Revenue beat(12)7
Avg Revenue beat(12)3.7%
Revenue beat(16)10
Avg Revenue beat(16)4%
PT rev (1m)0.56%
PT rev (3m)0.05%
EPS NQ rev (1m)0.5%
EPS NQ rev (3m)-27.96%
EPS NY rev (1m)-23.9%
EPS NY rev (3m)-23.9%
Revenue NQ rev (1m)-1.74%
Revenue NQ rev (3m)-17.09%
Revenue NY rev (1m)-2.78%
Revenue NY rev (3m)15.18%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.67 | ||
| Fwd PE | 18.61 | ||
| P/S | 1.69 | ||
| P/FCF | 10.27 | ||
| P/OCF | 5.29 | ||
| P/B | 1.58 | ||
| P/tB | 1.58 | ||
| EV/EBITDA | 6.34 |
EPS(TTM)2.1
EY7.31%
EPS(NY)1.54
Fwd EY5.37%
FCF(TTM)2.8
FCFY9.74%
OCF(TTM)5.43
OCFY18.91%
SpS17.03
BVpS18.15
TBVpS18.14
PEG (NY)N/A
PEG (5Y)0.98
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.13% | ||
| ROE | 11.93% | ||
| ROCE | 12.94% | ||
| ROIC | 9.8% | ||
| ROICexc | 10.12% | ||
| ROICexgc | 10.13% | ||
| OM | 18.68% | ||
| PM (TTM) | 12.72% | ||
| GM | 38.88% | ||
| FCFM | 16.42% |
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
ROICexcg growth 3Y0.59%
ROICexcg 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-Score6
Asset Turnover0.64
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.22 | ||
| Debt/FCF | 1.48 | ||
| Debt/EBITDA | 0.8 | ||
| Cap/Depr | 140.17% | ||
| Cap/Sales | 15.47% | ||
| Interest Coverage | 14.71 | ||
| Cash Conversion | 107.3% | ||
| Profit Quality | 129.04% | ||
| Current Ratio | 1.37 | ||
| Quick Ratio | 0.75 | ||
| Altman-Z | 3.08 |
F-Score6
WACC7.81%
ROIC/WACC1.26
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)0.48%
EPS 3Y25.99%
EPS 5Y13.92%
EPS Q2Q%-48%
EPS Next Y-0.21%
EPS Next 2Y-9.42%
EPS Next 3Y1.8%
EPS Next 5Y26.02%
Revenue 1Y (TTM)-22.92%
Revenue growth 3Y6.02%
Revenue growth 5Y5.55%
Sales Q2Q%-44.87%
Revenue Next Year-5.11%
Revenue Next 2Y3.07%
Revenue Next 3Y5.27%
Revenue Next 5Y5.23%
EBIT growth 1Y-20.45%
EBIT growth 3Y-1.01%
EBIT growth 5Y19.63%
EBIT Next Year77.65%
EBIT Next 3Y26.7%
EBIT Next 5Y13.03%
FCF growth 1Y-28.54%
FCF growth 3Y30.18%
FCF growth 5Y12.84%
OCF growth 1Y-4.16%
OCF growth 3Y24.76%
OCF growth 5Y16.26%