MEG ENERGY CORP (MEG.CA) Stock Fundamental Analysis
TSX:MEG - Toronto Stock Exchange - CA5527041084 - Common Stock - Currency: CAD
MEG gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 214 industry peers in the Oil, Gas & Consumable Fuels industry. While MEG has a great health rating, its profitability is only average at the moment. MEG has a valuation in line with the averages, but on the other hand it scores bad on growth.
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.
The reported net income has been mixed in the past 5 years: MEG reported negative net income in multiple years.
MEG had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 7.53%, MEG belongs to the best of the industry, outperforming 84.58% of the companies in the same industry.
MEG has a Return On Equity of 10.92%. This is in the better half of the industry: MEG outperforms 76.62% of its industry peers.
MEG has a Return On Invested Capital of 10.60%. This is amongst the best in the industry. MEG outperforms 90.05% of its industry peers.
MEG had an Average Return On Invested Capital over the past 3 years of 13.44%. This is significantly above the industry average of 7.73%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.53% | ||
| ROE | 10.92% | ||
| ROIC | 10.6% |
ROA(3y)8.27%
ROA(5y)3.81%
ROE(3y)13.53%
ROE(5y)5.76%
ROIC(3y)13.44%
ROIC(5y)N/A
1.3 Margins
MEG has a Profit Margin of 9.25%. This is comparable to the rest of the industry: MEG outperforms 57.21% of its industry peers.
MEG's Operating Margin of 15.74% is in line compared to the rest of the industry. MEG outperforms 56.22% of its industry peers.
MEG's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 35.16%, MEG perfoms like the industry average, outperforming 46.27% of the companies in the same industry.
In the last couple of years the Gross Margin of MEG has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.74% | ||
| PM (TTM) | 9.25% | ||
| GM | 35.16% |
OM growth 3YN/A
OM growth 5Y32.56%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y19.26%
GM growth 5Y0.88%
2. Health
2.1 Basic Checks
MEG has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
MEG has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, MEG has less shares outstanding
The debt/assets ratio for MEG has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.04 indicates that MEG is not in any danger for bankruptcy at the moment.
MEG has a Altman-Z score of 3.04. This is amongst the best in the industry. MEG outperforms 80.60% of its industry peers.
MEG has a debt to FCF ratio of 0.97. This is a very positive value and a sign of high solvency as it would only need 0.97 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.97, MEG belongs to the top of the industry, outperforming 91.04% of the companies in the same industry.
MEG has a Debt/Equity ratio of 0.22. This is a healthy value indicating a solid balance between debt and equity.
With a Debt to Equity ratio value of 0.22, MEG perfoms like the industry average, outperforming 56.72% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.22 | ||
| Debt/FCF | 0.97 | ||
| Altman-Z | 3.04 |
ROIC/WACC1.46
WACC7.25%
2.3 Liquidity
MEG has a Current Ratio of 1.55. This is a normal value and indicates that MEG is financially healthy and should not expect problems in meeting its short term obligations.
With a decent Current ratio value of 1.55, MEG is doing good in the industry, outperforming 70.65% of the companies in the same industry.
MEG has a Quick Ratio of 1.01. 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 1.01, MEG is in the better half of the industry, outperforming 60.20% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.55 | ||
| Quick Ratio | 1.01 |
3. Growth
3.1 Past
MEG shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -13.55%.
Looking at the last year, MEG shows a decrease in Revenue. The Revenue has decreased by -3.68% in the last year.
MEG shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 15.65% yearly.
EPS 1Y (TTM)-13.55%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-27.91%
Revenue 1Y (TTM)-3.68%
Revenue growth 3Y35.11%
Revenue growth 5Y15.65%
Sales Q2Q%-12.03%
3.2 Future
The Earnings Per Share is expected to grow by 27.29% on average over the next years. This is a very strong growth
Based on estimates for the next years, MEG will show a small growth in Revenue. The Revenue will grow by 3.26% on average per year.
EPS Next Y6.44%
EPS Next 2Y5.59%
EPS Next 3Y7.96%
EPS Next 5Y27.29%
Revenue Next Year-9.96%
Revenue Next 2Y-12.15%
Revenue Next 3Y-7.92%
Revenue Next 5Y3.26%
3.3 Evolution
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
MEG is valuated correctly with a Price/Earnings ratio of 12.88.
MEG's Price/Earnings ratio is in line with the industry average.
MEG's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.35.
With a Price/Forward Earnings ratio of 10.79, the valuation of MEG can be described as very reasonable.
The rest of the industry has a similar Price/Forward Earnings ratio as MEG.
The average S&P500 Price/Forward Earnings ratio is at 95.00. MEG is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.88 | ||
| Fwd PE | 10.79 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of MEG indicates a somewhat cheap valuation: MEG is cheaper than 78.11% of the companies listed in the same industry.
MEG's Price/Free Cash Flow ratio is rather cheap when compared to the industry. MEG is cheaper than 92.04% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.78 | ||
| EV/EBITDA | 4.72 |
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 a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2
PEG (5Y)N/A
EPS Next 2Y5.59%
EPS Next 3Y7.96%
5. Dividend
5.1 Amount
MEG has a Yearly Dividend Yield of 1.67%.
MEG's Dividend Yield is comparable with the industry average which is at 6.59.
Compared to the average S&P500 Dividend Yield of 2.28, MEG is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.67% |
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 Years0
5.3 Sustainability
DPN/A
EPS Next 2Y5.59%
EPS Next 3Y7.96%
MEG ENERGY CORP
TSX:MEG (2/5/2025, 7:00:00 PM)
23.82
-0.36 (-1.49%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners45.56%
Inst Owner ChangeN/A
Ins Owners0.41%
Ins Owner ChangeN/A
Market Cap6.27B
Analysts74.74
Price Target32.67 (37.15%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.67% |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-23.78%
Min EPS beat(2)-30.67%
Max EPS beat(2)-16.89%
EPS beat(4)0
Avg EPS beat(4)-27.91%
Min EPS beat(4)-38.08%
Max EPS beat(4)-16.89%
EPS beat(8)1
Avg EPS beat(8)-16.73%
EPS beat(12)3
Avg EPS beat(12)-8.28%
EPS beat(16)5
Avg EPS beat(16)2.46%
Revenue beat(2)1
Avg Revenue beat(2)4.93%
Min Revenue beat(2)-8%
Max Revenue beat(2)17.85%
Revenue beat(4)3
Avg Revenue beat(4)13.72%
Min Revenue beat(4)-8%
Max Revenue beat(4)24.79%
Revenue beat(8)5
Avg Revenue beat(8)8.41%
Revenue beat(12)8
Avg Revenue beat(12)6.9%
Revenue beat(16)12
Avg Revenue beat(16)10.22%
PT rev (1m)-1.33%
PT rev (3m)-3.03%
EPS NQ rev (1m)6.17%
EPS NQ rev (3m)-11.04%
EPS NY rev (1m)-1.2%
EPS NY rev (3m)-7.1%
Revenue NQ rev (1m)1.91%
Revenue NQ rev (3m)14.06%
Revenue NY rev (1m)2.88%
Revenue NY rev (3m)-2.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.88 | ||
| Fwd PE | 10.79 | ||
| P/S | 1.15 | ||
| P/FCF | 5.78 | ||
| P/OCF | 4.01 | ||
| P/B | 1.36 | ||
| P/tB | 1.36 | ||
| EV/EBITDA | 4.72 |
EPS(TTM)1.85
EY7.77%
EPS(NY)2.21
Fwd EY9.27%
FCF(TTM)4.12
FCFY17.3%
OCF(TTM)5.94
OCFY24.95%
SpS20.68
BVpS17.52
TBVpS17.51
PEG (NY)2
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.53% | ||
| ROE | 10.92% | ||
| ROCE | 13.9% | ||
| ROIC | 10.6% | ||
| ROICexc | 10.88% | ||
| ROICexgc | 10.88% | ||
| OM | 15.74% | ||
| PM (TTM) | 9.25% | ||
| GM | 35.16% | ||
| FCFM | 19.92% |
ROA(3y)8.27%
ROA(5y)3.81%
ROE(3y)13.53%
ROE(5y)5.76%
ROIC(3y)13.44%
ROIC(5y)N/A
ROICexc(3y)13.92%
ROICexc(5y)N/A
ROICexgc(3y)13.93%
ROICexgc(5y)N/A
ROCE(3y)17.62%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5Y59.99%
ROICexc growth 3YN/A
ROICexc growth 5Y60.02%
OM growth 3YN/A
OM growth 5Y32.56%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y19.26%
GM growth 5Y0.88%
F-Score6
Asset Turnover0.81
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.22 | ||
| Debt/FCF | 0.97 | ||
| Debt/EBITDA | 0.68 | ||
| Cap/Depr | 72.73% | ||
| Cap/Sales | 8.81% | ||
| Interest Coverage | 11.74 | ||
| Cash Conversion | 103.16% | ||
| Profit Quality | 215.28% | ||
| Current Ratio | 1.55 | ||
| Quick Ratio | 1.01 | ||
| Altman-Z | 3.04 |
F-Score6
WACC7.25%
ROIC/WACC1.46
Cap/Depr(3y)74.35%
Cap/Depr(5y)57.46%
Cap/Sales(3y)7.25%
Cap/Sales(5y)6.66%
Profit Quality(3y)150.89%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-13.55%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-27.91%
EPS Next Y6.44%
EPS Next 2Y5.59%
EPS Next 3Y7.96%
EPS Next 5Y27.29%
Revenue 1Y (TTM)-3.68%
Revenue growth 3Y35.11%
Revenue growth 5Y15.65%
Sales Q2Q%-12.03%
Revenue Next Year-9.96%
Revenue Next 2Y-12.15%
Revenue Next 3Y-7.92%
Revenue Next 5Y3.26%
EBIT growth 1Y-14.47%
EBIT growth 3YN/A
EBIT growth 5Y53.3%
EBIT Next Year78.48%
EBIT Next 3Y15.53%
EBIT Next 5Y10.76%
FCF growth 1Y-11.57%
FCF growth 3Y80.52%
FCF growth 5YN/A
OCF growth 1Y-2.37%
OCF growth 3Y64.69%
OCF growth 5Y36.95%