MEG Energy Corp (MEG.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:MEG - CA5527041084 - Common Stock
30.89 CAD
+0.22 (+0.72%)
Overall MEG gets a fundamental rating of 6 out of 10. We evaluated MEG against 211 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 decent growth rate and is not valued too expensively. This makes MEG very considerable 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.
Of the past 5 years MEG 4 years were profitable.
Each year in the past 5 years MEG had a positive operating cash flow.
1.2 Ratios
MEG's Return On Assets of 7.78% is amongst the best of the industry. MEG outperforms 90.09% of its industry peers.
The Return On Equity of MEG (11.41%) is better than 82.08% of its industry peers.
MEG has a Return On Invested Capital of 10.05%. This is amongst the best in the industry. MEG outperforms 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 6.52%.
| 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 Profit Margin of 12.79%. This is in the better half of the industry: MEG outperforms 74.06% of its industry peers.
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.
MEG's Operating Margin has improved in the last couple of years.
MEG has a Gross Margin (39.44%) which is in line with its industry peers.
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 | 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), MEG is creating some value.
MEG has less shares outstanding than it did 1 year ago.
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.
MEG has a Altman-Z score of 3.22. This is amongst the best in 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.
Looking at the Debt to FCF ratio, with a value of 2.58, MEG belongs to the top of the industry, outperforming 87.26% 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 decent Debt to Equity ratio value of 0.22, MEG is doing good in 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
A Current Ratio of 1.73 indicates that MEG should not have too much problems paying its short term obligations.
The Current ratio of MEG (1.73) is better than 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.
MEG's Quick ratio of 1.17 is fine compared to the rest of the industry. MEG outperforms 67.92% of its industry peers.
| 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.
MEG shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -22.02%.
The Revenue has been growing slightly by 5.55% on average over the past years.
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.
Based on estimates for the next years, MEG will show a small growth in Revenue. The Revenue will grow by 5.72% on average per year.
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
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
With a Price/Earnings ratio of 14.71, MEG is valued correctly.
Compared to the rest of the industry, the Price/Earnings ratio of MEG indicates a somewhat cheap valuation: MEG is cheaper than 66.04% of the companies listed in the same industry.
MEG is valuated rather cheaply when we compare the Price/Earnings ratio to 27.25, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 19.57, MEG is valued on the expensive side.
The rest of the industry has a similar Price/Forward Earnings ratio as MEG.
When comparing the Price/Forward Earnings ratio of MEG to the average of the S&P500 Index (23.98), we can say MEG is valued inline with the index average.
| 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.
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 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.
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%
5. Dividend
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 2.71.
MEG's Dividend Yield is slightly below the S&P500 average, which is at 1.92.
| 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%
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)
Earnings (Next)
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 Rank | Sector 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 Rank | Sector 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 Rank | Sector 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 Rank | Sector 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 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.