MEG Energy Corp (MEG.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:MEG - CA5527041084 - Common Stock
30.89 CAD
+0.22 (+0.72%)
We assign a fundamental rating of 6 out of 10 to MEG. MEG was compared to 201 industry peers in the Oil, Gas & Consumable Fuels industry. MEG gets an excellent profitability rating and is at the same time showing great financial health properties. 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 (7.78%) than 90.09% of its industry peers.
MEG has a better Return On Equity (11.41%) than 82.08% of its industry peers.
MEG's Return On Invested Capital of 10.05% is amongst the best of 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 6.51%.
| 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
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 Operating Margin of 20.16%. This is in the better half of the industry: MEG outperforms 74.06% of its industry peers.
In the last couple of years the Operating Margin of MEG has grown nicely.
MEG has a Gross Margin (39.44%) which is in line with 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
MEG has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it 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.
The debt/assets ratio for MEG has been reduced compared to a year ago.
2.2 Solvency
MEG has an Altman-Z score of 3.22. This indicates that MEG is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.22, MEG belongs to the top 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.
A Debt/Equity ratio of 0.22 indicates that MEG is not too dependend on debt financing.
MEG's Debt to Equity ratio of 0.22 is fine compared to the rest of the industry. MEG outperforms 62.74% of its industry peers.
| 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 better Current ratio (1.73) 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 has a better Quick ratio (1.17) than 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.
Measured over the past years, MEG shows a quite strong growth in Earnings Per Share. The EPS has been growing by 13.92% on average per year.
The Revenue for MEG has decreased by -22.02% in the past year. This is quite bad
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.
The Revenue is expected to grow by 5.72% on average over the next years.
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.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 14.71, which indicates a correct valuation of MEG.
MEG's Price/Earnings ratio is a bit cheaper when compared to the industry. MEG is 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 26.92.
With a Price/Forward Earnings ratio of 19.57, MEG is valued on the expensive side.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MEG is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of MEG to the average of the S&P500 Index (23.46), 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
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 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 MEG does not grow enough to justify the current Price/Earnings ratio.
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%. Purely for dividend investing, there may be better candidates out there.
MEG's Dividend Yield is comparable with the industry average which is at 2.95.
MEG's Dividend Yield is slightly below the S&P500 average, which is at 2.00.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.42% |
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
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-Date
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.
What is the valuation status of MEG Energy Corp (MEG.CA) stock?
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 are the PE and PB ratios of MEG Energy Corp (MEG.CA) stock?
The Price/Earnings (PE) ratio for MEG Energy Corp (MEG.CA) is 14.71 and the Price/Book (PB) ratio is 1.65.
Can you provide the dividend sustainability for MEG stock?
The dividend rating of MEG Energy Corp (MEG.CA) is 2 / 10 and the dividend payout ratio is 19.34%.