MEG Energy Corp (MEG.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:MEG - CA5527041084 - Common Stock
30.89 CAD
+0.22 (+0.72%)
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. MEG gets an excellent profitability rating and is at the same time showing great financial health properties. MEG is not valued too expensively and it also shows a decent growth rate. This makes MEG very considerable for quality investing!
1. Profitability
1.1 Basic Checks
- In the past year MEG was profitable.
- MEG had a positive operating cash flow in the past year.
- 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
- Looking at the Return On Assets, with a value of 7.78%, MEG belongs to the top of the industry, outperforming 90.09% of the companies in the same industry.
- 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 6.58%.
| 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.
- In the last couple of years the Profit Margin of MEG has grown nicely.
- MEG's Operating Margin of 20.16% is fine compared to the rest of the industry. MEG outperforms 74.06% of its industry peers.
- MEG's Operating Margin has improved in the last couple of years.
- MEG's Gross Margin of 39.44% is in line compared 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
- 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.
- MEG has less shares outstanding than it did 5 years ago.
- MEG has a better debt/assets ratio than last year.
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 better Altman-Z score (3.22) than 81.60% of its industry peers.
- The Debt to FCF ratio of MEG is 2.58, which is a good value as it means it would take MEG, 2.58 years of fcf income to pay off all of its debts.
- MEG has a better Debt to FCF ratio (2.58) than 87.26% of its industry peers.
- A Debt/Equity ratio of 0.22 indicates that MEG is not too dependend on debt financing.
- 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 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.
- 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.
- 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
- The Earnings Per Share is expected to grow by 26.02% on average over the next years. This is a very strong growth
- 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.
- 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 14.71 indicates a correct valuation of MEG.
- 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.
- Compared to an average S&P500 Price/Earnings ratio of 27.38, MEG is valued a bit cheaper.
- The Price/Forward Earnings ratio is 19.57, which indicates a rather expensive current valuation of MEG.
- The rest of the industry has a similar Price/Forward Earnings ratio as MEG.
- MEG is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 24.29, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.71 | ||
| Fwd PE | 19.57 |
4.2 Price Multiples
- 79.72% of the companies in the same industry are more expensive than MEG, based on the Enterprise Value to EBITDA ratio.
- 64.15% of the companies in the same industry are more expensive than MEG, based on the Price/Free Cash Flow ratio.
| 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%.
- Compared to an average industry Dividend Yield of 2.82, MEG has a dividend in line with its industry peers.
- Compared to the average S&P500 Dividend Yield of 1.85, MEG is paying slightly less dividend.
| 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)11-10 2025-11-10/amc
Earnings (Next)02-25 2026-02-25/amc
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.