MEG ENERGY CORP (MEG.CA) Stock Fundamental Analysis
TSX:MEG - Toronto Stock Exchange - CA5527041084 - Common Stock - Currency: CAD
Overall MEG gets a fundamental rating of 7 out of 10. We evaluated MEG against 219 industry peers in the Oil, Gas & Consumable Fuels industry. MEG has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. MEG may be a bit undervalued, certainly considering the very reasonable score on growth These ratings would make MEG suitable for value and quality investing!
1. Profitability
1.1 Basic Checks
MEG had positive earnings in the past year.
In the past year MEG had a positive cash flow from operations.
Of the past 5 years MEG 4 years were profitable.
MEG had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
MEG has a Return On Assets of 7.52%. This is amongst the best in the industry. MEG outperforms 89.14% of its industry peers.
With an excellent Return On Equity value of 11.14%, MEG belongs to the best of the industry, outperforming 84.62% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 10.74%, MEG belongs to the top of the industry, outperforming 91.86% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for MEG is significantly above the industry average of 7.60%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.52% | ||
| ROE | 11.14% | ||
| ROIC | 10.74% |
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 9.85%, MEG is doing good in the industry, outperforming 72.40% 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 17.03% is fine compared to the rest of the industry. MEG outperforms 60.63% of its industry peers.
In the last couple of years the Operating Margin of MEG has grown nicely.
MEG's Gross Margin of 36.59% is in line compared to the rest of the industry. MEG outperforms 52.49% of its industry peers.
MEG's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.03% | ||
| PM (TTM) | 9.85% | ||
| GM | 36.59% |
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%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), MEG is creating value.
MEG has less shares outstanding than it did 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 2.80 indicates that MEG is not a great score, but indicates only limited risk for bankruptcy at the moment.
With an excellent Altman-Z score value of 2.80, MEG belongs to the best of the industry, outperforming 81.90% of the companies in the same industry.
The Debt to FCF ratio of MEG is 1.40, which is an excellent value as it means it would take MEG, only 1.40 years of fcf income to pay off all of its debts.
MEG has a Debt to FCF ratio of 1.40. This is amongst the best in the industry. MEG outperforms 90.05% of its industry peers.
MEG has a Debt/Equity ratio of 0.24. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of MEG (0.24) is better than 61.09% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | 1.4 | ||
| Altman-Z | 2.8 |
ROIC/WACC1.47
WACC7.28%
2.3 Liquidity
MEG has a Current Ratio of 1.54. 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 Current ratio of 1.54 is fine compared to the rest of the industry. MEG outperforms 75.57% of its industry peers.
MEG has a Quick Ratio of 1.08. 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 1.08 is fine compared to the rest of the industry. MEG outperforms 68.78% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.54 | ||
| Quick Ratio | 1.08 |
3. Growth
3.1 Past
The earnings per share for MEG have decreased by -4.72% in the last year.
Measured over the past years, MEG shows a very strong growth in Earnings Per Share. The EPS has been growing by 27.31% on average per year.
Looking at the last year, MEG shows a decrease in Revenue. The Revenue has decreased by -8.92% in the last year.
MEG shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.55% yearly.
EPS 1Y (TTM)-4.72%
EPS 3Y27.31%
EPS 5YN/A
EPS Q2Q%11.17%
Revenue 1Y (TTM)-8.92%
Revenue growth 3Y6.02%
Revenue growth 5Y5.55%
Sales Q2Q%-20.57%
3.2 Future
The Earnings Per Share is expected to grow by 23.52% 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 6.91% yearly.
EPS Next Y4.83%
EPS Next 2Y8.52%
EPS Next 3Y33.13%
EPS Next 5Y23.52%
Revenue Next Year-14.47%
Revenue Next 2Y-4.77%
Revenue Next 3Y-6.45%
Revenue Next 5Y6.91%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 12.11, the valuation of MEG can be described as correct.
Based on the Price/Earnings ratio, MEG is valued a bit cheaper than 65.61% of the companies in the same industry.
MEG's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 29.35.
The Price/Forward Earnings ratio is 10.45, which indicates a very decent valuation of MEG.
60.18% of the companies in the same industry are more expensive than MEG, based on the Price/Forward Earnings ratio.
MEG's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.10.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.11 | ||
| Fwd PE | 10.45 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MEG is valued cheaply inside the industry as 82.81% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, MEG is valued cheaper than 83.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.4 | ||
| EV/EBITDA | 4.55 |
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.
MEG's earnings are expected to grow with 33.13% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.51
PEG (5Y)N/A
EPS Next 2Y8.52%
EPS Next 3Y33.13%
5. Dividend
5.1 Amount
MEG has a Yearly Dividend Yield of 1.83%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 6.94, MEG pays a bit more dividend than its industry peers.
MEG's Dividend Yield is slightly below the S&P500 average, which is at 2.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.83% |
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
MEG pays out 5.33% of its income as dividend. This is a sustainable payout ratio.
DP5.33%
EPS Next 2Y8.52%
EPS Next 3Y33.13%
TSX:MEG (3/7/2025, 7:00:00 PM)
22.77
+0.86 (+3.93%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners47.34%
Inst Owner ChangeN/A
Ins Owners0.43%
Ins Owner ChangeN/A
Market Cap5.86B
Analysts74.44
Price Target32.2 (41.41%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.83% |
Yearly Dividend0.1
Dividend Growth(5Y)N/A
DP5.33%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-12.65%
Min Revenue beat(2)-17.3%
Max Revenue beat(2)-8%
Revenue beat(4)2
Avg Revenue beat(4)4.34%
Min Revenue beat(4)-17.3%
Max Revenue beat(4)24.79%
Revenue beat(8)5
Avg Revenue beat(8)7.26%
Revenue beat(12)7
Avg Revenue beat(12)4.69%
Revenue beat(16)11
Avg Revenue beat(16)8.17%
PT rev (1m)-1.44%
PT rev (3m)-2.76%
EPS NQ rev (1m)0%
EPS NQ rev (3m)25.68%
EPS NY rev (1m)-1.32%
EPS NY rev (3m)-8.98%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.38%
Revenue NY rev (3m)-4.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.11 | ||
| Fwd PE | 10.45 | ||
| P/S | 1.14 | ||
| P/FCF | 7.4 | ||
| P/OCF | 4.37 | ||
| P/B | 1.29 | ||
| P/tB | 1.29 | ||
| EV/EBITDA | 4.55 |
EPS(TTM)1.88
EY8.26%
EPS(NY)2.18
Fwd EY9.57%
FCF(TTM)3.08
FCFY13.51%
OCF(TTM)5.21
OCFY22.87%
SpS20.01
BVpS17.69
TBVpS17.68
PEG (NY)2.51
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.52% | ||
| ROE | 11.14% | ||
| ROCE | 14.17% | ||
| ROIC | 10.74% | ||
| ROICexc | 11.01% | ||
| ROICexgc | 11.02% | ||
| OM | 17.03% | ||
| PM (TTM) | 9.85% | ||
| GM | 36.59% | ||
| FCFM | 15.38% |
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-Score7
Asset Turnover0.76
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | 1.4 | ||
| Debt/EBITDA | 0.73 | ||
| Cap/Depr | 88.39% | ||
| Cap/Sales | 10.64% | ||
| Interest Coverage | 12.71 | ||
| Cash Conversion | 89.51% | ||
| Profit Quality | 156.21% | ||
| Current Ratio | 1.54 | ||
| Quick Ratio | 1.08 | ||
| Altman-Z | 2.8 |
F-Score7
WACC7.28%
ROIC/WACC1.47
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)-4.72%
EPS 3Y27.31%
EPS 5YN/A
EPS Q2Q%11.17%
EPS Next Y4.83%
EPS Next 2Y8.52%
EPS Next 3Y33.13%
EPS Next 5Y23.52%
Revenue 1Y (TTM)-8.92%
Revenue growth 3Y6.02%
Revenue growth 5Y5.55%
Sales Q2Q%-20.57%
Revenue Next Year-14.47%
Revenue Next 2Y-4.77%
Revenue Next 3Y-6.45%
Revenue Next 5Y6.91%
EBIT growth 1Y-5.5%
EBIT growth 3Y-1.01%
EBIT growth 5Y19.63%
EBIT Next Year98.33%
EBIT Next 3Y21.69%
EBIT Next 5Y17.46%
FCF growth 1Y-12%
FCF growth 3Y30.18%
FCF growth 5Y12.84%
OCF growth 1Y-0.67%
OCF growth 3Y24.76%
OCF growth 5Y16.26%