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MONTROSE ENVIRONMENTAL GROUP (MEG) Stock Fundamental Analysis

NYSE:MEG - New York Stock Exchange, Inc. - US6151111019 - Common Stock - Currency: USD

17.74  -0.31 (-1.72%)

After market: 17.74 0 (0%)

Fundamental Rating

3

Overall MEG gets a fundamental rating of 3 out of 10. We evaluated MEG against 84 industry peers in the Commercial Services & Supplies industry. Both the profitability and financial health of MEG have multiple concerns. MEG is valied quite expensively at the moment, while it does show a decent growth rate.


Dividend Valuation Growth Profitability Health

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2

1. Profitability

1.1 Basic Checks

MEG had negative earnings in the past year.
MEG had a positive operating cash flow in the past year.
MEG had negative earnings in each of the past 5 years.
MEG had a positive operating cash flow in each of the past 5 years.
MEG Yearly Net Income VS EBIT VS OCF VS FCFMEG Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2018 2019 2020 2021 2022 2023 0 50M -50M -100M

1.2 Ratios

MEG has a worse Return On Assets (-4.76%) than 70.73% of its industry peers.
MEG has a worse Return On Equity (-8.84%) than 62.20% of its industry peers.
Industry RankSector Rank
ROA -4.76%
ROE -8.84%
ROIC N/A
ROA(3y)-5.63%
ROA(5y)-9.53%
ROE(3y)-9.73%
ROE(5y)-21.64%
ROIC(3y)N/A
ROIC(5y)N/A
MEG Yearly ROA, ROE, ROICMEG Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2018 2019 2020 2021 2022 2023 0 -10 -20 -30 -40

1.3 Margins

With a decent Gross Margin value of 39.36%, MEG is doing good in the industry, outperforming 64.63% of the companies in the same industry.
MEG's Gross Margin has improved in the last couple of years.
The Profit Margin and Operating Margin are not available for MEG so they could not be analyzed.
Industry RankSector Rank
OM N/A
PM (TTM) N/A
GM 39.36%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y3.85%
GM growth 5Y6.08%
MEG Yearly Profit, Operating, Gross MarginsMEG Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2018 2019 2020 2021 2022 2023 0 20 -20

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3

2. Health

2.1 Basic Checks

MEG does not have a ROIC to compare to the WACC, probably because it is not profitable.
Compared to 1 year ago, MEG has more shares outstanding
Compared to 5 years ago, MEG has more shares outstanding
MEG has a better debt/assets ratio than last year.
MEG Yearly Shares OutstandingMEG Yearly Shares OutstandingYearly Shares Outstanding 2018 2019 2020 2021 2022 2023 10M 20M 30M
MEG Yearly Total Debt VS Total AssetsMEG Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2018 2019 2020 2021 2022 2023 200M 400M 600M 800M

2.2 Solvency

Based on the Altman-Z score of 1.22, we must say that MEG is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.22, MEG is doing worse than 70.73% of the companies in the same industry.
A Debt/Equity ratio of 0.45 indicates that MEG is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.45, MEG is in line with its industry, outperforming 54.88% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.45
Debt/FCF N/A
Altman-Z 1.22
ROIC/WACCN/A
WACC7.85%
MEG Yearly LT Debt VS Equity VS FCFMEG Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2018 2019 2020 2021 2022 2023 0 100M 200M 300M 400M

2.3 Liquidity

MEG has a Current Ratio of 1.93. 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 Current ratio, with a value of 1.93, MEG is in the better half of the industry, outperforming 73.17% of the companies in the same industry.
MEG has a Quick Ratio of 1.90. 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 1.90, MEG is in the better half of the industry, outperforming 79.27% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.93
Quick Ratio 1.9
MEG Yearly Current Assets VS Current LiabilitesMEG Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2018 2019 2020 2021 2022 2023 50M 100M 150M 200M 250M

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6

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 21.58% over the past year.
The Revenue has grown by 12.57% in the past year. This is quite good.
Measured over the past years, MEG shows a very strong growth in Revenue. The Revenue has been growing by 27.02% on average per year.
EPS 1Y (TTM)21.58%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%0%
Revenue 1Y (TTM)12.57%
Revenue growth 3Y23.9%
Revenue growth 5Y27.02%
Sales Q2Q%6.4%

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 20.23% on average per year.
The Revenue is expected to grow by 12.94% on average over the next years. This is quite good.
EPS Next Y1.4%
EPS Next 2Y30.49%
EPS Next 3Y23.81%
EPS Next 5Y20.23%
Revenue Next Year13.21%
Revenue Next 2Y11.36%
Revenue Next 3Y12.41%
Revenue Next 5Y12.94%

3.3 Evolution

Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
MEG Yearly Revenue VS EstimatesMEG Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 500M 1B 1.5B
MEG Yearly EPS VS EstimatesMEG Yearly EPS VS EstimatesYearly EPS VS Estimates 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 0 -1 -2 -3

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1

4. Valuation

4.1 Price/Earnings Ratio

MEG reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
Also next year MEG is expected to report negative earnings again, which makes the also the Forward Price/Earnings Ratio negative.
Industry RankSector Rank
PE N/A
Fwd PE N/A
MEG Price Earnings VS Forward Price EarningsMEG Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 20 -20

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of MEG indicates a slightly more expensive valuation: MEG is more expensive than 65.85% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 25.42
MEG Per share dataMEG EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 5 10 15

4.3 Compensation for Growth

MEG's earnings are expected to grow with 23.81% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y30.49%
EPS Next 3Y23.81%

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0

5. Dividend

5.1 Amount

MEG does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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MONTROSE ENVIRONMENTAL GROUP

NYSE:MEG (2/21/2025, 8:04:01 PM)

After market: 17.74 0 (0%)

17.74

-0.31 (-1.72%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)11-06 2024-11-06/amc
Earnings (Next)02-26 2025-02-26/amc
Inst Owners100.91%
Inst Owner Change-1.4%
Ins Owners7%
Ins Owner Change1.1%
Market Cap608.48M
Analysts78.33
Price Target33.73 (90.14%)
Short Float %10.17%
Short Ratio5.78
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly Dividend0.55
Dividend Growth(5Y)N/A
DP-25.89%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-194.63%
Min EPS beat(2)-313.73%
Max EPS beat(2)-75.52%
EPS beat(4)1
Avg EPS beat(4)-88.67%
Min EPS beat(4)-313.73%
Max EPS beat(4)51.17%
EPS beat(8)1
Avg EPS beat(8)-79.87%
EPS beat(12)2
Avg EPS beat(12)-84.47%
EPS beat(16)4
Avg EPS beat(16)-176.55%
Revenue beat(2)0
Avg Revenue beat(2)-2.97%
Min Revenue beat(2)-4.61%
Max Revenue beat(2)-1.33%
Revenue beat(4)2
Avg Revenue beat(4)-0.65%
Min Revenue beat(4)-4.61%
Max Revenue beat(4)2.27%
Revenue beat(8)3
Avg Revenue beat(8)-0.1%
Revenue beat(12)6
Avg Revenue beat(12)0.59%
Revenue beat(16)10
Avg Revenue beat(16)5.84%
PT rev (1m)-2.05%
PT rev (3m)-24.98%
EPS NQ rev (1m)-477.78%
EPS NQ rev (3m)-457.16%
EPS NY rev (1m)-22.66%
EPS NY rev (3m)-56.2%
Revenue NQ rev (1m)-0.71%
Revenue NQ rev (3m)-1.32%
Revenue NY rev (1m)-0.3%
Revenue NY rev (3m)-1.01%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE N/A
P/S 0.9
P/FCF N/A
P/OCF 125.95
P/B 1.12
P/tB N/A
EV/EBITDA 25.42
EPS(TTM)-1.49
EYN/A
EPS(NY)-0.47
Fwd EYN/A
FCF(TTM)-0.63
FCFYN/A
OCF(TTM)0.14
OCFY0.79%
SpS19.62
BVpS15.81
TBVpS-2.48
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -4.76%
ROE -8.84%
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) N/A
GM 39.36%
FCFM N/A
ROA(3y)-5.63%
ROA(5y)-9.53%
ROE(3y)-9.73%
ROE(5y)-21.64%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y3.85%
GM growth 5Y6.08%
F-Score5
Asset Turnover0.67
Health
Industry RankSector Rank
Debt/Equity 0.45
Debt/FCF N/A
Debt/EBITDA 7.09
Cap/Depr 53.35%
Cap/Sales 3.91%
Interest Coverage N/A
Cash Conversion 14.13%
Profit Quality N/A
Current Ratio 1.93
Quick Ratio 1.9
Altman-Z 1.22
F-Score5
WACC7.85%
ROIC/WACCN/A
Cap/Depr(3y)36.64%
Cap/Depr(5y)29.56%
Cap/Sales(3y)2.83%
Cap/Sales(5y)2.58%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)21.58%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%0%
EPS Next Y1.4%
EPS Next 2Y30.49%
EPS Next 3Y23.81%
EPS Next 5Y20.23%
Revenue 1Y (TTM)12.57%
Revenue growth 3Y23.9%
Revenue growth 5Y27.02%
Sales Q2Q%6.4%
Revenue Next Year13.21%
Revenue Next 2Y11.36%
Revenue Next 3Y12.41%
Revenue Next 5Y12.94%
EBIT growth 1Y30.73%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year548.72%
EBIT Next 3Y102.83%
EBIT Next 5Y60.2%
FCF growth 1Y-188.51%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-84.92%
OCF growth 3Y211.69%
OCF growth 5YN/A