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 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 valued quite cheap, while showing a decent growth score. This is a good combination! With these ratings, MEG could be worth investigating further for value and quality investing!.
1. Profitability
1.1 Basic Checks
MEG had positive earnings in the past year.
MEG had a positive operating cash flow in the past year.
Of the past 5 years MEG 4 years were profitable.
In the past 5 years MEG always reported a positive cash flow from operatings.
1.2 Ratios
MEG has a better Return On Assets (9.19%) than 90.19% of its industry peers.
MEG's Return On Equity of 13.51% is amongst the best of the industry. MEG outperforms 83.18% of its industry peers.
MEG's Return On Invested Capital of 11.88% is amongst the best of the industry. MEG outperforms 93.46% 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 7.31%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.19% | ||
| ROE | 13.51% | ||
| ROIC | 11.88% |
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
The Profit Margin of MEG (12.53%) is better than 75.70% of its industry peers.
In the last couple of years the Profit Margin of MEG has grown nicely.
MEG's Operating Margin of 19.85% is fine compared to the rest of the industry. MEG outperforms 72.43% of its industry peers.
MEG's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 38.77%, MEG is in line with its industry, outperforming 53.74% of the companies in the same industry.
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 | 19.85% | ||
| PM (TTM) | 12.53% | ||
| GM | 38.77% |
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
MEG has an Altman-Z score of 3.13. This indicates that MEG is financially healthy and has little risk of bankruptcy at the moment.
MEG has a better Altman-Z score (3.13) than 78.97% of its industry peers.
MEG has a debt to FCF ratio of 1.51. This is a very positive value and a sign of high solvency as it would only need 1.51 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.51, MEG belongs to the top of the industry, outperforming 86.45% of the companies in the same industry.
A Debt/Equity ratio of 0.24 indicates that MEG is not too dependend on debt financing.
MEG has a Debt to Equity ratio of 0.24. This is in the better half of the industry: MEG outperforms 61.68% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | 1.51 | ||
| Altman-Z | 3.13 |
ROIC/WACC1.48
WACC8.03%
2.3 Liquidity
A Current Ratio of 1.69 indicates that MEG should not have too much problems paying its short term obligations.
MEG has a Current ratio of 1.69. This is in the better half of the industry: MEG outperforms 78.97% of its industry peers.
MEG has a Quick Ratio of 1.12. 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 Quick ratio of 1.12. This is in the better half of the industry: MEG outperforms 68.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.69 | ||
| Quick Ratio | 1.12 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 13.59% over the past year.
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 -10.66%.
The Revenue has been growing slightly by 5.55% on average over the past years.
EPS 1Y (TTM)13.59%
EPS 3Y25.99%
EPS 5Y13.92%
EPS Q2Q%127.78%
Revenue 1Y (TTM)-10.66%
Revenue growth 3Y6.02%
Revenue growth 5Y5.55%
Sales Q2Q%-14.81%
3.2 Future
MEG is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 26.02% yearly.
Based on estimates for the next years, MEG will show a small growth in Revenue. The Revenue will grow by 5.04% on average per year.
EPS Next Y31.12%
EPS Next 2Y23.11%
EPS Next 3Y19.59%
EPS Next 5Y26.02%
Revenue Next Year-17.62%
Revenue Next 2Y-6.95%
Revenue Next 3Y-4.38%
Revenue Next 5Y5.04%
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.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 11.32 indicates a reasonable valuation of MEG.
67.76% of the companies in the same industry are more expensive than MEG, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of MEG to the average of the S&P500 Index (27.48), we can say MEG is valued rather cheaply.
The Price/Forward Earnings ratio is 9.30, which indicates a very decent valuation of MEG.
64.95% of the companies in the same industry are more expensive than MEG, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.52, MEG is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.32 | ||
| Fwd PE | 9.3 |
4.2 Price Multiples
81.78% of the companies in the same industry are more expensive than MEG, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of MEG indicates a somewhat cheap valuation: MEG is cheaper than 79.91% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.29 | ||
| EV/EBITDA | 5.05 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
MEG has an outstanding profitability rating, which may justify a higher PE ratio.
MEG's earnings are expected to grow with 19.59% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.36
PEG (5Y)0.81
EPS Next 2Y23.11%
EPS Next 3Y19.59%
5. Dividend
5.1 Amount
MEG has a Yearly Dividend Yield of 1.54%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 6.24, MEG has a dividend in line with its industry peers.
Compared to the average S&P500 Dividend Yield of 2.34, MEG is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.54% |
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
8.55% of the earnings are spent on dividend by MEG. This is a low number and sustainable payout ratio.
DP8.55%
EPS Next 2Y23.11%
EPS Next 3Y19.59%
TSX:MEG (7/17/2025, 7:00:00 PM)
26.5
+0.16 (+0.61%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners48.65%
Inst Owner ChangeN/A
Ins Owners0.51%
Ins Owner ChangeN/A
Market Cap6.74B
Analysts72.73
Price Target29.07 (9.7%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.54% |
Yearly Dividend0.1
Dividend Growth(5Y)N/A
DP8.55%
Div Incr Years0
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-7.37%
Min EPS beat(2)-34.35%
Max EPS beat(2)19.61%
EPS beat(4)1
Avg EPS beat(4)-15.57%
Min EPS beat(4)-34.35%
Max EPS beat(4)19.61%
EPS beat(8)2
Avg EPS beat(8)-13.73%
EPS beat(12)2
Avg EPS beat(12)-17.33%
EPS beat(16)5
Avg EPS beat(16)-2.54%
Revenue beat(2)1
Avg Revenue beat(2)-6.66%
Min Revenue beat(2)-16.34%
Max Revenue beat(2)3.01%
Revenue beat(4)2
Avg Revenue beat(4)-0.87%
Min Revenue beat(4)-16.34%
Max Revenue beat(4)17.85%
Revenue beat(8)5
Avg Revenue beat(8)5.75%
Revenue beat(12)8
Avg Revenue beat(12)5.62%
Revenue beat(16)11
Avg Revenue beat(16)5.94%
PT rev (1m)-0.7%
PT rev (3m)-9.01%
EPS NQ rev (1m)-14.91%
EPS NQ rev (3m)-42.8%
EPS NY rev (1m)0%
EPS NY rev (3m)2.52%
Revenue NQ rev (1m)-2%
Revenue NQ rev (3m)10.33%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-3.68%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.32 | ||
| Fwd PE | 9.3 | ||
| P/S | 1.36 | ||
| P/FCF | 9.29 | ||
| P/OCF | 5.11 | ||
| P/B | 1.47 | ||
| P/tB | 1.47 | ||
| EV/EBITDA | 5.05 |
EPS(TTM)2.34
EY8.83%
EPS(NY)2.85
Fwd EY10.75%
FCF(TTM)2.85
FCFY10.77%
OCF(TTM)5.19
OCFY19.57%
SpS19.45
BVpS18.04
TBVpS18.04
PEG (NY)0.36
PEG (5Y)0.81
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.19% | ||
| ROE | 13.51% | ||
| ROCE | 15.67% | ||
| ROIC | 11.88% | ||
| ROICexc | 12.04% | ||
| ROICexgc | 12.05% | ||
| OM | 19.85% | ||
| PM (TTM) | 12.53% | ||
| GM | 38.77% | ||
| FCFM | 14.68% |
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-Score8
Asset Turnover0.73
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | 1.51 | ||
| Debt/EBITDA | 0.71 | ||
| Cap/Depr | 107.23% | ||
| Cap/Sales | 11.99% | ||
| Interest Coverage | 17.23 | ||
| Cash Conversion | 85.93% | ||
| Profit Quality | 117.1% | ||
| Current Ratio | 1.69 | ||
| Quick Ratio | 1.12 | ||
| Altman-Z | 3.13 |
F-Score8
WACC8.03%
ROIC/WACC1.48
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)13.59%
EPS 3Y25.99%
EPS 5Y13.92%
EPS Q2Q%127.78%
EPS Next Y31.12%
EPS Next 2Y23.11%
EPS Next 3Y19.59%
EPS Next 5Y26.02%
Revenue 1Y (TTM)-10.66%
Revenue growth 3Y6.02%
Revenue growth 5Y5.55%
Sales Q2Q%-14.81%
Revenue Next Year-17.62%
Revenue Next 2Y-6.95%
Revenue Next 3Y-4.38%
Revenue Next 5Y5.04%
EBIT growth 1Y1.13%
EBIT growth 3Y-1.01%
EBIT growth 5Y19.63%
EBIT Next Year77.65%
EBIT Next 3Y26.7%
EBIT Next 5Y12.31%
FCF growth 1Y-48.4%
FCF growth 3Y30.18%
FCF growth 5Y12.84%
OCF growth 1Y-27.05%
OCF growth 3Y24.76%
OCF growth 5Y16.26%