MEG ENERGY CORP (MEG.CA) Stock Fundamental Analysis
Canada - TSX:MEG - CA5527041084 - Common Stock
28.5 CAD
-0.03 (-0.11%)
We assign a fundamental rating of 7 out of 10 to MEG. MEG was compared to 220 industry peers in the Oil, Gas & Consumable Fuels industry. Both the health and profitability get an excellent rating, making MEG a very profitable company, without any liquidiy or solvency issues. MEG has a decent growth rate and is not valued too expensively. 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.
MEG had a positive operating cash flow in the past year.
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
Looking at the Return On Assets, with a value of 8.13%, MEG belongs to the top of the industry, outperforming 90.45% of the companies in the same industry.
MEG has a Return On Equity of 11.93%. This is amongst the best in the industry. MEG outperforms 83.64% of its industry peers.
MEG's Return On Invested Capital of 9.80% is amongst the best of the industry. MEG outperforms 91.36% of its industry peers.
The Average Return On Invested Capital over the past 3 years for MEG is significantly above the industry average of 6.91%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.13% | ||
| ROE | 11.93% | ||
| ROIC | 9.8% |
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
MEG has a better Profit Margin (12.72%) than 74.09% of its industry peers.
MEG's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 18.68%, MEG is in the better half of the industry, outperforming 73.64% of the companies in the same industry.
In the last couple of years the Operating Margin of MEG has grown nicely.
MEG has a Gross Margin (38.88%) which is comparable to the rest of the industry.
MEG's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.68% | ||
| PM (TTM) | 12.72% | ||
| GM | 38.88% |
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so MEG is still 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.
MEG has a better debt/assets ratio than last year.
2.2 Solvency
MEG has an Altman-Z score of 3.07. This indicates that MEG is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 3.07, MEG is doing good in the industry, outperforming 79.09% of the companies in the same industry.
MEG has a debt to FCF ratio of 1.48. This is a very positive value and a sign of high solvency as it would only need 1.48 years to pay back of all of its debts.
The Debt to FCF ratio of MEG (1.48) is better than 89.09% of its industry peers.
MEG has a Debt/Equity ratio of 0.22. This is a healthy value indicating a solid balance between debt and equity.
MEG has a better Debt to Equity ratio (0.22) than 62.27% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.22 | ||
| Debt/FCF | 1.48 | ||
| Altman-Z | 3.07 |
ROIC/WACC1.24
WACC7.89%
2.3 Liquidity
MEG has a Current Ratio of 1.37. 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 1.37 is fine compared to the rest of the industry. MEG outperforms 70.45% of its industry peers.
A Quick Ratio of 0.75 indicates that MEG may have some problems paying its short term obligations.
MEG has a Quick ratio of 0.75. This is comparable to the rest of the industry: MEG outperforms 55.91% of its industry peers.
The current and quick ratio evaluation for MEG is rather negative, while it does have excellent solvency and profitability. These ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.37 | ||
| Quick Ratio | 0.75 |
3. Growth
3.1 Past
MEG shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 0.48%.
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.
Looking at the last year, MEG shows a very negative growth in Revenue. The Revenue has decreased by -22.92% in the last year.
The Revenue has been growing slightly by 5.55% on average over the past years.
EPS 1Y (TTM)0.48%
EPS 3Y25.99%
EPS 5Y13.92%
EPS Q2Q%-48%
Revenue 1Y (TTM)-22.92%
Revenue growth 3Y6.02%
Revenue growth 5Y5.55%
Sales Q2Q%-44.87%
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 5.23% on average over the next years.
EPS Next Y-0.21%
EPS Next 2Y-9.42%
EPS Next 3Y1.8%
EPS Next 5Y26.02%
Revenue Next Year-5.11%
Revenue Next 2Y3.07%
Revenue Next 3Y5.27%
Revenue Next 5Y5.23%
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
Based on the Price/Earnings ratio of 13.57, the valuation of MEG can be described as correct.
Compared to the rest of the industry, the Price/Earnings ratio of MEG indicates a somewhat cheap valuation: MEG is cheaper than 65.91% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.06. MEG is valued slightly cheaper when compared to this.
MEG is valuated rather expensively with a Price/Forward Earnings ratio of 18.48.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MEG is on the same level as its industry peers.
MEG's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.64.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.57 | ||
| Fwd PE | 18.48 |
4.2 Price Multiples
MEG's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. MEG is cheaper than 80.91% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, MEG is valued a bit cheaper than the industry average as 78.64% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.2 | ||
| EV/EBITDA | 6.3 |
4.3 Compensation for Growth
The excellent profitability rating of MEG may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.98
EPS Next 2Y-9.42%
EPS Next 3Y1.8%
5. Dividend
5.1 Amount
MEG has a Yearly Dividend Yield of 1.53%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 6.65, MEG has a dividend in line with its industry peers.
Compared to the average S&P500 Dividend Yield of 2.38, MEG is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.53% |
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 14.34% of its income as dividend. This is a sustainable payout ratio.
DP14.34%
EPS Next 2Y-9.42%
EPS Next 3Y1.8%
TSX:MEG (9/25/2025, 7:00:00 PM)
28.5
-0.03 (-0.11%)
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 Cap7.25B
Analysts72.73
Price Target29.29 (2.77%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.53% |
Yearly Dividend0.1
Dividend Growth(5Y)N/A
DP14.34%
Div Incr Years0
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)50.13%
Min EPS beat(2)19.61%
Max EPS beat(2)80.65%
EPS beat(4)2
Avg EPS beat(4)12.25%
Min EPS beat(4)-34.35%
Max EPS beat(4)80.65%
EPS beat(8)2
Avg EPS beat(8)-6.46%
EPS beat(12)3
Avg EPS beat(12)-9.27%
EPS beat(16)5
Avg EPS beat(16)-3.63%
Revenue beat(2)1
Avg Revenue beat(2)-5.01%
Min Revenue beat(2)-13.03%
Max Revenue beat(2)3.01%
Revenue beat(4)1
Avg Revenue beat(4)-8.59%
Min Revenue beat(4)-16.34%
Max Revenue beat(4)3.01%
Revenue beat(8)4
Avg Revenue beat(8)3.27%
Revenue beat(12)7
Avg Revenue beat(12)3.7%
Revenue beat(16)10
Avg Revenue beat(16)4%
PT rev (1m)0.56%
PT rev (3m)0.75%
EPS NQ rev (1m)0.5%
EPS NQ rev (3m)-27.96%
EPS NY rev (1m)0%
EPS NY rev (3m)-23.9%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-17.09%
Revenue NY rev (1m)-1.01%
Revenue NY rev (3m)15.18%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.57 | ||
| Fwd PE | 18.48 | ||
| P/S | 1.67 | ||
| P/FCF | 10.2 | ||
| P/OCF | 5.25 | ||
| P/B | 1.57 | ||
| P/tB | 1.57 | ||
| EV/EBITDA | 6.3 |
EPS(TTM)2.1
EY7.37%
EPS(NY)1.54
Fwd EY5.41%
FCF(TTM)2.8
FCFY9.81%
OCF(TTM)5.43
OCFY19.05%
SpS17.03
BVpS18.15
TBVpS18.14
PEG (NY)N/A
PEG (5Y)0.98
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.13% | ||
| ROE | 11.93% | ||
| ROCE | 12.94% | ||
| ROIC | 9.8% | ||
| ROICexc | 10.12% | ||
| ROICexgc | 10.13% | ||
| OM | 18.68% | ||
| PM (TTM) | 12.72% | ||
| GM | 38.88% | ||
| FCFM | 16.42% |
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-Score6
Asset Turnover0.64
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.22 | ||
| Debt/FCF | 1.48 | ||
| Debt/EBITDA | 0.8 | ||
| Cap/Depr | 140.17% | ||
| Cap/Sales | 15.47% | ||
| Interest Coverage | 14.71 | ||
| Cash Conversion | 107.3% | ||
| Profit Quality | 129.04% | ||
| Current Ratio | 1.37 | ||
| Quick Ratio | 0.75 | ||
| Altman-Z | 3.07 |
F-Score6
WACC7.89%
ROIC/WACC1.24
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)0.48%
EPS 3Y25.99%
EPS 5Y13.92%
EPS Q2Q%-48%
EPS Next Y-0.21%
EPS Next 2Y-9.42%
EPS Next 3Y1.8%
EPS Next 5Y26.02%
Revenue 1Y (TTM)-22.92%
Revenue growth 3Y6.02%
Revenue growth 5Y5.55%
Sales Q2Q%-44.87%
Revenue Next Year-5.11%
Revenue Next 2Y3.07%
Revenue Next 3Y5.27%
Revenue Next 5Y5.23%
EBIT growth 1Y-20.45%
EBIT growth 3Y-1.01%
EBIT growth 5Y19.63%
EBIT Next Year77.65%
EBIT Next 3Y26.7%
EBIT Next 5Y13.03%
FCF growth 1Y-28.54%
FCF growth 3Y30.18%
FCF growth 5Y12.84%
OCF growth 1Y-4.16%
OCF growth 3Y24.76%
OCF growth 5Y16.26%