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 has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. MEG is valued quite cheap, while showing a decent growth score. This is a good combination! These ratings could make MEG a good candidate 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.
MEG had positive earnings in 4 of the past 5 years.
MEG had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
MEG's Return On Assets of 9.19% is amongst the best of the industry. MEG outperforms 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.
Looking at the Return On Invested Capital, with a value of 11.88%, MEG belongs to the top of the industry, outperforming 93.46% of the companies in the same industry.
MEG had an Average Return On Invested Capital over the past 3 years of 13.52%. This 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
With a decent Profit Margin value of 12.53%, MEG is doing good in the industry, outperforming 74.77% of the companies in the same industry.
In the last couple of years the Profit Margin of MEG has grown nicely.
Looking at the Operating Margin, with a value of 19.85%, MEG is in the better half of the industry, outperforming 72.43% of the companies in the same industry.
In the last couple of years the Operating Margin of MEG has grown nicely.
Looking at the Gross Margin, with a value of 38.77%, MEG is in line with its industry, outperforming 53.27% 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) 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.
The debt/assets ratio for MEG has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.14 indicates that MEG is not in any danger for bankruptcy at the moment.
MEG's Altman-Z score of 3.14 is fine compared to the rest of the industry. MEG outperforms 79.44% of its industry peers.
The Debt to FCF ratio of MEG is 1.51, which is an excellent value as it means it would take MEG, only 1.51 years of fcf income to pay off all of its debts.
MEG's Debt to FCF ratio of 1.51 is amongst the best of the industry. MEG outperforms 87.85% of its industry peers.
A Debt/Equity ratio of 0.24 indicates that MEG is not too dependend on debt financing.
MEG has a Debt to Equity ratio (0.24) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | 1.51 | ||
| Altman-Z | 3.14 |
ROIC/WACC1.65
WACC7.2%
2.3 Liquidity
A Current Ratio of 1.69 indicates that MEG should not have too much problems paying its short term obligations.
The Current ratio of MEG (1.69) is better than 77.57% of its industry peers.
A Quick Ratio of 1.12 indicates that MEG should not have too much problems paying its short term obligations.
MEG has a better Quick ratio (1.12) than 66.82% 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.
The Earnings Per Share has been growing by 13.92% on average over the past years. This is quite good.
MEG shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -10.66%.
MEG shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.55% yearly.
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
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.
Based on estimates for the next years, MEG will show a small growth in Revenue. The Revenue will grow by 5.05% 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 5Y5.05%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
MEG is valuated reasonably with a Price/Earnings ratio of 11.54.
MEG's Price/Earnings ratio is a bit cheaper when compared to the industry. MEG is cheaper than 68.22% of the companies in the same industry.
MEG is valuated cheaply when we compare the Price/Earnings ratio to 26.35, which is the current average of the S&P500 Index.
MEG is valuated reasonably with a Price/Forward Earnings ratio of 9.48.
MEG's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. MEG is cheaper than 64.95% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of MEG to the average of the S&P500 Index (22.19), we can say MEG is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.54 | ||
| Fwd PE | 9.48 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of MEG indicates a rather cheap valuation: MEG is cheaper than 83.64% of the companies listed in the same industry.
78.04% 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 | 9.48 | ||
| EV/EBITDA | 5.08 |
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.
A more expensive valuation may be justified as MEG's earnings are expected to grow with 19.59% in the coming years.
PEG (NY)0.37
PEG (5Y)0.83
EPS Next 2Y23.11%
EPS Next 3Y19.59%
5. Dividend
5.1 Amount
MEG has a Yearly Dividend Yield of 1.55%.
Compared to an average industry Dividend Yield of 6.18, MEG has a dividend in line with its industry peers.
Compared to the average S&P500 Dividend Yield of 2.40, MEG is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.55% |
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
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 (6/20/2025, 7:00:00 PM)
27
+0.64 (+2.43%)
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 Cap6.88B
Analysts72.5
Price Target29.27 (8.41%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.55% |
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)-1.28%
PT rev (3m)-9.09%
EPS NQ rev (1m)-32.77%
EPS NQ rev (3m)-28.57%
EPS NY rev (1m)0%
EPS NY rev (3m)13.15%
Revenue NQ rev (1m)12.59%
Revenue NQ rev (3m)11.97%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-3.68%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.54 | ||
| Fwd PE | 9.48 | ||
| P/S | 1.39 | ||
| P/FCF | 9.48 | ||
| P/OCF | 5.22 | ||
| P/B | 1.5 | ||
| P/tB | 1.5 | ||
| EV/EBITDA | 5.08 |
EPS(TTM)2.34
EY8.67%
EPS(NY)2.85
Fwd EY10.55%
FCF(TTM)2.85
FCFY10.55%
OCF(TTM)5.17
OCFY19.16%
SpS19.4
BVpS18
TBVpS17.99
PEG (NY)0.37
PEG (5Y)0.83
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 | 3.14 |
F-Score8
WACC7.2%
ROIC/WACC1.65
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 5Y5.05%
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%