MEG ENERGY CORP (MEG.CA)
CA5527041084 - Common Stock
Taking everything into account, MEG scores 5 out of 10 in our fundamental rating. MEG was compared to 222 industry peers in the Oil, Gas & Consumable Fuels industry. MEG is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. MEG has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year MEG was profitable.
MEG had a positive operating cash flow in the past year.
In multiple years MEG reported negative net income over the last 5 years.
In the past 5 years MEG always reported a positive cash flow from operatings.
1.2 Ratios
MEG has a better Return On Assets (8.25%) than 85.45% of its industry peers.
With an excellent Return On Equity value of 12.57%, MEG belongs to the best of the industry, outperforming 81.22% of the companies in the same industry.
MEG's Return On Invested Capital of 11.21% is amongst the best of the industry. MEG outperforms 90.61% of its industry peers.
MEG had an Average Return On Invested Capital over the past 3 years of 13.44%. This is significantly above the industry average of 8.08%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.25% | ||
| ROE | 12.57% | ||
| ROIC | 11.21% |
ROA(3y)8.27%
ROA(5y)3.81%
ROE(3y)13.53%
ROE(5y)5.76%
ROIC(3y)13.44%
ROIC(5y)N/A
1.3 Margins
MEG has a Profit Margin (10.07%) which is in line with its industry peers.
MEG has a Operating Margin (16.42%) which is in line with its industry peers.
MEG's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 34.71%, MEG is in line with its industry, outperforming 48.83% 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 | 16.42% | ||
| PM (TTM) | 10.07% | ||
| GM | 34.71% |
OM growth 3YN/A
OM growth 5Y32.56%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y19.26%
GM growth 5Y0.88%
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.
Compared to 1 year ago, MEG has an improved debt to assets ratio.
2.2 Solvency
MEG has an Altman-Z score of 3.33. This indicates that MEG is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.33, MEG is in the better half of the industry, outperforming 77.46% of the companies in the same industry.
The Debt to FCF ratio of MEG is 1.54, which is an excellent value as it means it would take MEG, only 1.54 years of fcf income to pay off all of its debts.
MEG has a Debt to FCF ratio of 1.54. This is amongst the best in the industry. MEG outperforms 86.85% of its industry peers.
A Debt/Equity ratio of 0.30 indicates that MEG is not too dependend on debt financing.
MEG has a Debt to Equity ratio of 0.30. This is comparable to the rest of the industry: MEG outperforms 49.30% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | 1.54 | ||
| Altman-Z | 3.33 |
ROIC/WACC1.48
WACC7.57%
2.3 Liquidity
MEG has a Current Ratio of 1.48. This is a normal value and indicates that MEG is financially healthy and should not expect problems in meeting its short term obligations.
With a decent Current ratio value of 1.48, MEG is doing good in the industry, outperforming 68.08% of the companies in the same industry.
A Quick Ratio of 1.07 indicates that MEG should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.07, MEG is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.48 | ||
| Quick Ratio | 1.07 |
3. Growth
3.1 Past
MEG shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -31.96%.
The Revenue has decreased by -7.60% in the past year.
MEG shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 15.65% yearly.
EPS 1Y (TTM)-31.96%
EPS 3YN/A
EPS 5YN/A
EPS growth Q2Q-30.19%
Revenue 1Y (TTM)-7.6%
Revenue growth 3Y35.11%
Revenue growth 5Y15.65%
Revenue growth Q2Q-0.07%
3.2 Future
The Earnings Per Share is expected to grow by 20.81% on average over the next years. This is a very strong growth
The Revenue is expected to decrease by -9.99% on average over the next years.
EPS Next Y36.42%
EPS Next 2Y21.59%
EPS Next 3Y20.81%
EPS Next 5YN/A
Revenue Next Year-21.88%
Revenue Next 2Y-11.68%
Revenue Next 3Y-9.99%
Revenue Next 5YN/A
3.3 Evolution
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 15.54, MEG is valued correctly.
MEG's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 28.28, MEG is valued a bit cheaper.
MEG is valuated reasonably with a Price/Forward Earnings ratio of 11.39.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MEG is on the same level as its industry peers.
The average S&P500 Price/Forward Earnings ratio is at 20.88. MEG is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.54 | ||
| Fwd PE | 11.39 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MEG is valued a bit cheaper than 72.30% of the companies in the same industry.
76.53% 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 | 9.32 | ||
| EV/EBITDA | 6.31 |
4.3 Compensation for Growth
MEG's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of MEG may justify a higher PE ratio.
MEG's earnings are expected to grow with 20.81% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.43
PEG (5Y)N/A
EPS Next 2Y21.59%
EPS Next 3Y20.81%
5. Dividend
5.1 Amount
No dividends for MEG!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
MEG ENERGY CORP
TSX:MEG (5/3/2024, 6:00:00 PM)
30.77
-0.03 (-0.1%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap8.39B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.54 | ||
| Fwd PE | 11.39 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.43
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.25% | ||
| ROE | 12.57% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 16.42% | ||
| PM (TTM) | 10.07% | ||
| GM | 34.71% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.82
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.48 | ||
| Quick Ratio | 1.07 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-31.96%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y36.42%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-7.6%
Revenue growth 3Y35.11%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y