MEG ENERGY CORP (MEG.CA) Stock Fundamental Analysis
TSX:MEG - CA5527041084 - Common Stock
28.71 CAD
+0.29 (+1.02%)
Overall MEG gets a fundamental rating of 6 out of 10. We evaluated MEG against 215 industry peers in the Oil, Gas & Consumable Fuels industry. MEG scores excellent points on both the profitability and health parts. This is a solid base for a good stock. MEG is not valued too expensively and it also shows a decent growth rate. With these ratings, MEG could be worth investigating further for 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.
In the past 5 years MEG always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 8.13%, MEG belongs to the top of the industry, outperforming 90.23% 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 83.72% of its industry peers.
MEG's Return On Invested Capital of 9.80% is amongst the best of the industry. MEG outperforms 91.16% of its industry peers.
The Average Return On Invested Capital over the past 3 years for MEG is significantly above the industry average of 6.99%.
| 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
With a decent Profit Margin value of 12.72%, MEG is doing good in the industry, outperforming 73.95% of the companies in the same industry.
In the last couple of years the Profit Margin of MEG has grown nicely.
MEG's Operating Margin of 18.68% is fine compared to the rest of the industry. MEG outperforms 73.49% of its industry peers.
In the last couple of years the Operating Margin of MEG has grown nicely.
Looking at the Gross Margin, with a value of 38.88%, MEG is in line with its industry, outperforming 53.95% 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 | 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.
MEG has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, MEG has less shares outstanding
MEG has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.08 indicates that MEG is not in any danger for bankruptcy at the moment.
MEG's Altman-Z score of 3.08 is fine compared to the rest of the industry. MEG outperforms 79.07% of its industry peers.
The Debt to FCF ratio of MEG is 1.48, which is an excellent value as it means it would take MEG, only 1.48 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.48, MEG belongs to the top of the industry, outperforming 88.84% of the companies in the same industry.
A Debt/Equity ratio of 0.22 indicates that MEG is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.22, MEG is in the better half of the industry, outperforming 62.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.22 | ||
| Debt/FCF | 1.48 | ||
| Altman-Z | 3.08 |
ROIC/WACC1.2
WACC8.14%
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.
Looking at the Current ratio, with a value of 1.37, MEG is in the better half of the industry, outperforming 70.70% of the companies in the same industry.
A Quick Ratio of 0.75 indicates that MEG may have some problems paying its short term obligations.
MEG's Quick ratio of 0.75 is in line compared to the rest of the industry. MEG outperforms 56.28% of its industry peers.
MEG does not score too well on the current and quick ratio evaluation. However, as it has 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.
The Revenue for MEG has decreased by -22.92% in the past year. This is quite bad
MEG shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.55% yearly.
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.
Based on estimates for the next years, MEG will show a small growth in Revenue. The Revenue will grow by 5.31% on average per year.
EPS Next Y-0.21%
EPS Next 2Y-9.42%
EPS Next 3Y1.8%
EPS Next 5Y26.02%
Revenue Next Year-4.14%
Revenue Next 2Y3.07%
Revenue Next 3Y5.27%
Revenue Next 5Y5.31%
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
The Price/Earnings ratio is 13.67, which indicates a correct valuation of MEG.
Based on the Price/Earnings ratio, MEG is valued a bit cheaper than the industry average as 64.65% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of MEG to the average of the S&P500 Index (27.06), we can say MEG is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 18.61, the valuation of MEG can be described as rather expensive.
The rest of the industry has a similar Price/Forward Earnings ratio as MEG.
The average S&P500 Price/Forward Earnings ratio is at 22.69. MEG is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.67 | ||
| Fwd PE | 18.61 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MEG is valued a bit cheaper than 79.07% 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 78.14% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.27 | ||
| EV/EBITDA | 6.34 |
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
With a Yearly Dividend Yield of 1.57%, MEG has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 6.00, MEG has a dividend in line with its industry peers.
MEG's Dividend Yield is slightly below the S&P500 average, which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.57% |
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
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 (9/4/2025, 7:00:00 PM)
28.71
+0.29 (+1.02%)
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 Cap7.30B
Analysts70.77
Price Target29.13 (1.46%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.57% |
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)-0.55%
PT rev (3m)-1.77%
EPS NQ rev (1m)-14.35%
EPS NQ rev (3m)-27.96%
EPS NY rev (1m)-23.9%
EPS NY rev (3m)-23.9%
Revenue NQ rev (1m)-1.74%
Revenue NQ rev (3m)-17.09%
Revenue NY rev (1m)-1.79%
Revenue NY rev (3m)16.36%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.67 | ||
| Fwd PE | 18.61 | ||
| P/S | 1.69 | ||
| P/FCF | 10.27 | ||
| P/OCF | 5.29 | ||
| P/B | 1.58 | ||
| P/tB | 1.58 | ||
| EV/EBITDA | 6.34 |
EPS(TTM)2.1
EY7.31%
EPS(NY)1.54
Fwd EY5.37%
FCF(TTM)2.8
FCFY9.74%
OCF(TTM)5.43
OCFY18.91%
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 | 3.08 |
F-Score6
WACC8.14%
ROIC/WACC1.2
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-4.14%
Revenue Next 2Y3.07%
Revenue Next 3Y5.27%
Revenue Next 5Y5.31%
EBIT growth 1Y-20.45%
EBIT growth 3Y-1.01%
EBIT growth 5Y19.63%
EBIT Next Year77.65%
EBIT Next 3Y26.7%
EBIT Next 5Y13.11%
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%