MEG ENERGY CORP (MEG.CA) Stock Fundamental Analysis
Canada - TSX:MEG - CA5527041084 - Common Stock
30.11 CAD
+0.38 (+1.28%)
MEG gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals 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 not valued too expensively and it also shows a decent growth rate. These ratings would make MEG suitable 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
With an excellent Return On Assets value of 8.13%, MEG belongs to the best of the industry, outperforming 90.41% of the companies in the same industry.
With an excellent Return On Equity value of 11.93%, MEG belongs to the best of the industry, outperforming 84.02% of the companies in the same industry.
With an excellent Return On Invested Capital value of 9.80%, MEG belongs to the best of the industry, outperforming 91.32% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for MEG is significantly above the industry average of 6.87%.
| 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's Profit Margin of 12.72% is fine compared to the rest of the industry. MEG outperforms 74.43% of its industry peers.
MEG's Profit Margin has improved in the last couple of years.
MEG has a better Operating Margin (18.68%) than 73.97% of its industry peers.
MEG's Operating Margin has improved in the last couple of years.
The Gross Margin of MEG (38.88%) is comparable to the rest of the 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), MEG is creating value.
Compared to 1 year ago, MEG has less shares outstanding
MEG has less shares outstanding than it did 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 3.18. 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 3.18, MEG belongs to the top of the industry, outperforming 80.37% 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.
MEG's Debt to FCF ratio of 1.48 is amongst the best of the industry. MEG outperforms 89.50% 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's Debt to Equity ratio of 0.22 is fine compared to the rest of the industry. MEG outperforms 63.01% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.22 | ||
| Debt/FCF | 1.48 | ||
| Altman-Z | 3.18 |
ROIC/WACC1.33
WACC7.38%
2.3 Liquidity
A Current Ratio of 1.37 indicates that MEG should not have too much problems paying its short term obligations.
The Current ratio of MEG (1.37) is better than 68.49% of its industry peers.
MEG has a Quick Ratio of 1.37. This is a bad value and indicates that MEG is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of MEG (0.75) is comparable to the rest of the industry.
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.
Measured over the past years, MEG shows a small growth in Revenue. The Revenue has been growing by 5.55% on average per year.
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
MEG is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 26.02% yearly.
The Revenue is expected to grow by 5.72% on average over the next years.
EPS Next Y1.09%
EPS Next 2Y-8.37%
EPS Next 3Y4.57%
EPS Next 5Y26.02%
Revenue Next Year-5.5%
Revenue Next 2Y3.07%
Revenue Next 3Y5.27%
Revenue Next 5Y5.72%
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
The Price/Earnings ratio is 14.34, which indicates a correct valuation of MEG.
Compared to the rest of the industry, the Price/Earnings ratio of MEG indicates a somewhat cheap valuation: MEG is cheaper than 66.21% of the companies listed in the same industry.
MEG is valuated rather cheaply when we compare the Price/Earnings ratio to 26.06, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 19.07 indicates a rather expensive valuation of MEG.
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 32.73. MEG is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.34 | ||
| Fwd PE | 19.07 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of MEG indicates a somewhat cheap valuation: MEG is cheaper than 79.45% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of MEG indicates a somewhat cheap valuation: MEG is cheaper than 78.54% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.77 | ||
| EV/EBITDA | 6.61 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of MEG may justify a higher PE ratio.
PEG (NY)13.2
PEG (5Y)1.03
EPS Next 2Y-8.37%
EPS Next 3Y4.57%
5. Dividend
5.1 Amount
MEG has a Yearly Dividend Yield of 1.48%.
Compared to an average industry Dividend Yield of 4.97, MEG pays a bit more dividend than its industry peers.
Compared to the average S&P500 Dividend Yield of 2.37, MEG is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.48% |
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-8.37%
EPS Next 3Y4.57%
TSX:MEG (11/7/2025, 7:00:00 PM)
30.11
+0.38 (+1.28%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners47.35%
Inst Owner ChangeN/A
Ins Owners0.51%
Ins Owner ChangeN/A
Market Cap7.66B
Revenue(TTM)4.33B
Net Income(TTM)551.00M
Analysts70.77
Price Target29.96 (-0.5%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.48% |
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)2.3%
PT rev (3m)2.87%
EPS NQ rev (1m)-2.66%
EPS NQ rev (3m)-2.18%
EPS NY rev (1m)0.55%
EPS NY rev (3m)-22.91%
Revenue NQ rev (1m)-1.01%
Revenue NQ rev (3m)-2.73%
Revenue NY rev (1m)-0.41%
Revenue NY rev (3m)-3.18%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.34 | ||
| Fwd PE | 19.07 | ||
| P/S | 1.77 | ||
| P/FCF | 10.77 | ||
| P/OCF | 5.55 | ||
| P/B | 1.66 | ||
| P/tB | 1.66 | ||
| EV/EBITDA | 6.61 |
EPS(TTM)2.1
EY6.97%
EPS(NY)1.58
Fwd EY5.24%
FCF(TTM)2.8
FCFY9.28%
OCF(TTM)5.43
OCFY18.03%
SpS17.03
BVpS18.15
TBVpS18.14
PEG (NY)13.2
PEG (5Y)1.03
Graham Number29.29
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
ROICexgc growth 3Y0.59%
ROICexgc 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 | 3.18 |
F-Score6
WACC7.38%
ROIC/WACC1.33
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 Y1.09%
EPS Next 2Y-8.37%
EPS Next 3Y4.57%
EPS Next 5Y26.02%
Revenue 1Y (TTM)-22.92%
Revenue growth 3Y6.02%
Revenue growth 5Y5.55%
Sales Q2Q%-44.87%
Revenue Next Year-5.5%
Revenue Next 2Y3.07%
Revenue Next 3Y5.27%
Revenue Next 5Y5.72%
EBIT growth 1Y-20.45%
EBIT growth 3Y-1.01%
EBIT growth 5Y19.63%
EBIT Next Year60.45%
EBIT Next 3Y19.45%
EBIT Next 5Y13.54%
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%
MEG ENERGY CORP / MEG.CA FAQ
What is the fundamental rating for MEG stock?
ChartMill assigns a fundamental rating of 7 / 10 to MEG.CA.
What is the valuation status of MEG ENERGY CORP (MEG.CA) stock?
ChartMill assigns a valuation rating of 5 / 10 to MEG ENERGY CORP (MEG.CA). This can be considered as Fairly Valued.
What is the profitability of MEG stock?
MEG ENERGY CORP (MEG.CA) has a profitability rating of 8 / 10.
What are the PE and PB ratios of MEG ENERGY CORP (MEG.CA) stock?
The Price/Earnings (PE) ratio for MEG ENERGY CORP (MEG.CA) is 14.34 and the Price/Book (PB) ratio is 1.66.
Can you provide the dividend sustainability for MEG stock?
The dividend rating of MEG ENERGY CORP (MEG.CA) is 3 / 10 and the dividend payout ratio is 14.34%.