MEG ENERGY CORP (MEG.CA) Stock Fundamental Analysis
Canada - TSX:MEG - CA5527041084 - Common Stock
30.76 CAD
+0.47 (+1.55%)
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 has a correct valuation and a medium growth rate. These ratings would make MEG suitable 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.
Of the past 5 years MEG 4 years were profitable.
Each year in the past 5 years MEG had a positive operating cash flow.
1.2 Ratios
The Return On Assets of MEG (8.13%) is better than 90.19% of its industry peers.
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.
Looking at the Return On Invested Capital, with a value of 9.80%, MEG belongs to the top of the industry, outperforming 91.12% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years 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
With a decent Profit Margin value of 12.72%, MEG is doing good in the industry, outperforming 73.83% 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 73.36% of its industry peers.
MEG's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 38.88%, MEG is in line with its industry, outperforming 53.74% of the companies in the same 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
MEG has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, MEG has less shares outstanding
MEG has less shares outstanding than it did 5 years ago.
The debt/assets ratio for MEG has been reduced compared to a year ago.
2.2 Solvency
MEG has an Altman-Z score of 3.23. This indicates that MEG is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 3.23, MEG is doing good in the industry, outperforming 79.91% 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 has a better Debt to FCF ratio (1.48) than 89.25% of its industry peers.
A Debt/Equity ratio of 0.22 indicates that MEG is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.22, MEG is doing good in the industry, outperforming 62.15% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.22 | ||
| Debt/FCF | 1.48 | ||
| Altman-Z | 3.23 |
ROIC/WACC1.33
WACC7.36%
2.3 Liquidity
A Current Ratio of 1.37 indicates that MEG should not have too much problems paying 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 67.76% of the companies in the same industry.
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.
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
The Earnings Per Share has been growing slightly by 0.48% over the past year.
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
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
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
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
A Price/Earnings ratio of 14.65 indicates a correct valuation of MEG.
65.42% of the companies in the same industry are more expensive than MEG, based on the Price/Earnings ratio.
MEG's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.35.
Based on the Price/Forward Earnings ratio of 19.49, the valuation of MEG can be described as rather expensive.
MEG's Price/Forward Earnings ratio is in line with the industry average.
MEG is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 33.72, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.65 | ||
| Fwd PE | 19.49 |
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 79.44% of the companies listed in the same industry.
77.57% 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 | 11.01 | ||
| EV/EBITDA | 6.74 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates MEG does not grow enough to justify the current Price/Earnings ratio.
The excellent profitability rating of MEG may justify a higher PE ratio.
PEG (NY)13.49
PEG (5Y)1.05
EPS Next 2Y-8.37%
EPS Next 3Y4.57%
5. Dividend
5.1 Amount
MEG has a Yearly Dividend Yield of 1.48%. Purely for dividend investing, there may be better candidates out there.
MEG's Dividend Yield is comparable with the industry average which is at 4.97.
Compared to the average S&P500 Dividend Yield of 2.36, 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
14.34% of the earnings are spent on dividend by MEG. This is a low number and sustainable payout ratio.
DP14.34%
EPS Next 2Y-8.37%
EPS Next 3Y4.57%
TSX:MEG (11/11/2025, 7:00:00 PM)
30.76
+0.47 (+1.55%)
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 Cap7.82B
Revenue(TTM)4.33B
Net Income(TTM)551.00M
Analysts70.77
Price Target29.96 (-2.6%)
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 | 14.65 | ||
| Fwd PE | 19.49 | ||
| P/S | 1.81 | ||
| P/FCF | 11.01 | ||
| P/OCF | 5.67 | ||
| P/B | 1.69 | ||
| P/tB | 1.7 | ||
| EV/EBITDA | 6.74 |
EPS(TTM)2.1
EY6.83%
EPS(NY)1.58
Fwd EY5.13%
FCF(TTM)2.8
FCFY9.09%
OCF(TTM)5.43
OCFY17.65%
SpS17.03
BVpS18.15
TBVpS18.14
PEG (NY)13.49
PEG (5Y)1.05
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 | 3.23 |
F-Score6
WACC7.36%
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 14.65 and the Price/Book (PB) ratio is 1.69.
Can you provide the dividend sustainability for MEG stock?
The dividend rating of MEG ENERGY CORP (MEG.CA) is 2 / 10 and the dividend payout ratio is 14.34%.