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 208 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. A decent growth rate in combination with a cheap valuation! Better keep an eye on MEG. These ratings would make MEG suitable 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.
Of the past 5 years MEG 4 years were profitable.
In the past 5 years MEG always reported a positive cash flow from operatings.
1.2 Ratios
MEG has a better Return On Assets (9.19%) than 89.90% of its industry peers.
Looking at the Return On Equity, with a value of 13.51%, MEG belongs to the top of the industry, outperforming 83.17% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 11.88%, MEG belongs to the top of the industry, outperforming 93.27% 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 7.37%.
| 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
MEG has a Profit Margin of 12.53%. This is in the better half of the industry: MEG outperforms 74.52% of its industry peers.
MEG's Profit Margin has improved in the last couple of years.
MEG's Operating Margin of 19.85% is fine compared to the rest of the industry. MEG outperforms 71.15% of its industry peers.
MEG's Operating Margin has improved in the last couple of years.
MEG has a Gross Margin (38.77%) which is comparable to the rest of the industry.
MEG's Gross Margin has been stable in the last couple of years.
| 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) just above the Cost of Capital (WACC), MEG is 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
MEG has an Altman-Z score of 3.00. This indicates that MEG is financially healthy and has little risk of bankruptcy at the moment.
MEG has a better Altman-Z score (3.00) than 80.77% of its industry peers.
MEG has a debt to FCF ratio of 1.51. This is a very positive value and a sign of high solvency as it would only need 1.51 years to pay back of all of its debts.
MEG has a Debt to FCF ratio of 1.51. This is amongst the best in the industry. MEG outperforms 90.38% of its industry peers.
MEG has a Debt/Equity ratio of 0.24. This is a healthy value indicating a solid balance between debt and equity.
MEG's Debt to Equity ratio of 0.24 is fine compared to the rest of the industry. MEG outperforms 60.10% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | 1.51 | ||
| Altman-Z | 3 |
ROIC/WACC1.33
WACC8.9%
2.3 Liquidity
MEG has a Current Ratio of 1.69. This is a normal value and indicates that MEG is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of MEG (1.69) is better than 76.92% of its industry peers.
MEG has a Quick Ratio of 1.12. This is a normal value and indicates that MEG is financially healthy and should not expect problems in meeting its short term obligations.
MEG has a Quick ratio of 1.12. This is in the better half of the industry: MEG outperforms 66.83% 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.
The Revenue for MEG has decreased by -10.66% in the past year. This is quite bad
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)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
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 4.46% on average over the next years.
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 5Y4.46%
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
A Price/Earnings ratio of 10.56 indicates a reasonable valuation of MEG.
MEG's Price/Earnings ratio is a bit cheaper when compared to the industry. MEG is cheaper than 67.31% of the companies in the same industry.
MEG's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.82.
With a Price/Forward Earnings ratio of 8.67, the valuation of MEG can be described as very reasonable.
MEG's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. MEG is cheaper than 62.98% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.76, MEG is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.56 | ||
| Fwd PE | 8.67 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MEG is valued cheaper than 81.25% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, MEG is valued cheaply inside the industry as 81.25% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.68 | ||
| EV/EBITDA | 4.76 |
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 excellent profitability rating of MEG 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)0.34
PEG (5Y)0.76
EPS Next 2Y23.11%
EPS Next 3Y19.59%
5. Dividend
5.1 Amount
MEG has a Yearly Dividend Yield of 1.63%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 6.53, MEG has a dividend in line with its industry peers.
MEG's Dividend Yield is slightly below the S&P500 average, which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.63% |
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 Years0
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 (5/23/2025, 7:00:00 PM)
24.71
+0.08 (+0.32%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners47.34%
Inst Owner ChangeN/A
Ins Owners0.43%
Ins Owner ChangeN/A
Market Cap6.30B
Analysts73.33
Price Target29.65 (19.99%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.63% |
Yearly Dividend0.1
Dividend Growth(5Y)N/A
DP8.55%
Div Incr Years0
Div Non Decr Years0
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)-7.18%
PT rev (3m)-8.13%
EPS NQ rev (1m)-32.77%
EPS NQ rev (3m)-32.95%
EPS NY rev (1m)0%
EPS NY rev (3m)13.15%
Revenue NQ rev (1m)12.59%
Revenue NQ rev (3m)-16.76%
Revenue NY rev (1m)-5.35%
Revenue NY rev (3m)-3.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.56 | ||
| Fwd PE | 8.67 | ||
| P/S | 1.27 | ||
| P/FCF | 8.68 | ||
| P/OCF | 4.78 | ||
| P/B | 1.37 | ||
| P/tB | 1.37 | ||
| EV/EBITDA | 4.76 |
EPS(TTM)2.34
EY9.47%
EPS(NY)2.85
Fwd EY11.53%
FCF(TTM)2.85
FCFY11.52%
OCF(TTM)5.17
OCFY20.94%
SpS19.4
BVpS18
TBVpS17.99
PEG (NY)0.34
PEG (5Y)0.76
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 |
F-Score8
WACC8.9%
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)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 5Y4.46%
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%