MONTROSE ENVIRONMENTAL GROUP (MEG)
US6151111019 - Common Stock
We assign a fundamental rating of 3 out of 10 to MEG. MEG was compared to 84 industry peers in the Commercial Services & Supplies industry. The financial health of MEG is average, but there are quite some concerns on its profitability. MEG is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year MEG has reported negative net income.
In the past year MEG had a positive cash flow from operations.
In the past 5 years MEG always reported negative net income.
Each year in the past 5 years MEG had a positive operating cash flow.
1.2 Ratios
MEG has a Return On Assets of -5.78%. This is in the lower half of the industry: MEG underperforms 73.49% of its industry peers.
MEG has a worse Return On Equity (-9.96%) than 66.27% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -5.78% | ||
| ROE | -9.96% | ||
| ROIC | N/A |
ROA(3y)-5.63%
ROA(5y)-9.53%
ROE(3y)-9.73%
ROE(5y)-21.64%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
Looking at the Gross Margin, with a value of 38.50%, MEG is in the better half of the industry, outperforming 69.88% of the companies in the same industry.
In the last couple of years the Gross Margin of MEG has grown nicely.
MEG does not have Profit Margin and Operating Margin available, so we won't be analyzing them here.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 38.5% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y3.85%
GM growth 5Y6.08%
2. Health
2.1 Basic Checks
MEG does not have a ROIC to compare to the WACC, probably because it is not profitable.
MEG has more shares outstanding than it did 1 year ago.
The number of shares outstanding for MEG has been increased compared to 5 years ago.
MEG has a better debt/assets ratio than last year.
2.2 Solvency
MEG has an Altman-Z score of 2.79. This is not the best score and indicates that MEG is in the grey zone with still only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.79, MEG is in the better half of the industry, outperforming 68.67% of the companies in the same industry.
MEG has a debt to FCF ratio of 7.59. This is a slightly negative value and a sign of low solvency as MEG would need 7.59 years to pay back of all of its debts.
With a Debt to FCF ratio value of 7.59, MEG perfoms like the industry average, outperforming 55.42% of the companies in the same industry.
MEG has a Debt/Equity ratio of 0.33. This is a healthy value indicating a solid balance between debt and equity.
MEG has a Debt to Equity ratio of 0.33. This is in the better half of the industry: MEG outperforms 65.06% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | 7.59 | ||
| Altman-Z | 2.79 |
ROIC/WACCN/A
WACC8.58%
2.3 Liquidity
A Current Ratio of 1.59 indicates that MEG should not have too much problems paying its short term obligations.
The Current ratio of MEG (1.59) is comparable to the rest of the industry.
A Quick Ratio of 1.56 indicates that MEG should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.56, MEG is in the better half of the industry, outperforming 65.06% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.59 | ||
| Quick Ratio | 1.56 |
3. Growth
3.1 Past
MEG shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -32.77%.
Looking at the last year, MEG shows a quite strong growth in Revenue. The Revenue has grown by 14.65% in the last year.
MEG shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 27.02% yearly.
EPS 1Y (TTM)-32.77%
EPS 3YN/A
EPS 5YN/A
EPS growth Q2Q64%
Revenue 1Y (TTM)14.65%
Revenue growth 3Y23.9%
Revenue growth 5Y27.02%
Revenue growth Q2Q18.81%
3.2 Future
The Earnings Per Share is expected to grow by 20.23% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 6.93% on average over the next years.
EPS Next Y32.56%
EPS Next 2Y38.76%
EPS Next 3Y23.81%
EPS Next 5Y20.23%
Revenue Next Year14.22%
Revenue Next 2Y11.71%
Revenue Next 3Y12.41%
Revenue Next 5Y6.93%
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
The Price/Earnings Ratio is negative for MEG. In the last year negative earnings were reported.
Besides the negative Price/Earnings Ratio, also the Forward Price/Earnings Ratio is negative for MEG. No positive earnings are expected for the next year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A |
4.2 Price Multiples
69.88% of the companies in the same industry are cheaper than MEG, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of MEG is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 58.79 | ||
| EV/EBITDA | 63.38 |
4.3 Compensation for Growth
MEG's earnings are expected to grow with 23.81% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y38.76%
EPS Next 3Y23.81%
5. Dividend
5.1 Amount
No dividends for MEG!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
MONTROSE ENVIRONMENTAL GROUP
NYSE:MEG (5/3/2024, 3:15:01 PM)
After market: 44.51 0 (0%)44.51
+0.24 (+0.54%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap1.36B
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)
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Min Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
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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 | N/A | ||
| Fwd PE | N/A | ||
| 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)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -5.78% | ||
| ROE | -9.96% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 38.5% | ||
| 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 Turnover0.76
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.59 | ||
| Quick Ratio | 1.56 | ||
| 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)-32.77%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y32.56%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)14.65%
Revenue growth 3Y23.9%
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