MONTROSE ENVIRONMENTAL GROUP (MEG) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:MEG - US6151111019 - Common Stock
27 USD
+0.29 (+1.09%)
27 USD
0 (0%)
MEG gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 82 industry peers in the Commercial Services & Supplies industry. MEG may be in some trouble as it scores bad on both profitability and health. MEG has a correct valuation and a medium 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.
MEG had negative earnings in each of the past 5 years.
MEG had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
MEG has a worse Return On Assets (-2.82%) than 63.41% of its industry peers.
MEG has a Return On Equity of -6.05%. This is in the lower half of the industry: MEG underperforms 60.98% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.82% | ||
| ROE | -6.05% | ||
| ROIC | N/A |
ROA(3y)-6.43%
ROA(5y)-8.4%
ROE(3y)-11.31%
ROE(5y)-15.93%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
MEG has a Gross Margin of 40.77%. This is in the better half of the industry: MEG outperforms 68.29% of its industry peers.
In the last couple of years the Gross Margin of MEG has grown nicely.
The Profit Margin and Operating Margin are not available for MEG so they could not be analyzed.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 40.77% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y7.16%
GM growth 5Y5.98%
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.
Compared to 5 years ago, MEG has more shares outstanding
MEG has a worse debt/assets ratio than last year.
2.2 Solvency
MEG has an Altman-Z score of 1.64. This is a bad value and indicates that MEG is not financially healthy and even has some risk of bankruptcy.
MEG's Altman-Z score of 1.64 is in line compared to the rest of the industry. MEG outperforms 40.24% of its industry peers.
MEG has a debt to FCF ratio of 4.64. This is a neutral value as MEG would need 4.64 years to pay back of all of its debts.
MEG's Debt to FCF ratio of 4.64 is fine compared to the rest of the industry. MEG outperforms 73.17% of its industry peers.
MEG has a Debt/Equity ratio of 0.69. This is a neutral value indicating MEG is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.69, MEG is in line with its industry, outperforming 46.34% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.69 | ||
| Debt/FCF | 4.64 | ||
| Altman-Z | 1.64 |
ROIC/WACCN/A
WACC8.36%
2.3 Liquidity
A Current Ratio of 1.66 indicates that MEG should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.66, MEG is in line with its industry, outperforming 58.54% of the companies in the same industry.
A Quick Ratio of 1.64 indicates that MEG should not have too much problems paying its short term obligations.
MEG has a Quick ratio of 1.64. This is in the better half of the industry: MEG outperforms 64.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.66 | ||
| Quick Ratio | 1.64 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 38.93% over the past year.
The Revenue has grown by 22.77% in the past year. This is a very strong growth!
Measured over the past years, MEG shows a very strong growth in Revenue. The Revenue has been growing by 24.38% on average per year.
EPS 1Y (TTM)38.93%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%153.85%
Revenue 1Y (TTM)22.77%
Revenue growth 3Y8.42%
Revenue growth 5Y24.38%
Sales Q2Q%25.86%
3.2 Future
MEG is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 36.59% yearly.
The Revenue is expected to grow by 13.01% on average over the next years. This is quite good.
EPS Next Y91.62%
EPS Next 2Y49.53%
EPS Next 3Y36.59%
EPS Next 5YN/A
Revenue Next Year17.94%
Revenue Next 2Y10.12%
Revenue Next 3Y8.53%
Revenue Next 5Y13.01%
3.3 Evolution
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
MEG reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
With a Price/Forward Earnings ratio of 51.81, MEG can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MEG is on the same level as its industry peers.
MEG is valuated expensively when we compare the Price/Forward Earnings ratio to 23.78, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 51.81 |
4.2 Price Multiples
MEG's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, MEG is valued cheaply inside the industry as 82.93% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.33 | ||
| EV/EBITDA | 25.13 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as MEG's earnings are expected to grow with 36.59% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y49.53%
EPS Next 3Y36.59%
5. Dividend
5.1 Amount
No dividends for MEG!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
27
+0.29 (+1.09%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners97.1%
Inst Owner Change-4.57%
Ins Owners6.89%
Ins Owner Change0%
Market Cap954.18M
Revenue(TTM)826.32M
Net Income(TTM)-27.77M
Analysts78.33
Price Target34.83 (29%)
Short Float %6.33%
Short Ratio5.16
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
Yearly Dividend0.34
Dividend Growth(5Y)N/A
DP-24.63%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)265.37%
Min EPS beat(2)211.87%
Max EPS beat(2)318.86%
EPS beat(4)2
Avg EPS beat(4)107.18%
Min EPS beat(4)-71.36%
Max EPS beat(4)318.86%
EPS beat(8)3
Avg EPS beat(8)9.25%
EPS beat(12)3
Avg EPS beat(12)-17.52%
EPS beat(16)4
Avg EPS beat(16)-36.55%
Revenue beat(2)2
Avg Revenue beat(2)17.2%
Min Revenue beat(2)11.06%
Max Revenue beat(2)23.35%
Revenue beat(4)3
Avg Revenue beat(4)9.74%
Min Revenue beat(4)-0.2%
Max Revenue beat(4)23.35%
Revenue beat(8)5
Avg Revenue beat(8)4.54%
Revenue beat(12)6
Avg Revenue beat(12)3.18%
Revenue beat(16)9
Avg Revenue beat(16)2.88%
PT rev (1m)1.27%
PT rev (3m)4.09%
EPS NQ rev (1m)66.9%
EPS NQ rev (3m)313.39%
EPS NY rev (1m)26.67%
EPS NY rev (3m)-14.58%
Revenue NQ rev (1m)-3.33%
Revenue NQ rev (3m)-6.54%
Revenue NY rev (1m)1.42%
Revenue NY rev (3m)1.42%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 51.81 | ||
| P/S | 1.15 | ||
| P/FCF | 13.33 | ||
| P/OCF | 10.93 | ||
| P/B | 2.08 | ||
| P/tB | N/A | ||
| EV/EBITDA | 25.13 |
EPS(TTM)-0.91
EYN/A
EPS(NY)0.52
Fwd EY1.93%
FCF(TTM)2.03
FCFY7.5%
OCF(TTM)2.47
OCFY9.15%
SpS23.38
BVpS12.98
TBVpS-4.05
PEG (NY)N/A
PEG (5Y)N/A
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.82% | ||
| ROE | -6.05% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 40.77% | ||
| FCFM | 8.66% |
ROA(3y)-6.43%
ROA(5y)-8.4%
ROE(3y)-11.31%
ROE(5y)-15.93%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y7.16%
GM growth 5Y5.98%
F-Score6
Asset Turnover0.84
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.69 | ||
| Debt/FCF | 4.64 | ||
| Debt/EBITDA | 6.23 | ||
| Cap/Depr | 28.52% | ||
| Cap/Sales | 1.9% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | 172.77% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.66 | ||
| Quick Ratio | 1.64 | ||
| Altman-Z | 1.64 |
F-Score6
WACC8.36%
ROIC/WACCN/A
Cap/Depr(3y)46.06%
Cap/Depr(5y)35.19%
Cap/Sales(3y)3.51%
Cap/Sales(5y)2.86%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)38.93%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%153.85%
EPS Next Y91.62%
EPS Next 2Y49.53%
EPS Next 3Y36.59%
EPS Next 5YN/A
Revenue 1Y (TTM)22.77%
Revenue growth 3Y8.42%
Revenue growth 5Y24.38%
Sales Q2Q%25.86%
Revenue Next Year17.94%
Revenue Next 2Y10.12%
Revenue Next 3Y8.53%
Revenue Next 5Y13.01%
EBIT growth 1Y70.31%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year929.58%
EBIT Next 3Y127.1%
EBIT Next 5Y76.48%
FCF growth 1Y224.9%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y61.76%
OCF growth 3Y-16.05%
OCF growth 5Y5.47%
MONTROSE ENVIRONMENTAL GROUP / MEG FAQ
What is the fundamental rating for MEG stock?
ChartMill assigns a fundamental rating of 3 / 10 to MEG.
What is the valuation status of MONTROSE ENVIRONMENTAL GROUP (MEG) stock?
ChartMill assigns a valuation rating of 4 / 10 to MONTROSE ENVIRONMENTAL GROUP (MEG). This can be considered as Fairly Valued.
What is the profitability of MEG stock?
MONTROSE ENVIRONMENTAL GROUP (MEG) has a profitability rating of 2 / 10.
How sustainable is the dividend of MONTROSE ENVIRONMENTAL GROUP (MEG) stock?
The dividend rating of MONTROSE ENVIRONMENTAL GROUP (MEG) is 0 / 10 and the dividend payout ratio is -24.63%.