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MONTROSE ENVIRONMENTAL GROUP (MEG) Stock Fundamental Analysis

NYSE:MEG - New York Stock Exchange, Inc. - US6151111019 - Common Stock - Currency: USD

22.96  -0.48 (-2.05%)

After market: 22.62 -0.34 (-1.48%)

Fundamental Rating

3

Taking everything into account, MEG scores 3 out of 10 in our fundamental rating. MEG was compared to 83 industry peers in the Commercial Services & Supplies industry. The financial health of MEG is average, but there are quite some concerns on its profitability. While showing a medium growth rate, MEG is valued expensive at the moment.


Dividend Valuation Growth Profitability Health

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2

1. Profitability

1.1 Basic Checks

In the past year MEG has reported negative net income.
MEG had a positive operating cash flow in the past year.
In the past 5 years MEG always reported negative net income.
In the past 5 years MEG always reported a positive cash flow from operatings.
MEG Yearly Net Income VS EBIT VS OCF VS FCFMEG Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2018 2019 2020 2021 2022 2023 2024 0 50M -50M -100M

1.2 Ratios

MEG's Return On Assets of -7.99% is on the low side compared to the rest of the industry. MEG is outperformed by 75.90% of its industry peers.
With a Return On Equity value of -14.77%, MEG is not doing good in the industry: 62.65% of the companies in the same industry are doing better.
Industry RankSector Rank
ROA -7.99%
ROE -14.77%
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
MEG Yearly ROA, ROE, ROICMEG Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2018 2019 2020 2021 2022 2023 2024 0 -10 -20 -30 -40

1.3 Margins

With a decent Gross Margin value of 40.18%, MEG is doing good in the industry, outperforming 67.47% of the companies in the same industry.
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 RankSector Rank
OM N/A
PM (TTM) N/A
GM 40.18%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y7.16%
GM growth 5Y5.98%
MEG Yearly Profit, Operating, Gross MarginsMEG Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2018 2019 2020 2021 2022 2023 2024 0 20 -20

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4

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.
MEG Yearly Shares OutstandingMEG Yearly Shares OutstandingYearly Shares Outstanding 2018 2019 2020 2021 2022 2023 2024 10M 20M 30M
MEG Yearly Total Debt VS Total AssetsMEG Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M 800M

2.2 Solvency

Based on the Altman-Z score of 1.40, we must say that MEG is in the distress zone and has some risk of bankruptcy.
MEG has a Altman-Z score of 1.40. This is in the lower half of the industry: MEG underperforms 71.08% of its industry peers.
The Debt to FCF ratio of MEG is 8.62, which is on the high side as it means it would take MEG, 8.62 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of MEG (8.62) is comparable to the rest of the industry.
MEG has a Debt/Equity ratio of 0.46. This is a healthy value indicating a solid balance between debt and equity.
MEG has a Debt to Equity ratio (0.46) which is comparable to the rest of the industry.
Industry RankSector Rank
Debt/Equity 0.46
Debt/FCF 8.62
Altman-Z 1.4
ROIC/WACCN/A
WACC10.15%
MEG Yearly LT Debt VS Equity VS FCFMEG Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2018 2019 2020 2021 2022 2023 2024 0 100M 200M 300M 400M 500M

2.3 Liquidity

MEG has a Current Ratio of 2.05. This indicates that MEG is financially healthy and has no problem in meeting its short term obligations.
With a decent Current ratio value of 2.05, MEG is doing good in the industry, outperforming 69.88% of the companies in the same industry.
MEG has a Quick Ratio of 2.02. This indicates that MEG is financially healthy and has no problem in meeting its short term obligations.
The Quick ratio of MEG (2.02) is better than 80.72% of its industry peers.
Industry RankSector Rank
Current Ratio 2.05
Quick Ratio 2.02
MEG Yearly Current Assets VS Current LiabilitesMEG Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2018 2019 2020 2021 2022 2023 2024 50M 100M 150M 200M 250M

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6

3. Growth

3.1 Past

The earnings per share for MEG have decreased strongly by -56.76% in the last year.
Looking at the last year, MEG shows a quite strong growth in Revenue. The Revenue has grown by 10.93% in the last year.
The Revenue has been growing by 24.38% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)-56.76%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-20.75%
Revenue 1Y (TTM)10.93%
Revenue growth 3Y8.42%
Revenue growth 5Y24.38%
Sales Q2Q%14.49%

3.2 Future

The Earnings Per Share is expected to grow by 27.32% on average over the next years. This is a very strong growth
MEG is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 13.01% yearly.
EPS Next Y50.64%
EPS Next 2Y34.38%
EPS Next 3Y27.32%
EPS Next 5YN/A
Revenue Next Year8.88%
Revenue Next 2Y7.97%
Revenue Next 3Y12.56%
Revenue Next 5Y13.01%

3.3 Evolution

Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
MEG Yearly Revenue VS EstimatesMEG Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 500M 1B 1.5B
MEG Yearly EPS VS EstimatesMEG Yearly EPS VS EstimatesYearly EPS VS Estimates 2020 2021 2022 2023 2024 2025 2026 2027 0 -1 -2 -3

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2

4. Valuation

4.1 Price/Earnings Ratio

MEG reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
Also next year MEG is expected to report negative earnings again, which makes the also the Forward Price/Earnings Ratio negative.
Industry RankSector Rank
PE N/A
Fwd PE N/A
MEG Price Earnings VS Forward Price EarningsMEG Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 20 -20 -40

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, MEG is valued a bit more expensive than 67.47% of the companies 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 62.65% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 26.15
EV/EBITDA 42.14
MEG Per share dataMEG EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 5 10 15 20

4.3 Compensation for Growth

A more expensive valuation may be justified as MEG's earnings are expected to grow with 27.32% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y34.38%
EPS Next 3Y27.32%

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0

5. Dividend

5.1 Amount

No dividends for MEG!.
Industry RankSector Rank
Dividend Yield N/A

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MONTROSE ENVIRONMENTAL GROUP

NYSE:MEG (6/13/2025, 8:21:11 PM)

After market: 22.62 -0.34 (-1.48%)

22.96

-0.48 (-2.05%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)05-07 2025-05-07/amc
Earnings (Next)08-04 2025-08-04
Inst Owners103.13%
Inst Owner Change2.28%
Ins Owners7.12%
Ins Owner Change0.71%
Market Cap785.69M
Analysts78
Price Target29.27 (27.48%)
Short Float %9.84%
Short Ratio6.07
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly Dividend0.34
Dividend Growth(5Y)N/A
DP-17.42%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-51.01%
Min EPS beat(2)-71.36%
Max EPS beat(2)-30.65%
EPS beat(4)0
Avg EPS beat(4)-122.82%
Min EPS beat(4)-313.73%
Max EPS beat(4)-30.65%
EPS beat(8)1
Avg EPS beat(8)-69.6%
EPS beat(12)2
Avg EPS beat(12)-53.55%
EPS beat(16)3
Avg EPS beat(16)-161.63%
Revenue beat(2)1
Avg Revenue beat(2)2.27%
Min Revenue beat(2)-0.2%
Max Revenue beat(2)4.73%
Revenue beat(4)1
Avg Revenue beat(4)-0.35%
Min Revenue beat(4)-4.61%
Max Revenue beat(4)4.73%
Revenue beat(8)4
Avg Revenue beat(8)1.21%
Revenue beat(12)5
Avg Revenue beat(12)-0.44%
Revenue beat(16)9
Avg Revenue beat(16)2.17%
PT rev (1m)0%
PT rev (3m)-13.22%
EPS NQ rev (1m)23.19%
EPS NQ rev (3m)-103.84%
EPS NY rev (1m)0%
EPS NY rev (3m)-132.26%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.11%
Revenue NY rev (1m)0.18%
Revenue NY rev (3m)-0.26%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE N/A
P/S 1.09
P/FCF 26.15
P/OCF 15.79
P/B 1.46
P/tB N/A
EV/EBITDA 42.14
EPS(TTM)-2.32
EYN/A
EPS(NY)-0.43
Fwd EYN/A
FCF(TTM)0.88
FCFY3.82%
OCF(TTM)1.45
OCFY6.33%
SpS21.01
BVpS15.69
TBVpS-2.28
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -7.99%
ROE -14.77%
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) N/A
GM 40.18%
FCFM 4.18%
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
ROICexcg growth 3YN/A
ROICexcg 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 Turnover0.72
Health
Industry RankSector Rank
Debt/Equity 0.46
Debt/FCF 8.62
Debt/EBITDA 10.29
Cap/Depr 36.23%
Cap/Sales 2.74%
Interest Coverage N/A
Cash Conversion 206.67%
Profit Quality N/A
Current Ratio 2.05
Quick Ratio 2.02
Altman-Z 1.4
F-Score6
WACC10.15%
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)-56.76%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-20.75%
EPS Next Y50.64%
EPS Next 2Y34.38%
EPS Next 3Y27.32%
EPS Next 5YN/A
Revenue 1Y (TTM)10.93%
Revenue growth 3Y8.42%
Revenue growth 5Y24.38%
Sales Q2Q%14.49%
Revenue Next Year8.88%
Revenue Next 2Y7.97%
Revenue Next 3Y12.56%
Revenue Next 5Y13.01%
EBIT growth 1Y-52.11%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year865.31%
EBIT Next 3Y135.77%
EBIT Next 5Y76.48%
FCF growth 1Y9.08%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y18.45%
OCF growth 3Y-16.05%
OCF growth 5Y5.47%