MONTROSE ENVIRONMENTAL GROUP (MEG) Stock Fundamental Analysis
USA - NYSE:MEG - US6151111019 - Common Stock
24.7 USD
-1.22 (-4.71%)
24.7 USD
0 (0%)
Overall MEG gets a fundamental rating of 3 out of 10. We evaluated MEG against 82 industry peers in the Commercial Services & Supplies industry. While MEG seems to be doing ok healthwise, there are quite some concerns on its profitability. MEG is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
MEG had negative earnings in the past year.
MEG had a positive operating cash flow in the past year.
MEG had negative earnings in each of the past 5 years.
In the past 5 years MEG always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of -4.95%, MEG is doing worse than 65.85% of the companies in the same industry.
MEG's Return On Equity of -9.81% is on the low side compared to the rest of the industry. MEG is outperformed by 63.41% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -4.95% | ||
| ROE | -9.81% | ||
| 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
With a decent Gross Margin value of 41.19%, MEG is doing good in the industry, outperforming 69.51% 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 | 41.19% |
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.
Compared to 1 year ago, MEG has more shares outstanding
The number of shares outstanding for MEG has been increased compared to 5 years ago.
Compared to 1 year ago, MEG has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.60, we must say that MEG is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.60, MEG is in line with its industry, outperforming 42.68% of the companies in the same industry.
MEG has a debt to FCF ratio of 4.96. This is a neutral value as MEG would need 4.96 years to pay back of all of its debts.
MEG has a Debt to FCF ratio of 4.96. This is in the better half of the industry: MEG outperforms 69.51% of its industry peers.
MEG has a Debt/Equity ratio of 0.55. This is a neutral value indicating MEG is somewhat dependend on debt financing.
MEG has a Debt to Equity ratio (0.55) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.55 | ||
| Debt/FCF | 4.96 | ||
| Altman-Z | 1.6 |
ROIC/WACCN/A
WACC8.15%
2.3 Liquidity
A Current Ratio of 1.78 indicates that MEG should not have too much problems paying its short term obligations.
MEG has a better Current ratio (1.78) than 65.85% of its industry peers.
A Quick Ratio of 1.76 indicates that MEG should not have too much problems paying its short term obligations.
With a decent Quick ratio value of 1.76, MEG is doing good in the industry, outperforming 75.61% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.78 | ||
| Quick Ratio | 1.76 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 38.93% over the past year.
MEG shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 11.56%.
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)11.56%
Revenue growth 3Y8.42%
Revenue growth 5Y24.38%
Sales Q2Q%25.86%
3.2 Future
The Earnings Per Share is expected to grow by 31.81% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 13.01% on average over the next years. This is quite good.
EPS Next Y88.57%
EPS Next 2Y43.35%
EPS Next 3Y31.81%
EPS Next 5YN/A
Revenue Next Year16.3%
Revenue Next 2Y9.71%
Revenue Next 3Y8.41%
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
The Price/Earnings Ratio is negative for MEG. In the last year negative earnings were reported.
The Price/Forward Earnings ratio is 203.80, which means the current valuation is very expensive for MEG.
MEG's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of MEG to the average of the S&P500 Index (32.73), we can say MEG is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 203.8 |
4.2 Price Multiples
60.98% 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 indicates a somewhat cheap valuation: MEG is cheaper than 76.83% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.86 | ||
| EV/EBITDA | 28.92 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
A more expensive valuation may be justified as MEG's earnings are expected to grow with 31.81% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y43.35%
EPS Next 3Y31.81%
5. Dividend
5.1 Amount
MEG does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
24.7
-1.22 (-4.71%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners99.94%
Inst Owner Change1.06%
Ins Owners6.9%
Ins Owner Change0.06%
Market Cap871.66M
Revenue(TTM)696.39M
Net Income(TTM)-49.44M
Analysts78.33
Price Target34.39 (39.23%)
Short Float %6.05%
Short Ratio4.44
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0.34
Dividend Growth(5Y)N/A
DP-16.69%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)144.11%
Min EPS beat(2)-30.65%
Max EPS beat(2)318.86%
EPS beat(4)1
Avg EPS beat(4)-24.22%
Min EPS beat(4)-313.73%
Max EPS beat(4)318.86%
EPS beat(8)2
Avg EPS beat(8)-26.02%
EPS beat(12)2
Avg EPS beat(12)-37.32%
EPS beat(16)4
Avg EPS beat(16)-40.44%
Revenue beat(2)2
Avg Revenue beat(2)14.04%
Min Revenue beat(2)4.73%
Max Revenue beat(2)23.35%
Revenue beat(4)2
Avg Revenue beat(4)5.82%
Min Revenue beat(4)-4.61%
Max Revenue beat(4)23.35%
Revenue beat(8)4
Avg Revenue beat(8)3.07%
Revenue beat(12)5
Avg Revenue beat(12)1.45%
Revenue beat(16)9
Avg Revenue beat(16)2.82%
PT rev (1m)1.65%
PT rev (3m)12.38%
EPS NQ rev (1m)566.7%
EPS NQ rev (3m)151.29%
EPS NY rev (1m)0%
EPS NY rev (3m)75.08%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.82%
Revenue NY rev (1m)0%
Revenue NY rev (3m)6.81%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 203.8 | ||
| P/S | 1.12 | ||
| P/FCF | 14.86 | ||
| P/OCF | 12.32 | ||
| P/B | 1.73 | ||
| P/tB | N/A | ||
| EV/EBITDA | 28.92 |
EPS(TTM)-0.91
EYN/A
EPS(NY)0.12
Fwd EY0.49%
FCF(TTM)1.66
FCFY6.73%
OCF(TTM)2.01
OCFY8.12%
SpS22.11
BVpS14.28
TBVpS-2.97
PEG (NY)N/A
PEG (5Y)N/A
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -4.95% | ||
| ROE | -9.81% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 41.19% | ||
| FCFM | 7.52% |
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-Score5
Asset Turnover0.78
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.55 | ||
| Debt/FCF | 4.96 | ||
| Debt/EBITDA | 6.7 | ||
| Cap/Depr | 22.12% | ||
| Cap/Sales | 1.55% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | 171.19% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.78 | ||
| Quick Ratio | 1.76 | ||
| Altman-Z | 1.6 |
F-Score5
WACC8.15%
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)38.93%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%153.85%
EPS Next Y88.57%
EPS Next 2Y43.35%
EPS Next 3Y31.81%
EPS Next 5YN/A
Revenue 1Y (TTM)11.56%
Revenue growth 3Y8.42%
Revenue growth 5Y24.38%
Sales Q2Q%25.86%
Revenue Next Year16.3%
Revenue Next 2Y9.71%
Revenue Next 3Y8.41%
Revenue Next 5Y13.01%
EBIT growth 1Y27.44%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year923.55%
EBIT Next 3Y123.78%
EBIT Next 5Y76.48%
FCF growth 1Y212.74%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y47.11%
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 2 / 10 to MONTROSE ENVIRONMENTAL GROUP (MEG). This can be considered as Overvalued.
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 -16.69%.