Logo image of MEG

MONTROSE ENVIRONMENTAL GROUP (MEG) Stock Fundamental Analysis

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

22.285  +1 (+4.72%)

Fundamental Rating

4

We assign a fundamental rating of 4 out of 10 to MEG. MEG was compared to 84 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.


Dividend Valuation Growth Profitability Health

Quickly go to:

2

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.
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 73.81% of its industry peers.
MEG has a worse Return On Equity (-14.77%) than 61.90% of its industry peers.
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

MEG has a Gross Margin of 40.18%. This is in the better half of the industry: MEG outperforms 69.05% of its industry peers.
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 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

More info and screens

5

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
Compared to 5 years ago, MEG has more shares outstanding
Compared to 1 year ago, MEG has a worse debt to assets ratio.
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

MEG has an Altman-Z score of 1.33. This is a bad value and indicates that MEG is not financially healthy and even has some risk of bankruptcy.
MEG has a Altman-Z score of 1.33. This is in the lower half of the industry: MEG underperforms 67.86% of its industry peers.
MEG has a debt to FCF ratio of 8.62. This is a slightly negative value and a sign of low solvency as MEG would need 8.62 years to pay back of all of its debts.
The Debt to FCF ratio of MEG (8.62) is better than 60.71% of its industry peers.
A Debt/Equity ratio of 0.46 indicates that MEG is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.46, MEG perfoms like the industry average, outperforming 54.76% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.46
Debt/FCF 8.62
Altman-Z 1.33
ROIC/WACCN/A
WACC8.16%
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 69.05% of the companies in the same industry.
A Quick Ratio of 2.02 indicates that MEG has no problem at all paying its short term obligations.
MEG's Quick ratio of 2.02 is amongst the best of the industry. MEG outperforms 80.95% 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

More info and screens

6

3. Growth

3.1 Past

MEG shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -56.76%.
Looking at the last year, MEG shows a quite strong growth in Revenue. The Revenue has grown by 10.93% in the last year.
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)-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

MEG is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 27.32% yearly.
Based on estimates for the next years, MEG will show a quite strong growth in Revenue. The Revenue will grow by 13.01% on average per year.
EPS Next Y54.15%
EPS Next 2Y36.77%
EPS Next 3Y27.32%
EPS Next 5YN/A
Revenue Next Year8.88%
Revenue Next 2Y7.99%
Revenue Next 3Y12.56%
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.
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

More info and screens

2

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings Ratio is negative for MEG. In the last year negative earnings were reported.
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 -40 -60

4.2 Price Multiples

65.48% of the companies in the same industry are cheaper than MEG, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, MEG is valued a bit cheaper than 65.48% of the companies in the same industry.
Industry RankSector Rank
P/FCF 25.38
EV/EBITDA 39.75
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

MEG's earnings are expected to grow with 27.32% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y36.77%
EPS Next 3Y27.32%

More info and screens

0

5. Dividend

5.1 Amount

MEG does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

More info and screens

MONTROSE ENVIRONMENTAL GROUP

NYSE:MEG (8/5/2025, 1:27:57 PM)

22.285

+1 (+4.72%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)05-07 2025-05-07/amc
Earnings (Next)08-06 2025-08-06/amc
Inst Owners103.13%
Inst Owner Change1.61%
Ins Owners7.12%
Ins Owner Change0.22%
Market Cap762.59M
Analysts78
Price Target30.6 (37.31%)
Short Float %10.34%
Short Ratio9.15
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)4.55%
PT rev (3m)4.55%
EPS NQ rev (1m)-7.55%
EPS NQ rev (3m)-65.22%
EPS NY rev (1m)-4.51%
EPS NY rev (3m)-23.11%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.16%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE N/A
P/S 1.06
P/FCF 25.38
P/OCF 15.33
P/B 1.42
P/tB N/A
EV/EBITDA 39.75
EPS(TTM)-2.32
EYN/A
EPS(NY)-0.29
Fwd EYN/A
FCF(TTM)0.88
FCFY3.94%
OCF(TTM)1.45
OCFY6.53%
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 1.33
F-Score6
WACC8.16%
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 Y54.15%
EPS Next 2Y36.77%
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 2Y7.99%
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%