MEREN ENERGY INC (MER.CA) Fundamental Analysis & Valuation
TSX:MER • CA5889141019
Current stock price
2.41 CAD
+0.14 (+6.17%)
Last:
This MER.CA fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
1. MER.CA Profitability Analysis
1.1 Basic Checks
- MER had positive earnings in the past year.
- In the past year MER had a positive cash flow from operations.
- In multiple years MER reported negative net income over the last 5 years.
- In the past 5 years MER reported 4 times negative operating cash flow.
1.2 Ratios
- With a Return On Assets value of -1.62%, MER perfoms like the industry average, outperforming 50.48% of the companies in the same industry.
- MER's Return On Equity of -4.13% is in line compared to the rest of the industry. MER outperforms 50.96% of its industry peers.
- MER has a Return On Invested Capital of 4.77%. This is in the better half of the industry: MER outperforms 69.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.62% | ||
| ROE | -4.13% | ||
| ROIC | 4.77% |
ROA(3y)-12.66%
ROA(5y)-5.06%
ROE(3y)-15.08%
ROE(5y)-6.48%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
- MER's Operating Margin of 18.66% is fine compared to the rest of the industry. MER outperforms 75.96% of its industry peers.
- MER has a Gross Margin of 25.14%. This is comparable to the rest of the industry: MER outperforms 50.96% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.66% | ||
| PM (TTM) | N/A | ||
| GM | 25.14% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
2. MER.CA Health Analysis
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), MER is destroying value.
- The number of shares outstanding for MER has been increased compared to 1 year ago.
- MER has more shares outstanding than it did 5 years ago.
- Compared to 1 year ago, MER has a worse debt to assets ratio.
2.2 Solvency
- Based on the Altman-Z score of 0.39, we must say that MER is in the distress zone and has some risk of bankruptcy.
- MER has a Altman-Z score (0.39) which is comparable to the rest of the industry.
- MER has a debt to FCF ratio of 1.69. This is a very positive value and a sign of high solvency as it would only need 1.69 years to pay back of all of its debts.
- With an excellent Debt to FCF ratio value of 1.69, MER belongs to the best of the industry, outperforming 90.87% of the companies in the same industry.
- A Debt/Equity ratio of 0.35 indicates that MER is not too dependend on debt financing.
- MER's Debt to Equity ratio of 0.35 is in line compared to the rest of the industry. MER outperforms 58.65% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.35 | ||
| Debt/FCF | 1.69 | ||
| Altman-Z | 0.39 |
ROIC/WACC0.56
WACC8.58%
2.3 Liquidity
- MER has a Current Ratio of 0.95. This is a bad value and indicates that MER is not financially healthy enough and could expect problems in meeting its short term obligations.
- With a Current ratio value of 0.95, MER perfoms like the industry average, outperforming 59.62% of the companies in the same industry.
- MER has a Quick Ratio of 0.95. This is a bad value and indicates that MER is not financially healthy enough and could expect problems in meeting its short term obligations.
- MER has a Quick ratio (0.69) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.95 | ||
| Quick Ratio | 0.69 |
3. MER.CA Growth Analysis
3.1 Past
- MER shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 97.57%, which is quite impressive.
- Measured over the past years, MER shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -44.07% on average per year.
EPS 1Y (TTM)97.57%
EPS 3Y-44.07%
EPS 5YN/A
EPS Q2Q%-1059.29%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%31.3%
3.2 Future
- The Earnings Per Share is expected to grow by 46.59% on average over the next years. This is a very strong growth
- MER is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 25.25% yearly.
EPS Next Y231.86%
EPS Next 2Y48.29%
EPS Next 3Y54.88%
EPS Next 5Y46.59%
Revenue Next Year185.26%
Revenue Next 2Y44.4%
Revenue Next 3Y29.82%
Revenue Next 5Y25.25%
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
4. MER.CA Valuation Analysis
4.1 Price/Earnings Ratio
- MER is valuated rather expensively with a Price/Earnings ratio of 24.10.
- Based on the Price/Earnings ratio, MER is valued a bit cheaper than the industry average as 64.42% of the companies are valued more expensively.
- MER's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 24.88.
- MER is valuated reasonably with a Price/Forward Earnings ratio of 11.32.
- MER's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. MER is cheaper than 76.92% of the companies in the same industry.
- MER is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.19, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.1 | ||
| Fwd PE | 11.32 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, MER is valued cheaply inside the industry as 92.79% of the companies are valued more expensively.
- MER's Price/Free Cash Flow ratio is rather cheap when compared to the industry. MER is cheaper than 98.08% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.98 | ||
| EV/EBITDA | 4.04 |
4.3 Compensation for Growth
- MER's 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 MER's earnings are expected to grow with 54.88% in the coming years.
PEG (NY)0.1
PEG (5Y)N/A
EPS Next 2Y48.29%
EPS Next 3Y54.88%
5. MER.CA Dividend Analysis
5.1 Amount
- With a Yearly Dividend Yield of 2.99%, MER has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 4.47, MER pays a bit more dividend than its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.90, MER pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.99% |
5.2 History
- MER has been paying a dividend for over 5 years, so it has already some track record.
- MER has decreased its dividend in the last 3 years.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years2
5.3 Sustainability
- MER has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-317.09%
EPS Next 2Y48.29%
EPS Next 3Y54.88%
MER.CA Fundamentals: All Metrics, Ratios and Statistics
TSX:MER (3/27/2026, 7:00:00 PM)
2.41
+0.14 (+6.17%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)02-24 2026-02-24/amc
Earnings (Next)05-12 2026-05-12
Inst Owners40.01%
Inst Owner ChangeN/A
Ins Owners0.48%
Ins Owner ChangeN/A
Market Cap1.63B
Revenue(TTM)562.10M
Net Income(TTM)-31.60M
Analysts86.67
Price Target3.12 (29.46%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.99% |
Yearly Dividend0.25
Dividend Growth(5Y)N/A
DP-317.09%
Div Incr Years0
Div Non Decr Years2
Ex-Date03-20 2026-03-20 (0.0371)
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-255.39%
Min EPS beat(2)-421.78%
Max EPS beat(2)-89%
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)2
Avg Revenue beat(2)1.28%
Min Revenue beat(2)0.88%
Max Revenue beat(2)1.68%
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-61.42%
EPS NY rev (3m)-52.37%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-6.78%
Revenue NY rev (3m)-10.21%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.1 | ||
| Fwd PE | 11.32 | ||
| P/S | 2.09 | ||
| P/FCF | 5.98 | ||
| P/OCF | 4.32 | ||
| P/B | 1.54 | ||
| P/tB | 1.54 | ||
| EV/EBITDA | 4.04 |
EPS(TTM)0.1
EY4.15%
EPS(NY)0.21
Fwd EY8.84%
FCF(TTM)0.4
FCFY16.73%
OCF(TTM)0.56
OCFY23.15%
SpS1.15
BVpS1.57
TBVpS1.57
PEG (NY)0.1
PEG (5Y)N/A
Graham Number1.88
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.62% | ||
| ROE | -4.13% | ||
| ROCE | 6.62% | ||
| ROIC | 4.77% | ||
| ROICexc | 5.36% | ||
| ROICexgc | 5.36% | ||
| OM | 18.66% | ||
| PM (TTM) | N/A | ||
| GM | 25.14% | ||
| FCFM | 35.05% |
ROA(3y)-12.66%
ROA(5y)-5.06%
ROE(3y)-15.08%
ROE(5y)-6.48%
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 3YN/A
GM growth 5YN/A
F-Score6
Asset Turnover0.29
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.35 | ||
| Debt/FCF | 1.69 | ||
| Debt/EBITDA | 0.84 | ||
| Cap/Depr | 36.17% | ||
| Cap/Sales | 13.45% | ||
| Interest Coverage | 3.01 | ||
| Cash Conversion | 86.84% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.95 | ||
| Quick Ratio | 0.69 | ||
| Altman-Z | 0.39 |
F-Score6
WACC8.58%
ROIC/WACC0.56
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)97.57%
EPS 3Y-44.07%
EPS 5YN/A
EPS Q2Q%-1059.29%
EPS Next Y231.86%
EPS Next 2Y48.29%
EPS Next 3Y54.88%
EPS Next 5Y46.59%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%31.3%
Revenue Next Year185.26%
Revenue Next 2Y44.4%
Revenue Next 3Y29.82%
Revenue Next 5Y25.25%
EBIT growth 1Y423.77%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year14.1%
EBIT Next 3Y8.95%
EBIT Next 5YN/A
FCF growth 1Y505.35%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y766.5%
OCF growth 3YN/A
OCF growth 5YN/A
MEREN ENERGY INC / MER.CA Fundamental Analysis FAQ
Can you provide the ChartMill fundamental rating for MEREN ENERGY INC?
ChartMill assigns a fundamental rating of 4 / 10 to MER.CA.
What is the valuation status of MEREN ENERGY INC (MER.CA) stock?
ChartMill assigns a valuation rating of 7 / 10 to MEREN ENERGY INC (MER.CA). This can be considered as Undervalued.
What is the profitability of MER stock?
MEREN ENERGY INC (MER.CA) has a profitability rating of 3 / 10.
What is the earnings growth outlook for MEREN ENERGY INC?
The Earnings per Share (EPS) of MEREN ENERGY INC (MER.CA) is expected to grow by 231.86% in the next year.
Can you provide the dividend sustainability for MER stock?
The dividend rating of MEREN ENERGY INC (MER.CA) is 3 / 10 and the dividend payout ratio is -317.09%.