MEREN ENERGY INC (MER.CA) Fundamental Analysis & Valuation
TSX:MER • CA5889141019
2.15 CAD
-0.03 (-1.38%)
Last: Mar 4, 2026, 07:00 PM
This MER.CA fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
We assign a fundamental rating of 4 out of 10 to MER. MER was compared to 210 industry peers in the Oil, Gas & Consumable Fuels industry. MER scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. MER scores decently on growth, while it is valued quite cheap. This could make an interesting combination.
1. MER.CA Profitability Analysis
1.1 Basic Checks
- In the past year MER was profitable.
- MER had a positive operating cash flow in the past year.
- The reported net income has been mixed in the past 5 years: MER reported negative net income in multiple years.
- In the past 5 years MER always reported negative operating cash flow.
1.2 Ratios
- With a decent Return On Assets value of 3.07%, MER is doing good in the industry, outperforming 64.29% of the companies in the same industry.
- The Return On Equity of MER (7.42%) is better than 63.33% of its industry peers.
- With a Return On Invested Capital value of 2.79%, MER perfoms like the industry average, outperforming 55.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.07% | ||
| ROE | 7.42% | ||
| ROIC | 2.79% |
ROA(3y)-14.31%
ROA(5y)-5.12%
ROE(3y)-16.13%
ROE(5y)-6.12%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
- With an excellent Profit Margin value of 18.05%, MER belongs to the best of the industry, outperforming 80.95% of the companies in the same industry.
- The Operating Margin of MER (19.18%) is better than 76.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.18% | ||
| PM (TTM) | 18.05% | ||
| GM | N/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
2. MER.CA Health Analysis
2.1 Basic Checks
- The number of shares outstanding for MER has been reduced compared to 1 year ago.
- MER has less 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 0.33, we must say that MER is in the distress zone and has some risk of bankruptcy.
- Looking at the Altman-Z score, with a value of 0.33, MER is doing worse than 62.38% of the companies in the same industry.
- The Debt to FCF ratio of MER is 3.02, which is a good value as it means it would take MER, 3.02 years of fcf income to pay off all of its debts.
- The Debt to FCF ratio of MER (3.02) is better than 87.14% of its industry peers.
- MER has a Debt/Equity ratio of 0.34. This is a healthy value indicating a solid balance between debt and equity.
- MER has a Debt to Equity ratio of 0.34. This is comparable to the rest of the industry: MER outperforms 58.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 3.02 | ||
| Altman-Z | 0.33 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
- A Current Ratio of 1.14 indicates that MER should not have too much problems paying its short term obligations.
- MER has a better Current ratio (1.14) than 65.71% of its industry peers.
- A Quick Ratio of 0.86 indicates that MER may have some problems paying its short term obligations.
- The Quick ratio of MER (0.86) is better than 61.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.14 | ||
| Quick Ratio | 0.86 |
3. MER.CA Growth Analysis
3.1 Past
- The earnings per share for MER have decreased strongly by -437.13% in the last year.
- The earnings per share for MER have been decreasing by -44.07% on average. This is quite bad
EPS 1Y (TTM)-437.13%
EPS 3Y-44.07%
EPS 5YN/A
EPS Q2Q%N/A
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%31.3%
3.2 Future
- Based on estimates for the next years, MER will show a very strong growth in Earnings Per Share. The EPS will grow by 78.37% on average per year.
- MER is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 29.82% yearly.
EPS Next Y405%
EPS Next 2Y138.73%
EPS Next 3Y78.37%
EPS Next 5YN/A
Revenue Next Year185.26%
Revenue Next 2Y49.56%
Revenue Next 3Y29.82%
Revenue Next 5YN/A
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. MER.CA Valuation Analysis
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 21.50, the valuation of MER can be described as rather expensive.
- MER's Price/Earnings ratio is a bit cheaper when compared to the industry. MER is cheaper than 64.76% of the companies in the same industry.
- MER's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.03.
- MER is valuated cheaply with a Price/Forward Earnings ratio of 3.94.
- MER's Price/Forward Earnings ratio is rather cheap when compared to the industry. MER is cheaper than 98.57% of the companies in the same industry.
- MER is valuated cheaply when we compare the Price/Forward Earnings ratio to 25.11, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.5 | ||
| Fwd PE | 3.94 |
4.2 Price Multiples
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of MER indicates a rather cheap valuation: MER is cheaper than 90.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.8 | ||
| EV/EBITDA | N/A |
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 78.37% in the coming years.
PEG (NY)0.05
PEG (5Y)N/A
EPS Next 2Y138.73%
EPS Next 3Y78.37%
5. MER.CA Dividend Analysis
5.1 Amount
- With a Yearly Dividend Yield of 3.20%, MER has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 4.11, MER pays a bit more dividend than its industry peers.
- MER's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.2% |
5.2 History
- MER has paid a dividend for less than 5 years, so there is no long track record yet.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years2
5.3 Sustainability
- 114.98% of the earnings are spent on dividend by MER. This is not a sustainable payout ratio.
DP114.98%
EPS Next 2Y138.73%
EPS Next 3Y78.37%
MER.CA Fundamentals: All Metrics, Ratios and Statistics
TSX:MER (3/4/2026, 7:00:00 PM)
2.15
-0.03 (-1.38%)
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 Owners43.26%
Inst Owner ChangeN/A
Ins Owners0.61%
Ins Owner ChangeN/A
Market Cap1.45B
Revenue(TTM)N/A
Net Income(TTM)65.40M
Analysts86.67
Price Target3.12 (45.12%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.2% |
Yearly Dividend0.07
Dividend Growth(5Y)N/A
DP114.98%
Div Incr Years0
Div Non Decr Years2
Ex-DateN/A
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
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)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
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)0%
EPS NQ rev (3m)-50%
EPS NY rev (1m)0%
EPS NY rev (3m)9.98%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-4.39%
Revenue NY rev (1m)8.59%
Revenue NY rev (3m)25.99%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.5 | ||
| Fwd PE | 3.94 | ||
| P/S | 2.93 | ||
| P/FCF | 8.8 | ||
| P/OCF | 5.99 | ||
| P/B | 1.2 | ||
| P/tB | 1.2 | ||
| EV/EBITDA | N/A |
EPS(TTM)0.1
EY4.65%
EPS(NY)0.55
Fwd EY25.39%
FCF(TTM)0.24
FCFY11.37%
OCF(TTM)0.36
OCFY16.71%
SpS0.73
BVpS1.78
TBVpS1.78
PEG (NY)0.05
PEG (5Y)N/A
Graham Number2
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.07% | ||
| ROE | 7.42% | ||
| ROCE | 3.88% | ||
| ROIC | 2.79% | ||
| ROICexc | 3.1% | ||
| ROICexgc | 3.1% | ||
| OM | 19.18% | ||
| PM (TTM) | 18.05% | ||
| GM | N/A | ||
| FCFM | 33.31% |
ROA(3y)-14.31%
ROA(5y)-5.12%
ROE(3y)-16.13%
ROE(5y)-6.12%
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-Score7
Asset Turnover0.17
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 3.02 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | 15.65% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | N/A | ||
| Profit Quality | 184.56% | ||
| Current Ratio | 1.14 | ||
| Quick Ratio | 0.86 | ||
| Altman-Z | 0.33 |
F-Score7
WACCN/A
ROIC/WACCN/A
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)-437.13%
EPS 3Y-44.07%
EPS 5YN/A
EPS Q2Q%N/A
EPS Next Y405%
EPS Next 2Y138.73%
EPS Next 3Y78.37%
EPS Next 5YN/A
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%31.3%
Revenue Next Year185.26%
Revenue Next 2Y49.56%
Revenue Next 3Y29.82%
Revenue Next 5YN/A
EBIT growth 1Y347.33%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year951.27%
EBIT Next 3Y95.83%
EBIT Next 5YN/A
FCF growth 1Y284.25%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y454.8%
OCF growth 3YN/A
OCF growth 5YN/A
MEREN ENERGY INC / MER.CA 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 405% 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 114.98%.