MEREN ENERGY INC (MER.CA) Fundamental Analysis & Valuation
TSX:MER • CA5889141019
Current stock price
2.31 CAD
-0.15 (-6.1%)
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
- In the past year MER was profitable.
- MER had a positive operating cash flow in the past year.
- In multiple years MER reported negative net income over the last 5 years.
- MER had negative operating cash flow in 4 of the past 5 years.
1.2 Ratios
- MER has a Return On Assets (-1.62%) which is in line with its industry peers.
- The Return On Equity of MER (-4.13%) is comparable to the rest of the industry.
- Looking at the Return On Invested Capital, with a value of 4.77%, MER is in the better half of the industry, outperforming 70.39% of the companies in the same industry.
| 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
- With a decent Operating Margin value of 18.66%, MER is doing good in the industry, outperforming 75.24% of the companies in the same industry.
- MER has a Gross Margin (25.14%) which is comparable to the rest of the industry.
| 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
- MER has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- Compared to 1 year ago, MER has more shares outstanding
- Compared to 5 years ago, MER has more shares outstanding
- Compared to 1 year ago, MER has a worse debt to assets ratio.
2.2 Solvency
- MER has an Altman-Z score of 0.41. This is a bad value and indicates that MER is not financially healthy and even has some risk of bankruptcy.
- The Altman-Z score of MER (0.41) 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.
- MER's Debt to FCF ratio of 1.69 is amongst the best of the industry. MER outperforms 91.75% of its industry peers.
- MER has a Debt/Equity ratio of 0.35. This is a healthy value indicating a solid balance between debt and equity.
- MER's Debt to Equity ratio of 0.35 is in line compared to the rest of the industry. MER outperforms 57.77% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.35 | ||
| Debt/FCF | 1.69 | ||
| Altman-Z | 0.41 |
ROIC/WACC0.55
WACC8.74%
2.3 Liquidity
- A Current Ratio of 0.95 indicates that MER may have some problems paying its short term obligations.
- MER has a Current ratio of 0.95. This is comparable to the rest of the industry: MER outperforms 58.25% of its industry peers.
- A Quick Ratio of 0.69 indicates that MER may have some problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 0.69, MER is in line with its industry, outperforming 53.40% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.95 | ||
| Quick Ratio | 0.69 |
3. MER.CA Growth Analysis
3.1 Past
- The Earnings Per Share has grown by an impressive 97.57% over the past year.
- The earnings per share for MER have been decreasing by -44.07% on average. This is quite bad
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
- Based on estimates for the next years, MER will show a very strong growth in Earnings Per Share. The EPS will grow by 53.02% on average per year.
- The Revenue is expected to grow by 28.96% on average over the next years. This is a very strong growth
EPS Next Y231.86%
EPS Next 2Y7.77%
EPS Next 3Y33.08%
EPS Next 5Y53.02%
Revenue Next Year185.26%
Revenue Next 2Y55.84%
Revenue Next 3Y35.56%
Revenue Next 5Y28.96%
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
- Based on the Price/Earnings ratio of 23.10, the valuation of MER can be described as rather expensive.
- Based on the Price/Earnings ratio, MER is valued a bit cheaper than the industry average as 63.59% of the companies are valued more expensively.
- MER is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.95, which is the current average of the S&P500 Index.
- MER is valuated rather expensively with a Price/Forward Earnings ratio of 20.78.
- 66.02% of the companies in the same industry are more expensive than MER, based on the Price/Forward Earnings ratio.
- Compared to an average S&P500 Price/Forward Earnings ratio of 38.68, MER is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.1 | ||
| Fwd PE | 20.78 |
4.2 Price Multiples
- 91.26% of the companies in the same industry are more expensive than MER, based on the Enterprise Value to EBITDA ratio.
- Based on the Price/Free Cash Flow ratio, MER is valued cheaply inside the industry as 97.09% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.8 | ||
| EV/EBITDA | 4.15 |
4.3 Compensation for Growth
- The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- MER's earnings are expected to grow with 33.08% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.1
PEG (5Y)N/A
EPS Next 2Y7.77%
EPS Next 3Y33.08%
5. MER.CA Dividend Analysis
5.1 Amount
- MER has a Yearly Dividend Yield of 2.76%. Purely for dividend investing, there may be better candidates out there.
- MER's Dividend Yield is a higher than the industry average which is at 3.62.
- MER's Dividend Yield is rather good when compared to the S&P500 average which is at 1.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.76% |
5.2 History
- MER has been paying a dividend for over 5 years, so it has already some track record.
- MER has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)N/A
Div Incr Years1
Div Non Decr Years3
5.3 Sustainability
- The earnings of MER are negative and hence is the payout ratio. MER will probably not be able to sustain this dividend level.
DP-317.09%
EPS Next 2Y7.77%
EPS Next 3Y33.08%
MER.CA Fundamentals: All Metrics, Ratios and Statistics
TSX:MER (4/17/2026, 7:00:00 PM)
2.31
-0.15 (-6.1%)
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 Owners41.56%
Inst Owner ChangeN/A
Ins Owners0.48%
Ins Owner ChangeN/A
Market Cap1.56B
Revenue(TTM)562.10M
Net Income(TTM)-31.60M
Analysts86.67
Price Target3.07 (32.9%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.76% |
Yearly Dividend0.25
Dividend Growth(5Y)N/A
DP-317.09%
Div Incr Years1
Div Non Decr Years3
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)-1.63%
PT rev (3m)-1.63%
EPS NQ rev (1m)100%
EPS NQ rev (3m)N/A
EPS NY rev (1m)-47.18%
EPS NY rev (3m)-74.84%
Revenue NQ rev (1m)22.96%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)16.48%
Revenue NY rev (3m)4.58%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.1 | ||
| Fwd PE | 20.78 | ||
| P/S | 2.03 | ||
| P/FCF | 5.8 | ||
| P/OCF | 4.19 | ||
| P/B | 1.49 | ||
| P/tB | 1.49 | ||
| EV/EBITDA | 4.15 |
EPS(TTM)0.1
EY4.33%
EPS(NY)0.11
Fwd EY4.81%
FCF(TTM)0.4
FCFY17.25%
OCF(TTM)0.55
OCFY23.86%
SpS1.14
BVpS1.55
TBVpS1.55
PEG (NY)0.1
PEG (5Y)N/A
Graham Number1.86674 (-19.19%)
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 | 0.41 |
F-Score6
WACC8.74%
ROIC/WACC0.55
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 2Y7.77%
EPS Next 3Y33.08%
EPS Next 5Y53.02%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%31.3%
Revenue Next Year185.26%
Revenue Next 2Y55.84%
Revenue Next 3Y35.56%
Revenue Next 5Y28.96%
EBIT growth 1Y423.77%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year36.66%
EBIT Next 3Y14.43%
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 6 / 10 to MEREN ENERGY INC (MER.CA). This can be considered as Fairly Valued.
Can you provide the profitability details for MEREN ENERGY INC?
MEREN ENERGY INC (MER.CA) has a profitability rating of 3 / 10.
What is the valuation of MEREN ENERGY INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for MEREN ENERGY INC (MER.CA) is 23.1 and the Price/Book (PB) ratio is 1.49.
How financially healthy is MEREN ENERGY INC?
The financial health rating of MEREN ENERGY INC (MER.CA) is 3 / 10.