MEG Stock Today: February 24 — Earnings Tomorrow, Guidance in Focus
Montrose Environmental Group (MEG) reports tomorrow after the US close (21:00 UTC). Street estimates call for $0.24 EPS and $186.24 million revenue, roughly flat year over year. Shares trade at $22.635 today, below the Street’s $33.33 average target cited this month. With peers selling off post-results, we expect guidance and EBITDA detail to set the tone. For UK investors, we break down expectations, valuation, and the technical set-up. See more context in this preview from Finviz.
Earnings preview and guidance watch
Consensus looks for $0.24 EPS and $186.24 million revenue, flat year over year, after a prior quarter that beat revenue, EBITDA, and adjusted operating income. The key question is revenue consistency across segments after last quarter’s strength. Any slip versus flat expectations could weigh on sentiment given recent sector reactions. MarketBeat also flags the timing for Wednesday’s report here.
Investors will focus on EBITDA trajectory, free cash flow, and mix. Capex to operating cash flow sits at 0.1558, and free cash flow yield is 9.42%. Debt to equity is 0.8058, with net debt to EBITDA at 5.12. Days sales outstanding are 103.39, so collections are a watch point. Clear 2026 targets and margin drivers would likely matter more than a small revenue beat.
Price action and valuation setup
The share price is $22.635, down 1.97055% on the day, with a range of $22.05 to $23.11. It sits below the 50-day average of $24.39 and the 200-day of $24.71155. Year to date the stock is down 10.49035%, though up 24.41341% over one year and down 55.48671% over three years. That mix sets a cautious near-term tone.
On fundamentals, price to sales is 0.9475, enterprise value to sales is 1.3883, EV/EBITDA is 16.19, and price to book is 1.71. GAAP losses leave P/E negative. Market cap is $786,969,844. Versus typical waste management peers, this screens inexpensive on sales but firmer on EBITDA, putting more weight on margin delivery and cash conversion.
Technical picture into the print
RSI is 44.81, just below neutral. MACD sits at -0.49 versus a -0.48 signal, with a -0.01 histogram, hinting at flat momentum. ADX is 19.09, indicating no strong trend. ATR is 1.15, suggesting moderate daily swings. Williams %R at -64.20 and rate of change at -3.88% lean soft, while the MFI at 74.87 shows recent buying pressure.
Bollinger Bands show a middle band at 22.99, lower at 20.70, and upper at 25.28. Price also tracks below the 50-day (24.39) and 200-day (24.71155) moving averages. Today’s volume is 129,096 versus a 327,460 average, and OBV stands at 2,769,987. A close above 22.99 would help; a break below 20.70 risks further downside.
Peer signals and UK investor takeaways
Waste Connections and Casella sold off after reporting despite growth, so sentiment is fragile across the waste management sector. Montrose Environmental Group trades near $22.635 versus a $33.33 average target. Street ratings show 2 Buys and 0 Holds or Sells, with a 4.00 consensus. Delivery on EBITDA and a firm 2026 guide could be the swing factors.
A third-party model graded the company C (Sell) on 23 February 2026, reflecting weak ROE and ROA. Net debt to EBITDA is 5.12 and interest coverage is -0.4377, so guidance on deleveraging and cash generation will be key. Watch free cash flow per share of 2.0927 and working capital trends, especially receivables and days sales outstanding.
Final Thoughts
For tomorrow’s report, we think the setup hinges on three items: steady revenue near $186.24 million, clear EBITDA progress, and a credible 2026 outlook. Montrose Environmental Group looks inexpensive on sales with a price to sales of 0.9475, but a 16.19 EV/EBITDA and negative earnings keep the spotlight on margins and cash. Technically, a push above the 22.99 midpoint would help sentiment before guidance lands. We would track free cash flow, days sales outstanding at 103.39, and any commentary on backlog quality. If management tightens execution and maps deleveraging, the path toward the $33.33 target improves. If guidance is light, peers suggest the downside could be quick.
FAQs
When does MEG report and what are the estimates?
Montrose Environmental Group reports tomorrow after the US close at 21:00 UTC. Street estimates call for $0.24 EPS and $186.24 million revenue, roughly flat year over year. The prior quarter beat revenue, EBITDA, and adjusted operating income, so consistency and guidance will likely drive the stock reaction.
What should UK investors focus on in this update?
Watch EBITDA, 2026 guidance, and free cash flow. Price to sales is 0.9475, EV/EBITDA is 16.19, and net debt to EBITDA is 5.12. Days sales outstanding at 103.39 highlight working capital risk. Clear targets on margins and cash generation could matter more than a small revenue beat.
Is MEG cheap or expensive on valuation?
On sales, it looks cheap with a 0.9475 price to sales and 1.3883 EV/sales. However, EV/EBITDA is 16.19 and GAAP earnings are negative, so the P/E is not meaningful. The case leans on margin expansion and cash conversion to support a move toward the $33.33 average target.
What technical levels and signals stand out before earnings?
RSI is 44.81, MACD is slightly negative, and ADX at 19.09 shows no strong trend. The Bollinger midpoint is 22.99, with lower and upper bands at 20.70 and 25.28. Price sits below the 50-day (24.39) and 200-day (24.71155) averages, making 22.99 a helpful near-term pivot.
How do peer reactions affect expectations for Montrose Environmental Group?
Waste Connections and Casella sold off after results despite growth, pointing to high expectations across the waste management sector. For Montrose Environmental Group, that raises the bar on guidance and EBITDA detail. Strong clarity on 2026 targets may be needed to avoid a similar post-report pullback.
Disclaimer:
The content shared by Meyka AI PTY LTD is solely for research and informational purposes. Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.