Montrose Environmental Group, Inc.
Montrose Environmental Group, Inc. Fundamental Analysis
Montrose Environmental Group, Inc. (MEG) shows moderate financial fundamentals with a PE ratio of -942.78, profit margin of -0.10%, and ROE of -0.17%. The company generates $0.9B in annual revenue with strong year-over-year growth of 19.26%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 42.1/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze MEG's fundamental strength across five key dimensions:
Efficiency Score
WeakMEG struggles to generate sufficient returns from assets.
Valuation Score
ExcellentMEG trades at attractive valuation levels.
Growth Score
ExcellentMEG delivers strong and consistent growth momentum.
Financial Health Score
ExcellentMEG maintains a strong and stable balance sheet.
Profitability Score
WeakMEG struggles to sustain strong margins.
Key Financial Metrics
Is MEG Expensive or Cheap?
P/E Ratio
MEG trades at -942.78 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, MEG's PEG of -11.54 indicates potential undervaluation.
Price to Book
The market values Montrose Environmental Group, Inc. at 1.76 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 5.71 times EBITDA. This is generally considered low.
How Well Does MEG Make Money?
Net Profit Margin
For every $100 in sales, Montrose Environmental Group, Inc. keeps $-0.10 as profit after all expenses.
Operating Margin
Core operations generate 1.42 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-0.17 in profit for every $100 of shareholder equity.
ROA
Montrose Environmental Group, Inc. generates $-0.09 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Montrose Environmental Group, Inc. produces operating cash flow of $110.11M, showing steady but balanced cash generation.
Free Cash Flow
Montrose Environmental Group, Inc. generates strong free cash flow of $93.39M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $2.60 in free cash annually.
FCF Yield
MEG converts 11.20% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
-942.78
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-11.54
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.76
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.98
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.80
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.43
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.00
vs 25 benchmark
ROA
Return on assets percentage
-0.00
vs 25 benchmark
ROCE
Return on capital employed
0.01
vs 25 benchmark
How MEG Stacks Against Its Sector Peers
| Metric | MEG Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | -942.78 | 25.30 | Better (Cheaper) |
| ROE | -0.17% | 1305.00% | Weak |
| Net Margin | -0.10% | -43799.00% (disorted) | Weak |
| Debt/Equity | 0.80 | 0.79 | Neutral |
| Current Ratio | 1.43 | 10.42 | Neutral |
| ROA | -0.09% | -1543536.00% (disorted) | Weak |
MEG outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Montrose Environmental Group, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
18.72%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
95.96%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
2625.94%
Industry Style: Cyclical, Value, Infrastructure
High Growth