MEG Energy Corp.
MEG Energy Corp. Fundamental Analysis
MEG Energy Corp. (MEGEF) shows moderate financial fundamentals with a PE ratio of 14.16, profit margin of 11.73%, and ROE of 11.73%. The company generates $4.6B in annual revenue with weak year-over-year growth of -8.92%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 40.5/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze MEGEF's fundamental strength across five key dimensions:
Efficiency Score
WeakMEGEF struggles to generate sufficient returns from assets.
Valuation Score
ModerateMEGEF shows balanced valuation metrics.
Growth Score
WeakMEGEF faces weak or negative growth trends.
Financial Health Score
ExcellentMEGEF maintains a strong and stable balance sheet.
Profitability Score
WeakMEGEF struggles to sustain strong margins.
Key Financial Metrics
Is MEGEF Expensive or Cheap?
P/E Ratio
MEGEF trades at 14.16 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, MEGEF's PEG of 21.85 indicates potential overvaluation.
Price to Book
The market values MEG Energy Corp. at 1.62 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 5.61 times EBITDA. This is generally considered low.
How Well Does MEGEF Make Money?
Net Profit Margin
For every $100 in sales, MEG Energy Corp. keeps $11.73 as profit after all expenses.
Operating Margin
Core operations generate 18.16 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $11.73 in profit for every $100 of shareholder equity.
ROA
MEG Energy Corp. generates $7.78 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
MEG Energy Corp. produces operating cash flow of $1.07B, showing steady but balanced cash generation.
Free Cash Flow
MEG Energy Corp. produces free cash flow of $416.98M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $1.64 in free cash annually.
FCF Yield
MEGEF converts 5.45% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
14.16
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
21.85
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.62
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.66
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.22
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.73
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.12
vs 25 benchmark
ROA
Return on assets percentage
0.08
vs 25 benchmark
ROCE
Return on capital employed
0.13
vs 25 benchmark
How MEGEF Stacks Against Its Sector Peers
| Metric | MEGEF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 14.16 | 19.94 | Better (Cheaper) |
| ROE | 11.73% | 987.00% | Weak |
| Net Margin | 11.73% | -42983.00% (disorted) | Strong |
| Debt/Equity | 0.22 | -0.60 (disorted) | Distorted |
| Current Ratio | 1.73 | 4.67 | Neutral |
| ROA | 7.78% | -11498250.00% (disorted) | Weak |
MEGEF outperforms its industry in 2 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews MEG Energy Corp.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
43.23%
Industry Style: Cyclical, Value, Commodity
High GrowthEPS CAGR
994.18%
Industry Style: Cyclical, Value, Commodity
High GrowthFCF CAGR
132.58%
Industry Style: Cyclical, Value, Commodity
High Growth