MEG Energy Corp. (MEG) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Topaz Energy Corp.

ARC Resources Ltd.

Cardinal Energy Ltd.

Canadian Natural Resources Ltd.

MEG Energy Corp.

Advantage Energy Ltd.

Parex Resources, Inc.

Obsidian Energy Ltd.

Tourmaline Oil Corp.

Vermilion Energy, Inc.

Crew Energy, Inc.

Why is MEG Energy Corp. ?

With a fall in Net Sales of -34.85%, the company declared Very Negative results in Jun 25

OPERATING CASH FLOW(Y) Lowest at CAD 1,381 MM
INTEREST COVERAGE RATIO(Q) Lowest at 640.91
RAW MATERIAL COST(Y) Grown by 41.31% (YoY)

With ROE of 11.69%, it has a expensive valuation with a 1.62 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 10.89%, its profits have fallen by -8.7%

Underperformed the market in the last 1 year

The stock has generated a return of 10.89% in the last 1 year, much lower than market (S&P/TSX 60) returns of 22.54%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to MEG Energy Corp. should be less than 10%
Overall Portfolio exposure to Oil should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Oil)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is MEG Energy Corp. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

MEG Energy Corp.

17.9%

13.51

43.49%

S&P/TSX 60

29.6%

1.54

14.62%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

11.20%

EBIT Growth (5y)

30.17%

EBIT to Interest (avg)

6.12

Debt to EBITDA (avg)

1.90

Net Debt to Equity (avg)

0.17

Sales to Capital Employed (avg)

0.94

Tax Ratio

25.48%

Dividend Payout Ratio

15.86%

Pledged Shares

Institutional Holding

1.36%

ROCE (avg)

15.40%

ROE (avg)

13.68%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.66

EV to EBIT

10.44

EV to EBITDA

6.46

EV to Capital Employed

1.58

EV to Sales

1.92

PEG Ratio

Dividend Yield

ROCE (Latest)

15.16%

ROE (Latest)

11.69%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bullish

OBV

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

Not enough Data to analyse Financial Trend

Here's what is working for MEG Energy Corp.

Debt-Equity Ratio

Lowest at 18.49 % and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Here's what is not working for MEG Energy Corp.

Net Sales

At CAD 757 MM has Fallen at -38.79%

over average net sales of the previous four periods of CAD 1,236.75 MM

MOJO Watch

Near term sales trend is extremely negative

Net Sales (CAD MM)

Pre-Tax Profit

At CAD 72 MM has Fallen at -64.62%

over average net sales of the previous four periods of CAD 203.5 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CAD MM)

Net Profit

At CAD 67 MM has Fallen at -55.83%

over average net sales of the previous four periods of CAD 151.69 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CAD MM)

Interest Coverage Ratio

Lowest at 640.91

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Cash Flow

Lowest at CAD 1,381 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CAD MM)

Net Sales

Lowest at CAD 757 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CAD MM)

Operating Profit

Lowest at CAD 141 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CAD MM)

Operating Profit Margin

Lowest at 18.63 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at CAD 72 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CAD MM)

Net Profit

Lowest at CAD 67 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CAD MM)

EPS

Lowest at CAD 0.26

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CAD)

Inventory Turnover Ratio

Lowest at 10.6%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Raw Material Cost

Grown by 41.31% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales