ScoreWhy is MEG Energy Corp. ?
1
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)
2
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%
3
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 ReportHow 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
19.1%
1.54
14.62%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
8.18%
EBIT Growth (5y)
36.76%
EBIT to Interest (avg)
6.12
Debt to EBITDA (avg)
1.90
Net Debt to Equity (avg)
0.17
Sales to Capital Employed (avg)
0.96
Tax Ratio
25.48%
Dividend Payout Ratio
15.86%
Pledged Shares
0
Institutional Holding
1.36%
ROCE (avg)
15.40%
ROE (avg)
13.68%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
14
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
NA
Dividend Yield
NA
ROCE (Latest)
15.16%
ROE (Latest)
11.69%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Bullish
Moving Averages
Bullish (Daily)
KST
Mildly Bearish
Bullish
Dow Theory
Mildly Bullish
Mildly Bullish
OBV
Mildly Bullish
Mildly Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend2What is working for the Company
DEBT-EQUITY RATIO
(HY)
Lowest at 18.49 %
-25What is not working for the Company
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
INVENTORY TURNOVER RATIO(HY)
Lowest at 10.6%
NET SALES(Q)
Lowest at CAD 757 MM
OPERATING PROFIT(Q)
Lowest at CAD 141 MM
OPERATING PROFIT MARGIN(Q)
Lowest at 18.63 %
PRE-TAX PROFIT(Q)
Lowest at CAD 72 MM
NET PROFIT(Q)
Lowest at CAD 67 MM
EPS(Q)
Lowest at CAD 0.26
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 periodsMOJO 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 MMMOJO 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 MMMOJO 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 MMMOJO Watch
Near term Net Profit trend is very negative
Net Profit (CAD MM)
Interest Coverage Ratio
Lowest at 640.91
in the last five periodsMOJO 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 yearsMOJO 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 periodsMOJO Watch
Near term sales trend is negative
Net Sales (CAD MM)
Operating Profit
Lowest at CAD 141 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is negative
Operating Profit (CAD MM)
Operating Profit Margin
Lowest at 18.63 %
in the last five periodsMOJO Watch
Company's profit margin has deteriorated
Operating Profit to Sales
Pre-Tax Profit
Lowest at CAD 72 MM
in the last five periodsMOJO 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 periodsMOJO Watch
Near term Net Profit trend is negative
Net Profit (CAD MM)
EPS
Lowest at CAD 0.26
in the last five periodsMOJO 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 periodsMOJO 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
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