Montrose Environmental Group, Inc. (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

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Why is Montrose Environmental Group, Inc. ?

Poor Management Efficiency with a low ROCE of 0.66%

The company has been able to generate a Return on Capital Employed (avg) of 0.66% signifying low profitability per unit of total capital (equity and debt)
OPERATING CASH FLOW(Y) Highest at USD 70.76 MM
RAW MATERIAL COST(Y) Fallen by -16.42% (YoY)
NET SALES(Q) Highest at USD 234.54 MM

Risky - Negative Operating Profits

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of 75.16%, its profits have fallen by -108.1%

Market Beating Performance

The stock has generated a return of 75.16% in the last 1 year, much higher than market (S&P 500) returns of 14.11%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Montrose Environmental Group, Inc. should be less than 10%
Overall Portfolio exposure to Miscellaneous should be less than 30%

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

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

Is Montrose Environmental Group, Inc. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Montrose Environmental Group, Inc.

39.66%

-0.56

69.57%

S&P 500

14.9%

0.70

20.15%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

23.52%

EBIT Growth (5y)

8.06%

EBIT to Interest (avg)

-1.51

Debt to EBITDA (avg)

4.85

Net Debt to Equity (avg)

0.42

Sales to Capital Employed (avg)

0.92

Tax Ratio

17.90%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

100.00%

ROCE (avg)

0.66%

ROE (avg)

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

1.85

EV to EBIT

-272.00

EV to EBITDA

22.00

EV to Capital Employed

1.50

EV to Sales

1.42

PEG Ratio

Dividend Yield

ROCE (Latest)

-0.55%

ROE (Latest)

-6.94%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

Mildly Bearish

No Trend

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

21What is working for the Company

PRE-TAX PROFIT(Q)

At USD 6.07 MM has Grown at 179.66%

OPERATING CASH FLOW(Y)

Highest at USD 87.5 MM

NET SALES(HY)

At USD 459.43 MM has Grown at 30.52%

ROCE(HY)

Highest at -4.17%

NET PROFIT(Q)

At USD 3.25 MM has Grown at 133.5%

RAW MATERIAL COST(Y)

Fallen by -0.46% (YoY

-3What is not working for the Company

INTEREST(9M)

At USD 14.87 MM has Grown at 30.24%

CASH AND EQV(HY)

Lowest at USD 17.22 MM

Here's what is working for Montrose Environmental Group, Inc.

Pre-Tax Profit

At USD 6.07 MM has Grown at 179.66%

over average net sales of the previous four periods of USD -7.62 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (USD MM)

Net Profit

At USD 3.25 MM has Grown at 133.5%

over average net sales of the previous four periods of USD -9.7 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (USD MM)

Net Sales

At USD 459.43 MM has Grown at 30.52%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (USD MM)

Operating Cash Flow

Highest at USD 87.5 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

Raw Material Cost

Fallen by -0.46% (YoY)

MOJO Watch

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

Raw Material Cost as a percentage of Sales

Here's what is not working for Montrose Environmental Group, Inc.

Interest

At USD 14.87 MM has Grown at 30.24%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Cash and Eqv

Lowest at USD 17.22 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents