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MEG

MEG Energy TSX:MEG Stock Report

Last Price

CA$19.23

Market Cap

CA$6.0b

7D

-8.2%

1Y

120.5%

Updated

28 Jun, 2022

Data

Company Financials +
MEG fundamental analysis
Snowflake Score
Valuation4/6
Future Growth0/6
Past Performance3/6
Financial Health4/6
Dividends0/6

MEG Stock Overview

MEG Energy Corp., an energy company, focuses on sustainable in situ thermal oil production in the southern Athabasca oil region of Alberta, Canada.

MEG Energy Competitors

Price History & Performance

Summary of all time highs, changes and price drops for MEG Energy
Historical stock prices
Current Share PriceCA$19.23
52 Week HighCA$24.47
52 Week LowCA$6.85
Beta3.15
1 Month Change-12.43%
3 Month Change8.58%
1 Year Change120.53%
3 Year Change289.27%
5 Year Change404.72%
Change since IPO-45.07%

Recent News & Updates

Jun 04
Is MEG Energy (TSE:MEG) Using Too Much Debt?

Is MEG Energy (TSE:MEG) Using Too Much Debt?

The external fund manager backed by Berkshire Hathaway's Charlie Munger, Li Lu, makes no bones about it when he says...

Shareholder Returns

MEGCA Oil and GasCA Market
7D-8.2%0.2%-0.4%
1Y120.5%41.2%-2.9%

Return vs Industry: MEG exceeded the Canadian Oil and Gas industry which returned 38.1% over the past year.

Return vs Market: MEG exceeded the Canadian Market which returned -2.6% over the past year.

Price Volatility

Is MEG's price volatile compared to industry and market?
MEG volatility
MEG Average Weekly Movement9.3%
Oil and Gas Industry Average Movement10.4%
Market Average Movement10.1%
10% most volatile stocks in CA Market17.3%
10% least volatile stocks in CA Market4.4%

Stable Share Price: MEG is not significantly more volatile than the rest of Canadian stocks over the past 3 months, typically moving +/- 9% a week.

Volatility Over Time: MEG's weekly volatility (9%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1999413Derek Evanshttps://www.megenergy.com

MEG Energy Corp., an energy company, focuses on sustainable in situ thermal oil production in the southern Athabasca oil region of Alberta, Canada. The company owns a 100% interest in approximately 410 square miles of mineral leases. It also develops oil recovery projects that utilize steam-assisted gravity drainage extraction methods to improve the recovery of oil, as well as lower carbon emissions.

MEG Energy Fundamentals Summary

How do MEG Energy's earnings and revenue compare to its market cap?
MEG fundamental statistics
Market CapCA$5.99b
Earnings (TTM)CA$662.00m
Revenue (TTM)CA$4.94b

9.0x

P/E Ratio

1.2x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
MEG income statement (TTM)
RevenueCA$4.94b
Cost of RevenueCA$2.77b
Gross ProfitCA$2.17b
Other ExpensesCA$1.51b
EarningsCA$662.00m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)2.13
Gross Margin43.99%
Net Profit Margin13.41%
Debt/Equity Ratio58.4%

How did MEG perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

Valuation

Is MEG undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for MEG?

Other financial metrics that can be useful for relative valuation.

MEG key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue1.7x
Enterprise Value/EBITDA5.4x
PEG Ratio-0.7x

Price to Earnings Ratio vs Peers

How does MEG's PE Ratio compare to its peers?

MEG PE Ratio vs Peers
The above table shows the PE ratio for MEG vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average10.5x
PSK PrairieSky Royalty
23.9xn/aCA$4.0b
CPG Crescent Point Energy
1.6x-63.0%CA$5.8b
WCP Whitecap Resources
2.5xn/aCA$6.0b
POU Paramount Resources
13.8xn/aCA$4.4b
MEG MEG Energy
9x-13.6%CA$6.0b

Price-To-Earnings vs Peers: MEG is good value based on its Price-To-Earnings Ratio (9x) compared to the peer average (10.5x).


Price to Earnings Ratio vs Industry

How does MEG's PE Ratio compare vs other companies in the CA Oil and Gas Industry?

Price-To-Earnings vs Industry: MEG is expensive based on its Price-To-Earnings Ratio (9x) compared to the Canadian Oil and Gas industry average (8x)


Price to Earnings Ratio vs Fair Ratio

What is MEG's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

MEG PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio9x
Fair PE Ratio10.3x

Price-To-Earnings vs Fair Ratio: MEG is good value based on its Price-To-Earnings Ratio (9x) compared to the estimated Fair Price-To-Earnings Ratio (10.3x).


Share Price vs Fair Value

What is the Fair Price of MEG when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: MEG (CA$19.23) is trading below our estimate of fair value (CA$33.56)

Significantly Below Fair Value: MEG is trading below fair value by more than 20%.


Price to Earnings Growth Ratio

PEG Ratio: MEG's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


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Future Growth

How is MEG Energy forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


-13.6%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MEG's earnings are forecast to decline over the next 3 years (-13.6% per year).

Earnings vs Market: MEG's earnings are forecast to decline over the next 3 years (-13.6% per year).

High Growth Earnings: MEG's earnings are forecast to decline over the next 3 years.

Revenue vs Market: MEG's revenue is expected to decline over the next 3 years (-1.8% per year).

High Growth Revenue: MEG's revenue is forecast to decline over the next 3 years (-1.8% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if MEG's Return on Equity is forecast to be high in 3 years time


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Past Performance

How has MEG Energy performed over the past 5 years?

Past Performance Score

3/6

Past Performance Score 3/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


26.7%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: MEG has high quality earnings.

Growing Profit Margin: MEG became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: MEG has become profitable over the past 5 years, growing earnings by 26.7% per year.

Accelerating Growth: MEG has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: MEG has become profitable in the last year, making it difficult to compare its past year earnings growth to the Oil and Gas industry (171.2%).


Return on Equity

High ROE: MEG's Return on Equity (15.8%) is considered low.


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Financial Health

How is MEG Energy's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: MEG's short term assets (CA$1.3B) exceed its short term liabilities (CA$806.0M).

Long Term Liabilities: MEG's short term assets (CA$1.3B) do not cover its long term liabilities (CA$2.7B).


Debt to Equity History and Analysis

Debt Level: MEG's net debt to equity ratio (51%) is considered high.

Reducing Debt: MEG's debt to equity ratio has reduced from 131% to 58.4% over the past 5 years.

Debt Coverage: MEG's debt is well covered by operating cash flow (40.8%).

Interest Coverage: MEG's interest payments on its debt are well covered by EBIT (4.9x coverage).


Balance Sheet


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Dividend

What is MEG Energy current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


0.74%

Forecast Dividend Yield

Dividend Yield vs Market

Notable Dividend: Unable to evaluate MEG's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate MEG's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if MEG's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if MEG's dividend payments have been increasing.


Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as MEG has not reported any payouts.


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Management

How experienced are the management team and are they aligned to shareholders interests?

2.4yrs

Average management tenure


CEO

Derek Evans (64 yo)

3.83yrs

Tenure

CA$4,402,975

Compensation

Mr. Derek W. Evans, B.Sc, has been the President and Chief Executive Officer at MEG Energy Corporation since August 10, 2018. Mr. Evans has been an Independent Director of Franco-Nevada Corporation since A...


CEO Compensation Analysis

Compensation vs Market: Derek's total compensation ($USD3.42M) is about average for companies of similar size in the Canadian market ($USD3.57M).

Compensation vs Earnings: Derek's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: MEG's management team is considered experienced (2.4 years average tenure).


Board Members

Experienced Board: MEG's board of directors are considered experienced (3.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: MEG insiders have sold more shares than they have bought in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

MEG Energy Corp.'s employee growth, exchange listings and data sources


Key Information

  • Name: MEG Energy Corp.
  • Ticker: MEG
  • Exchange: TSX
  • Founded: 1999
  • Industry: Oil and Gas Exploration and Production
  • Sector: Energy
  • Implied Market Cap: CA$5.987b
  • Shares outstanding: 311.35m
  • Website: https://www.megenergy.com

Number of Employees


Location

  • MEG Energy Corp.
  • 600 – 3rd Avenue SW
  • 25th Floor
  • Calgary
  • Alberta
  • T2P 0G5
  • Canada

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/06/28 00:00
End of Day Share Price2022/06/28 00:00
Earnings2022/03/31
Annual Earnings2021/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.