Fact based stock research
MEG Energy (TSX:MEG)

CA5527041084

How to read the free ranks

For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".

Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".

Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.

Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.

(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).

(NEW) 360° View - the ultimate rating with all financial and non-financial indicators.

MEG Energy stock research in summary

megenergy.com

ANALYSIS: With an Obermatt Combined Rank of 70 (better than 70% compared with investment alternatives), MEG Energy (Oil & Gas Production, Canada) shares have above-average financial characteristics compared with similar stocks. Shares of MEG Energy are a good value (attractively priced) with a consolidated Value Rank of 52 (better than 52% of alternatives), are safely financed (Safety Rank of 70, which means low debt burdens), but show below-average growth (Growth Rank of 46). ...read more

RECOMMENDATION: A Combined Rank of 70, is a buy recommendation based on MEG Energy's financial characteristics. As the company MEG Energy's key financial metrics exhibit good value (Obermatt Value Rank of 52) but low growth (Obermatt Growth Rank of 46) while being safely financed (Obermatt Safety Rank of 70), it may be a safer investment because companies with low debt can better withstand times of crises. Yet the good value, better than 52% of comparable companies, may also indicate that the company's future is challenging. If you believe that low growth is temporary or just due to a specific current event, you may conclude that the good value of the stock provides an attractive investment opportunity and the downside is limited due to below-average financing risks. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more

Latest Obermatt Ranks


360° View^new
Sentiment Rank^new
Value Rank	52
Growth Rank	46
Safety Rank	70
Combined Rank	70

Country	Canada
Industry	Oil & Gas Production
Index	Low Emissions, SDG 13, SDG 3, SDG 6, SDG 8, SDG 9, Water Efficiency, TSX Composite
Size class	X-Large

19-Dec-2024. Stock data may be delayed. Log in or sign up to get the most recent research.

Further information

Multiple opinions. One number.

Analysts rarely agree on a stock’s future. So, who do you believe? Obermatt translates those collective views into a single Sentiment Rank. That plus the financial ranks give you the ultimate 360° View. Sign up to access them.

Why popular stocks have low ratings

It’s easier said than done. When your stock drops, it’s easy to want to sell it and find a better performer. Think twice, or even three times, before trading. Those fees (especially the hidden ones) can eat up your gains.

Review the performance ranks of the individual metrics that form each investment strategy.

Research History: MEG Energy

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	44	73	42	52
GROWTH
GROWTH	33	49	83	46
SAFETY
SAFETY	39	55	46	70
SENTIMENT
SENTIMENT	n/a	17	46	^new
360° VIEW
360° VIEW	n/a	43	54	^new

Most recent update of the stock research: 19-Dec-2024. Financial reporting date used for calculating ranks: 30-Sep-2024. Stock research history is based on the Obermatt Method. The higher the rank, the better MEG Energy is in the corresponding investment strategy.
Upgrade to a Premium Account to access the latest ranks.

Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	44	73	42	52
GROWTH
GROWTH	33	49	83	46
SAFETY
SAFETY	39	55	46	70
COMBINED
COMBINED	18	69	67	70

Last update of combined financial performance: 19-Dec-2024. Stock analysis on combined financial performance: The higher the rank of MEG Energy the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 52 (better than 52% compared with alternatives), MEG Energy shares are more attractively priced than the majority of comparable stocks. The Value Rank is based on consolidating four value indicators, where half the indicators are below and half above average for MEG Energy. Price-to-Sales (P/S) is 67, which means that the stock price compared with what market professionals expect for future sales is lower than for 67% of comparable companies, indicating a good value concerning MEG Energy's revenue size. The same is valid for the Price-to-Book Capital ratio (also referred to as market-to-book ratio), which is more favorable than for 65% of alternatives (35% of peers have a higher ratio). But expected dividend yields with a Dividend Yield rank of 30 are lower than average (dividends are expected to be lower than 70% of other stocks) while the Price to Profit ratio (or Price to Earnings (P/E) ratio) is higher than average with a Price-to-Profit Rank of 44, making the stock more expensive compared with the company's expected profit levels. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 52, is a buy recommendation based on MEG Energy's stock price compared with the company's operational size and dividend yields. Low profits and low dividends as seen here for MEG Energy may indicate a restructuring phase. This could be transitory, making the company a good value when profits recover and dividends return to higher levels. If the stock price is compared with the size indicators for revenue and invested capital, it is on the lower side, making this stock a good value investment (apart from current profit and dividend expectations). We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision. ...read more

VALUE METRICS	2021	2022	2023	2024
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	82	94	70	67
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	22	57	46	44
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	76	90	52	65
DIVIDEND YIELD
DIVIDEND YIELD	1	1	1	30
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	44	73	42	52

Last update of Value Rank: 19-Dec-2024. Stock analysis on value ratios: The higher the rank, the lower the value ratio of MEG Energy; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 46 (better than 46% compared with alternatives), MEG Energy shows a below-average growth dynamic in its industry. There is limited momentum in this company. The Growth Rank is based on consolidating four value indicators, where half of the indicators are below and half above average for MEG Energy. Profit Growth, with a rank of 66 (better than 66% of its competitors), and Capital Growth, with a rank of 79, are both positive, which is a healthy sign for positive development. But Sales Growth has only a rank of 4, which means that, currently, professionals expect the company to grow less than 96% of its competitors, and Stock Returns are at a rank of 38. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 46, is a hold recommendation for growth and momentum investors. Stock returns that are a thing of the past can be less of a problem. Below-average revenue growth may be caused by divestments of underperforming businesses. If that is the case, then the positive developments of profit and capital growth are signs of a company with growth potential. If these are the reasons, overall growth is well on track to making this stock attractive for growth investors. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case, especially since the growth performance is mixed here. ...read more

GROWTH METRICS	2021	2022	2023	2024
REVENUE GROWTH
REVENUE GROWTH	59	28	16	4
PROFIT GROWTH
PROFIT GROWTH	22	42	71	66
CAPITAL GROWTH
CAPITAL GROWTH	n/a	55	85	79
STOCK RETURNS
STOCK RETURNS	76	83	97	38
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	33	49	83	46

Last update of Growth Rank: 19-Dec-2024. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of MEG Energy.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 70 (better than 70% compared with alternatives), the company MEG Energy has financing practices on the safer side, which mean that their overall debt burden is lower than average. This doesn't mean that the business of MEG Energy is safe, it only means that the company is on the safer side regarding possible bankruptcy, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators where two out of three are above average for MEG Energy.Leverage is at 61, meaning the company has a below-average debt-to-equity ratio. It has less debt than 61% of its competitors.Refinancing is at a rank of 88, meaning that the portion of the debt that is about to be refinanced is below average. It has less debt in the refinancing stage than 88% of its competitors. Liquidity is at 46, meaning that the company generates less profit to service its debt than 54% of its competitors. This indicates that the company is on the riskier side regarding debt service. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 70 (better than 70% compared with alternatives), MEG Energy has a financing structure that is safer than that of its competitors. Low leverage and low refinancing risk mean a safer financing situation. However, low liquidity means that current company cash flows are low in relation to the level of debt. This is a sign of caution in case it is expected for profits to remain low. Investors should compare Obermatt’s Value, Growth, and Sentiment Ranks before deciding. They may also want to investigate why cash flows are expected to be low, making debt service for MEG Energy more challenging. ...read more

SAFETY METRICS	2021	2022	2023	2024
LEVERAGE
LEVERAGE	8	45	42	61
REFINANCING
REFINANCING	73	89	92	88
LIQUIDITY
LIQUIDITY	24	17	17	46
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	39	55	46	70

Last update of Safety Rank: 19-Dec-2024. Stock analysis on safety metrics: The higher the rank, the lower the leverage of MEG Energy and the more cash is available to service its debt.

Sentiment Metrics in Detail

SENTIMENT	2021	2022	2023	2024
ANALYST OPINIONS
ANALYST OPINIONS	n/a	30	30	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	13	11	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	42	70	^new
MARKET PULSE
MARKET PULSE	n/a	42	95	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	17	46	^new

Last update of Sentiment Rank: 19-Dec-2024. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for MEG Energy.
Upgrade to a Premium Account to access the latest ranks.