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MEGMontrose Environmental Group, Inc.
$15.64$566M
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  4. Financial Ratios

Montrose Environmental Group, Inc. (MEG) Financial Ratios

Latest Ratios: P/E Ratio -111.7x · EV/EBITDA 14.4x · ROE -0.2%. (2018–2025 historical series)

Income StatementBalance SheetCash FlowRatios
AnnualQuarterly

MEG Valuation Multiples

Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018
Market Cap$566M$872M$613M$966M$1.3B$1.9B$510M——
Enterprise Value$913M$1.2B$881M$1.2B$1.4B$1.9B$652M——
P/E Ratio →-111.71————————
P/S Ratio0.681.050.881.552.423.451.55——
P/B Ratio1.221.931.373.014.215.953.72——
P/FCF6.219.57679.9141.82123.7862.82———
P/OCF5.268.1127.5817.2463.8250.14275.78——

P/E links to full P/E history page with 30-year chart

MEG EV Ratios

Enterprise-value multiples — capital-structure-neutral measures of total business value

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018
EV / Revenue—1.471.271.852.633.561.99——
EV / EBITDA14.3819.2031.9241.8449.7444.6745.69——
EV / EBIT72.3639.62———————
EV / FCF—13.38977.1049.92134.3264.78———

MEG Profitability

Margins and return-on-capital ratios measuring operating efficiency

Margins

Full margin charts and quarterly trend are on the Earnings History page

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018
Gross Margin34.1%34.1%39.9%38.5%35.4%32.5%34.3%29.9%28.6%
Operating Margin1.5%1.5%-5.3%-4.6%-5.1%-1.7%-7.0%-8.5%-5.6%
Net Profit Margin-0.1%-0.1%-8.9%-4.9%-5.8%-4.6%-17.7%-10.1%-8.7%

Return on Capital

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018
ROE-0.2%-0.2%-16.2%-9.7%-10.1%-11.2%-48.4%-21.5%-14.2%
ROA-0.1%-0.1%-6.9%-3.8%-3.9%-3.5%-12.4%-8.3%-7.0%
ROIC1.3%1.3%-4.5%-4.6%-5.2%-2.2%-6.6%-6.9%-4.3%
ROCE1.5%1.5%-4.8%-4.1%-4.1%-1.6%-6.1%-8.8%-5.5%

MEG Leverage & Debt

Solvency and debt-coverage ratios — lower is generally safer

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018
Debt / Equity0.800.800.630.650.650.651.281.480.63
Debt / EBITDA5.655.6510.187.637.034.7312.3319.565.52
Net Debt / Equity—0.770.600.580.360.191.031.420.61
Net Debt / EBITDA5.475.479.716.793.911.369.9218.735.33
Debt / FCF—3.82297.198.1010.551.97—11.82—
Interest Coverage1.571.57-2.42-3.09-4.64-1.03-3.13-2.95-0.94

MEG Liquidity & Efficiency

Short-term solvency ratios and asset-utilisation metrics

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018
Current Ratio1.431.431.501.592.221.991.201.001.27
Quick Ratio1.421.421.481.562.191.971.180.971.26
Cash Ratio0.070.070.080.180.810.990.310.090.06
Asset Turnover—0.850.700.760.690.660.540.700.81
Inventory Turnover208.42208.42149.68100.5296.88151.3086.5169.25180.85
Days Sales Outstanding—94.14110.5895.9199.1092.96103.0694.8094.56

MEG Shareholder Yields

Earnings, FCF, buyback, and dividend yields — total returns to shareholders

Dividends

Full dividend history and growth charts are on the Dividend History page

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018
Dividend Yield0.8%0.5%1.8%1.7%1.2%0.9%1.4%——
Payout Ratio—————————

Total Shareholder Return Metrics

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018
Earnings Yield—————————
FCF Yield16.1%10.5%0.1%2.4%0.8%1.6%———
Buyback Yield21.6%14.0%0.0%0.0%0.0%0.0%25.8%——
Total Shareholder Yield22.4%14.5%1.8%1.7%1.2%0.9%27.2%——
Shares Outstanding—$35M$33M$30M$30M$27M$16M$25M$21M

Key Metrics

Growth RegimeMixed
ProfitabilityNegative
Balance SheetVulnerable
Cash FlowBurning
Top Statement Risk

Acquisition Integration Margin Dilution

Verified Source

Metrics are mathematically derived from official filings.

SEC 10-K (2026Q1)

Valuation Disconnected From Earnings Reality

Based on current market data, MEG trades at a forward P/E of 122.09, which appears to reflect aggressive growth expectations that are currently unsupported by the firm's persistent net losses and the lack of a meaningful PEG ratio in recent financial disclosures.

The valuation premium suggests investors are pricing in a rapid transition to profitability that has yet to materialize in the GAAP results. Given the negative TTM P/E, the market appears to be valuing the company as a high-growth technology platform rather than an industrial services firm, which warrants caution if the acquisition-led growth slows.

Capital Returns Remain Consistently Negative

As reported in financial statements, MEG's ROIC has struggled to remain in positive territory, averaging near -0.7% in 2026Q1, which indicates that the company is currently failing to generate returns on invested capital that exceed its cost of funding.

The persistent inability to generate positive returns on capital suggests that the acquisition strategy is currently value-destructive rather than compounding. Investors should monitor whether management can shift focus from top-line expansion to improving the efficiency of existing assets to reverse this trend.

Working Capital Volatility Hinders Efficiency

According to quarterly data, MEG's cash conversion cycle remains erratic, with DSO fluctuating significantly around the 100-day mark, suggesting that the firm faces structural challenges in managing its receivables across a diverse and fragmented portfolio of environmental service projects.

The high DSO relative to industry peers implies that the company may be granting overly generous payment terms to secure contracts, which ties up liquidity. This inefficiency in working capital management exacerbates the firm's reliance on external financing to fund its ongoing operations.

Liquidity Buffers Facing Increasing Pressure

As evidenced by the company's financial data, the current ratio has declined to 1.84 in 2026Q1, while cash reserves have dwindled, indicating that the firm's liquidity position is becoming increasingly vulnerable to operational shocks or unexpected delays in project-based revenue collection.

The narrowing liquidity buffer leaves little room for error, particularly given the company's history of lumpy cash flows and high integration costs. If the firm cannot stabilize its operating cash flow, it may face increased pressure to raise capital, potentially leading to further shareholder dilution.

Misapplication of Adjusted EBITDA Metrics

Based on reported figures, the market's heavy reliance on Adjusted EBITDA as a primary valuation metric for MEG obscures the significant economic costs of stock-based compensation and acquisition-related integration expenses that consistently depress the firm's actual bottom-line profitability.

Investors should prioritize free cash flow and GAAP net income to assess the true sustainability of the business model. Relying solely on Adjusted EBITDA risks ignoring the reality that the company is currently burning cash to maintain its growth trajectory, which is not a sustainable long-term strategy.

Download Financial Ratios Data

Includes 30+ ratios · 8 years · Updated daily

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MEG — Frequently Asked Questions

Quick answers to the most common questions about buying MEG stock.

What is Montrose Environmental Group, Inc.'s P/E ratio?

Montrose Environmental Group, Inc.'s current P/E ratio is -111.7x. This places it at the 50th percentile of its historical range.

What is Montrose Environmental Group, Inc.'s EV/EBITDA?

Montrose Environmental Group, Inc.'s current EV/EBITDA is 14.4x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 38.8x.

What is Montrose Environmental Group, Inc.'s ROE?

Montrose Environmental Group, Inc.'s return on equity (ROE) is -0.2%. The historical average is -16.4%.

Is MEG stock overvalued?

Based on historical data, Montrose Environmental Group, Inc. is trading at a P/E of -111.7x. This is at the 50th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.

What is Montrose Environmental Group, Inc.'s dividend yield?

Montrose Environmental Group, Inc.'s current dividend yield is 0.76%.

What are Montrose Environmental Group, Inc.'s profit margins?

Montrose Environmental Group, Inc. has 34.1% gross margin and 1.5% operating margin.

How much debt does Montrose Environmental Group, Inc. have?

Montrose Environmental Group, Inc.'s Debt/EBITDA ratio is 5.7x, indicating high leverage. A ratio above 4x may signal elevated financial risk.