Montrose Environmental Group, Inc.

Consumer Discretionary
Professional Services
www.montrose-env.com

Moat Score
Safety Score

Market Cap $501.75M
PE -7
Debt $241.55M
Cash $12.94M
EV $730.36M
FCF $902.00K

Earnings

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Sales & Net Margins

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Earnings	-$73.38M
EBIT	-$36.72M
ROE	-16%
ROA	-4%
FCF	$902.00K
Equity	$446.26M
Growth Stability	1
PE	-6.84
PB	1.12
P/FCF	556.26
P/S	0.72
Price/Cash	0.03
Debt/Equity	0.54
Debt/FCF	267.79
Net Margins	-11%
Gross Margins	40%
Op. Margins	-5%
Sales Growth YoY	14%
Sales Growth QoQ	6%
Sales CAGR	23%
FCF CAGR	-2%
Equity CAGR	59%
Earnings Growth YoY	459%
Earnings Growth QoQ	133%
Sales CAGR 5Y	22%

FCF CAGR 5Y	-5%
Equity CAGR 5Y	34%
Earnings CAGR 3Y	10%
Sales CAGR 3Y	10%
FCF CAGR 3Y	-32%
Equity CAGR 3Y	15%
Market Cap	$501.75M
Revenue	$696.40M
Dividend Yield	2%
Payout Ratio	-15%
Assets	$990.35M
Total Debt	$241.55M
Cash	$12.94M
Shares Outstanding	33.05M
EV	730.36M
Moat Score	6%
Safety Score	71%
Working Capital	79.34M
Current Ratio	1.5
Gross Profit	$278.20M
Shares Growth 3y	4%
Equity Growth QoQ	-1%
Equity Growth YoY	39%

Assets & ROA

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Stockholders Equity & ROE

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Montrose Environmental Group Inc is an environmental services company. The firm's operating segments are Assessment, Permitting and Response, Measurement and Analysis, and Remediation and Reuse. Through its Assessment, Permitting, and Response segment, the company provides scientific advisory and consulting services to support environmental assessments, environmental emergency response, and environmental audits. Measurement and Analysis include test and analysis of air, water, and soil to determine concentrations of contaminants whereas, the Remediation and Reuse segment provide clients with engineering, design, implementation, operations and maintenance services, to treat contaminated water, remove contaminants from soil or create biogas from food or agricultural waste.

SEC Filings

Direct access to Montrose Environmental Group, Inc. (MEG) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2024
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2023
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2022
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31

Sector Comparison

How does Montrose Environmental Group, Inc. compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of Montrose Environmental Group, Inc. compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

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Montrose Environmental Group, Inc. Discounted Cash Flow

Fully customizable DCF calculator online for Montrose Environmental Group, Inc..

Years

Calculation mode

= $7.8M

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	$902K	$882K	$863K	$844K	$826K	$808K	$790K	$773K	$756K	$739K	$723K	$7.2M
DCF		$802K	$713K	$634K	$564K	$501K	$446K	$397K	$353K	$314K	$279K	$2.8M
Value	$7.8M

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

Years	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	12/2024	TTM
Net Margins	-9%	-10%	-18%	-8%	-9%	-8%	-11%	-11%
ROA	-	-3%	-4%	-1%	-4%	-3%	-4%	-4%
ROE	-	90%	-42%	-13%	-15%	-15%	-16%	-16%

Bad Net Margins (-10.54%)

Net Margins are too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Safety and Stability

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Years	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	12/2024	TTM
Debt over FCF	-	12.9	-34.65	6.06	16.74	6.76	267.79	267.79
Debt over Equity	-	-6.06	1.35	0.59	0.57	0.56	0.54	0.54
Growth Stability	-	-	-	-	-	-	-	1

Bad Debt/FCF ratio (267.79)

Net Margins are too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Good Debt/Equity ratio (0.54)

The company is not overleveraged and has a good balance between equity and debt.

Good Graham’s Stability (1)

The company has a good stability in its earnings, which is a sign of a good competitive advantage.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Years	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	12/2024	CAGR 5Y
Revenue YoY growth	-	24%	40%	66%	-0%	15%	12%	22%
Earnings YoY growth	-	43%	146%	-28%	16%	-2%	55%	-
Equity YoY growth	-	-481%	-622%	131%	-1%	3%	39%	34%
FCF YoY growth	-	-287%	-143%	-673%	-65%	148%	-97%	-5%