Montrose Environmental Group, Inc.

Consumer Discretionary
Professional Services
www.montrose-env.com

Moat Score
Safety Score

Market Cap $553.22M
PE -12
Debt $267.70M
Cash $13.05M
EV $807.87M
FCF -$18.87M

Earnings

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Sales & Net Margins

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Earnings	-$47.95M
EBIT	-$22.79M
ROE	-11%
ROA	-2%
FCF	-$18.87M
Equity	$449.19M
Growth Stability	1
PE	-11.54
PB	1.23
P/FCF	-29.32
P/S	0.82
Price/Cash	0.02
Debt/Equity	0.6
Debt/FCF	-14.19
Net Margins	-8%
Gross Margins	39%
Op. Margins	-3%
Sales Growth YoY	6%
Sales Growth QoQ	3%
Sales CAGR	24%
FCF CAGR	5%
Equity CAGR	62%
Earnings Growth YoY	15%
Earnings Growth QoQ	3%
Sales CAGR 5Y	24%

FCF CAGR 5Y	9%
Equity CAGR 5Y	35%
Earnings CAGR 3Y	9%
Sales CAGR 3Y	9%
FCF CAGR 3Y	-4%
Equity CAGR 3Y	11%
Market Cap	$553.22M
Revenue	$673.08M
Dividend Yield	2%
Payout Ratio	-26%
Assets	$1.01B
Total Debt	$267.70M
Cash	$13.05M
Shares Outstanding	32.62M
EV	807.87M
Moat Score	7%
Safety Score	69%
Working Capital	118.7M
Current Ratio	1.93
Gross Profit	$264.92M
Shares Growth 3y	4%
Equity Growth QoQ	0%
Equity Growth YoY	43%

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-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

= -$273M

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	-$19M	-$20M	-$21M	-$22M	-$23M	-$24M	-$26M	-$27M	-$29M	-$30M	-$32M	-$318M
DCF		-$18M	-$17M	-$17M	-$16M	-$15M	-$15M	-$14M	-$13M	-$13M	-$12M	-$123M
Value	-$273M

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	TTM
Net Margins	-9%	-10%	-18%	-8%	-9%	-8%	-8%
ROA	-	-3%	-4%	-1%	-4%	-3%	-2%
ROE	-	90%	-42%	-13%	-15%	-15%	-11%

Bad Net Margins (-8.36%)

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	TTM
Debt over FCF	-	12.9	-34.65	6.06	16.74	6.76	-14.19
Debt over Equity	-	-6.06	1.35	0.59	0.57	0.56	0.6
Growth Stability	-	-	-	-	-	-	1

Good Debt/FCF ratio (-14.19)

Net Margins are high enough to offer a good protection on the profits in case of higher costs or higher interests. Furthermore higher margins reduce earnings’ volatility.

Good Debt/Equity ratio (0.6)

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	CAGR 5Y
Revenue YoY growth	-	24%	40%	66%	-0%	15%	24%
Earnings YoY growth	-	43%	146%	-28%	16%	-2%	-
Equity YoY growth	-	-481%	-622%	131%	-1%	3%	35%
FCF YoY growth	-	-287%	-143%	-673%	-65%	148%	9%