📊 MEG Key Takeaways
Is Montrose Environmental Group, Inc. (MEG) a Good Investment?
Montrose Environmental demonstrates exceptional revenue growth (4344.6% YoY) and strong free cash flow generation ($91.2M, 11% FCF margin), but profitability remains severely compressed with negative net margin (-0.1%) and declining net income despite massive top-line expansion. The quality of growth is questionable given the company is unprofitable at the bottom line despite $830.5M in revenue, raising concerns about pricing power, cost structure, and operational execution.
Why Buy Montrose Environmental Group, Inc. Stock? MEG Key Strengths
- Exceptional revenue growth of 4344.6% year-over-year demonstrates significant market demand and successful business expansion
- Strong free cash flow generation at $91.2M with 11.0% FCF margin indicates the business converts revenue to cash effectively despite accounting losses
- Healthy liquidity position with 1.43x current ratio and manageable leverage at 0.61x debt-to-equity ratio provides financial flexibility
MEG Stock Risks: Montrose Environmental Group, Inc. Investment Risks
- Negative net income of -$843K and deteriorating net margin of -0.1% despite massive revenue growth signals serious profitability issues and potential accounting adjustments masking operational challenges
- Ultra-thin operating margin of 1.4% on $830.5M revenue leaves minimal buffer for cost volatility or revenue pressure; high operating leverage risk
- Material long-term debt of $277.1M combined with low cash balance of $11.2M creates debt service concerns, especially given negative net earnings and reliance on cash flow for sustainability
Key Metrics to Watch
- Net margin trend and path to profitability - critical to validate sustainability of revenue growth model
- Operating margin expansion and cost structure efficiency - determine if negative earnings are temporary or structural
- Free cash flow sustainability and debt service coverage ratios - ensure cash generation continues to support debt obligations
Montrose Environmental Group, Inc. (MEG) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Montrose Environmental Group, Inc. presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
MEG Profit Margin, ROE & Profitability Analysis
MEG vs Services Sector: How Montrose Environmental Group, Inc. Compares
How Montrose Environmental Group, Inc. compares to Services sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Montrose Environmental Group, Inc. Stock Overvalued? MEG Valuation Analysis 2026
Based on fundamental analysis, Montrose Environmental Group, Inc. shows some fundamental concerns relative to the Services sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Montrose Environmental Group, Inc. Balance Sheet: MEG Debt, Cash & Liquidity
MEG Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Montrose Environmental Group, Inc.'s revenue has grown significantly by 52% over the 5-year period, indicating strong business expansion. The most recent EPS of $-1.57 indicates the company is currently unprofitable.
MEG Revenue Growth, EPS Growth & YoY Performance
MEG Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $178.7M | $7.4M | $0.08 |
| Q2 2025 | $173.3M | -$1.0M | $-0.15 |
| Q1 2025 | $155.3M | -$13.4M | $-0.53 |
| Q3 2024 | $167.9M | -$7.2M | $-0.39 |
| Q2 2024 | $159.1M | -$7.2M | $-0.38 |
| Q1 2024 | $131.4M | -$13.4M | $-0.53 |
| Q3 2023 | $130.3M | -$5.7M | $-0.33 |
| Q2 2023 | $139.9M | -$7.2M | $-0.38 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Montrose Environmental Group, Inc. Dividends, Buybacks & Capital Allocation
MEG SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Montrose Environmental Group, Inc. (CIK: 0001643615)
📋 Recent SEC Filings
❓ Frequently Asked Questions about MEG
What is the AI rating for MEG?
Montrose Environmental Group, Inc. (MEG) has an AI rating of HOLD with 62% confidence, based on fundamental analysis of SEC EDGAR filings.
What are MEG's key strengths?
Claude: Exceptional revenue growth of 4344.6% year-over-year demonstrates significant market demand and successful business expansion. Strong free cash flow generation at $91.2M with 11.0% FCF margin indicates the business converts revenue to cash effectively despite accounting losses.
What are the risks of investing in MEG?
Claude: Negative net income of -$843K and deteriorating net margin of -0.1% despite massive revenue growth signals serious profitability issues and potential accounting adjustments masking operational challenges. Ultra-thin operating margin of 1.4% on $830.5M revenue leaves minimal buffer for cost volatility or revenue pressure; high operating leverage risk.
What is MEG's revenue and growth?
Montrose Environmental Group, Inc. reported revenue of $830.5M.
Does MEG pay dividends?
Montrose Environmental Group, Inc. pays dividends, with $4.2M distributed to shareholders in the trailing twelve months.
Where can I find MEG SEC filings?
Official SEC filings for Montrose Environmental Group, Inc. (CIK: 0001643615) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is MEG's EPS?
Montrose Environmental Group, Inc. has a diluted EPS of $-0.14.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is MEG a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Montrose Environmental Group, Inc. has a HOLD rating with 62% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is MEG stock overvalued or undervalued?
Valuation metrics for MEG: ROE of -0.2% (sector avg: 16%), net margin of -0.1% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
Should I buy MEG stock in 2026?
Our dual AI analysis gives Montrose Environmental Group, Inc. a combined HOLD rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is MEG's free cash flow?
Montrose Environmental Group, Inc.'s operating cash flow is $107.5M, with capital expenditures of $16.3M. FCF margin is 11.0%.
How does MEG compare to other Services stocks?
Vs Services sector averages: Net margin -0.1% (avg: 10%), ROE -0.2% (avg: 16%), current ratio 1.43 (avg: 1.5).