Montrose Environmental Group Inc. Common Stock (MEG)

FairStock Score: 56/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for businesses that earn consistent profits, carry modest debt, and sell at a sensible price. Montrose Environmental Group is not that today. In the first quarter of 2026, it reported $168.5 million of revenue and a $12.7 million net loss, a -7.53% margin. The supplied growth fields show only 2.23% revenue growth and 70.88% profit growth, but they are not period-labeled, so I give them less weight than the quarter-labeled loss. FairStock's calculations at the 2026-06-26 close of $20.04 show a negative P/E of -154.15, P/B of 1.60, negative ROE of -0.17%, and a very low ROCE of 0.92%. Debt is meaningful with D/E of 0.80, and the Altman Z-Score of 0.74 suggests financial distress risk. The Piotroski F-Score of 3/9 confirms weak fundamentals. The one bright spot is cash generation: trailing twelve-month free cash flow was $70.8 million, a 9.4% FCF yield, which means the business can produce cash even while reporting net losses. The environmental services industry can have regulatory demand, but the numbers do not yet show durable returns. EV/EBITDA of 12.89 is not a bargain for a company with negative earnings and a 1.83 beta. The FairStock Score of 56/100 and Lynch category of none, because only 0 years of filed results are available and 3 are needed, argue for caution. Without a path to consistent profits and debt reduction, the stock looks like a speculative turnaround, not a Graham-style bargain. I would want to see margins turn positive and cash flow persist before calling it a sound value.

In plain English: Montrose Environmental Group (MEG) provides environmental consulting, testing, and cleanup services, according to the supplied description. The business looks weak right now: in the first quarter of 2026 it had $168.5 million of revenue but lost $12.7 million, and its financial health scores are poor. At the 2026-06-26 close of $20.04, the price looks fair to expensive relative to those losses rather than clearly cheap.

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Data as of 2026-06-26 close · note generated 2026-10-15 · model deepseek-flash

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer