Montrose Environmental Group (MEG)
NYSE:MEG
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Montrose Environmental Group
(NYSE:MEG)
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Rating:65Neutral
Price Target:
$23.00
▲(6.33% Upside)
Action:DowngradedDate:04/22/26
The score is driven primarily by improving financial performance (better cash generation and deleveraging, with operating profitability turning positive) and a supportive earnings outlook targeting further growth and margin expansion. Offsetting this, technicals remain bearish with the stock below key moving averages, and valuation is constrained by ongoing GAAP losses and no dividend support.
Positive Factors
Strong cash generation
Large 2025 operating cash flow and FCF materially improve liquidity and internal funding capacity. Durable cash conversion supports organic R&D, bolt‑on M&A, and the $40M repurchase plan while lowering reliance on external financing over the medium term.
Negative Factors
Persistent slight net loss
Although operating metrics improved, GAAP profitability remains slightly negative, limiting return metrics and risking investor confidence. Sustained positive net income is required to validate margins, justify capital allocation, and deliver durable shareholder returns.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation
Large 2025 operating cash flow and FCF materially improve liquidity and internal funding capacity. Durable cash conversion supports organic R&D, bolt‑on M&A, and the $40M repurchase plan while lowering reliance on external financing over the medium term.
Read all positive factors
Montrose Environmental Group (MEG) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$736.42M
Dividend YieldN/A
Average Volume (3M)303.90K
Price to Earnings (P/E)―
Beta (1Y)1.26
Revenue Growth19.26%
EPS Growth93.06%
CountryUS
Employees3,400
SectorIndustrials
Sector Strength72
IndustryWaste Management
Share Statistics
EPS (TTM)-0.23
Shares Outstanding36,169,780
10 Day Avg. Volume279,330
30 Day Avg. Volume303,896
Financial Highlights & Ratios
PEG Ratio11.04
Price to Book (P/B)1.93
Price to Sales (P/S)1.05
P/FCF Ratio9.57
Enterprise Value/Market Cap1.47
Enterprise Value/Revenue1.31
Enterprise Value/Gross Profit3.36
Enterprise Value/Ebitda13.27
Forecast
1Y Price Target
$35.20Price Target Upside62.74% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering6
EPS Forecast (FY)0.13
Revenue Forecast (FY)$871.57M
Montrose Environmental Group Business Overview & Revenue Model
Company Description
Montrose Environmental Group, Inc. operates as an environmental services company in the United States. The company operates in three segments: Assessment, Permitting and Response; Measurement and Analysis; and Remediation and Reuse. The Assessment...
How the Company Makes Money
MEG primarily makes money by providing professional environmental services to customers under contract, generating revenue from a mix of project-based engagements and recurring programs. Key revenue streams generally include: (1) Measurement and t...
Montrose Environmental Group Key Performance Indicators (KPIs)
Any
Revenue by Segment
Breaks revenue down by service line (for example remediation, monitoring, or consulting), showing which parts of the business drive growth and which rely on cyclical end-markets. Helps investors see whether Montrose’s revenue mix is diversifying or concentrated in higher-risk areas.
Breaks revenue down by service line (for example remediation, monitoring, or consulting), showing which parts of the business drive growth and which rely on cyclical end-markets. Helps investors see whether Montrose’s revenue mix is diversifying or concentrated in higher-risk areas.
Data provided by:
The Fly
The FlyMontrose Environmental Group Earnings Call Summary
Earnings Call Date:Feb 25, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 06, 2026
Earnings Call Sentiment Positive
The call conveyed strong, broad-based operational and financial momentum: record 2025 revenue, EBITDA, margins, and exceptional cash generation, plus a simplified balance sheet and clear 2026 guidance targeting further margin improvement. Management emphasized durable private-sector demand, cross-selling gains, and multiple growth tailwinds (PFAS, water technology, data centers, mining, pharma, semiconductors). Near-term caveats include Q4 quarter-to-quarter margin softness, a strategic wind-down of renewables that weighed on Remediation & Reuse margins, lumpy emergency response revenue that creates cadence variability, and modestly higher interest expense from financing the preferred redemption. Overall, the positive drivers and materially improved metrics outweigh the operational and timing headwinds.Positive Updates
Record Full-Year Revenue
Full-year 2025 revenue of $830.5 million, up 19.3% versus 2024 and well above initial guidance.
Negative Updates
Q4 Margin and EBITDA Compression versus Prior Year Quarter
Q4 consolidated adjusted EBITDA was $23.9 million (12.4% of revenue) versus $27.2 million (14.4%) in prior-year quarter — margin decline partly due to lower margins in Measurement & Analysis and Remediation & Reuse, and renewables wind-down expenses.
Read all updates
Q4-2025 Updates
Positive
Negative
Record Full-Year Revenue
Full-year 2025 revenue of $830.5 million, up 19.3% versus 2024 and well above initial guidance.
Read all positive updates
Company Guidance
Montrose guided 2026 revenue of $840M–$900M and consolidated adjusted EBITDA of $125M–$130M (midpoint implying ≈10% EBITDA growth vs. 2025), targeting a ~15% consolidated adjusted EBITDA margin, with organic revenue growth expected at the high end of its 7%–9% long‑term range (≈9% for 2026); the company assumes $50M–$70M of environmental emergency response revenue (midpoint $60M, roughly $15M/quarter if evenly distributed), expects revenue roughly 50/50 H1/H2 (H1 split ~40% Q1 / 60% Q2) and EBITDA ~40% H1 / 60% H2 (H1 ≈1/3 Q1, 2/3 Q2), targets 60% operating cash conversion in 2026 (versus 93% in 2025), expects to generate ~ $180M cumulative operating cash flow across 2025–2026, will allocate 1%–2% of revenue to organic investments, assumes no acquisition impact in guidance, and has a $40M share repurchase authorization with bolt‑on M&A pursued prudently (likely back half if at all).Montrose Environmental Group Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
74
Positive
Cash Flow
84
Very Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 830.54M | 696.39M | 624.21M | 544.42M | 546.41M |
| Gross Profit | 283.43M | 278.20M | 240.31M | 192.53M | 177.38M |
| EBITDA | 81.70M | 25.88M | 31.93M | 32.44M | 40.96M |
| Net Income | -843.00K | -62.31M | -30.86M | -31.82M | -25.32M |
Balance Sheet | |||||
| Total Assets | 981.30M | 990.35M | 816.79M | 791.91M | 833.09M |
| Cash, Cash Equivalents and Short-Term Investments | 11.22M | 12.94M | 23.24M | 89.83M | 146.74M |
| Total Debt | 359.03M | 281.00M | 210.34M | 202.12M | 205.77M |
| Total Liabilities | 530.12M | 544.09M | 495.53M | 478.73M | 516.59M |
| Stockholders Equity | 451.18M | 446.26M | 321.25M | 313.19M | 316.50M |
Cash Flow | |||||
| Free Cash Flow | 91.16M | 902.00K | 23.09M | 10.65M | 30.00M |
| Operating Cash Flow | 107.48M | 22.23M | 56.02M | 20.65M | 37.58M |
| Investing Cash Flow | -15.84M | -138.04M | -101.62M | -38.69M | -71.64M |
| Financing Cash Flow | -93.12M | 106.00M | -20.11M | -38.76M | 146.10M |
Montrose Environmental Group Technical Analysis
Negative
21.63
Price Trends
23.63
Negative
24.30
Negative
25.35
Negative
Market Momentum
-0.68
Positive
42.62
Neutral
21.19
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MEG, the sentiment is Negative. The current price of 21.63 is below the 20-day moving average (MA) of 22.02, below the 50-day MA of 23.63, and below the 200-day MA of 25.35, indicating a bearish trend. The MACD of -0.68 indicates Positive momentum. The RSI at 42.62 is Neutral, neither overbought nor oversold. The STOCH value of 21.19 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MEG.
Montrose Environmental Group Risk Analysis
Montrose Environmental Group disclosed 48 risk factors in its most recent earnings report. Montrose Environmental Group reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Montrose Environmental Group Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
65 Neutral | $736.42M | -1,034.44 | -0.17% | ― | 19.26% | 93.06% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
54 Neutral | $247.18M | -0.65 | 555.82% | ― | 12.61% | 66.26% | |
45 Neutral | $1.59B | -8.63 | -48.78% | ― | -4.29% | -32.32% | |
45 Neutral | $227.21M | -16.86 | -19.87% | ― | 4.33% | 43.24% | |
44 Neutral | $23.89M | -2.54 | -44.35% | ― | -13.28% | -1.31% |
* Industrials Sector Average
MEG
Montrose Environmental Group
20.36
5.73
39.17%
NVRI
Enviri
19.25
12.38
180.20%
PESI
Perma-Fix
12.25
4.05
49.39%
QRHC
Quest Resource
1.14
-1.22
-51.69%
LNZA
LanzaTech Global
24.50
0.02
0.08%
Montrose Environmental Group Corporate Events
Business Operations and StrategyDelistings and Listing Changes
Onterris Unveils New Brand Identity and Ticker Change
Positive
Apr 21, 2026
On April 17, 2026, Montrose Environmental Group, Inc. formally changed its corporate name to Onterris, Inc., with corresponding amendments to its charter and bylaws becoming effective the same day. The rebranding consolidates legacy brands includi...
Business Operations and StrategyStock BuybackFinancial Disclosures
Montrose Environmental Posts Record 2025 Results, Issues 2026 Outlook
Positive
Feb 25, 2026
Montrose Environmental Group reported that for the full year 2025, ended December 31, it achieved record revenue of $830.5 million, up 19.3% from 2024, driven by 12.7% organic growth, stronger environmental emergency response work, and prior-year ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.