Latest Ratios: P/E Ratio -111.7x · EV/EBITDA 14.0x · ROE -0.2%. (2018–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 |
|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $566M | $872M | $613M | $966M | $1.3B | $1.9B | $510M | — | — |
| Enterprise Value | $913M | $1.2B | $881M | $1.2B | $1.4B | $1.9B | $652M | — | — |
| P/E Ratio → | -111.71 | — | — | — | — | — | — | — | — |
| P/S Ratio | 0.68 | 1.05 | 0.88 | 1.55 | 2.42 | 3.45 | 1.55 | — | — |
| P/B Ratio | 1.22 | 1.93 | 1.37 | 3.01 | 4.21 | 5.95 | 3.72 | — | — |
| P/FCF | 6.21 | 9.57 | 679.91 | 41.82 | 123.78 | 62.82 | — | — | — |
| P/OCF | 5.26 | 8.11 | 27.58 | 17.24 | 63.82 | 50.14 | 275.78 | — | — |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 |
|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 1.47 | 1.27 | 1.85 | 2.63 | 3.56 | 1.99 | — | — |
| EV / EBITDA | 13.98 | 18.66 | 31.92 | 41.84 | 49.74 | 44.67 | 45.69 | — | — |
| EV / EBIT | 63.22 | 84.42 | — | — | — | — | — | — | — |
| EV / FCF | — | 13.38 | 977.10 | 49.92 | 134.32 | 64.78 | — | — | — |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 |
|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 34.1% | 34.1% | 39.9% | 38.5% | 35.4% | 32.5% | 34.3% | 29.9% | 28.6% |
| Operating Margin | 1.7% | 1.7% | -5.3% | -4.6% | -5.1% | -1.7% | -7.0% | -8.5% | -5.6% |
| Net Profit Margin | -0.1% | -0.1% | -8.9% | -4.9% | -5.8% | -4.6% | -17.7% | -10.1% | -8.7% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 |
|---|---|---|---|---|---|---|---|---|---|
| ROE | -0.2% | -0.2% | -16.2% | -9.7% | -10.1% | -11.2% | -48.4% | -21.5% | -14.2% |
| ROA | -0.1% | -0.1% | -6.9% | -3.8% | -3.9% | -3.5% | -12.4% | -8.3% | -7.0% |
| ROIC | 1.4% | 1.4% | -4.5% | -4.6% | -5.2% | -2.2% | -6.6% | -6.9% | -4.3% |
| ROCE | 1.8% | 1.8% | -4.8% | -4.1% | -4.1% | -1.6% | -6.1% | -8.8% | -5.5% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 |
|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.80 | 0.80 | 0.63 | 0.65 | 0.65 | 0.65 | 1.28 | 1.48 | 0.63 |
| Debt / EBITDA | 5.49 | 5.49 | 10.18 | 7.63 | 7.03 | 4.73 | 12.33 | 19.56 | 5.52 |
| Net Debt / Equity | — | 0.77 | 0.60 | 0.58 | 0.36 | 0.19 | 1.03 | 1.42 | 0.61 |
| Net Debt / EBITDA | 5.32 | 5.32 | 9.71 | 6.79 | 3.91 | 1.36 | 9.92 | 18.73 | 5.33 |
| Debt / FCF | — | 3.82 | 297.19 | 8.10 | 10.55 | 1.97 | — | 11.82 | — |
| Interest Coverage | 0.74 | 0.74 | -2.42 | -3.09 | -4.64 | -1.03 | -3.13 | -2.95 | -0.94 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 |
|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.43 | 1.43 | 1.50 | 1.59 | 2.22 | 1.99 | 1.20 | 1.00 | 1.27 |
| Quick Ratio | 1.42 | 1.42 | 1.48 | 1.56 | 2.19 | 1.97 | 1.18 | 0.97 | 1.26 |
| Cash Ratio | 0.07 | 0.07 | 0.08 | 0.18 | 0.81 | 0.99 | 0.31 | 0.09 | 0.06 |
| Asset Turnover | — | 0.85 | 0.70 | 0.76 | 0.69 | 0.66 | 0.54 | 0.70 | 0.81 |
| Inventory Turnover | 208.42 | 208.42 | 149.68 | 100.52 | 96.88 | 151.30 | 86.51 | 69.25 | 180.85 |
| Days Sales Outstanding | — | 94.14 | 110.58 | 95.91 | 99.10 | 92.96 | 103.06 | 94.80 | 94.56 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 |
|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 0.8% | 0.5% | 1.8% | 1.7% | 1.2% | 0.9% | 1.4% | — | — |
| Payout Ratio | — | — | — | — | — | — | — | — | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 |
|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | — | — | — | — | — | — | — | — | — |
| FCF Yield | 16.1% | 10.5% | 0.1% | 2.4% | 0.8% | 1.6% | — | — | — |
| Buyback Yield | 21.6% | 14.0% | 0.0% | 0.0% | 0.0% | 0.0% | 25.8% | — | — |
| Total Shareholder Yield | 22.4% | 14.5% | 1.8% | 1.7% | 1.2% | 0.9% | 27.2% | — | — |
| Shares Outstanding | — | $35M | $33M | $30M | $30M | $27M | $16M | $25M | $21M |
Includes 30+ ratios · 8 years · Updated daily
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Quick answers to the most common questions about buying MEG stock.
Montrose Environmental Group, Inc.'s current P/E ratio is -111.7x. This places it at the 50th percentile of its historical range.
Montrose Environmental Group, Inc.'s current EV/EBITDA is 14.0x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 38.8x.
Montrose Environmental Group, Inc.'s return on equity (ROE) is -0.2%. The historical average is -16.4%.
Based on historical data, Montrose Environmental Group, Inc. is trading at a P/E of -111.7x. This is at the 50th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Montrose Environmental Group, Inc.'s current dividend yield is 0.76%.
Montrose Environmental Group, Inc. has 34.1% gross margin and 1.7% operating margin.
Montrose Environmental Group, Inc.'s Debt/EBITDA ratio is 5.5x, indicating high leverage. A ratio above 4x may signal elevated financial risk.
Key Metrics
Top Statement Risk
Leverage and goodwill concentration risk
Metrics are mathematically derived from official filings.
Valuation Disconnect from Earnings Power
The current EV/EBITDA of 13.98 appears elevated given the company's recent history of negative earnings and volatile cash flow, suggesting the market is pricing in a significant operational turnaround that has yet to materialize.
The negative P/E ratio of -111.71 renders it meaningless for valuation, forcing reliance on EV/EBITDA. The current multiple of 13.98 is below the peer Clean Harbors (17.15) but is difficult to assess without a stable earnings base. The P/FCF of 6.21 is misleadingly low, as it is based on a single quarter of near-breakeven free cash flow that followed a period of significant cash burn, indicating the multiple is not reflective of sustainable cash generation.
Margin Volatility Undermines Earning Power
Montrose's operating margin has swung from a peak of 6.7% in 2025Q2 to a loss of 4.1% in 2026Q1, indicating that its cost structure is highly sensitive to revenue fluctuations and project mix, preventing consistent profitability.
The gross margin's wide range from 31.6% to 44.1% over ten quarters suggests inconsistent pricing power or project economics. The inability to sustain the 6.7% operating margin achieved in 2025Q2, as operating losses returned in subsequent quarters, implies that overhead costs are not scalable and that the business model struggles to generate operating leverage during periods of revenue contraction.
Capital Returns Fail to Cover Cost of Capital
ROIC has been predominantly negative or near zero over the last ten quarters, with the most recent reading at 0.6%, indicating the company is not generating returns sufficient to justify its invested capital base.
The trend shows ROIC peaking at just 1.4% in 2025Q2 before falling back, demonstrating an inability to compound returns. This persistent underperformance, especially when compared to the peer Clean Harbors' ROIC of 9.8%, suggests that Montrose's acquisition-driven growth strategy has not yet translated into efficient capital deployment or sustainable economic profit.
Rising Leverage Amidst Earnings Weakness
The debt-to-equity ratio has climbed to 0.97 in 2026Q2, while interest coverage has deteriorated to just 1.31x, indicating that debt service is becoming less comfortable as the company's earnings power remains strained.
The sharp increase in leverage, with total debt rising 49% since 2024Q4, has occurred alongside volatile and often negative operating income. The interest coverage ratio of 1.31x in the latest quarter is a significant deterioration from the 3.28x seen in 2025Q2, suggesting that the company's ability to service its debt from operations is becoming increasingly tenuous and may limit financial flexibility.
Tight Liquidity Masked by Working Capital
Despite a current ratio of 2.00 in 2026Q2, the company's cash balance of just $12.7M is minimal relative to its $418.6M in total debt, indicating a precarious liquidity position that is highly dependent on working capital management.
The current and quick ratios appear healthy at 2.00, but this is largely driven by receivables, as inventory is negligible. The cash conversion cycle is highly volatile, swinging from 66 to 90 days, which introduces significant uncertainty into near-term cash availability. This structure suggests the company has limited buffer to absorb operational shocks or delays in customer payments without relying on external financing.
The Misleading P/FCF Multiple
The P/FCF ratio of 6.21 is the most commonly misapplied metric for Montrose, as it is based on a single quarter of near-breakeven free cash flow that followed a period of significant cash burn and is not indicative of sustainable cash generation.
This multiple obscures the underlying volatility and poor quality of the company's cash flow, which has been heavily influenced by large, non-recurring working capital swings and stock-based compensation add-backs. A more appropriate metric would be a normalized FCF yield based on a multi-year average, which would likely show a much less attractive valuation given the company's history of cash flow instability and periodic cash burn.