MEG Energy Corp. (TSX:MEG) MF Rank Reaches 10794

MEG Energy Corp. (TSX:MEG) has Magic Formula Rank of 10794. Developed by hedge fund manager Joel Greenblatt, the intention of the formula is to spot high quality companies that are trading at a price attractive to investors. The formula combines ROIC and earnings yield ratios to find solid, undervalued stocks. In general, companies with the lowest combined rank may be the higher quality picks.

At some point in time, traders may have to deal with the overconfidence issue when dealing with the market. Traders may have times when they go on runs where everything works out. This may cause the individual to become overconfident in their ability and possibly lead to uninformed decisions late on. When the good times are rolling, it can be easy to think that the winners are a direct result of skill. This may be true, but if this is incorrect, it can lead to portfolio damage in the future. Having is long string of winning trades is a great thing, but markets can be cruel and have the ability to turn very quickly. Approaching every trade with the same research and examination may help the trader to make better decisions when a string of trades eventually go the wrong way.

Checking in on some valuation rankings, MEG Energy Corp. (TSX:MEG) has a Value Composite score of 10. Developed by James O’Shaughnessy, the VC score uses five valuation ratios. These ratios are price to earnings, price to cash flow, EBITDA to EV, price to book value, and price to sales. The VC is displayed as a number between 1 and 100. In general, a company with a score closer to 0 would be seen as undervalued, and a score closer to 100 would indicate an overvalued company. Adding a sixth ratio, shareholder yield, we can view the Value Composite 2 score which is currently sitting at 19.

MEG Energy Corp. (TSX:MEG) has a Price to Book ratio of 0.388194. This ratio is calculated by dividing the current share price by the book value per share. Investors may use Price to Book to display how the market portrays the value of a stock. Checking in on some other ratios, the company has a Price to Cash Flow ratio of 4.078329, and a current Price to Earnings ratio of 28.007847. The P/E ratio is one of the most common ratios used for figuring out whether a company is overvalued or undervalued.

Shifting gears, we can see that MEG Energy Corp. (TSX:MEG) has a Q.i. Value of 52.00000. The Q.i. Value ranks companies using four ratios. These ratios consist of EBITDA Yield, FCF Yield, Liquidity, and Earnings Yield. The purpose of the Q.i. Value is to help identify companies that are the most undervalued. Typically, the lower the value, the more undervalued the company tends to be.

Watching some historical volatility numbers on shares of MEG Energy Corp. (TSX:MEG), we can see that the 12 month volatility is presently 75.187300. The 6 month volatility is 89.916200, and the 3 month is spotted at 99.773000. Following volatility data can help measure how much the stock price has fluctuated over the specified time period. Although past volatility action may help project future stock volatility, it may also be vastly different when taking into account other factors that may be driving price action during the measured time period. 

At the time of writing, MEG Energy Corp. (TSX:MEG) has a Piotroski F-Score of 7. The F-Score may help discover companies with strengthening balance sheets. The score may also be used to spot the weak performers. Joseph Piotroski developed the F-Score which employs nine different variables based on the company financial statement. A single point is assigned to each test that a stock passes. Typically, a stock scoring an 8 or 9 would be seen as strong. On the other end, a stock with a score from 0-2 would be viewed as weak.

Investors may be interested in viewing the Gross Margin score on shares of MEG Energy Corp. (TSX:MEG). The name currently has a score of 9.00000. This score is derived from the Gross Margin (Marx) stability and growth over the previous eight years. The Gross Margin score lands on a scale from 1 to 100 where a score of 1 would be considered positive, and a score of 100 would be seen as negative.

The Shareholder Yield is a way that investors can see how much money shareholders are receiving from a company through a combination of dividends, share repurchases and debt reduction.  The Shareholder Yield of MEG Energy Corp. (TSX:MEG) is -0.009335.  This percentage is calculated by adding the dividend yield plus the percentage of shares repurchased.  Dividends are a common way that companies distribute cash to their shareholders.  Similarly, cash repurchases and a reduction of debt can increase the shareholder value, too.  Another way to determine the effectiveness of a company’s distributions is by looking at the Shareholder yield (Mebane Faber).  The Shareholder Yield (Mebane Faber) of MEG Energy Corp. TSX:MEG is 0.68874.  This number is calculated by looking at the sum of the dividend yield plus percentage of sales repurchased and net debt repaid yield.

Price Index

We can now take a quick look at some historical stock price index data. MEG Energy Corp. (TSX:MEG) presently has a 10 month price index of 1.02703. The price index is calculated by dividing the current share price by the share price ten months ago. A ratio over one indicates an increase in share price over the period. A ratio lower than one shows that the price has decreased over that time period. Looking at some alternate time periods, the 12 month price index is 1.05976, the 24 month is 0.87356, and the 36 month is 1.15652. Narrowing in a bit closer, the 5 month price index is 0.71314, the 3 month is 0.52311, and the 1 month is currently 0.66667.

Investors will be closely tracking the equity market as we charge through the last couple of months of the year. They may be doing a review of the portfolio to see what moves have worked and which ones haven’t. Reviewing specific holdings and past entry and exit points may help the investor develop new ideas to trade on in the future. Staying on top of market happenings and the economic landscape can be a challenge. Investors will be closely following the action over the next quarter to help gauge whether the bulls will stay out front, or if the bears will take the lead.