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Montrose Environmental Group Inc. (MEG) stock has reached a new 52-week low, trading at $14.51, representing a stark decline from its 52-week high of $49.97. According to InvestingPro data, the company’s current market capitalization stands at $505 million, with analysts setting price targets between $29 and $40. This latest price point underscores a significant downturn for the environmental services provider, which has seen its stock value decrease by 61.58% over the past year. Despite current challenges, InvestingPro analysis suggests the stock is undervalued at current levels, with analysts forecasting profitability this year and revenue growth of 9%. Investors are closely monitoring the company’s performance, seeking signs of a turnaround or further indicators of market pressures that could influence the stock’s trajectory in the coming months. For deeper insights, access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers.
In other recent news, Montrose Environmental Group reported its fourth-quarter 2024 earnings, surpassing expectations with an earnings per share (EPS) of $0.29 compared to the projected -$0.08. The company’s revenue for the quarter reached $189.1 million, slightly above the anticipated $187.56 million, marking a 14.1% increase from the previous year. For the full year 2024, Montrose achieved a revenue of $696.4 million, reflecting an 11.6% growth from 2023. Additionally, the company announced a 24% compound annual growth rate in revenue since 2019, emphasizing its strong performance and client retention.
Montrose Environmental Group has also been awarded a significant contract with the United States Air Force. The Multiple Award Task Order Contract (MATOC) is valued at $1.5 billion and will span the next decade. This contract involves environmental restoration and planning at Air Force installations worldwide, although no financial impact is expected for Montrose in 2025.
Furthermore, Montrose has provided guidance for 2025, expecting revenue between $735 million and $785 million, with a consolidated adjusted EBITDA forecasted between $101 million and $108 million. The company aims for 7% to 9% organic growth and over 50% cash flow conversion. Analyst firm William Blair noted that Montrose’s operating leverage and margin expansion opportunities remain strong, despite the company forecasting steady EBITDA margins year-over-year.
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