Latest news with #MontroseEnvironmentalGroup
Yahoo
19-05-2025
- Business
- Yahoo
Montrose Environmental Group (MEG) Declined over Potential EPA Enforcement Rollback
Baron Funds, an investment management company, released its 'Baron Discovery Fund' first quarter 2025 investor letter. A copy of the letter can be downloaded here. In the first quarter, the fund was down 6.17% (Institutional Shares), outperforming the -11.12% return for the Russell 2000 Growth Index. The market began strong in February but faded due to Trump's serious tariff enactment, which the market perceives as inflationary and slowing economic growth. The decline accelerated after April 2nd, causing fears of a trade war and global recession. In addition, please check the fund's top five holdings to know its best picks in 2025. In its first-quarter 2025 investor letter, Baron Discovery Fund highlighted stocks such as Montrose Environmental Group, Inc. (NYSE:MEG). Montrose Environmental Group, Inc. (NYSE:MEG) is an environmental services company. The one-month return of Montrose Environmental Group, Inc. (NYSE:MEG) was 37.40%, and its shares lost 60.50% of their value over the last 52 weeks. On May 16, 2025, Montrose Environmental Group, Inc. (NYSE:MEG) stock closed at $19.36 per share with a market capitalization of $662.426 million. Baron Discovery Fund stated the following regarding Montrose Environmental Group, Inc. (NYSE:MEG) in its Q1 2025 investor letter: "Montrose Environmental Group, Inc. (NYSE:MEG), a leading environmental solutions company, detracted from performance during the quarter. This was due to concerns that the Environmental Protection Agency (EPA) under the Trump administration will reduce enforcement of environmental regulations that require the type of consulting, testing, remediation and monitoring that Montrose provides. We believe these concerns are misguided, and that given its current high single-digit multiple of cash flow, Montrose is hugely underpriced. Montrose's business is driven by state regulations as well as contaminants that have a long-regulated history with bipartisan support (including from the current EPA Administrator). Montrose has successfully grown through both Democratic and Republican administrations (including the first Trump administration), and the company believes the Trump administration's initiatives on cost efficiency, U.S. manufacturing, and domestic energy production could create large new opportunities for the company." A biohazard waste disposal team safely transferring contaminated water for treatment. Montrose Environmental Group, Inc. (NYSE:MEG) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 17 hedge fund portfolios held Montrose Environmental Group, Inc. (NYSE:MEG) at the end of the fourth quarter, compared to 18 in the third quarter. Montrose Environmental Group, Inc.'s (NYSE:MEG) first quarter revenue increased 14.5% to $177.8 million. While we acknowledge the potential of Montrose Environmental Group, Inc. (NYSE:MEG) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the undervalued AI stock set for massive gains. In another article, we covered Montrose Environmental Group, Inc. (NYSE:MEG) and shared billionaire Ken Fisher's industrial stock picks with huge upside potential. In addition, please check out our hedge fund investor letters Q1 2025 page for more investor letters from hedge funds and other leading investors. READ NEXT: Michael Burry Is Selling These Stocks and A New Dawn Is Coming to US Stocks. Disclosure: None. This article is originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
09-05-2025
- Business
- Yahoo
Montrose Environmental Group Inc (MEG) Q1 2025 Earnings Call Highlights: Record Revenue and ...
Release Date: May 08, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Montrose Environmental Group Inc (NYSE:MEG) achieved record first-quarter revenue of $177.8 million, marking a 14.5% increase compared to the prior year. The company reported its highest ever first-quarter consolidated adjusted EBITDA of $19 million, a 12.5% increase from the previous year. Montrose Environmental Group Inc (NYSE:MEG) increased its full-year 2025 EBITDA guidance, reflecting confidence in continued growth and margin expansion. The company has successfully maintained strong organic growth, particularly in its remediation and reuse and measurement and analysis segments. Montrose Environmental Group Inc (NYSE:MEG) announced a stock repurchase program of up to $40 million, indicating confidence in its financial health and future prospects. The assessment, permitting, and response segment saw a revenue decline to $53.1 million from $58.6 million in the prior year, due to non-repeating large projects and lower emergency response revenues. First-quarter diluted adjusted net income per share decreased to $0.07 from $0.16 in the prior year, primarily due to higher interest and tax expenses. The remediation and reuse segment experienced an 80 basis point decline in adjusted EBITDA margin, attributed to business line mix and seasonality in Canadian operations. Despite strong overall performance, the company's first-quarter consolidated adjusted EBITDA as a percentage of revenue slightly decreased to 10.7% from 10.9% in the prior year. Montrose Environmental Group Inc (NYSE:MEG) faces potential challenges from macroeconomic and geopolitical factors, including tariff policies and regulatory changes, although these are not expected to significantly impact margins. Warning! GuruFocus has detected 3 Warning Signs with MEG. Q: How does Montrose Environmental Group view the potential risks and opportunities associated with the EPA's proposed deregulation actions? A: VJ Montaragada, President and CEO, explained that while the deregulatory agenda is challenging to predict, the statutory support for many regulations makes quick changes unlikely. Clients are largely maintaining their course due to longer planning cycles and the importance of compliance and liability considerations. State regulations are also becoming more significant, and Montrose expects demand to remain strong despite federal regulatory changes. Q: What factors contributed to the stronger-than-expected performance in the Measurement and Analysis segment? A: VJ Montaragada noted that there was no singular driver for the strong performance. The segment benefited from sustained demand across multiple business lines, particularly those with higher margins. The company continues to see operating efficiency and demand across all levers within the business, contributing to the segment's success. Q: Can you elaborate on the drivers of margin expansion expected for the rest of 2025? A: VJ Montaragada highlighted two main dynamics: strong demand cycles across all business segments and improved operating effectiveness. This includes cross-selling success, pricing optimization, operating leverage, and normalization of segment margins. These factors contribute to the company's bullish outlook for the year. Q: How does Montrose view the potential impact of tariffs on its business? A: VJ Montaragada stated that tariffs are expected to have a minimal impact on Montrose's business. The company has incorporated potential tariff impacts into its guidance and does not foresee significant effects. Clients, particularly in sectors like automotive and energy, are staying informed about policy changes and are open to pricing adjustments if necessary. Q: Has the reduction in the EPA workforce and potential budget cuts impacted Montrose's business? A: VJ Montaragada explained that Montrose has minimal exposure to federal government spending, and the reduction in the EPA workforce may slow regulatory changes. Clients continue to focus on compliance with state and federal laws, and Montrose does not expect significant changes in client behavior due to these factors. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Insider
08-05-2025
- Business
- Business Insider
Analysts Offer Insights on Industrial Goods Companies: Accelleron Industries AG (OtherACLIF), Montrose Environmental Group (MEG) and AFRY AB Class B (OtherAFXXF)
Analysts have been eager to weigh in on the Industrial Goods sector with new ratings on Accelleron Industries AG (ACLIF – Research Report), Montrose Environmental Group (MEG – Research Report) and AFRY AB Class B (AFXXF – Research Report). Protect Your Portfolio Against Market Uncertainty Discover companies with rock-solid fundamentals in TipRanks' Smart Value Newsletter. Receive undervalued stocks, resilient to market uncertainty, delivered straight to your inbox. Accelleron Industries AG (ACLIF) In a report issued on May 5, Doron Lande from Kepler Capital maintained a Hold rating on Accelleron Industries AG, with a price target of CHF48.00. The company's shares closed last Thursday at $46.00. According to Lande is a 1-star analyst with an average return of -4.3% and a 39.3% success rate. Lande covers the Industrial Goods sector, focusing on stocks such as Feintool International Holding AG, Landis+Gyr Group AG, and LEM Holding SA. Currently, the analyst consensus on Accelleron Industries AG is a Hold with an average price target of $57.46. In a report released today, Tim Mulrooney from William Blair maintained a Buy rating on Montrose Environmental Group. The company's shares closed last Wednesday at $15.05, close to its 52-week low of $14.28. According to Mulrooney is a 4-star analyst with an average return of 9.0% and a 61.5% success rate. Mulrooney covers the Industrial Goods sector, focusing on stocks such as WillScot Mobile Mini Holdings, Concrete Pumping Holdings, and BrightView Holdings. Currently, the analyst consensus on Montrose Environmental Group is a Moderate Buy with an average price target of $30.60. AFRY AB Class B (AFXXF) In a report issued on May 6, Anders Jafs from Kepler Capital maintained a Buy rating on AFRY AB Class B, with a price target of SEK213.00. The company's shares closed last Thursday at $18.33, equals to its 52-week low of $18.33. Jafs has an average return of 17.0% when recommending AFRY AB Class B. According to Jafs is ranked #1817 out of 9504 analysts. Currently, the analyst consensus on AFRY AB Class B is a Moderate Buy with an average price target of $24.67, a 34.6% upside from current levels. In a report issued on April 24, Jefferies also maintained a Buy rating on the stock with a SEK250.00 price target.
Yahoo
02-05-2025
- Business
- Yahoo
Montrose Environmental Group (MEG): Among Billionaire Ken Fisher's Industrial Stock Picks with Huge Upside Potential
We recently published a list of . In this article, we are going to take a look at where Montrose Environmental Group, Inc. (NYSE:MEG) stands against other billionaire Ken Fisher's industrial stock picks with huge upside potential. The economy strongly influences industrial stocks, which have fallen during recent downturns. However, 2025 looks like a key year for this sector, with these companies working in manufacturing, shipping, and aerospace, and investors are now focusing on businesses that adapt quickly to global shifts. The industrial sector grew 26% in 2024, showing strength despite high inflation and weak global demand. Going into 2025, these stocks are getting more attention thanks to new growth drivers and better economic conditions. Even with possible higher tariffs under Trump's trade policies, the outlook remains positive. President Trump has proposed a 25% tariff on steel and aluminum from countries like South Korea, Vietnam, and Canada. These tariffs might raise costs and also boost U.S. infrastructure and manufacturing spending; as Canada's Innovation Minister Francois-Philippe Champagne said, 'Canadian steel and aluminum support key industries in the U.S., from defense, shipbuilding, and auto. We will continue to stand up for Canada, our workers, and our industries.' All in all, this trade shift could help American industrial companies, especially those bringing supply chains back home. Moreover, lower interest rates should help the sector by increasing construction and housing projects in 2025. On the other hand, falling mortgage rates will attract more homebuyers, creating demand for building materials and equipment. Ken Fisher said, 'Investors are ignoring some of these positive developments,' pointing to an overlooked chance in housing-related businesses. Aerospace is also making a comeback through airlines' need to replace aging planes, driving demand for maintenance and parts, which demonstrates significant progress in aerospace-based companies. Meanwhile, only 25% of the $1.9 trillion in planned North American infrastructure projects have started construction, suggesting big growth ahead for equipment providers and construction companies. In 2025, industrial stocks look promising due to clean technology and automation advancements. As reported in Deloitte's 2025 Manufacturing Industry Outlook, over $31 billion went into clean-tech manufacturing facilities in 2024, showing a move toward sustainability. With decreasing interest rates and high demand for environmentally friendly tech, these investments are highly probable to drive growth in the industry. Ken Fisher noted made the following comment about the current situation: 'The fear is bigger than the problem can be. Single-period stock market comparisons are always iffy, but it may well be this goes something like the 1998 stock market correction leading to a 26% annual return.' His view suggests a more positive review of the industrial sector, predicting it will grow despite tariff concerns. With investments in automation, clean tech, and domestic production, these stocks have strong long-term potential even with short-term challenges. To compile this list, we reviewed Ken Fisher's SEC Q4 2024 13F filings. We picked 10 stocks with the highest upside potential from their current levels as of time of writing this article. Finally, we ranked the stocks in ascending order based on their highest analyst upside potential while also outlining hedge fund sentiment regarding these stocks, as per Insider Monkey's database of Q4 2024. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here). A biohazard waste disposal team safely transferring contaminated water for treatment. Number of Hedge Fund Holders: 17 Upside Potential: 104.36% Montrose Environmental Group, Inc. (NYSE:MEG) is a diversified environmental services provider operating across the United States, Canada, and internationally. It caters to a wide range of industries, including oil and gas, utilities, government entities, chemicals, aerospace, and renewable energy. It is one of the industrial stocks with strong upside potential, backed by its expanding client base and rising demand for environmental services. For the year ended December 31, 2024, Montrose Environmental Group, Inc. (NYSE:MEG) reported record revenue of $696.4 million, reflecting an 11.6% year-over-year increase, supported by 8.3% organic growth. Q4 2024 revenue grew 14.1% year-over-year to $189.1 million, while full-year consolidated adjusted EBITDA reached $95.8 million, representing 13.8% of revenue. Diluted adjusted net income per share rose to $0.29 in Q4 from $0.27 a year earlier. The company's leverage ratio also improved significantly, standing at 2.1x by year-end. Moreover, Montrose Environmental Group, Inc. (NYSE:MEG) maintained a high 96% revenue retention rate for the third consecutive year, with strong cross-selling initiatives contributing 53% to 2024 revenue. International revenue grew notably to around 20% of total sales. Segment-wise, Measurement and Analysis led performance with robust year-over-year growth and strong margin expansion. In addition, the audit committee's independent review addressed short-seller allegations, finding no material issues, thereby reinforcing investor confidence. Looking ahead, Montrose Environmental Group, Inc. (NYSE:MEG) is targeting steady organic growth, stronger operational efficiencies, and expanding its private sector and international client base. Ken Fisher owns approximately $5.2 million worth of shares in Montrose Environmental Group, Inc., representing about 0.002% of his total portfolio, highlighting his belief in the company's long-term prospects. Overall, MEG ranks 1st on our list of billionaire Ken Fisher's industrial stock picks with huge upside potential. While we acknowledge the potential of MEG, our conviction lies in the belief that certain AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than MEG but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
Yahoo
30-04-2025
- Business
- Yahoo
New EPA Regulations Could Challenge Montrose Environmental Group's (MEG) Growth
Conestoga Capital Advisors, an asset management company, released its first-quarter 2025 investor letter. A copy of the letter can be downloaded here. Equity markets started the year with a rally due to optimism about a strong economy and expectations of moderating inflation and lower interest rates. However, concerns over slowing earnings from major Technology companies, geopolitical tensions, and an upcoming announcement on tariffs led to a sharp decline in equities by the end of the first quarter. Investors sought safety, driving U.S. Treasury yields down. The Conestoga Small Cap Composite returned -11.35% (net) in the first quarter compared to the Russell 2000 Growth Index's -11.12% return. The Conestoga SMid Cap Composite returned -5.73% compared to the Russell 2500 Growth Index's -10.80% return. The Conestoga Micro-Cap Composite returned -8.24% vs the Russell Microcap Growth Index's return of -17.75%. Finally, the Conestoga Mid Cap Composite returned 0.96% (net), compared to the Russell Midcap Growth Index's -7.12% return. Please check the top 5 holdings of the fund for a better understanding of their best picks for 2025. In its first-quarter 2025 investor letter, Conestoga Capital Advisors highlighted stocks such as Montrose Environmental Group, Inc. (NYSE:MEG). Montrose Environmental Group, Inc. (NYSE:MEG) is an environmental services company. One-month return of Montrose Environmental Group, Inc. (NYSE:MEG) was 12.43%, and its shares lost 64.52% of their value over the last 52 weeks. On April 29, 2025, Montrose Environmental Group, Inc. (NYSE:MEG) stock closed at $15.29 per share with a market capitalization of $530.006 million. Conestoga Capital Advisors stated the following regarding Montrose Environmental Group, Inc. (NYSE:MEG) in its Q1 2025 investor letter: "Montrose Environmental Group, Inc. (NYSE:MEG) is a pure play environmental services company that offers end-to-end solutions for addressing environmental issues. Despite reporting a strong quarter and outlook which caused the stock to surge over 30% in late February, the stock remains under sustained pressure. Despite generating 80% of revenue from corporate customers, the business may be challenged, and growth prospects may be diminished under the new Administration as the Environmental Protection Agency (EPA) looks to roll back environmental regulations." A biohazard waste disposal team safely transferring contaminated water for treatment. Montrose Environmental Group, Inc. (NYSE:MEG) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 17 hedge fund portfolios held Montrose Environmental Group, Inc. (NYSE:MEG) at the end of the fourth quarter, compared to 18 in the third quarter. Montrose Environmental Group, Inc.'s (NYSE:MEG) fourth quarter revenue increased to a record $189.1 million; a 14.1% increase from comparable quarter. While we acknowledge the potential of Montrose Environmental Group, Inc. (NYSE:MEG) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock. In another article, we covered Montrose Environmental Group, Inc. (NYSE:MEG) and shared the list of best waste management stocks to invest in. In addition, please check out our hedge fund investor letters Q1 2025 page for more investor letters from hedge funds and other leading investors. READ NEXT: Michael Burry Is Selling These Stocks and A New Dawn Is Coming to US Stocks. Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
