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Meren Energy Inc (MER) Fair Value & Analysis

Energy · CA · Market cap C$1.3B

ME Meren Energy Inc MER · TO
PriceC$2.01
Fair ValueC$0.9945
Upside-50.5%
Quality43/100
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Weak Growth
Loss-making · -20.9% net margin
generates free cash flow
7.33% dividend yield
Mixed vs. peers (7/12)
Narrow moat 35/100
Evidence: High Range C$0.7990 – C$1.29 Share as image

Fair value as of: Jul 17, 2026

From 16 valuation models · updated 23 days ago

Share price −3.4% over the past month.

Below-average quality, and screening another 51% overvalued on our models.

What matters now

  • The price sits above even our optimistic bull case (C$1.29). The favourable scenario is already priced in.
  • Weak quality (43/100) and above fair value at the same time, the margin of safety is missing on both counts.
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Price vs Fair Value (5 years)

C$2.76 C$0.9203 Fair Value C$0.9945 May 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 17, 2026.

How to read this chart

60‑month range C$0.9203 – C$2.76 · fair‑value band C$0.7990 – C$1.29 · the C$2.01 price screens above the C$0.9945 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 17, 2026.

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Analysis

Meren Energy Inc (MER) currently trades at C$2.01, while our model-based Fair Value estimate is C$0.9945, implying the stock looks roughly 50.5% overvalued today. The Quality Score stands at 43/100 (below-average quality), in the Energy sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: high).

Over the trailing twelve months, Meren Energy Inc generated revenue of C$598M at a net margin of -20.9%. Revenue grew 49.6% year over year. It earns a return on equity of -15.4%. Net debt stands at C$162M. Fundamentals as of Jul 17, 2026

Our scenario range runs from C$0.7990 (bear case) to C$1.29 (bull case); at C$2.01, the current price sits above that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 20% below its 52-week high and 38% above its 52-week low, currently below its 200-day average. For context, the median of 10 Energy peers we cover trades at -26% fair-value upside, at -51%, MER screens richer than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model BearBaseBull Evidence
Highest evidence
Growth DCF C$4.86 C$6.43 C$8.33 72
Gordon GGM C$1.17 C$1.63 C$2.06 70
Rev-Margin DCF C$2.51 C$3.00 C$3.50 67
All 16 models by family
DCF Models
FCF DCF C$4.80 C$6.56 C$8.81 38
Owner Earnings C$2.80 C$3.78 C$5.04 31
5Y Revenue Exit C$2.51 C$3.01 C$3.57 39
5Y EBITDA Exit C$3.21 C$4.28 C$5.45 41
10Y Revenue Exit C$3.42 C$4.05 C$4.74 36
10Y EBITDA Exit C$3.84 C$4.84 C$6.02 37
Earnings-Based
EPV C$0.8600 C$0.9400 C$1.01 59
Dividend Discount
Gordon GGM C$1.17 C$1.63 C$2.06 70
DDM Multi-Stage C$1.17 C$1.58 C$1.98 61
Multiples
EV/EBIT C$1.31 C$1.67 C$2.02 53
EV/EBITDA C$2.37 C$3.07 C$3.78 54
EV/Revenue C$0.9700 C$1.27 C$1.57 43
Asset-Based
NCAV (Graham) C$0.5700 C$0.7600 C$1.13 50
Growth DCF
Growth DCF C$4.86 C$6.43 C$8.33 72
Rev-Margin DCF C$2.51 C$3.00 C$3.50 67
Economic Profit
ROIC Compounder C$0.8600 C$0.9400 C$1.01 67

Widest divergence: DCF Models (C$4.05) versus Asset-Based (C$0.7600). Highest evidence: Growth DCF (72).

Key figures & financial health

Revenue (TTM) C$598M
Revenue growth (YoY) +49.6%
Net margin -20.9%
Return on equity -15.4%
Free cash flow C$339M FY2025
Operating margin 24.6%
More key figures
EPS (TTM) C$-0.3100
Dividend yield 7.3%
Net debt C$162M FY2025

Figures from reported company fundamentals · as of Jul 17, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 43/100

Of which business quality 46 · Market factors (momentum, volatility) 57

Profitability 8
Margins and returns on capital today
Quality Growth 67
Are margins and returns improving?
Cashflow 100
Earnings quality: real cash, not paper profit
Fin. Strength 37
Balance sheet, leverage, solvency risk
Investment 67
Disciplined investing over empire-building
Low Volatility 76
Calm price path (market factor)
Momentum 44
Price trend over the last 3–12 months (market factor)
52W Momentum 56
Distance to the 52-week high (market factor)
Net Issuance 0
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

Meren Energy Inc., together with its subsidiaries, operates as an oil and gas exploration and production company in Nigeria, Namibia, South Africa, and Equatorial Guinea. The company holds interests in producing and development assets in deepwater Nigeria. It also has a portfolio of development and exploration assets in the west and south of Africa.

Full company description

Meren Energy Inc., together with its subsidiaries, operates as an oil and gas exploration and production company in Nigeria, Namibia, South Africa, and Equatorial Guinea. The company holds interests in producing and development assets in deepwater Nigeria. It also has a portfolio of development and exploration assets in the west and south of Africa. Meren Energy Inc. was formerly known as Africa Oil Corp. and changed its name to Meren Energy Inc. in May 2025. The company was incorporated in 1993 and is based in Vancouver, Canada.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Meren Energy Inc reported revenue of C$570M in FY2025 versus C$0 in FY2022. Reported net income was −C$32.2M in FY2025.

Growth Quality 12/100
Revenue growth is weak, negative or inconsistent.
Revenue
FY22 C$0
FY23 C$0
FY24 C$0
FY25 C$570M
Net income
FY21 C$191M
FY22 −C$60.3M
FY23 C$87.1K
FY24 −C$279K
FY25 −C$32.2M

MER screens 51% overvalued. Compare with CNOOC Limited →

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Cite: Fair Value Calculator (2026). "Meren Energy Inc Fair Value". https://www.fairvalue-calculator.com/stock/MER

Peer Group

Oil & Gas E&P · 315 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 43 · Below median
Fair Value upside −51% · Bottom 25%
Return on assets 4% · Above median
Net margin (TTM) -21% · Bottom 25%
Operating margin (TTM) 25% · Above median
Revenue growth 50% · Top 25%
Dividend yield (TTM) 7.3% · Top 25%

Valuation Multiples vs Oil & Gas E&P median · lower = cheaper

P/B 1.26× · Pricier than median
P/S (TTM) 1.62× · Cheaper than median
P/FCF 2.8× · Cheaper than 75% of peers
EV/EBITDA 2.1× · Cheaper than 75% of peers

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 0 · sector 14
FUTURE 100 · sector 0
PAST 0 · sector 0
HEALTH 0 · sector 87
DIVIDEND 100 · sector 66

VALUE 0: the price sits above our fair-value range.

Insider activity: 30/100

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

Oil & gas

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Oil & Gas E&P stocks, each showing price versus our Fair Value estimate (as of Jul 17, 2026).

Stock Price Fair Value vs Fair Value
CNOOC Limited 600938 ¥28.97 ¥32.55 +12%
ConocoPhillips explores for, COP $109.04 $91.79 -16%
Canadian Natural Resources Limited CNQ $42.86 $31.54 -26%
EOG Resources, Inc EOG $139.89 $130.19 -7%
Occidental Petroleum Corporation OXY $54.86 $30.68 -44%
Diamondback Energy, Inc FANG $183.39 $106.12 -42%
Devon Energy Corporation DVN $43.83 $27.06 -38%
Woodside Energy Group WDS A$30.46 A$20.71 -32%
EQT Corporation EQT $48.85 $42.85 -12%
Texas Pacific Land Corporation TPL $415.70 $79.20 -81%

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Frequently asked questions

Is Meren Energy Inc (MER) overvalued or undervalued?
As of Jul 17, 2026, our model estimates a fair value of C$0.9945 versus a price of C$2.01, about −51% (overvalued).
What is the fair value of MER?
Our model-based fair value for Meren Energy Inc is C$0.9945 (as of Jul 17, 2026), built from audited fundamentals. The current price is C$2.01.
What is the quality score of MER?
Meren Energy Inc has a Quality Score of 43/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Meren Energy Inc (MER)?
Meren Energy Inc reported trailing-twelve-month revenue of about C$598M (latest available figure, as of Jul 17, 2026).
What is the net profit margin of MER?
The net profit margin of Meren Energy Inc is about -20.9%, meaning it is currently running at a net loss. Based on the latest reported figures.
Does Meren Energy Inc pay a dividend?
Meren Energy Inc currently shows a dividend yield of about 6.46% relative to its recent price (as of Jul 17, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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