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This question already has an answer here:

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What is causing this effect? Same thing is happening when I try looptools -> circle.

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marked as duplicate by cegaton, David Jan 6 '17 at 16:34

This question has been asked before and already has an answer. If those answers do not fully address your question, please ask a new question.

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    $\begingroup$ Have you tried doing Apply Scale on your mesh? $\endgroup$ – Rich Sedman Jan 6 '17 at 11:10
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The problem is due to the mesh having been resized without applyig the new scale and the solution is to Apply Scale. This can be achieved by selecting the object (in Object mode), pressing Ctrl-A and selecting Scale.

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