METHANEX CORP (MEOH) Stock Fundamental Analysis
NASDAQ:MEOH - Nasdaq - CA59151K1084 - Common Stock
We assign a fundamental rating of 4 out of 10 to MEOH. MEOH was compared to 85 industry peers in the Chemicals industry. MEOH has a medium profitability rating, but doesn't score so well on its financial health evaluation. MEOH has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
MEOH had positive earnings in the past year.
MEOH had a positive operating cash flow in the past year.
Of the past 5 years MEOH 4 years were profitable.
MEOH had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of MEOH (2.35%) is comparable to the rest of the industry.
MEOH has a better Return On Equity (7.61%) than 62.65% of its industry peers.
MEOH has a Return On Invested Capital (4.29%) which is comparable to the rest of the industry.
MEOH had an Average Return On Invested Capital over the past 3 years of 8.26%. This is in line with the industry average of 6.57%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.35% | ||
| ROE | 7.61% | ||
| ROIC | 4.29% |
ROA(3y)5.32%
ROA(5y)2.98%
ROE(3y)18.14%
ROE(5y)9.48%
ROIC(3y)8.26%
ROIC(5y)N/A
1.3 Margins
The Profit Margin of MEOH (4.13%) is comparable to the rest of the industry.
MEOH's Profit Margin has declined in the last couple of years.
The Operating Margin of MEOH (6.78%) is comparable to the rest of the industry.
MEOH's Operating Margin has declined in the last couple of years.
The Gross Margin of MEOH (17.48%) is worse than 69.88% of its industry peers.
MEOH's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.78% | ||
| PM (TTM) | 4.13% | ||
| GM | 17.48% |
OM growth 3YN/A
OM growth 5Y-17.49%
PM growth 3YN/A
PM growth 5Y-18.1%
GM growth 3Y6.19%
GM growth 5Y-1.44%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so MEOH is still creating some value.
The number of shares outstanding for MEOH has been reduced compared to 1 year ago.
MEOH has less shares outstanding than it did 5 years ago.
The debt/assets ratio for MEOH is higher compared to a year ago.
2.2 Solvency
MEOH has an Altman-Z score of 1.56. This is a bad value and indicates that MEOH is not financially healthy and even has some risk of bankruptcy.
MEOH's Altman-Z score of 1.56 is on the low side compared to the rest of the industry. MEOH is outperformed by 66.27% of its industry peers.
MEOH has a debt to FCF ratio of 6.58. This is a slightly negative value and a sign of low solvency as MEOH would need 6.58 years to pay back of all of its debts.
The Debt to FCF ratio of MEOH (6.58) is better than 63.86% of its industry peers.
A Debt/Equity ratio of 1.27 is on the high side and indicates that MEOH has dependencies on debt financing.
MEOH has a Debt to Equity ratio of 1.27. This is in the lower half of the industry: MEOH underperforms 77.11% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.27 | ||
| Debt/FCF | 6.58 | ||
| Altman-Z | 1.56 |
ROIC/WACC0.54
WACC7.95%
2.3 Liquidity
MEOH has a Current Ratio of 1.34. This is a normal value and indicates that MEOH is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of MEOH (1.34) is worse than 80.72% of its industry peers.
A Quick Ratio of 1.01 indicates that MEOH should not have too much problems paying its short term obligations.
MEOH has a Quick ratio of 1.01. This is in the lower half of the industry: MEOH underperforms 67.47% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.34 | ||
| Quick Ratio | 1.01 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 21.95% over the past year.
MEOH shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -19.96% yearly.
Looking at the last year, MEOH shows a decrease in Revenue. The Revenue has decreased by -2.48% in the last year.
The Revenue has been decreasing by -3.64% on average over the past years.
EPS 1Y (TTM)21.95%
EPS 3YN/A
EPS 5Y-19.96%
EPS Q2Q%5950%
Revenue 1Y (TTM)-2.48%
Revenue growth 3Y12%
Revenue growth 5Y-3.64%
Sales Q2Q%13.58%
3.2 Future
MEOH is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.71% yearly.
MEOH is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.93% yearly.
EPS Next Y53.2%
EPS Next 2Y33.87%
EPS Next 3Y29.86%
EPS Next 5Y11.71%
Revenue Next Year4.11%
Revenue Next 2Y8.5%
Revenue Next 3Y7.87%
Revenue Next 5Y7.93%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
MEOH is valuated correctly with a Price/Earnings ratio of 16.95.
67.47% of the companies in the same industry are more expensive than MEOH, based on the Price/Earnings ratio.
MEOH is valuated rather cheaply when we compare the Price/Earnings ratio to 28.29, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 12.61, which indicates a correct valuation of MEOH.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MEOH indicates a somewhat cheap valuation: MEOH is cheaper than 73.49% of the companies listed in the same industry.
MEOH's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.95 | ||
| Fwd PE | 12.61 |
4.2 Price Multiples
71.08% of the companies in the same industry are more expensive than MEOH, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, MEOH is valued cheaper than 90.36% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.58 | ||
| EV/EBITDA | 8.96 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
MEOH's earnings are expected to grow with 29.86% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.32
PEG (5Y)N/A
EPS Next 2Y33.87%
EPS Next 3Y29.86%
5. Dividend
5.1 Amount
MEOH has a Yearly Dividend Yield of 1.39%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.26, MEOH has a dividend in line with its industry peers.
MEOH's Dividend Yield is slightly below the S&P500 average, which is at 2.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.39% |
5.2 History
The dividend of MEOH decreases each year by -11.24%.
MEOH has paid a dividend for at least 10 years, which is a reliable track record.
The dividend of MEOH decreased in the last 3 years.
Dividend Growth(5Y)-11.24%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
MEOH pays out 32.72% of its income as dividend. This is a sustainable payout ratio.
DP32.72%
EPS Next 2Y33.87%
EPS Next 3Y29.86%
METHANEX CORP
NASDAQ:MEOH (1/21/2025, 8:13:45 PM)
After market: 51 +0.16 (+0.31%)50.84
+1.52 (+3.08%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners82.72%
Inst Owner Change0%
Ins Owners0.63%
Ins Owner ChangeN/A
Market Cap3.43B
Analysts83.08
Price Target42.03 (-17.33%)
Short Float %1.52%
Short Ratio3.02
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.39% |
Yearly Dividend0.72
Dividend Growth(5Y)-11.24%
DP32.72%
Div Incr Years2
Div Non Decr Years2
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)70.6%
Min EPS beat(2)19.55%
Max EPS beat(2)121.65%
EPS beat(4)4
Avg EPS beat(4)63.03%
Min EPS beat(4)19.55%
Max EPS beat(4)121.65%
EPS beat(8)8
Avg EPS beat(8)52.89%
EPS beat(12)10
Avg EPS beat(12)33.2%
EPS beat(16)12
Avg EPS beat(16)27%
Revenue beat(2)1
Avg Revenue beat(2)-0.82%
Min Revenue beat(2)-7.62%
Max Revenue beat(2)5.98%
Revenue beat(4)3
Avg Revenue beat(4)1.69%
Min Revenue beat(4)-7.62%
Max Revenue beat(4)5.98%
Revenue beat(8)5
Avg Revenue beat(8)1.89%
Revenue beat(12)6
Avg Revenue beat(12)0.89%
Revenue beat(16)10
Avg Revenue beat(16)3.89%
PT rev (1m)6.06%
PT rev (3m)0.39%
EPS NQ rev (1m)0%
EPS NQ rev (3m)33.36%
EPS NY rev (1m)0%
EPS NY rev (3m)31.04%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)3.61%
Revenue NY rev (1m)-0.31%
Revenue NY rev (3m)0.26%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.95 | ||
| Fwd PE | 12.61 | ||
| P/S | 0.93 | ||
| P/FCF | 7.58 | ||
| P/OCF | 5.26 | ||
| P/B | 1.71 | ||
| P/tB | 1.71 | ||
| EV/EBITDA | 8.96 |
EPS(TTM)3
EY5.9%
EPS(NY)4.03
Fwd EY7.93%
FCF(TTM)6.71
FCFY13.2%
OCF(TTM)9.67
OCFY19.02%
SpS54.8
BVpS29.71
TBVpS29.71
PEG (NY)0.32
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.35% | ||
| ROE | 7.61% | ||
| ROCE | 4.79% | ||
| ROIC | 4.29% | ||
| ROICexc | 4.75% | ||
| ROICexgc | 4.75% | ||
| OM | 6.78% | ||
| PM (TTM) | 4.13% | ||
| GM | 17.48% | ||
| FCFM | 12.24% |
ROA(3y)5.32%
ROA(5y)2.98%
ROE(3y)18.14%
ROE(5y)9.48%
ROIC(3y)8.26%
ROIC(5y)N/A
ROICexc(3y)9.79%
ROICexc(5y)N/A
ROICexgc(3y)9.79%
ROICexgc(5y)N/A
ROCE(3y)9.23%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5Y-25.79%
ROICexc growth 3YN/A
ROICexc growth 5Y-25.79%
OM growth 3YN/A
OM growth 5Y-17.49%
PM growth 3YN/A
PM growth 5Y-18.1%
GM growth 3Y6.19%
GM growth 5Y-1.44%
F-Score5
Asset Turnover0.57
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.27 | ||
| Debt/FCF | 6.58 | ||
| Debt/EBITDA | 3.93 | ||
| Cap/Depr | 50.42% | ||
| Cap/Sales | 5.4% | ||
| Interest Coverage | 1.49 | ||
| Cash Conversion | 100.91% | ||
| Profit Quality | 296.72% | ||
| Current Ratio | 1.34 | ||
| Quick Ratio | 1.01 | ||
| Altman-Z | 1.56 |
F-Score5
WACC7.95%
ROIC/WACC0.54
Cap/Depr(3y)112.36%
Cap/Depr(5y)105.39%
Cap/Sales(3y)10.33%
Cap/Sales(5y)10.75%
Profit Quality(3y)130.92%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)21.95%
EPS 3YN/A
EPS 5Y-19.96%
EPS Q2Q%5950%
EPS Next Y53.2%
EPS Next 2Y33.87%
EPS Next 3Y29.86%
EPS Next 5Y11.71%
Revenue 1Y (TTM)-2.48%
Revenue growth 3Y12%
Revenue growth 5Y-3.64%
Sales Q2Q%13.58%
Revenue Next Year4.11%
Revenue Next 2Y8.5%
Revenue Next 3Y7.87%
Revenue Next 5Y7.93%
EBIT growth 1Y-8.17%
EBIT growth 3YN/A
EBIT growth 5Y-20.49%
EBIT Next Year178.36%
EBIT Next 3Y66.56%
EBIT Next 5Y33.28%
FCF growth 1Y-18.37%
FCF growth 3Y21.09%
FCF growth 5Y-22.04%
OCF growth 1Y-37.35%
OCF growth 3Y12.71%
OCF growth 5Y-7.6%