METHANEX CORP (MX.CA) Stock Fundamental Analysis
Canada • Toronto Stock Exchange • TSX:MX • CA59151K1084
64.97 CAD
-1.04 (-1.58%)
Last: Jan 30, 2026, 07:00 PM
We assign a fundamental rating of 6 out of 10 to MX. MX was compared to 27 industry peers in the Chemicals industry. While MX belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. MX may be a bit undervalued, certainly considering the very reasonable score on growth This makes MX very considerable for value investing!
1. Profitability
1.1 Basic Checks
- In the past year MX was profitable.
- In the past year MX had a positive cash flow from operations.
- MX had positive earnings in 4 of the past 5 years.
- MX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- Looking at the Return On Assets, with a value of 2.84%, MX belongs to the top of the industry, outperforming 81.48% of the companies in the same industry.
- MX has a better Return On Equity (8.31%) than 85.19% of its industry peers.
- MX has a better Return On Invested Capital (5.46%) than 85.19% of its industry peers.
- MX had an Average Return On Invested Capital over the past 3 years of 4.64%. This is below the industry average of 7.57%.
- The 3 year average ROIC (4.64%) for MX is below the current ROIC(5.46%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.84% | ||
| ROE | 8.31% | ||
| ROIC | 5.46% |
ROA(3y)3.51%
ROA(5y)3.14%
ROE(3y)11.2%
ROE(5y)9.72%
ROIC(3y)4.64%
ROIC(5y)N/A
1.3 Margins
- MX's Profit Margin of 5.99% is amongst the best of the industry. MX outperforms 88.89% of its industry peers.
- In the last couple of years the Profit Margin of MX has grown nicely.
- MX's Operating Margin of 14.45% is amongst the best of the industry. MX outperforms 81.48% of its industry peers.
- In the last couple of years the Operating Margin of MX has grown nicely.
- Looking at the Gross Margin, with a value of 25.93%, MX is in the better half of the industry, outperforming 62.96% of the companies in the same industry.
- MX's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.45% | ||
| PM (TTM) | 5.99% | ||
| GM | 25.93% |
OM growth 3Y-18.5%
OM growth 5Y15.49%
PM growth 3Y-26.11%
PM growth 5Y10.52%
GM growth 3Y0.81%
GM growth 5Y5.2%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), MX is destroying value.
- MX has about the same amout of shares outstanding than it did 1 year ago.
- MX has less shares outstanding than it did 5 years ago.
- MX has a worse debt/assets ratio than last year.
2.2 Solvency
- MX has an Altman-Z score of 1.60. This is a bad value and indicates that MX is not financially healthy and even has some risk of bankruptcy.
- Looking at the Altman-Z score, with a value of 1.60, MX is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
- MX has a debt to FCF ratio of 3.90. This is a good value and a sign of high solvency as MX would need 3.90 years to pay back of all of its debts.
- With an excellent Debt to FCF ratio value of 3.90, MX belongs to the best of the industry, outperforming 96.30% of the companies in the same industry.
- A Debt/Equity ratio of 1.34 is on the high side and indicates that MX has dependencies on debt financing.
- MX has a Debt to Equity ratio of 1.34. This is in the lower half of the industry: MX underperforms 74.07% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.34 | ||
| Debt/FCF | 3.9 | ||
| Altman-Z | 1.6 |
ROIC/WACC0.51
WACC10.73%
2.3 Liquidity
- A Current Ratio of 2.09 indicates that MX has no problem at all paying its short term obligations.
- The Current ratio of MX (2.09) is better than 66.67% of its industry peers.
- MX has a Quick Ratio of 1.33. This is a normal value and indicates that MX is financially healthy and should not expect problems in meeting its short term obligations.
- The Quick ratio of MX (1.33) is better than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.09 | ||
| Quick Ratio | 1.33 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an nice 19.00% over the past year.
- Measured over the past years, MX shows a very strong growth in Earnings Per Share. The EPS has been growing by 31.95% on average per year.
- MX shows a decrease in Revenue. In the last year, the revenue decreased by -3.36%.
- The Revenue has been growing slightly by 2.53% on average over the past years.
EPS 1Y (TTM)19%
EPS 3Y-14.87%
EPS 5Y31.95%
EPS Q2Q%-95.04%
Revenue 1Y (TTM)-3.36%
Revenue growth 3Y-5.55%
Revenue growth 5Y2.53%
Sales Q2Q%-0.79%
3.2 Future
- The Earnings Per Share is expected to decrease by -8.42% on average over the next years.
- MX is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.53% yearly.
EPS Next Y-14.63%
EPS Next 2Y-1.98%
EPS Next 3Y3.13%
EPS Next 5Y-8.42%
Revenue Next Year-2.72%
Revenue Next 2Y4.64%
Revenue Next 3Y3.53%
Revenue Next 5YN/A
3.3 Evolution
- The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
- 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
- MX is valuated correctly with a Price/Earnings ratio of 13.45.
- 92.59% of the companies in the same industry are more expensive than MX, based on the Price/Earnings ratio.
- Compared to an average S&P500 Price/Earnings ratio of 28.32, MX is valued rather cheaply.
- Based on the Price/Forward Earnings ratio of 13.44, the valuation of MX can be described as correct.
- Based on the Price/Forward Earnings ratio, MX is valued cheaply inside the industry as 85.19% of the companies are valued more expensively.
- When comparing the Price/Forward Earnings ratio of MX to the average of the S&P500 Index (25.57), we can say MX is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.45 | ||
| Fwd PE | 13.44 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, MX is valued cheaply inside the industry as 85.19% of the companies are valued more expensively.
- MX's Price/Free Cash Flow ratio is rather cheap when compared to the industry. MX is cheaper than 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4 | ||
| EV/EBITDA | 7.47 |
4.3 Compensation for Growth
- The excellent profitability rating of MX may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.42
EPS Next 2Y-1.98%
EPS Next 3Y3.13%
5. Dividend
5.1 Amount
- MX has a Yearly Dividend Yield of 1.60%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 2.25, MX pays a bit more dividend than its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.83, MX has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.6% |
5.2 History
- The dividend of MX decreases each year by -12.05%.
- MX has paid a dividend for at least 10 years, which is a reliable track record.
- MX has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)-12.05%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
- MX pays out 24.20% of its income as dividend. This is a sustainable payout ratio.
- The Dividend Rate of MX has been decling, while earnings will also be declining. This means the current dividend is most likely not sustainable.
DP24.2%
EPS Next 2Y-1.98%
EPS Next 3Y3.13%
METHANEX CORP / MX.CA FAQ
What is the fundamental rating for MX stock?
ChartMill assigns a fundamental rating of 6 / 10 to MX.CA.
What is the valuation status for MX stock?
ChartMill assigns a valuation rating of 7 / 10 to METHANEX CORP (MX.CA). This can be considered as Undervalued.
What is the profitability of MX stock?
METHANEX CORP (MX.CA) has a profitability rating of 8 / 10.
What is the financial health of METHANEX CORP (MX.CA) stock?
The financial health rating of METHANEX CORP (MX.CA) is 5 / 10.
What is the earnings growth outlook for METHANEX CORP?
The Earnings per Share (EPS) of METHANEX CORP (MX.CA) is expected to decline by -14.63% in the next year.