METHANEX CORP (MX.CA) Stock Fundamental Analysis
TSX:MX - Toronto Stock Exchange - CA59151K1084 - Common Stock - Currency: CAD
Taking everything into account, MX scores 6 out of 10 in our fundamental rating. MX was compared to 32 industry peers in the Chemicals industry. MX has an excellent profitability rating, but there are some minor concerns on its financial health. MX has a bad growth rate and is valued cheaply. These ratings would make MX suitable for value investing!
1. Profitability
1.1 Basic Checks
MX had positive earnings in the past year.
MX had a positive operating cash flow in the past year.
MX had positive earnings in 4 of the past 5 years.
Each year in the past 5 years MX had a positive operating cash flow.
1.2 Ratios
MX has a Return On Assets of 2.49%. This is amongst the best in the industry. MX outperforms 84.38% of its industry peers.
MX has a better Return On Equity (7.83%) than 84.38% of its industry peers.
Looking at the Return On Invested Capital, with a value of 3.98%, MX is in the better half of the industry, outperforming 78.13% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for MX is below the industry average of 8.89%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.49% | ||
| ROE | 7.83% | ||
| ROIC | 3.98% |
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
Looking at the Profit Margin, with a value of 4.41%, MX belongs to the top of the industry, outperforming 84.38% of the companies in the same industry.
MX's Profit Margin has improved in the last couple of years.
MX's Operating Margin of 8.73% is fine compared to the rest of the industry. MX outperforms 75.00% of its industry peers.
MX's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 19.10%, MX perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
MX's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.73% | ||
| PM (TTM) | 4.41% | ||
| GM | 19.1% |
OM growth 3Y-18.5%
OM growth 5Y15.49%
PM growth 3Y-26.11%
PM growth 5Y10.52%
GM growth 3Y-13.84%
GM growth 5Y-4.27%
2. Health
2.1 Basic Checks
MX has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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 1.67. This is a bad value and indicates that MX is not financially healthy and even has some risk of bankruptcy.
With a decent Altman-Z score value of 1.67, MX is doing good in the industry, outperforming 62.50% of the companies in the same industry.
MX has a debt to FCF ratio of 5.74. This is a neutral value as MX would need 5.74 years to pay back of all of its debts.
MX has a better Debt to FCF ratio (5.74) than 81.25% of its industry peers.
MX has a Debt/Equity ratio of 1.48. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of MX (1.48) is worse than 71.88% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.48 | ||
| Debt/FCF | 5.74 | ||
| Altman-Z | 1.67 |
ROIC/WACC0.54
WACC7.4%
2.3 Liquidity
A Current Ratio of 2.62 indicates that MX has no problem at all paying its short term obligations.
MX's Current ratio of 2.62 is fine compared to the rest of the industry. MX outperforms 68.75% of its industry peers.
A Quick Ratio of 2.00 indicates that MX should not have too much problems paying its short term obligations.
MX has a Quick ratio of 2.00. This is in the better half of the industry: MX outperforms 71.88% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.62 | ||
| Quick Ratio | 2 |
3. Growth
3.1 Past
MX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 65.33%, which is quite impressive.
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.
The Revenue has decreased by -0.10% in the past year.
Measured over the past years, MX shows a small growth in Revenue. The Revenue has been growing by 2.53% on average per year.
EPS 1Y (TTM)65.33%
EPS 3Y-14.87%
EPS 5Y31.95%
EPS Q2Q%138.46%
Revenue 1Y (TTM)-0.1%
Revenue growth 3Y-5.55%
Revenue growth 5Y2.53%
Sales Q2Q%2.88%
3.2 Future
The Earnings Per Share is expected to grow by 1.28% on average over the next years.
Based on estimates for the next years, MX will show a decrease in Revenue. The Revenue will decrease by -3.40% on average per year.
EPS Next Y16.36%
EPS Next 2Y11.97%
EPS Next 3Y-4.56%
EPS Next 5Y1.28%
Revenue Next Year12.26%
Revenue Next 2Y9.04%
Revenue Next 3Y-3.4%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 11.39 indicates a reasonable valuation of MX.
MX's Price/Earnings ratio is rather cheap when compared to the industry. MX is cheaper than 93.75% of the companies in the same industry.
MX's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 29.35.
A Price/Forward Earnings ratio of 9.78 indicates a reasonable valuation of MX.
MX's Price/Forward Earnings ratio is rather cheap when compared to the industry. MX is cheaper than 90.63% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.10. MX is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.39 | ||
| Fwd PE | 9.78 |
4.2 Price Multiples
84.38% of the companies in the same industry are more expensive than MX, based on the Enterprise Value to EBITDA ratio.
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 | 5.07 | ||
| EV/EBITDA | 7.31 |
4.3 Compensation for Growth
MX's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of MX may justify a higher PE ratio.
MX's earnings are expected to decrease with -4.56% in the coming years. This may justify a cheaper valuation.
PEG (NY)0.7
PEG (5Y)0.36
EPS Next 2Y11.97%
EPS Next 3Y-4.56%
5. Dividend
5.1 Amount
MX has a Yearly Dividend Yield of 1.77%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 6.80, MX pays a bit more dividend than its industry peers.
MX's Dividend Yield is slightly below the S&P500 average, which is at 2.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.77% |
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 decreased its dividend in the last 3 years.
Dividend Growth(5Y)-12.05%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
30.41% of the earnings are spent on dividend by MX. This is a low number and sustainable payout ratio.
DP30.41%
EPS Next 2Y11.97%
EPS Next 3Y-4.56%
TSX:MX (3/7/2025, 7:00:00 PM)
60.71
+1.05 (+1.76%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners83.16%
Inst Owner ChangeN/A
Ins Owners0.64%
Ins Owner ChangeN/A
Market Cap4.09B
Analysts83.08
Price Target63.85 (5.17%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.77% |
Yearly Dividend1.06
Dividend Growth(5Y)-12.05%
DP30.41%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)66.65%
Min EPS beat(2)11.64%
Max EPS beat(2)121.65%
EPS beat(4)4
Avg EPS beat(4)51.21%
Min EPS beat(4)11.64%
Max EPS beat(4)121.65%
EPS beat(8)8
Avg EPS beat(8)49.62%
EPS beat(12)11
Avg EPS beat(12)34.38%
EPS beat(16)12
Avg EPS beat(16)24.88%
Revenue beat(2)1
Avg Revenue beat(2)-1.17%
Min Revenue beat(2)-8.31%
Max Revenue beat(2)5.98%
Revenue beat(4)2
Avg Revenue beat(4)-1.2%
Min Revenue beat(4)-8.31%
Max Revenue beat(4)5.98%
Revenue beat(8)5
Avg Revenue beat(8)0.94%
Revenue beat(12)6
Avg Revenue beat(12)0.28%
Revenue beat(16)9
Avg Revenue beat(16)2.14%
PT rev (1m)3.64%
PT rev (3m)15.07%
EPS NQ rev (1m)0%
EPS NQ rev (3m)48.39%
EPS NY rev (1m)4.73%
EPS NY rev (3m)7.34%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.88%
Revenue NY rev (1m)-1.15%
Revenue NY rev (3m)0.69%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.39 | ||
| Fwd PE | 9.78 | ||
| P/S | 0.77 | ||
| P/FCF | 5.07 | ||
| P/OCF | 3.87 | ||
| P/B | 1.36 | ||
| P/tB | 1.36 | ||
| EV/EBITDA | 7.31 |
EPS(TTM)5.33
EY8.78%
EPS(NY)6.21
Fwd EY10.22%
FCF(TTM)11.98
FCFY19.73%
OCF(TTM)15.68
OCFY25.83%
SpS79.13
BVpS44.53
TBVpS44.53
PEG (NY)0.7
PEG (5Y)0.36
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.49% | ||
| ROE | 7.83% | ||
| ROCE | 5.53% | ||
| ROIC | 3.98% | ||
| ROICexc | 4.7% | ||
| ROICexgc | 4.7% | ||
| OM | 8.73% | ||
| PM (TTM) | 4.41% | ||
| GM | 19.1% | ||
| FCFM | 15.14% |
ROA(3y)3.51%
ROA(5y)3.14%
ROE(3y)11.2%
ROE(5y)9.72%
ROIC(3y)4.64%
ROIC(5y)N/A
ROICexc(3y)5.37%
ROICexc(5y)N/A
ROICexgc(3y)5.37%
ROICexgc(5y)N/A
ROCE(3y)6.45%
ROCE(5y)N/A
ROICexcg growth 3Y-27.29%
ROICexcg growth 5Y14.09%
ROICexc growth 3Y-27.29%
ROICexc growth 5Y14.09%
OM growth 3Y-18.5%
OM growth 5Y15.49%
PM growth 3Y-26.11%
PM growth 5Y10.52%
GM growth 3Y-13.84%
GM growth 5Y-4.27%
F-Score5
Asset Turnover0.56
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.48 | ||
| Debt/FCF | 5.74 | ||
| Debt/EBITDA | 4.36 | ||
| Cap/Depr | 45.13% | ||
| Cap/Sales | 4.68% | ||
| Interest Coverage | 1.92 | ||
| Cash Conversion | 103.77% | ||
| Profit Quality | 343.39% | ||
| Current Ratio | 2.62 | ||
| Quick Ratio | 2 | ||
| Altman-Z | 1.67 |
F-Score5
WACC7.4%
ROIC/WACC0.54
Cap/Depr(3y)104.87%
Cap/Depr(5y)95.59%
Cap/Sales(3y)10.04%
Cap/Sales(5y)9.71%
Profit Quality(3y)193.63%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)65.33%
EPS 3Y-14.87%
EPS 5Y31.95%
EPS Q2Q%138.46%
EPS Next Y16.36%
EPS Next 2Y11.97%
EPS Next 3Y-4.56%
EPS Next 5Y1.28%
Revenue 1Y (TTM)-0.1%
Revenue growth 3Y-5.55%
Revenue growth 5Y2.53%
Sales Q2Q%2.88%
Revenue Next Year12.26%
Revenue Next 2Y9.04%
Revenue Next 3Y-3.4%
Revenue Next 5YN/A
EBIT growth 1Y23.2%
EBIT growth 3Y-23.02%
EBIT growth 5Y18.41%
EBIT Next Year203.76%
EBIT Next 3Y46.08%
EBIT Next 5Y34.53%
FCF growth 1Y165.85%
FCF growth 3Y-9.07%
FCF growth 5Y24.08%
OCF growth 1Y11.65%
OCF growth 3Y-9.49%
OCF growth 5Y7.42%