METHANEX CORP (MX.CA) Stock Fundamental Analysis
Canada - TSX:MX - CA59151K1084 - Common Stock
48.08 CAD
-1.18 (-2.4%)
We assign a fundamental rating of 6 out of 10 to MX. MX was compared to 29 industry peers in the Chemicals industry. MX has an excellent profitability rating, but there are some minor concerns on its financial health. MX scores decently on growth, while it is valued quite cheap. This could make an interesting combination. 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.
Each year in the past 5 years MX had a positive operating cash flow.
1.2 Ratios
MX has a better Return On Assets (3.25%) than 82.76% of its industry peers.
MX has a better Return On Equity (9.60%) than 82.76% of its industry peers.
The Return On Invested Capital of MX (5.02%) is better than 79.31% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for MX is below the industry average of 7.93%.
The 3 year average ROIC (4.64%) for MX is below the current ROIC(5.02%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.25% | ||
| ROE | 9.6% | ||
| ROIC | 5.02% |
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 7.04%, MX belongs to the top of the industry, outperforming 93.10% of the companies in the same industry.
In the last couple of years the Profit Margin of MX has grown nicely.
With a decent Operating Margin value of 13.66%, MX is doing good in the industry, outperforming 79.31% of the companies in the same industry.
MX's Operating Margin has improved in the last couple of years.
MX has a Gross Margin of 24.79%. This is in the better half of the industry: MX outperforms 65.52% of its industry peers.
MX's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.66% | ||
| PM (TTM) | 7.04% | ||
| GM | 24.79% |
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.
The number of shares outstanding for MX remains at a similar level compared to 1 year ago.
Compared to 5 years ago, MX has less shares outstanding
The debt/assets ratio for MX is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.43, we must say that MX is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of MX (1.43) is comparable to the rest of the industry.
The Debt to FCF ratio of MX is 4.11, which is a neutral value as it means it would take MX, 4.11 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of MX (4.11) is better than 96.55% of its industry peers.
A Debt/Equity ratio of 1.37 is on the high side and indicates that MX has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.37, MX is doing worse than 68.97% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.37 | ||
| Debt/FCF | 4.11 | ||
| Altman-Z | 1.43 |
ROIC/WACC0.67
WACC7.44%
2.3 Liquidity
MX has a Current Ratio of 2.13. This indicates that MX is financially healthy and has no problem in meeting its short term obligations.
MX's Current ratio of 2.13 is fine compared to the rest of the industry. MX outperforms 62.07% of its industry peers.
A Quick Ratio of 1.43 indicates that MX should not have too much problems paying its short term obligations.
The Quick ratio of MX (1.43) is better than 65.52% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.13 | ||
| Quick Ratio | 1.43 |
3. Growth
3.1 Past
MX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 160.77%, which is quite impressive.
The Earnings Per Share has been growing by 31.95% on average over the past years. This is a very strong growth
The Revenue has decreased by -0.14% in the past year.
MX shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.53% yearly.
EPS 1Y (TTM)160.77%
EPS 3Y-14.87%
EPS 5Y31.95%
EPS Q2Q%56.45%
Revenue 1Y (TTM)-0.14%
Revenue growth 3Y-5.55%
Revenue growth 5Y2.53%
Sales Q2Q%-13.37%
3.2 Future
The Earnings Per Share is expected to decrease by -8.24% on average over the next years.
The Revenue is expected to grow by 6.28% on average over the next years.
EPS Next Y-1.8%
EPS Next 2Y0.67%
EPS Next 3Y5.82%
EPS Next 5Y-8.24%
Revenue Next Year2.69%
Revenue Next 2Y5.98%
Revenue Next 3Y6.28%
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
A Price/Earnings ratio of 7.27 indicates a rather cheap valuation of MX.
MX's Price/Earnings ratio is rather cheap when compared to the industry. MX is cheaper than 96.55% of the companies in the same industry.
When comparing the Price/Earnings ratio of MX to the average of the S&P500 Index (27.00), we can say MX is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 9.11, the valuation of MX can be described as reasonable.
Based on the Price/Forward Earnings ratio, MX is valued cheaply inside the industry as 89.66% of the companies are valued more expensively.
MX's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.27 | ||
| Fwd PE | 9.11 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of MX indicates a rather cheap valuation: MX is cheaper than 89.66% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, MX is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.91 | ||
| EV/EBITDA | 6.69 |
4.3 Compensation for Growth
The excellent profitability rating of MX may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.23
EPS Next 2Y0.67%
EPS Next 3Y5.82%
5. Dividend
5.1 Amount
MX has a Yearly Dividend Yield of 2.10%. Purely for dividend investing, there may be better candidates out there.
MX's Dividend Yield is a higher than the industry average which is at 5.54.
Compared to an average S&P500 Dividend Yield of 2.31, MX has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.1% |
5.2 History
The dividend of MX decreases each year by -12.05%.
MX has been paying a dividend for at least 10 years, so it has 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
19.80% of the earnings are spent on dividend by MX. This is a low number and 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.
DP19.8%
EPS Next 2Y0.67%
EPS Next 3Y5.82%
TSX:MX (10/28/2025, 7:00:00 PM)
48.08
-1.18 (-2.4%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners67.17%
Inst Owner ChangeN/A
Ins Owners0.61%
Ins Owner ChangeN/A
Market Cap3.72B
Revenue(TTM)3.58B
Net Income(TTM)251.85M
Analysts84.62
Price Target52.43 (9.05%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.1% |
Yearly Dividend1.04
Dividend Growth(5Y)-12.05%
DP19.8%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)91.79%
Min EPS beat(2)-3.25%
Max EPS beat(2)186.83%
EPS beat(4)3
Avg EPS beat(4)79.22%
Min EPS beat(4)-3.25%
Max EPS beat(4)186.83%
EPS beat(8)7
Avg EPS beat(8)71.8%
EPS beat(12)11
Avg EPS beat(12)51.67%
EPS beat(16)12
Avg EPS beat(16)37.01%
Revenue beat(2)0
Avg Revenue beat(2)-11.51%
Min Revenue beat(2)-14.78%
Max Revenue beat(2)-8.23%
Revenue beat(4)1
Avg Revenue beat(4)-6.34%
Min Revenue beat(4)-14.78%
Max Revenue beat(4)5.98%
Revenue beat(8)3
Avg Revenue beat(8)-3.32%
Revenue beat(12)6
Avg Revenue beat(12)-1.24%
Revenue beat(16)7
Avg Revenue beat(16)-0.83%
PT rev (1m)3.21%
PT rev (3m)3.21%
EPS NQ rev (1m)-2.84%
EPS NQ rev (3m)-16.3%
EPS NY rev (1m)0%
EPS NY rev (3m)-3.29%
Revenue NQ rev (1m)0.5%
Revenue NQ rev (3m)-3.43%
Revenue NY rev (1m)0.91%
Revenue NY rev (3m)-2.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.27 | ||
| Fwd PE | 9.11 | ||
| P/S | 0.74 | ||
| P/FCF | 2.91 | ||
| P/OCF | 2.45 | ||
| P/B | 1.01 | ||
| P/tB | 1.01 | ||
| EV/EBITDA | 6.69 |
EPS(TTM)6.61
EY13.75%
EPS(NY)5.28
Fwd EY10.98%
FCF(TTM)16.55
FCFY34.41%
OCF(TTM)19.6
OCFY40.77%
SpS64.75
BVpS47.52
TBVpS47.52
PEG (NY)N/A
PEG (5Y)0.23
Graham Number84.06
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.25% | ||
| ROE | 9.6% | ||
| ROCE | 6.97% | ||
| ROIC | 5.02% | ||
| ROICexc | 5.39% | ||
| ROICexgc | 5.39% | ||
| OM | 13.66% | ||
| PM (TTM) | 7.04% | ||
| GM | 24.79% | ||
| FCFM | 25.55% |
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
ROICexgc growth 3Y-27.29%
ROICexgc 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 3Y0.81%
GM growth 5Y5.2%
F-Score6
Asset Turnover0.46
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.37 | ||
| Debt/FCF | 4.11 | ||
| Debt/EBITDA | 4.06 | ||
| Cap/Depr | 42.44% | ||
| Cap/Sales | 4.72% | ||
| Interest Coverage | 3.06 | ||
| Cash Conversion | 122.12% | ||
| Profit Quality | 362.87% | ||
| Current Ratio | 2.13 | ||
| Quick Ratio | 1.43 | ||
| Altman-Z | 1.43 |
F-Score6
WACC7.44%
ROIC/WACC0.67
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)160.77%
EPS 3Y-14.87%
EPS 5Y31.95%
EPS Q2Q%56.45%
EPS Next Y-1.8%
EPS Next 2Y0.67%
EPS Next 3Y5.82%
EPS Next 5Y-8.24%
Revenue 1Y (TTM)-0.14%
Revenue growth 3Y-5.55%
Revenue growth 5Y2.53%
Sales Q2Q%-13.37%
Revenue Next Year2.69%
Revenue Next 2Y5.98%
Revenue Next 3Y6.28%
Revenue Next 5YN/A
EBIT growth 1Y139.36%
EBIT growth 3Y-23.02%
EBIT growth 5Y18.41%
EBIT Next Year172.44%
EBIT Next 3Y50.66%
EBIT Next 5Y29.76%
FCF growth 1Y145.48%
FCF growth 3Y-9.07%
FCF growth 5Y24.08%
OCF growth 1Y18.33%
OCF growth 3Y-9.49%
OCF growth 5Y7.42%
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 of METHANEX CORP (MX.CA) stock?
ChartMill assigns a valuation rating of 8 / 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 valuation of METHANEX CORP based on its PE and PB ratios?
The Price/Earnings (PE) ratio for METHANEX CORP (MX.CA) is 7.27 and the Price/Book (PB) ratio is 1.01.
How financially healthy is METHANEX CORP?
The financial health rating of METHANEX CORP (MX.CA) is 5 / 10.