METHANEX CORP (MX.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:MX - CA59151K1084 - Common Stock
67.11 CAD
+0.97 (+1.47%)
MX gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 27 industry peers in the Chemicals industry. MX scores excellent on profitability, but there are some minor concerns on its financial health. MX has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
- In the past year MX was profitable.
- MX had a positive operating cash flow in the past year.
- Of the past 5 years MX 4 years were profitable.
- In the past 5 years MX always reported a positive cash flow from operatings.
1.2 Ratios
- With an excellent Return On Assets value of 2.84%, MX belongs to the best 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 Return On Invested Capital of 5.46%. This is amongst the best in the industry. MX outperforms 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 has a Profit Margin of 5.99%. This is amongst the best in the industry. MX outperforms 88.89% of its industry peers.
- In the last couple of years the Profit Margin of MX has grown nicely.
- The Operating Margin of MX (14.45%) is better than 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.
- 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 1.61, we must say that MX is in the distress zone and has some risk of bankruptcy.
- With a decent Altman-Z score value of 1.61, MX is doing good in the industry, outperforming 66.67% of the companies in the same industry.
- The Debt to FCF ratio of MX is 3.90, which is a good value as it means it would take MX, 3.90 years of fcf income to pay off all of its debts.
- MX's Debt to FCF ratio of 3.90 is amongst the best of the industry. MX outperforms 96.30% of its industry peers.
- MX has a Debt/Equity ratio of 1.34. This is a high value indicating a heavy dependency on external 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 | 1.61 |
ROIC/WACC0.5
WACC10.82%
2.3 Liquidity
- MX has a Current Ratio of 2.09. This indicates that MX is financially healthy and has no problem in meeting its short term obligations.
- With a decent Current ratio value of 2.09, MX is doing good in the industry, outperforming 66.67% of the companies in the same industry.
- 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.
- MX's Quick ratio of 1.33 is fine compared to the rest of the industry. MX outperforms 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.09 | ||
| Quick Ratio | 1.33 |
3. Growth
3.1 Past
- MX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 19.00%, which is quite good.
- 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 -3.36% in the past year.
- 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
- Based on estimates for the next years, MX will show a decrease in Earnings Per Share. The EPS will decrease by -8.42% on average per year.
- The Revenue is expected to grow by 3.53% on average over the next years.
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
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 13.67, MX is valued correctly.
- 92.59% of the companies in the same industry are more expensive than MX, based on the Price/Earnings ratio.
- When comparing the Price/Earnings ratio of MX to the average of the S&P500 Index (27.21), we can say MX is valued slightly cheaper.
- With a Price/Forward Earnings ratio of 13.64, MX is valued correctly.
- 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 (24.26), we can say MX is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.67 | ||
| Fwd PE | 13.64 |
4.2 Price Multiples
- MX's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. MX is cheaper than 85.19% of the companies 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 | 4.06 | ||
| EV/EBITDA | 7.53 |
4.3 Compensation for Growth
- The excellent profitability rating of MX may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.43
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 1.81, 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 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
- MX pays out 24.20% of its income as dividend. This is a sustainable payout ratio.
- MX's earnings and Dividend Rate are 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 6 / 10 to METHANEX CORP (MX.CA). This can be considered as Fairly Valued.
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.