METHANEX CORP (MX.CA) Stock Fundamental Analysis
TSX:MX - Toronto Stock Exchange - CA59151K1084 - Common Stock - Currency: CAD
Overall MX gets a fundamental rating of 6 out of 10. We evaluated MX against 28 industry peers in the Chemicals industry. MX has an excellent profitability rating, but there are some minor concerns on its financial health. MX may be a bit undervalued, certainly considering the very reasonable score on growth These ratings could make MX a good candidate 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.
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
MX has a Return On Assets of 3.34%. This is in the better half of the industry: MX outperforms 78.57% of its industry peers.
Looking at the Return On Equity, with a value of 9.92%, MX is in the better half of the industry, outperforming 78.57% of the companies in the same industry.
The Return On Invested Capital of MX (5.38%) is better than 75.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for MX is below the industry average of 8.02%.
The last Return On Invested Capital (5.38%) for MX is above the 3 year average (4.64%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.34% | ||
| ROE | 9.92% | ||
| ROIC | 5.38% |
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 better Profit Margin (6.02%) than 78.57% of its industry peers.
MX's Profit Margin has improved in the last couple of years.
MX has a better Operating Margin (12.17%) than 75.00% of its industry peers.
In the last couple of years the Operating Margin of MX has grown nicely.
The Gross Margin of MX (22.88%) is comparable to the rest of the industry.
MX's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.17% | ||
| PM (TTM) | 6.02% | ||
| GM | 22.88% |
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
MX has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for MX remains at a similar level compared to 1 year ago.
MX has less shares outstanding than it did 5 years ago.
The debt/assets ratio for MX is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.70, we must say that MX is in the distress zone and has some risk of bankruptcy.
MX has a Altman-Z score (1.70) which is comparable to the rest of the industry.
MX has a debt to FCF ratio of 4.10. This is a neutral value as MX would need 4.10 years to pay back of all of its debts.
MX has a better Debt to FCF ratio (4.10) than 96.43% of its industry peers.
MX has a Debt/Equity ratio of 1.38. This is a high value indicating a heavy dependency on external financing.
MX's Debt to Equity ratio of 1.38 is on the low side compared to the rest of the industry. MX is outperformed by 67.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.38 | ||
| Debt/FCF | 4.1 | ||
| Altman-Z | 1.7 |
ROIC/WACC0.72
WACC7.5%
2.3 Liquidity
A Current Ratio of 3.17 indicates that MX has no problem at all paying its short term obligations.
MX has a better Current ratio (3.17) than 85.71% of its industry peers.
A Quick Ratio of 2.52 indicates that MX has no problem at all paying its short term obligations.
MX's Quick ratio of 2.52 is amongst the best of the industry. MX outperforms 89.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.17 | ||
| Quick Ratio | 2.52 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 144.13% over the past year.
The Earnings Per Share has been growing by 31.95% on average over the past years. This is a very strong growth
Looking at the last year, MX shows a small growth in Revenue. The Revenue has grown by 2.77% in the last 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)144.13%
EPS 3Y-14.87%
EPS 5Y31.95%
EPS Q2Q%100%
Revenue 1Y (TTM)2.77%
Revenue growth 3Y-5.55%
Revenue growth 5Y2.53%
Sales Q2Q%-2.13%
3.2 Future
MX is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 1.28% yearly.
Based on estimates for the next years, MX will show a small growth in Revenue. The Revenue will grow by 7.97% on average per year.
EPS Next Y1.55%
EPS Next 2Y-0.9%
EPS Next 3Y3.07%
EPS Next 5Y1.28%
Revenue Next Year4.92%
Revenue Next 2Y9.42%
Revenue Next 3Y7.97%
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.
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
The Price/Earnings ratio is 7.77, which indicates a rather cheap valuation of MX.
MX's Price/Earnings ratio is rather cheap when compared to the industry. MX is cheaper than 96.43% of the companies in the same industry.
When comparing the Price/Earnings ratio of MX to the average of the S&P500 Index (27.30), we can say MX is valued rather cheaply.
A Price/Forward Earnings ratio of 9.29 indicates a reasonable valuation of MX.
MX's Price/Forward Earnings ratio is rather cheap when compared to the industry. MX is cheaper than 92.86% of the companies in the same industry.
MX's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 21.76.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.77 | ||
| Fwd PE | 9.29 |
4.2 Price Multiples
92.86% of the companies in the same industry are more expensive than MX, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of MX indicates a rather cheap valuation: MX is cheaper than 100.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.9 | ||
| EV/EBITDA | 5.23 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates MX does not grow enough to justify the current Price/Earnings ratio.
MX has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)5.03
PEG (5Y)0.24
EPS Next 2Y-0.9%
EPS Next 3Y3.07%
5. Dividend
5.1 Amount
MX has a Yearly Dividend Yield of 2.25%. 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 5.59.
MX's Dividend Yield is comparable with the S&P500 average which is at 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.25% |
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
22.40% of the earnings are spent on dividend by MX. This is a low number and sustainable payout ratio.
DP22.4%
EPS Next 2Y-0.9%
EPS Next 3Y3.07%
TSX:MX (7/10/2025, 7:00:00 PM)
46.47
-0.51 (-1.09%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners82.14%
Inst Owner ChangeN/A
Ins Owners0.68%
Ins Owner ChangeN/A
Market Cap3.13B
Analysts83.08
Price Target49.78 (7.12%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.25% |
Yearly Dividend1.01
Dividend Growth(5Y)-12.05%
DP22.4%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)4.2%
Min EPS beat(2)-3.25%
Max EPS beat(2)11.64%
EPS beat(4)3
Avg EPS beat(4)37.4%
Min EPS beat(4)-3.25%
Max EPS beat(4)121.65%
EPS beat(8)7
Avg EPS beat(8)48.5%
EPS beat(12)10
Avg EPS beat(12)33.75%
EPS beat(16)12
Avg EPS beat(16)25.51%
Revenue beat(2)0
Avg Revenue beat(2)-11.55%
Min Revenue beat(2)-14.78%
Max Revenue beat(2)-8.31%
Revenue beat(4)1
Avg Revenue beat(4)-6.19%
Min Revenue beat(4)-14.78%
Max Revenue beat(4)5.98%
Revenue beat(8)4
Avg Revenue beat(8)-1.95%
Revenue beat(12)6
Avg Revenue beat(12)-0.71%
Revenue beat(16)8
Avg Revenue beat(16)0.3%
PT rev (1m)0%
PT rev (3m)-21.04%
EPS NQ rev (1m)2.98%
EPS NQ rev (3m)-60.13%
EPS NY rev (1m)0%
EPS NY rev (3m)-10.33%
Revenue NQ rev (1m)0.09%
Revenue NQ rev (3m)-14.89%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-6.53%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.77 | ||
| Fwd PE | 9.29 | ||
| P/S | 0.62 | ||
| P/FCF | 2.9 | ||
| P/OCF | 2.38 | ||
| P/B | 1.02 | ||
| P/tB | 1.02 | ||
| EV/EBITDA | 5.23 |
EPS(TTM)5.98
EY12.87%
EPS(NY)5
Fwd EY10.76%
FCF(TTM)16
FCFY34.43%
OCF(TTM)19.53
OCFY42.04%
SpS75.16
BVpS45.6
TBVpS45.6
PEG (NY)5.03
PEG (5Y)0.24
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.34% | ||
| ROE | 9.92% | ||
| ROCE | 7.48% | ||
| ROIC | 5.38% | ||
| ROICexc | 6.57% | ||
| ROICexgc | 6.57% | ||
| OM | 12.17% | ||
| PM (TTM) | 6.02% | ||
| GM | 22.88% | ||
| FCFM | 21.29% |
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 3Y0.81%
GM growth 5Y5.2%
F-Score6
Asset Turnover0.56
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.38 | ||
| Debt/FCF | 4.1 | ||
| Debt/EBITDA | 3.65 | ||
| Cap/Depr | 43.92% | ||
| Cap/Sales | 4.71% | ||
| Interest Coverage | 2.52 | ||
| Cash Conversion | 113.58% | ||
| Profit Quality | 353.77% | ||
| Current Ratio | 3.17 | ||
| Quick Ratio | 2.52 | ||
| Altman-Z | 1.7 |
F-Score6
WACC7.5%
ROIC/WACC0.72
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)144.13%
EPS 3Y-14.87%
EPS 5Y31.95%
EPS Q2Q%100%
EPS Next Y1.55%
EPS Next 2Y-0.9%
EPS Next 3Y3.07%
EPS Next 5Y1.28%
Revenue 1Y (TTM)2.77%
Revenue growth 3Y-5.55%
Revenue growth 5Y2.53%
Sales Q2Q%-2.13%
Revenue Next Year4.92%
Revenue Next 2Y9.42%
Revenue Next 3Y7.97%
Revenue Next 5YN/A
EBIT growth 1Y81.21%
EBIT growth 3Y-23.02%
EBIT growth 5Y18.41%
EBIT Next Year178.09%
EBIT Next 3Y49.75%
EBIT Next 5Y34.53%
FCF growth 1Y207.66%
FCF growth 3Y-9.07%
FCF growth 5Y24.08%
OCF growth 1Y16.7%
OCF growth 3Y-9.49%
OCF growth 5Y7.42%