METHANEX CORP (MX.CA) Stock Fundamental Analysis
Canada - TSX:MX - CA59151K1084 - Common Stock
53.99 CAD
-0.15 (-0.28%)
MX gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 29 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. A decent growth rate in combination with a cheap valuation! Better keep an eye on MX. With these ratings, MX could be worth investigating further for value investing!.
1. Profitability
1.1 Basic Checks
In the past year MX was profitable.
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 better Return On Assets (3.25%) than 79.31% of its industry peers.
MX has a Return On Equity of 9.60%. This is in the better half of the industry: MX outperforms 79.31% of its industry peers.
MX's Return On Invested Capital of 5.02% is fine compared to the rest of the industry. MX outperforms 75.86% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for MX is below the industry average of 8.46%.
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
MX has a Profit Margin of 7.04%. This is amongst the best in the industry. MX outperforms 93.10% of its industry peers.
MX's Profit Margin has improved in the last couple of years.
MX has a better Operating Margin (13.66%) than 75.86% of its industry peers.
In the last couple of years the Operating Margin of MX has grown nicely.
MX has a better Gross Margin (24.79%) than 62.07% 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
MX has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, MX has about the same amount of shares outstanding.
Compared to 5 years ago, MX has less shares outstanding
MX has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.48, we must say that MX is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.48, MX is in line with its industry, outperforming 55.17% of the companies in the same 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.
MX's Debt to Equity ratio of 1.37 is on the low side compared to the rest of the industry. MX is outperformed by 72.41% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.37 | ||
| Debt/FCF | 4.11 | ||
| Altman-Z | 1.48 |
ROIC/WACC0.63
WACC7.95%
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.
Looking at the Current ratio, with a value of 2.13, MX is in the better half of the industry, outperforming 65.52% of the companies in the same industry.
A Quick Ratio of 1.43 indicates that MX should not have too much problems paying its short term obligations.
MX has a better Quick ratio (1.43) 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
MX shows a decrease in Revenue. In the last year, the revenue decreased by -0.14%.
The Revenue has been growing slightly by 2.53% on average over the past years.
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
Based on estimates for the next years, MX will show a decrease in Earnings Per Share. The EPS will decrease by -8.24% on average per year.
Based on estimates for the next years, MX will show a small growth in Revenue. The Revenue will grow by 7.23% on average per year.
EPS Next Y-1.98%
EPS Next 2Y0.96%
EPS Next 3Y5.82%
EPS Next 5Y-8.24%
Revenue Next Year1.77%
Revenue Next 2Y6.17%
Revenue Next 3Y7.23%
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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 8.32 indicates a reasonable valuation of MX.
Compared to the rest of the industry, the Price/Earnings ratio of MX indicates a rather cheap valuation: MX is cheaper than 96.55% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.20. MX is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 10.35, the valuation of MX can be described as reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MX indicates a rather cheap valuation: MX is cheaper than 89.66% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.70. MX is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.32 | ||
| Fwd PE | 10.35 |
4.2 Price Multiples
MX's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. MX is cheaper than 86.21% 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 | 3.32 | ||
| EV/EBITDA | 7.12 |
4.3 Compensation for Growth
The decent profitability rating of MX may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.26
EPS Next 2Y0.96%
EPS Next 3Y5.82%
5. Dividend
5.1 Amount
MX has a Yearly Dividend Yield of 1.92%. 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 5.85.
MX's Dividend Yield is comparable with the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.92% |
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 19.80% 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.
DP19.8%
EPS Next 2Y0.96%
EPS Next 3Y5.82%
TSX:MX (9/17/2025, 7:00:00 PM)
53.99
-0.15 (-0.28%)
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 Cap4.18B
Analysts84.62
Price Target50.8 (-5.91%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.92% |
Yearly Dividend1.02
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)0%
PT rev (3m)2.05%
EPS NQ rev (1m)-11.7%
EPS NQ rev (3m)-46.95%
EPS NY rev (1m)-3.48%
EPS NY rev (3m)-3.48%
Revenue NQ rev (1m)0.1%
Revenue NQ rev (3m)-8.36%
Revenue NY rev (1m)-3.01%
Revenue NY rev (3m)-3.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.32 | ||
| Fwd PE | 10.35 | ||
| P/S | 0.85 | ||
| P/FCF | 3.32 | ||
| P/OCF | 2.8 | ||
| P/B | 1.16 | ||
| P/tB | 1.16 | ||
| EV/EBITDA | 7.12 |
EPS(TTM)6.49
EY12.02%
EPS(NY)5.22
Fwd EY9.66%
FCF(TTM)16.25
FCFY30.1%
OCF(TTM)19.26
OCFY35.67%
SpS63.61
BVpS46.68
TBVpS46.68
PEG (NY)N/A
PEG (5Y)0.26
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
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 Turnover0.46
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 | 1.48 |
F-Score6
WACC7.95%
ROIC/WACC0.63
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-1.98%
EPS Next 2Y0.96%
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 Year1.77%
Revenue Next 2Y6.17%
Revenue Next 3Y7.23%
Revenue Next 5YN/A
EBIT growth 1Y139.36%
EBIT growth 3Y-23.02%
EBIT growth 5Y18.41%
EBIT Next Year178.09%
EBIT Next 3Y49.75%
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%