METHANEX CORP (NASDAQ:MEOH): good value for what you're paying.

Uncover the hidden value in METHANEX CORP (NASDAQ:MEOH) as our stock screening tool recommends it as an undervalued choice. MEOH maintains a robust financial position and offers an attractive pricing perspective. Let's dig deeper into the analysis.

Understanding MEOH's Valuation

ChartMill assigns a Valuation Rating to every stock. This score ranges from 0 to 10 and evaluates the different valuation aspects and compares the price to earnings and cash flows, while taking into account profitability and growth. MEOH scores a 7 out of 10:

• A Price/Earnings ratio of 7.40 indicates a rather cheap valuation of MEOH.
• 90.59% of the companies in the same industry are more expensive than MEOH, based on the Price/Earnings ratio.
• MEOH is valuated cheaply when we compare the Price/Earnings ratio to 24.29, which is the current average of the S&P500 Index.
• The Price/Forward Earnings ratio is 8.85, which indicates a very decent valuation of MEOH.
• Based on the Price/Forward Earnings ratio, MEOH is valued a bit cheaper than 75.29% of the companies in the same industry.
• MEOH is valuated cheaply when we compare the Price/Forward Earnings ratio to 20.42, which is the current average of the S&P500 Index.
• Based on the Enterprise Value to EBITDA ratio, MEOH is valued cheaply inside the industry as 89.41% of the companies are valued more expensively.
• MEOH's Price/Free Cash Flow ratio is rather cheap when compared to the industry. MEOH is cheaper than 96.47% of the companies in the same industry.
• The decent profitability rating of MEOH may justify a higher PE ratio.

A Closer Look at Profitability for MEOH

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For MEOH, the assigned 7 is a significant indicator of profitability:

• MEOH has a Return On Assets of 3.34%. This is in the better half of the industry: MEOH outperforms 65.88% of its industry peers.
• The Return On Equity of MEOH (9.92%) is better than 72.94% of its industry peers.
• The 3 year average ROIC (5.09%) for MEOH is below the current ROIC(5.91%), indicating increased profibility in the last year.
• The Profit Margin of MEOH (6.02%) is better than 74.12% of its industry peers.
• MEOH's Profit Margin has improved in the last couple of years.
• The Operating Margin of MEOH (12.17%) is better than 68.24% of its industry peers.
• In the last couple of years the Operating Margin of MEOH has grown nicely.
• MEOH's Gross Margin has improved in the last couple of years.

Health Analysis for MEOH

ChartMill assigns a Health Rating to every stock. This score ranges from 0 to 10 and evaluates the different health aspects like liquidity and solvency, both absolutely, but also relative to the industry peers. MEOH scores a 6 out of 10:

• MEOH has a better Debt to FCF ratio (4.10) than 82.35% of its industry peers.
• MEOH has a Current Ratio of 3.17. This indicates that MEOH is financially healthy and has no problem in meeting its short term obligations.
• MEOH has a Current ratio of 3.17. This is amongst the best in the industry. MEOH outperforms 87.06% of its industry peers.
• A Quick Ratio of 2.52 indicates that MEOH has no problem at all paying its short term obligations.
• MEOH has a better Quick ratio (2.52) than 88.24% of its industry peers.

Unpacking MEOH's Growth Rating

To evaluate a stock's growth potential, ChartMill utilizes a Growth Rating on a scale of 0 to 10. This comprehensive assessment considers various growth aspects, including historical and estimated EPS and revenue growth. MEOH has achieved a 5 out of 10:

• MEOH shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 144.13%, 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
• 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.

More Decent Value stocks can be found in our Decent Value screener.

For an up to date full fundamental analysis you can check the fundamental report of MEOH

Disclaimer

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.