METHANEX CORP (MEOH) Stock Fundamental Analysis
NASDAQ:MEOH - Nasdaq - CA59151K1084 - Common Stock - Currency: USD
MEOH gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 85 industry peers in the Chemicals industry. While MEOH has a great profitability rating, there are some minor concerns on its financial health. MEOH is valued quite cheap, while showing a decent growth score. This is a good combination! This makes MEOH very considerable for value investing!
1. Profitability
1.1 Basic Checks
In the past year MEOH was profitable.
In the past year MEOH had a positive cash flow from operations.
Of the past 5 years MEOH 4 years were profitable.
Each year in the past 5 years MEOH had a positive operating cash flow.
1.2 Ratios
MEOH has a better Return On Assets (3.34%) than 67.06% of its industry peers.
With a decent Return On Equity value of 9.92%, MEOH is doing good in the industry, outperforming 71.76% of the companies in the same industry.
With a decent Return On Invested Capital value of 5.91%, MEOH is doing good in the industry, outperforming 61.18% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for MEOH is in line with the industry average of 6.83%.
The last Return On Invested Capital (5.91%) for MEOH is above the 3 year average (5.09%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.34% | ||
| ROE | 9.92% | ||
| ROIC | 5.91% |
ROA(3y)3.51%
ROA(5y)3.14%
ROE(3y)11.2%
ROE(5y)9.72%
ROIC(3y)5.09%
ROIC(5y)N/A
1.3 Margins
Looking at the Profit Margin, with a value of 6.02%, MEOH is in the better half of the industry, outperforming 72.94% of the companies in the same industry.
MEOH's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 12.17%, MEOH is in the better half of the industry, outperforming 67.06% of the companies in the same industry.
In the last couple of years the Operating Margin of MEOH has grown nicely.
MEOH has a Gross Margin (22.88%) which is comparable to the rest of the industry.
MEOH'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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so MEOH is destroying value.
The number of shares outstanding for MEOH remains at a similar level compared to 1 year ago.
The number of shares outstanding for MEOH has been reduced compared to 5 years ago.
The debt/assets ratio for MEOH is higher compared to a year ago.
2.2 Solvency
MEOH has an Altman-Z score of 1.70. This is a bad value and indicates that MEOH is not financially healthy and even has some risk of bankruptcy.
MEOH has a Altman-Z score (1.70) which is comparable to the rest of the industry.
MEOH has a debt to FCF ratio of 4.10. This is a neutral value as MEOH would need 4.10 years to pay back of all of its debts.
MEOH has a Debt to FCF ratio of 4.10. This is amongst the best in the industry. MEOH outperforms 83.53% of its industry peers.
A Debt/Equity ratio of 1.38 is on the high side and indicates that MEOH has dependencies on debt financing.
With a Debt to Equity ratio value of 1.38, MEOH is not doing good in the industry: 72.94% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.38 | ||
| Debt/FCF | 4.1 | ||
| Altman-Z | 1.7 |
ROIC/WACC0.74
WACC8.02%
2.3 Liquidity
A Current Ratio of 3.17 indicates that MEOH has no problem at all paying its short term obligations.
MEOH has a Current ratio of 3.17. This is amongst the best in the industry. MEOH outperforms 85.88% of its industry peers.
A Quick Ratio of 2.52 indicates that MEOH has no problem at all paying its short term obligations.
MEOH's Quick ratio of 2.52 is amongst the best of the industry. MEOH outperforms 85.88% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.17 | ||
| Quick Ratio | 2.52 |
3. Growth
3.1 Past
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
MEOH shows a small growth in Revenue. In the last year, the Revenue has grown by 2.77%.
Measured over the past years, MEOH 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
MEOH is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 1.28% yearly.
The Revenue is expected to grow by 7.97% on average over the next years.
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
With a Price/Earnings ratio of 7.84, the valuation of MEOH can be described as very cheap.
94.12% of the companies in the same industry are more expensive than MEOH, based on the Price/Earnings ratio.
MEOH's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.04.
MEOH is valuated reasonably with a Price/Forward Earnings ratio of 9.38.
Based on the Price/Forward Earnings ratio, MEOH is valued cheaper than 83.53% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 37.64. MEOH is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.84 | ||
| Fwd PE | 9.38 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of MEOH indicates a rather cheap valuation: MEOH is cheaper than 91.76% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, MEOH is valued cheaply inside the industry as 96.47% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.93 | ||
| EV/EBITDA | 5.19 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates MEOH does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of MEOH may justify a higher PE ratio.
PEG (NY)5.07
PEG (5Y)0.25
EPS Next 2Y-0.9%
EPS Next 3Y3.07%
5. Dividend
5.1 Amount
MEOH has a Yearly Dividend Yield of 2.26%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.63, MEOH pays a bit more dividend than its industry peers.
MEOH's Dividend Yield is comparable with the S&P500 average which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.26% |
5.2 History
The dividend of MEOH decreases each year by -12.05%.
MEOH has been paying a dividend for at least 10 years, so it has a reliable track record.
MEOH 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 MEOH. This is a low number and sustainable payout ratio.
DP22.4%
EPS Next 2Y-0.9%
EPS Next 3Y3.07%
34.27
+0.76 (+2.27%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners82.14%
Inst Owner Change0.15%
Ins Owners0.68%
Ins Owner ChangeN/A
Market Cap2.31B
Analysts83.08
Price Target36.98 (7.91%)
Short Float %1.35%
Short Ratio1.2
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.26% |
Yearly Dividend0.74
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)-6.18%
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)2.21%
PT rev (3m)-15.63%
EPS NQ rev (1m)2.98%
EPS NQ rev (3m)-54.64%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0.09%
Revenue NQ rev (3m)-13.25%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-6.53%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.84 | ||
| Fwd PE | 9.38 | ||
| P/S | 0.62 | ||
| P/FCF | 2.93 | ||
| P/OCF | 2.4 | ||
| P/B | 1.03 | ||
| P/tB | 1.03 | ||
| EV/EBITDA | 5.19 |
EPS(TTM)4.37
EY12.75%
EPS(NY)3.65
Fwd EY10.66%
FCF(TTM)11.69
FCFY34.1%
OCF(TTM)14.27
OCFY41.64%
SpS54.9
BVpS33.31
TBVpS33.31
PEG (NY)5.07
PEG (5Y)0.25
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.34% | ||
| ROE | 9.92% | ||
| ROCE | 7.48% | ||
| ROIC | 5.91% | ||
| ROICexc | 7.21% | ||
| ROICexgc | 7.21% | ||
| 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)5.09%
ROIC(5y)N/A
ROICexc(3y)5.89%
ROICexc(5y)N/A
ROICexgc(3y)5.89%
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
WACC8.02%
ROIC/WACC0.74
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%