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. MEOH has an excellent profitability rating, but there are some minor concerns on its financial health. A decent growth rate in combination with a cheap valuation! Better keep an eye on MEOH. These ratings would make MEOH suitable 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.
MEOH had positive earnings in 4 of the past 5 years.
MEOH had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
MEOH has a better Return On Assets (3.34%) than 65.88% of its industry peers.
MEOH's Return On Equity of 9.92% is fine compared to the rest of the industry. MEOH outperforms 72.94% of its industry peers.
MEOH's Return On Invested Capital of 5.91% is in line compared to the rest of the industry. MEOH outperforms 60.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for MEOH is below the industry average of 7.11%.
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
MEOH has a Profit Margin of 6.02%. This is in the better half of the industry: MEOH outperforms 74.12% of its industry peers.
MEOH's Profit Margin has improved in the last couple of years.
MEOH's Operating Margin of 12.17% is fine compared to the rest of the industry. MEOH outperforms 67.06% of its industry peers.
MEOH's Operating Margin has improved in the last couple of years.
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.
MEOH has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, MEOH has a worse debt to assets ratio.
2.2 Solvency
MEOH has an Altman-Z score of 1.69. 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 of 1.69. This is in the lower half of the industry: MEOH underperforms 60.00% of its industry peers.
The Debt to FCF ratio of MEOH is 4.10, which is a neutral value as it means it would take MEOH, 4.10 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 4.10, MEOH belongs to the best of the industry, outperforming 82.35% of the companies in the same industry.
A Debt/Equity ratio of 1.38 is on the high side and indicates that MEOH has dependencies on debt financing.
The Debt to Equity ratio of MEOH (1.38) is worse than 75.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.38 | ||
| Debt/FCF | 4.1 | ||
| Altman-Z | 1.69 |
ROIC/WACC0.77
WACC7.67%
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 87.06% of its industry peers.
MEOH has a Quick Ratio of 2.52. This indicates that MEOH is financially healthy and has no problem in meeting its short term obligations.
MEOH's Quick ratio of 2.52 is amongst the best of the industry. MEOH outperforms 87.06% 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.
Measured over the past years, MEOH shows a very strong growth in Earnings Per Share. The EPS has been growing by 31.95% on average per year.
Looking at the last year, MEOH shows a small growth in Revenue. The Revenue has grown by 2.77% in the last year.
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%-2.18%
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.
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
The Price/Earnings ratio is 7.42, which indicates a rather cheap valuation of MEOH.
Based on the Price/Earnings ratio, MEOH is valued cheaper than 90.59% of the companies in the same industry.
When comparing the Price/Earnings ratio of MEOH to the average of the S&P500 Index (24.21), we can say MEOH is valued rather cheaply.
A Price/Forward Earnings ratio of 8.88 indicates a reasonable valuation of MEOH.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MEOH indicates a somewhat cheap valuation: MEOH is cheaper than 77.65% of the companies listed in the same industry.
MEOH is valuated cheaply when we compare the Price/Forward Earnings ratio to 20.44, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.42 | ||
| Fwd PE | 8.88 |
4.2 Price Multiples
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 95.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.78 | ||
| EV/EBITDA | 5.11 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
MEOH has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)4.8
PEG (5Y)0.23
EPS Next 2Y-0.9%
EPS Next 3Y3.07%
5. Dividend
5.1 Amount
MEOH has a Yearly Dividend Yield of 2.35%. Purely for dividend investing, there may be better candidates out there.
In the last 3 months the price of MEOH has falen by -35.97%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
MEOH's Dividend Yield is a higher than the industry average which is at 3.82.
MEOH's Dividend Yield is comparable with the S&P500 average which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.35% |
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 decreased its dividend in the last 3 years.
Dividend Growth(5Y)-12.05%
Div Incr Years2
Div Non Decr Years2
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%
32.44
+0.12 (+0.37%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners83.16%
Inst Owner Change2.87%
Ins Owners0.64%
Ins Owner ChangeN/A
Market Cap2.19B
Analysts83.08
Price Target36.03 (11.07%)
Short Float %1.26%
Short Ratio1.47
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.35% |
Yearly Dividend0.74
Dividend Growth(5Y)-12.05%
DP22.4%
Div Incr Years2
Div Non Decr Years2
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)-11.57%
Min Revenue beat(2)-14.83%
Max Revenue beat(2)-8.31%
Revenue beat(4)1
Avg Revenue beat(4)-6.19%
Min Revenue beat(4)-14.83%
Max Revenue beat(4)5.98%
Revenue beat(8)4
Avg Revenue beat(8)-1.96%
Revenue beat(12)6
Avg Revenue beat(12)-0.71%
Revenue beat(16)8
Avg Revenue beat(16)0.3%
PT rev (1m)-17.81%
PT rev (3m)-15.94%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-25.34%
EPS NY rev (1m)-10.33%
EPS NY rev (3m)-8.6%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.95%
Revenue NY rev (1m)-6.53%
Revenue NY rev (3m)-7.61%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.42 | ||
| Fwd PE | 8.88 | ||
| P/S | 0.59 | ||
| P/FCF | 2.78 | ||
| P/OCF | 2.27 | ||
| P/B | 0.97 | ||
| P/tB | 0.97 | ||
| EV/EBITDA | 5.11 |
EPS(TTM)4.37
EY13.47%
EPS(NY)3.65
Fwd EY11.26%
FCF(TTM)11.69
FCFY36.03%
OCF(TTM)14.27
OCFY43.99%
SpS54.9
BVpS33.31
TBVpS33.31
PEG (NY)4.8
PEG (5Y)0.23
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 | 1.69 |
F-Score6
WACC7.67%
ROIC/WACC0.77
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%-2.18%
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 Year219.64%
EBIT Next 3Y49.53%
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%