METHANEX CORP (MEOH) Stock Fundamental Analysis
NASDAQ:MEOH - CA59151K1084 - Common Stock
36.04 USD
+2.19 (+6.47%)
36.04 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to MEOH. MEOH was compared to 84 industry peers in the Chemicals industry. While MEOH belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. MEOH may be a bit undervalued, certainly considering the very reasonable score on growth
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.
In the past 5 years MEOH always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 3.25%, MEOH is in the better half of the industry, outperforming 67.86% of the companies in the same industry.
MEOH has a Return On Equity of 9.60%. This is in the better half of the industry: MEOH outperforms 77.38% of its industry peers.
MEOH has a better Return On Invested Capital (5.50%) than 61.90% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for MEOH is in line with the industry average of 6.43%.
The 3 year average ROIC (5.09%) for MEOH is below the current ROIC(5.50%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.25% | ||
| ROE | 9.6% | ||
| ROIC | 5.5% |
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 7.04%, MEOH is in the better half of the industry, outperforming 77.38% of the companies in the same industry.
In the last couple of years the Profit Margin of MEOH has grown nicely.
With a decent Operating Margin value of 13.66%, MEOH is doing good in the industry, outperforming 72.62% 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 (24.79%) which is in line with its industry peers.
MEOH'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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so MEOH is destroying value.
MEOH has about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for MEOH has been reduced compared to 5 years ago.
MEOH has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.45, we must say that MEOH is in the distress zone and has some risk of bankruptcy.
MEOH has a worse Altman-Z score (1.45) than 70.24% of its industry peers.
MEOH has a debt to FCF ratio of 4.11. This is a neutral value as MEOH would need 4.11 years to pay back of all of its debts.
MEOH has a Debt to FCF ratio of 4.11. This is amongst the best in the industry. MEOH outperforms 85.71% of its industry peers.
MEOH has a Debt/Equity ratio of 1.37. This is a high value indicating a heavy dependency on external financing.
MEOH's Debt to Equity ratio of 1.37 is on the low side compared to the rest of the industry. MEOH is outperformed by 72.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.37 | ||
| Debt/FCF | 4.11 | ||
| Altman-Z | 1.45 |
ROIC/WACC0.69
WACC8.02%
2.3 Liquidity
A Current Ratio of 2.13 indicates that MEOH has no problem at all paying its short term obligations.
MEOH has a Current ratio (2.13) which is comparable to the rest of the industry.
A Quick Ratio of 1.43 indicates that MEOH should not have too much problems paying its short term obligations.
MEOH has a Quick ratio of 1.43. This is comparable to the rest of the industry: MEOH outperforms 59.52% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.13 | ||
| Quick Ratio | 1.43 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 160.77% over the past year.
MEOH shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 31.95% yearly.
MEOH shows a decrease in Revenue. In the last year, the revenue decreased by -0.14%.
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)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%-13.4%
3.2 Future
Based on estimates for the next years, MEOH 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, MEOH 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 Year1.74%
Revenue Next 2Y6.22%
Revenue Next 3Y7.23%
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
With a Price/Earnings ratio of 7.64, the valuation of MEOH can be described as very cheap.
92.86% 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 27.24, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 9.50, which indicates a very decent valuation of MEOH.
MEOH's Price/Forward Earnings ratio is rather cheap when compared to the industry. MEOH is cheaper than 90.48% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.81. MEOH is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.64 | ||
| Fwd PE | 9.5 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MEOH is valued cheaper than 83.33% of the companies in the same industry.
MEOH's Price/Free Cash Flow ratio is rather cheap when compared to the industry. MEOH is cheaper than 98.81% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.05 | ||
| EV/EBITDA | 6.84 |
4.3 Compensation for Growth
The decent profitability rating of MEOH may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.24
EPS Next 2Y0.96%
EPS Next 3Y5.82%
5. Dividend
5.1 Amount
MEOH has a Yearly Dividend Yield of 2.25%.
MEOH's Dividend Yield is a higher than the industry average which is at 3.54.
Compared to an average S&P500 Dividend Yield of 2.34, MEOH has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.25% |
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
MEOH pays out 19.80% of its income as dividend. This is a sustainable payout ratio.
The Dividend Rate of MEOH 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%
36.04
+2.19 (+6.47%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners82.14%
Inst Owner Change-4.18%
Ins Owners0.68%
Ins Owner ChangeN/A
Market Cap2.79B
Analysts83.08
Price Target36.63 (1.64%)
Short Float %1.77%
Short Ratio1.84
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.25% |
Yearly Dividend0.74
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)-1.23%
Revenue beat(16)7
Avg Revenue beat(16)-0.83%
PT rev (1m)-0.95%
PT rev (3m)1.67%
EPS NQ rev (1m)-2.45%
EPS NQ rev (3m)-39.93%
EPS NY rev (1m)-3.48%
EPS NY rev (3m)-3.48%
Revenue NQ rev (1m)-4%
Revenue NQ rev (3m)-8.45%
Revenue NY rev (1m)-3.03%
Revenue NY rev (3m)-3.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.64 | ||
| Fwd PE | 9.5 | ||
| P/S | 0.78 | ||
| P/FCF | 3.05 | ||
| P/OCF | 2.57 | ||
| P/B | 1.06 | ||
| P/tB | 1.06 | ||
| EV/EBITDA | 6.84 |
EPS(TTM)4.72
EY13.1%
EPS(NY)3.79
Fwd EY10.52%
FCF(TTM)11.82
FCFY32.79%
OCF(TTM)14
OCFY38.85%
SpS46.25
BVpS33.94
TBVpS33.94
PEG (NY)N/A
PEG (5Y)0.24
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.25% | ||
| ROE | 9.6% | ||
| ROCE | 6.97% | ||
| ROIC | 5.5% | ||
| ROICexc | 5.91% | ||
| ROICexgc | 5.91% | ||
| 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)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 Turnover0.46
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 | 1.45 |
F-Score6
WACC8.02%
ROIC/WACC0.69
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%-13.4%
Revenue Next Year1.74%
Revenue Next 2Y6.22%
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%