METHANEX CORP (MEOH) Stock Fundamental Analysis
NASDAQ:MEOH - Nasdaq - CA59151K1084 - Common Stock - Currency: USD
Taking everything into account, MEOH scores 6 out of 10 in our fundamental rating. MEOH was compared to 85 industry peers in the Chemicals industry. MEOH has an excellent profitability rating, but there are some minor concerns on its financial health. MEOH may be a bit undervalued, certainly considering the very reasonable score on growth This makes MEOH very considerable for value investing!
1. Profitability
1.1 Basic Checks
MEOH had positive earnings in the past year.
In the past year MEOH had a positive cash flow from operations.
Of the past 5 years MEOH 4 years were profitable.
MEOH had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of MEOH (3.34%) is better than 65.48% of its industry peers.
Looking at the Return On Equity, with a value of 9.92%, MEOH is in the better half of the industry, outperforming 71.43% of the companies in the same industry.
The Return On Invested Capital of MEOH (5.91%) is better than 60.71% 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 6.84%.
The 3 year average ROIC (5.09%) for MEOH is below the current ROIC(5.91%), indicating increased profibility in the last year.
| 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's Profit Margin of 6.02% is fine compared to the rest of the industry. MEOH outperforms 72.62% of its industry peers.
MEOH's Profit Margin has improved in the last couple of years.
MEOH has a better Operating Margin (12.17%) than 66.67% of its industry peers.
In the last couple of years the Operating Margin of MEOH has grown nicely.
The Gross Margin of MEOH (22.88%) is comparable to the rest of the industry.
In the last couple of years the Gross Margin of MEOH has grown nicely.
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), MEOH is destroying value.
Compared to 1 year ago, MEOH has about the same amount of shares outstanding.
Compared to 5 years ago, MEOH has less shares outstanding
The debt/assets ratio for MEOH is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.73, we must say that MEOH is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 1.73, MEOH perfoms like the industry average, outperforming 42.86% of the companies in the same 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.
The Debt to FCF ratio of MEOH (4.10) is better than 83.33% of its industry peers.
MEOH has a Debt/Equity ratio of 1.38. This is a high value indicating a heavy dependency on external financing.
MEOH's Debt to Equity ratio of 1.38 is on the low side compared to the rest of the industry. MEOH is outperformed by 73.81% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.38 | ||
| Debt/FCF | 4.1 | ||
| Altman-Z | 1.73 |
ROIC/WACC0.75
WACC7.87%
2.3 Liquidity
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's Current ratio of 3.17 is amongst the best of the industry. MEOH outperforms 84.52% 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 has a Quick ratio of 2.52. This is amongst the best in the industry. MEOH outperforms 85.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.17 | ||
| Quick Ratio | 2.52 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 144.13% over the past year.
The Earnings Per Share has been growing by 31.95% on average over the past years. This is a very strong growth
Looking at the last year, MEOH shows a small growth in Revenue. The Revenue has grown by 2.77% in the last year.
MEOH shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.53% yearly.
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.
Based on estimates for the next years, MEOH will show a small growth in Revenue. The Revenue will grow by 7.97% on average per year.
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
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
Based on the Price/Earnings ratio of 8.54, the valuation of MEOH can be described as reasonable.
90.48% of the companies in the same industry are more expensive than MEOH, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of MEOH to the average of the S&P500 Index (26.34), we can say MEOH is valued rather cheaply.
MEOH is valuated reasonably with a Price/Forward Earnings ratio of 10.21.
Based on the Price/Forward Earnings ratio, MEOH is valued a bit cheaper than 72.62% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.03. MEOH is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.54 | ||
| Fwd PE | 10.21 |
4.2 Price Multiples
MEOH's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. MEOH is cheaper than 91.67% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of MEOH indicates a rather cheap valuation: MEOH is cheaper than 96.43% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.19 | ||
| EV/EBITDA | 5.49 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of MEOH may justify a higher PE ratio.
PEG (NY)5.52
PEG (5Y)0.27
EPS Next 2Y-0.9%
EPS Next 3Y3.07%
5. Dividend
5.1 Amount
MEOH has a Yearly Dividend Yield of 2.07%.
Compared to an average industry Dividend Yield of 3.75, MEOH has a dividend in line with its industry peers.
MEOH's Dividend Yield is comparable with the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.07% |
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 22.40% of its income as dividend. This is a sustainable payout ratio.
DP22.4%
EPS Next 2Y-0.9%
EPS Next 3Y3.07%
37.31
+0.05 (+0.13%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners82.14%
Inst Owner Change4.42%
Ins Owners0.68%
Ins Owner ChangeN/A
Market Cap2.51B
Analysts83.08
Price Target36.32 (-2.65%)
Short Float %1.21%
Short Ratio1.24
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.07% |
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)0.82%
PT rev (3m)-17.77%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-61.28%
EPS NY rev (1m)0%
EPS NY rev (3m)-12.73%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-14.96%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-6.53%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.54 | ||
| Fwd PE | 10.21 | ||
| P/S | 0.68 | ||
| P/FCF | 3.19 | ||
| P/OCF | 2.61 | ||
| P/B | 1.12 | ||
| P/tB | 1.12 | ||
| EV/EBITDA | 5.49 |
EPS(TTM)4.37
EY11.71%
EPS(NY)3.65
Fwd EY9.79%
FCF(TTM)11.69
FCFY31.32%
OCF(TTM)14.27
OCFY38.25%
SpS54.9
BVpS33.31
TBVpS33.31
PEG (NY)5.52
PEG (5Y)0.27
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 | 1.73 |
F-Score6
WACC7.87%
ROIC/WACC0.75
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%