METHANEX CORP (MEOH)
CA59151K1084 - Common Stock
We assign a fundamental rating of 3 out of 10 to MEOH. MEOH was compared to 84 industry peers in the Chemicals industry. While MEOH is still in line with the averages on profitability rating, there are concerns on its financial health. MEOH has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
MEOH had positive earnings in the past year.
MEOH had a positive operating cash flow in the past year.
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
Looking at the Return On Assets, with a value of 2.71%, MEOH is in line with its industry, outperforming 54.76% of the companies in the same industry.
With a decent Return On Equity value of 9.02%, MEOH is doing good in the industry, outperforming 66.67% of the companies in the same industry.
MEOH has a Return On Invested Capital (4.60%) which is in line with its industry peers.
MEOH had an Average Return On Invested Capital over the past 3 years of 8.26%. This is in line with the industry average of 7.44%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.71% | ||
| ROE | 9.02% | ||
| ROIC | 4.6% |
ROA(3y)5.32%
ROA(5y)2.98%
ROE(3y)18.14%
ROE(5y)9.48%
ROIC(3y)8.26%
ROIC(5y)N/A
1.3 Margins
MEOH has a Profit Margin (4.68%) which is comparable to the rest of the industry.
MEOH's Profit Margin has declined in the last couple of years.
The Operating Margin of MEOH (7.08%) is comparable to the rest of the industry.
MEOH's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 17.60%, MEOH is doing worse than 67.86% of the companies in the same industry.
In the last couple of years the Gross Margin of MEOH has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.08% | ||
| PM (TTM) | 4.68% | ||
| GM | 17.6% |
OM growth 3YN/A
OM growth 5Y-17.49%
PM growth 3YN/A
PM growth 5Y-18.1%
GM growth 3Y6.19%
GM growth 5Y-1.44%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so MEOH is still creating some value.
MEOH has less shares outstanding than it did 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
Based on the Altman-Z score of 1.52, we must say that MEOH is in the distress zone and has some risk of bankruptcy.
MEOH has a worse Altman-Z score (1.52) than 65.48% of its industry peers.
The Debt to FCF ratio of MEOH is 14.23, which is on the high side as it means it would take MEOH, 14.23 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 14.23, MEOH is in line with its industry, outperforming 51.19% of the companies in the same industry.
A Debt/Equity ratio of 1.34 is on the high side and indicates that MEOH has dependencies on debt financing.
MEOH has a worse Debt to Equity ratio (1.34) than 77.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.34 | ||
| Debt/FCF | 14.23 | ||
| Altman-Z | 1.52 |
ROIC/WACC0.61
WACC7.57%
2.3 Liquidity
MEOH has a Current Ratio of 1.14. This is a normal value and indicates that MEOH is financially healthy and should not expect problems in meeting its short term obligations.
MEOH has a worse Current ratio (1.14) than 90.48% of its industry peers.
A Quick Ratio of 0.81 indicates that MEOH may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.81, MEOH is doing worse than 83.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.14 | ||
| Quick Ratio | 0.81 |
3. Growth
3.1 Past
The earnings per share for MEOH have decreased strongly by -52.53% in the last year.
Measured over the past years, MEOH shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -19.96% on average per year.
Looking at the last year, MEOH shows a very negative growth in Revenue. The Revenue has decreased by -13.63% in the last year.
Measured over the past years, MEOH shows a decrease in Revenue. The Revenue has been decreasing by -3.64% on average per year.
EPS 1Y (TTM)-52.53%
EPS 3YN/A
EPS 5Y-19.96%
EPS growth Q2Q-28.77%
Revenue 1Y (TTM)-13.63%
Revenue growth 3Y12%
Revenue growth 5Y-3.64%
Revenue growth Q2Q-6.46%
3.2 Future
Based on estimates for the next years, MEOH will show a very strong growth in Earnings Per Share. The EPS will grow by 31.09% on average per year.
MEOH is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.93% yearly.
EPS Next Y25.08%
EPS Next 2Y47.43%
EPS Next 3Y44.53%
EPS Next 5Y31.09%
Revenue Next Year-0.29%
Revenue Next 2Y4.48%
Revenue Next 3Y3.1%
Revenue Next 5Y7.93%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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 21.83, which indicates a rather expensive current valuation of MEOH.
The rest of the industry has a similar Price/Earnings ratio as MEOH.
The average S&P500 Price/Earnings ratio is at 28.02. MEOH is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 17.45, which indicates a rather expensive current valuation of MEOH.
MEOH's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of MEOH to the average of the S&P500 Index (20.58), we can say MEOH is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.83 | ||
| Fwd PE | 17.45 |
4.2 Price Multiples
75.00% of the companies in the same industry are more expensive than MEOH, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, MEOH is valued a bit cheaper than the industry average as 70.24% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.63 | ||
| EV/EBITDA | 8.95 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
MEOH's earnings are expected to grow with 44.53% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.87
PEG (5Y)N/A
EPS Next 2Y47.43%
EPS Next 3Y44.53%
5. Dividend
5.1 Amount
MEOH has a Yearly Dividend Yield of 1.51%.
MEOH's Dividend Yield is comparable with the industry average which is at 3.14.
MEOH's Dividend Yield is slightly below the S&P500 average, which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.51% |
5.2 History
The dividend of MEOH decreases each year by -11.24%.
MEOH has been paying a dividend for at least 10 years, so it has a reliable track record.
The dividend of MEOH decreased in the last 3 years.
Dividend Growth(5Y)-11.24%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
MEOH pays out 28.36% of its income as dividend. This is a sustainable payout ratio.
DP28.36%
EPS Next 2Y47.43%
EPS Next 3Y44.53%
METHANEX CORP
NASDAQ:MEOH (5/6/2024, 7:14:03 PM)
After market: 49.12 0 (0%)49.12
+0.89 (+1.85%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap3.31B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.51% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(8)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.83 | ||
| Fwd PE | 17.45 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.87
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.71% | ||
| ROE | 9.02% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 7.08% | ||
| PM (TTM) | 4.68% | ||
| GM | 17.6% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.58
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.34 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.14 | ||
| Quick Ratio | 0.81 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-52.53%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y25.08%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-13.63%
Revenue growth 3Y12%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y