METHANEX CORP (MEOH) Stock Fundamental Analysis
NASDAQ:MEOH - Nasdaq - CA59151K1084 - Common Stock - Currency: USD
Overall MEOH gets a fundamental rating of 6 out of 10. We evaluated MEOH against 85 industry peers in the Chemicals industry. MEOH scores excellent on profitability, but there are some minor concerns on its financial health. MEOH may be a bit undervalued, certainly considering the very reasonable score on growth With these ratings, MEOH could be worth investigating further for value investing!.
1. Profitability
1.1 Basic Checks
In the past year MEOH was profitable.
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
With a decent Return On Assets value of 3.34%, MEOH is doing good in the industry, outperforming 67.06% of the companies in the same industry.
MEOH has a Return On Equity of 9.92%. This is in the better half of the industry: MEOH outperforms 72.94% of its industry peers.
MEOH's Return On Invested Capital of 5.91% is fine compared to the rest of the industry. MEOH outperforms 61.18% of its industry peers.
MEOH had an Average Return On Invested Capital over the past 3 years of 5.09%. This is in line with the industry average of 6.86%.
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 has a better Profit Margin (6.02%) than 74.12% of its industry peers.
In the last couple of years the Profit Margin of MEOH has grown nicely.
With a decent Operating Margin value of 12.17%, MEOH is doing good in 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.
With a Gross Margin value of 22.88%, MEOH perfoms like the industry average, outperforming 42.35% of the companies in the same 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), MEOH is destroying value.
MEOH has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, MEOH has less shares outstanding
Compared to 1 year ago, MEOH has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.69, we must say that MEOH is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.69, MEOH is in line with its industry, outperforming 41.18% 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.
MEOH has a Debt to FCF ratio of 4.10. This is amongst the best in the industry. MEOH outperforms 82.35% 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 has a worse Debt to Equity ratio (1.38) than 72.94% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.38 | ||
| Debt/FCF | 4.1 | ||
| Altman-Z | 1.69 |
ROIC/WACC0.76
WACC7.76%
2.3 Liquidity
A Current Ratio of 3.17 indicates that MEOH has no problem at all paying its short term obligations.
MEOH's Current ratio of 3.17 is amongst the best of the industry. MEOH outperforms 85.88% 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 better Quick ratio (2.52) than 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.
The Earnings Per Share has been growing by 31.95% on average over the past years. This is a very strong growth
The Revenue has been growing slightly by 2.77% in the past 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%-2.13%
3.2 Future
Based on estimates for the next years, MEOH will show a small growth in Earnings Per Share. The EPS will grow by 1.28% on average per year.
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 7.32, the valuation of MEOH can be described as very cheap.
MEOH's Price/Earnings ratio is rather cheap when compared to the industry. MEOH is cheaper than 91.76% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.25. MEOH is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 8.76, 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 82.35% of the companies in the same industry.
MEOH's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.15.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.32 | ||
| Fwd PE | 8.76 |
4.2 Price Multiples
MEOH's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. MEOH is cheaper than 91.76% of the companies in the same industry.
96.47% of the companies in the same industry are more expensive than MEOH, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.74 | ||
| EV/EBITDA | 5.12 |
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)4.74
PEG (5Y)0.23
EPS Next 2Y-0.9%
EPS Next 3Y3.07%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.31%, MEOH has a reasonable but not impressive dividend return.
The stock price of MEOH dropped by -25.89% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
MEOH's Dividend Yield is a higher than the industry average which is at 3.75.
MEOH's Dividend Yield is comparable with the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.31% |
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%
NASDAQ:MEOH (6/2/2025, 2:37:05 PM)
32
-0.64 (-1.96%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners83.16%
Inst Owner Change4.42%
Ins Owners0.64%
Ins Owner ChangeN/A
Market Cap2.16B
Analysts83.08
Price Target36.03 (12.59%)
Short Float %1.05%
Short Ratio1.08
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.31% |
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)-7.52%
PT rev (3m)-15.94%
EPS NQ rev (1m)-55.95%
EPS NQ rev (3m)-67.11%
EPS NY rev (1m)0%
EPS NY rev (3m)-12.73%
Revenue NQ rev (1m)-13.32%
Revenue NQ rev (3m)-15.01%
Revenue NY rev (1m)-3.12%
Revenue NY rev (3m)-6.55%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.32 | ||
| Fwd PE | 8.76 | ||
| P/S | 0.58 | ||
| P/FCF | 2.74 | ||
| P/OCF | 2.24 | ||
| P/B | 0.96 | ||
| P/tB | 0.96 | ||
| EV/EBITDA | 5.12 |
EPS(TTM)4.37
EY13.66%
EPS(NY)3.65
Fwd EY11.42%
FCF(TTM)11.69
FCFY36.52%
OCF(TTM)14.27
OCFY44.6%
SpS54.9
BVpS33.31
TBVpS33.31
PEG (NY)4.74
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
WACC7.76%
ROIC/WACC0.76
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%