METHANEX CORP (MEOH) Stock Fundamental Analysis
USA - NASDAQ:MEOH - CA59151K1084 - Common Stock
39.25 USD
-0.53 (-1.33%)
39.25 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to MEOH. MEOH was compared to 83 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 is valued quite cheap, while showing a decent growth score. This is a good combination!
1. Profitability
1.1 Basic Checks
In the past year MEOH was profitable.
MEOH had a positive operating cash flow in the past year.
MEOH had positive earnings in 4 of the past 5 years.
Each year in the past 5 years MEOH had a positive operating cash flow.
1.2 Ratios
The Return On Assets of MEOH (3.25%) is better than 67.47% of its industry peers.
Looking at the Return On Equity, with a value of 9.60%, MEOH is in the better half of the industry, outperforming 77.11% of the companies in the same industry.
MEOH's Return On Invested Capital of 5.50% is fine compared to the rest of the industry. MEOH outperforms 61.45% of its industry peers.
The Average Return On Invested Capital over the past 3 years for MEOH is in line with the industry average of 6.34%.
The last Return On Invested Capital (5.50%) for MEOH is above the 3 year average (5.09%), which is a sign of increasing profitability.
| 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 75.90% of the companies in the same industry.
MEOH's Profit Margin has improved in the last couple of years.
The Operating Margin of MEOH (13.66%) is better than 72.29% of its industry peers.
MEOH's Operating Margin has improved in the last couple of years.
MEOH's Gross Margin of 24.79% is in line compared to the rest of the industry. MEOH outperforms 45.78% of its industry peers.
In the last couple of years the Gross Margin of MEOH has grown nicely.
| 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.
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 1.48, 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 1.48, MEOH is doing worse than 67.47% of the companies in the same industry.
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.
Looking at the Debt to FCF ratio, with a value of 4.11, MEOH belongs to the top of the industry, outperforming 85.54% of the companies in the same industry.
MEOH has a Debt/Equity ratio of 1.37. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.37, MEOH is doing worse than 72.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.37 | ||
| Debt/FCF | 4.11 | ||
| Altman-Z | 1.48 |
ROIC/WACC0.67
WACC8.24%
2.3 Liquidity
A Current Ratio of 2.13 indicates that MEOH has no problem at all paying its short term obligations.
MEOH's Current ratio of 2.13 is in line compared to the rest of the industry. MEOH outperforms 56.63% of its industry peers.
A Quick Ratio of 1.43 indicates that MEOH should not have too much problems paying its short term obligations.
With a decent Quick ratio value of 1.43, MEOH is doing good in the industry, outperforming 60.24% of the companies in the same industry.
| 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.
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.
The Revenue has decreased by -0.14% in the past year.
The Revenue has been growing slightly by 2.53% on average over the past years.
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.
MEOH is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.23% yearly.
EPS Next Y-1.98%
EPS Next 2Y0.96%
EPS Next 3Y5.82%
EPS Next 5Y-8.24%
Revenue Next Year1.77%
Revenue Next 2Y6.17%
Revenue Next 3Y7.23%
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
The Price/Earnings ratio is 8.32, which indicates a very decent valuation of MEOH.
Based on the Price/Earnings ratio, MEOH is valued cheaply inside the industry as 89.16% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 27.30, MEOH is valued rather cheaply.
The Price/Forward Earnings ratio is 10.35, which indicates a very decent valuation of MEOH.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MEOH indicates a rather cheap valuation: MEOH is cheaper than 83.13% of the companies listed in the same industry.
MEOH is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.73, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.32 | ||
| Fwd PE | 10.35 |
4.2 Price Multiples
80.72% 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 cheaper than 97.59% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.32 | ||
| EV/EBITDA | 7.12 |
4.3 Compensation for Growth
MEOH has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.26
EPS Next 2Y0.96%
EPS Next 3Y5.82%
5. Dividend
5.1 Amount
MEOH has a Yearly Dividend Yield of 1.92%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.43, MEOH has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.38, MEOH has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.92% |
5.2 History
The dividend of MEOH decreases each year by -12.05%.
MEOH has paid a dividend for at least 10 years, which is 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%
39.25
-0.53 (-1.33%)
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 Cap3.04B
Analysts84.62
Price Target36.76 (-6.34%)
Short Float %1.91%
Short Ratio2.28
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.92% |
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)-0.12%
PT rev (3m)1.59%
EPS NQ rev (1m)-11.7%
EPS NQ rev (3m)-46.95%
EPS NY rev (1m)-3.48%
EPS NY rev (3m)-3.48%
Revenue NQ rev (1m)0.1%
Revenue NQ rev (3m)-8.36%
Revenue NY rev (1m)-3.01%
Revenue NY rev (3m)-3.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.32 | ||
| Fwd PE | 10.35 | ||
| P/S | 0.85 | ||
| P/FCF | 3.32 | ||
| P/OCF | 2.8 | ||
| P/B | 1.16 | ||
| P/tB | 1.16 | ||
| EV/EBITDA | 7.12 |
EPS(TTM)4.72
EY12.03%
EPS(NY)3.79
Fwd EY9.66%
FCF(TTM)11.82
FCFY30.11%
OCF(TTM)14
OCFY35.67%
SpS46.25
BVpS33.94
TBVpS33.94
PEG (NY)N/A
PEG (5Y)0.26
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 | 1.48 |
F-Score6
WACC8.24%
ROIC/WACC0.67
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 Year1.77%
Revenue Next 2Y6.17%
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%