METHANEX CORP (MEOH) Stock Fundamental Analysis
USA - NASDAQ:MEOH - CA59151K1084 - Common Stock
38.54 USD
-0.54 (-1.38%)
38.54 USD
0 (0%)
Taking everything into account, MEOH scores 5 out of 10 in our fundamental rating. 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.
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 67.47% of the companies in the same industry.
The Return On Equity of MEOH (9.60%) is better than 77.11% of its industry peers.
With a decent Return On Invested Capital value of 5.50%, MEOH is doing good in the industry, outperforming 61.45% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for MEOH is in line with the industry average of 6.37%.
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
MEOH has a better Profit Margin (7.04%) than 75.90% of its industry peers.
MEOH's Profit Margin has improved in the last couple of years.
MEOH has a better Operating Margin (13.66%) than 72.29% of its industry peers.
MEOH's Operating Margin has improved in the last couple of years.
MEOH has a Gross Margin (24.79%) which is in line with 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
MEOH has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
MEOH has about the same amout of 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
MEOH has an Altman-Z score of 1.47. This is a bad value and indicates that MEOH is not financially healthy and even has some risk of bankruptcy.
MEOH has a Altman-Z score of 1.47. This is in the lower half of the industry: MEOH underperforms 69.88% 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 85.54% of its industry peers.
A Debt/Equity ratio of 1.37 is on the high side and indicates that MEOH has dependencies on debt 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 | 1.47 |
ROIC/WACC0.69
WACC7.97%
2.3 Liquidity
A Current Ratio of 2.13 indicates that MEOH has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.13, MEOH is in line with its industry, outperforming 56.63% of the companies in the same industry.
A Quick Ratio of 1.43 indicates that MEOH should not have too much problems paying its short term obligations.
MEOH has a better Quick ratio (1.43) than 60.24% 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.
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.
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
MEOH is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -8.24% yearly.
The Revenue is expected to grow by 6.28% on average over the next years.
EPS Next Y-1.8%
EPS Next 2Y0.67%
EPS Next 3Y5.82%
EPS Next 5Y-8.24%
Revenue Next Year2.69%
Revenue Next 2Y5.98%
Revenue Next 3Y6.28%
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
Based on the Price/Earnings ratio of 8.17, the valuation of MEOH can be described as reasonable.
Based on the Price/Earnings ratio, MEOH is valued cheaper than 89.16% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.86. MEOH is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 10.22, the valuation of MEOH can be described as very reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MEOH indicates a rather cheap valuation: MEOH is cheaper than 84.34% of the companies listed in the same industry.
MEOH is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.32, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.17 | ||
| Fwd PE | 10.22 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of MEOH indicates a rather cheap valuation: MEOH is cheaper than 80.72% of the companies listed in the same industry.
96.39% 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 | 3.26 | ||
| EV/EBITDA | 7.05 |
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 2Y0.67%
EPS Next 3Y5.82%
5. Dividend
5.1 Amount
MEOH has a Yearly Dividend Yield of 1.94%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.61, MEOH has a dividend in line with its industry peers.
MEOH's Dividend Yield is slightly below the S&P500 average, which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.94% |
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.
MEOH's earnings and Dividend Rate are declining. This means the current dividend is most likely not sustainable.
DP19.8%
EPS Next 2Y0.67%
EPS Next 3Y5.82%
38.54
-0.54 (-1.38%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners67.17%
Inst Owner Change0%
Ins Owners0.61%
Ins Owner ChangeN/A
Market Cap2.98B
Analysts84.62
Price Target37.62 (-2.39%)
Short Float %1.98%
Short Ratio2.84
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.94% |
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)2.7%
PT rev (3m)3.57%
EPS NQ rev (1m)2.88%
EPS NQ rev (3m)-46.12%
EPS NY rev (1m)0.19%
EPS NY rev (3m)-3.29%
Revenue NQ rev (1m)0.1%
Revenue NQ rev (3m)-8.36%
Revenue NY rev (1m)0.93%
Revenue NY rev (3m)-2.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.17 | ||
| Fwd PE | 10.22 | ||
| P/S | 0.83 | ||
| P/FCF | 3.26 | ||
| P/OCF | 2.75 | ||
| P/B | 1.14 | ||
| P/tB | 1.14 | ||
| EV/EBITDA | 7.05 |
EPS(TTM)4.72
EY12.25%
EPS(NY)3.77
Fwd EY9.78%
FCF(TTM)11.82
FCFY30.66%
OCF(TTM)14
OCFY36.33%
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 | 1.47 |
F-Score6
WACC7.97%
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-1.8%
EPS Next 2Y0.67%
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 Year2.69%
Revenue Next 2Y5.98%
Revenue Next 3Y6.28%
Revenue Next 5YN/A
EBIT growth 1Y139.36%
EBIT growth 3Y-23.02%
EBIT growth 5Y18.41%
EBIT Next Year172.44%
EBIT Next 3Y50.66%
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%