METHANEX CORP (MEOH) Stock Fundamental Analysis
NASDAQ:MEOH - Nasdaq - CA59151K1084 - Common Stock - Currency: USD
MEOH gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 85 industry peers in the Chemicals industry. While MEOH has a great profitability rating, there are some minor concerns on its financial health. MEOH may be a bit undervalued, certainly considering the very reasonable score on growth These ratings could make MEOH a good candidate for value investing.
1. Profitability
1.1 Basic Checks
In the past year MEOH was profitable.
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
MEOH has a Return On Assets of 3.34%. This is in the better half of the industry: MEOH outperforms 68.24% 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 72.94% of the companies in the same industry.
MEOH has a better Return On Invested Capital (5.91%) than 61.18% 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 6.77%.
The last Return On Invested Capital (5.91%) for MEOH is above the 3 year average (5.09%), which is a sign of increasing profitability.
| 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
The Profit Margin of MEOH (6.02%) is better than 74.12% of its industry peers.
In the last couple of years the Profit Margin of MEOH has grown nicely.
MEOH has a Operating Margin of 12.17%. This is in the better half of the industry: MEOH outperforms 65.88% of its industry peers.
MEOH's Operating Margin has improved in the last couple of years.
MEOH's Gross Margin of 22.88% is in line compared to the rest of the industry. MEOH outperforms 43.53% of its industry peers.
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.
The number of shares outstanding for MEOH remains at a similar level compared to 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 1.69, 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 44.71% of the companies in the same industry.
The Debt to FCF ratio of MEOH is 4.10, which is a neutral value as it means it would take MEOH, 4.10 years of fcf income to pay off all of its debts.
MEOH has a better Debt to FCF ratio (4.10) than 84.71% of its industry peers.
A Debt/Equity ratio of 1.38 is on the high side and indicates that MEOH has dependencies on debt 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
WACC7.81%
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 has a Current ratio of 3.17. This is amongst the best in 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.
The Quick ratio of MEOH (2.52) is better than 85.88% 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 160.77% 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
The Revenue has decreased by -0.10% 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)-0.1%
Revenue growth 3Y-5.55%
Revenue growth 5Y2.53%
Sales Q2Q%-13.4%
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.
The Revenue is expected to grow by 7.38% 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 2Y9.12%
Revenue Next 3Y7.38%
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
A Price/Earnings ratio of 7.00 indicates a rather cheap valuation of MEOH.
Based on the Price/Earnings ratio, MEOH is valued cheaper than 94.12% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.82. MEOH is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 9.04, the valuation of MEOH can be described as very reasonable.
Based on the Price/Forward Earnings ratio, MEOH is valued a bit cheaper than 78.82% of the companies in the same industry.
MEOH is valuated cheaply when we compare the Price/Forward Earnings ratio to 36.21, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7 | ||
| Fwd PE | 9.04 |
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.
Based on the Price/Free Cash Flow ratio, MEOH is valued cheaper than 96.47% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.83 | ||
| EV/EBITDA | 5.16 |
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)4.53
PEG (5Y)0.22
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.
Compared to an average industry Dividend Yield of 3.70, MEOH pays a bit more dividend than its industry peers.
MEOH's Dividend Yield is comparable with the S&P500 average which is at 2.39.
| 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 (8/4/2025, 9:41:00 AM)
33.03
-0.12 (-0.36%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners82.14%
Inst Owner Change0.41%
Ins Owners0.68%
Ins Owner ChangeN/A
Market Cap2.23B
Analysts83.08
Price Target36.98 (11.96%)
Short Float %1.97%
Short Ratio1.87
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)1.82%
PT rev (3m)-5.06%
EPS NQ rev (1m)13.87%
EPS NQ rev (3m)-48.35%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)2.77%
Revenue NQ rev (3m)-10.85%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-3.12%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7 | ||
| Fwd PE | 9.04 | ||
| P/S | 0.6 | ||
| P/FCF | 2.83 | ||
| P/OCF | 2.31 | ||
| P/B | 0.99 | ||
| P/tB | 0.99 | ||
| EV/EBITDA | 5.16 |
EPS(TTM)4.72
EY14.29%
EPS(NY)3.65
Fwd EY11.06%
FCF(TTM)11.69
FCFY35.38%
OCF(TTM)14.27
OCFY43.21%
SpS54.9
BVpS33.31
TBVpS33.31
PEG (NY)4.53
PEG (5Y)0.22
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
WACC7.81%
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)160.77%
EPS 3Y-14.87%
EPS 5Y31.95%
EPS Q2Q%56.45%
EPS Next Y1.55%
EPS Next 2Y-0.9%
EPS Next 3Y3.07%
EPS Next 5Y1.28%
Revenue 1Y (TTM)-0.1%
Revenue growth 3Y-5.55%
Revenue growth 5Y2.53%
Sales Q2Q%-13.4%
Revenue Next Year4.92%
Revenue Next 2Y9.12%
Revenue Next 3Y7.38%
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%