METHANEX CORP (MX.CA) Stock Fundamental Analysis
Canada - TSX:MX - CA59151K1084 - Common Stock
47.63 CAD
-1.73 (-3.5%)
Overall MX gets a fundamental rating of 6 out of 10. We evaluated MX against 28 industry peers in the Chemicals industry. While MX belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. MX may be a bit undervalued, certainly considering the very reasonable score on growth With these ratings, MX could be worth investigating further for value investing!.
1. Profitability
1.1 Basic Checks
MX had positive earnings in the past year.
In the past year MX had a positive cash flow from operations.
Of the past 5 years MX 4 years were profitable.
Each year in the past 5 years MX had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 3.25%, MX belongs to the top of the industry, outperforming 82.14% of the companies in the same industry.
Looking at the Return On Equity, with a value of 9.60%, MX belongs to the top of the industry, outperforming 82.14% of the companies in the same industry.
MX has a Return On Invested Capital of 5.02%. This is in the better half of the industry: MX outperforms 78.57% of its industry peers.
MX had an Average Return On Invested Capital over the past 3 years of 4.64%. This is below the industry average of 8.33%.
The 3 year average ROIC (4.64%) for MX is below the current ROIC(5.02%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.25% | ||
| ROE | 9.6% | ||
| ROIC | 5.02% |
ROA(3y)3.51%
ROA(5y)3.14%
ROE(3y)11.2%
ROE(5y)9.72%
ROIC(3y)4.64%
ROIC(5y)N/A
1.3 Margins
MX's Profit Margin of 7.04% is amongst the best of the industry. MX outperforms 92.86% of its industry peers.
In the last couple of years the Profit Margin of MX has grown nicely.
With a decent Operating Margin value of 13.66%, MX is doing good in the industry, outperforming 78.57% of the companies in the same industry.
MX's Operating Margin has improved in the last couple of years.
MX has a better Gross Margin (24.79%) than 67.86% of its industry peers.
MX's Gross Margin has improved in the last couple of years.
| 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
MX has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, MX has about the same amount of shares outstanding.
Compared to 5 years ago, MX has less shares outstanding
MX has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.43, we must say that MX is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.43, MX is in the better half of the industry, outperforming 60.71% of the companies in the same industry.
The Debt to FCF ratio of MX is 4.11, which is a neutral value as it means it would take MX, 4.11 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of MX (4.11) is better than 96.43% of its industry peers.
MX has a Debt/Equity ratio of 1.37. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of MX (1.37) is worse than 67.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.37 | ||
| Debt/FCF | 4.11 | ||
| Altman-Z | 1.43 |
ROIC/WACC0.68
WACC7.37%
2.3 Liquidity
MX has a Current Ratio of 2.13. This indicates that MX is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 2.13, MX is in the better half of the industry, outperforming 64.29% of the companies in the same industry.
MX has a Quick Ratio of 1.43. This is a normal value and indicates that MX is financially healthy and should not expect problems in meeting its short term obligations.
With a decent Quick ratio value of 1.43, MX is doing good in the industry, outperforming 67.86% 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, MX shows a very strong growth in Earnings Per Share. The EPS has been growing by 31.95% on average per year.
Looking at the last year, MX shows a decrease in Revenue. The Revenue has decreased by -0.14% in the last year.
MX shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.53% yearly.
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%-13.37%
3.2 Future
The Earnings Per Share is expected to decrease by -8.24% on average over the next years.
Based on estimates for the next years, MX will show a small growth in Revenue. The Revenue will grow by 6.28% on average per year.
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
The EPS growth rate is decreasing: in the next years the growth will be less 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
With a Price/Earnings ratio of 7.19, the valuation of MX can be described as very cheap.
96.43% of the companies in the same industry are more expensive than MX, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 27.42, MX is valued rather cheaply.
MX is valuated reasonably with a Price/Forward Earnings ratio of 9.00.
Based on the Price/Forward Earnings ratio, MX is valued cheaper than 89.29% of the companies in the same industry.
MX is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.94, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.19 | ||
| Fwd PE | 9 |
4.2 Price Multiples
MX's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. MX is cheaper than 89.29% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of MX indicates a rather cheap valuation: MX is cheaper than 100.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.87 | ||
| EV/EBITDA | 6.65 |
4.3 Compensation for Growth
The excellent profitability rating of MX may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.23
EPS Next 2Y0.67%
EPS Next 3Y5.82%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.14%, MX has a reasonable but not impressive dividend return.
MX's Dividend Yield is a higher than the industry average which is at 5.46.
MX's Dividend Yield is comparable with the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.14% |
5.2 History
The dividend of MX decreases each year by -12.05%.
MX has paid a dividend for at least 10 years, which is a reliable track record.
MX 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
19.80% of the earnings are spent on dividend by MX. This is a low number and sustainable payout ratio.
The Dividend Rate of MX has been decling, while earnings will also be declining. This means the current dividend is most likely not sustainable.
DP19.8%
EPS Next 2Y0.67%
EPS Next 3Y5.82%
TSX:MX (10/17/2025, 7:00:00 PM)
47.63
-1.73 (-3.5%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners67.17%
Inst Owner ChangeN/A
Ins Owners0.61%
Ins Owner ChangeN/A
Market Cap3.68B
Analysts84.62
Price Target52.43 (10.08%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.14% |
Yearly Dividend1.04
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)-1.24%
Revenue beat(16)7
Avg Revenue beat(16)-0.83%
PT rev (1m)3.21%
PT rev (3m)3.21%
EPS NQ rev (1m)-2.84%
EPS NQ rev (3m)1.65%
EPS NY rev (1m)0.19%
EPS NY rev (3m)-3.29%
Revenue NQ rev (1m)0.5%
Revenue NQ rev (3m)-1.07%
Revenue NY rev (1m)0.91%
Revenue NY rev (3m)-2.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.19 | ||
| Fwd PE | 9 | ||
| P/S | 0.73 | ||
| P/FCF | 2.87 | ||
| P/OCF | 2.42 | ||
| P/B | 1 | ||
| P/tB | 1 | ||
| EV/EBITDA | 6.65 |
EPS(TTM)6.62
EY13.9%
EPS(NY)5.29
Fwd EY11.11%
FCF(TTM)16.58
FCFY34.82%
OCF(TTM)19.65
OCFY41.25%
SpS64.9
BVpS47.63
TBVpS47.63
PEG (NY)N/A
PEG (5Y)0.23
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.25% | ||
| ROE | 9.6% | ||
| ROCE | 6.97% | ||
| ROIC | 5.02% | ||
| ROICexc | 5.39% | ||
| ROICexgc | 5.39% | ||
| 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)4.64%
ROIC(5y)N/A
ROICexc(3y)5.37%
ROICexc(5y)N/A
ROICexgc(3y)5.37%
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 | 1.43 |
F-Score6
WACC7.37%
ROIC/WACC0.68
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%-13.37%
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%