Logo image of MX.CA

METHANEX CORP (MX.CA) Stock Fundamental Analysis

TSX:MX - Toronto Stock Exchange - CA59151K1084 - Common Stock - Currency: CAD

65.24  -0.79 (-1.2%)

Fundamental Rating

6

Taking everything into account, MX scores 6 out of 10 in our fundamental rating. MX was compared to 32 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. A decent growth rate in combination with a cheap valuation! Better keep an eye on MX. These ratings would make MX suitable for value investing!


Dividend Valuation Growth Profitability Health

7

1. Profitability

1.1 Basic Checks

In the past year MX was profitable.
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.
MX.CA Yearly Net Income VS EBIT VS OCF VS FCFMX.CA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 200M 400M 600M 800M

1.2 Ratios

With an excellent Return On Assets value of 2.49%, MX belongs to the best of the industry, outperforming 82.76% of the companies in the same industry.
MX's Return On Equity of 7.83% is amongst the best of the industry. MX outperforms 82.76% of its industry peers.
MX has a Return On Invested Capital of 3.98%. This is in the better half of the industry: MX outperforms 75.86% of its industry peers.
The Average Return On Invested Capital over the past 3 years for MX is below the industry average of 8.82%.
Industry RankSector Rank
ROA 2.49%
ROE 7.83%
ROIC 3.98%
ROA(3y)3.51%
ROA(5y)3.14%
ROE(3y)11.2%
ROE(5y)9.72%
ROIC(3y)4.64%
ROIC(5y)N/A
MX.CA Yearly ROA, ROE, ROICMX.CA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 10 -10 20 30

1.3 Margins

Looking at the Profit Margin, with a value of 4.41%, MX belongs to the top of the industry, outperforming 82.76% of the companies in the same industry.
In the last couple of years the Profit Margin of MX has grown nicely.
The Operating Margin of MX (8.73%) is better than 72.41% of its industry peers.
MX's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 19.10%, MX is in line with its industry, outperforming 48.28% of the companies in the same industry.
MX's Gross Margin has declined in the last couple of years.
Industry RankSector Rank
OM 8.73%
PM (TTM) 4.41%
GM 19.1%
OM growth 3Y-18.5%
OM growth 5Y15.49%
PM growth 3Y-26.11%
PM growth 5Y10.52%
GM growth 3Y-13.84%
GM growth 5Y-4.27%
MX.CA Yearly Profit, Operating, Gross MarginsMX.CA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 10 20 30

5

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.
The number of shares outstanding for MX remains at a similar level compared to 1 year ago.
Compared to 5 years ago, MX has less shares outstanding
Compared to 1 year ago, MX has a worse debt to assets ratio.
MX.CA Yearly Shares OutstandingMX.CA Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20M 40M 60M 80M
MX.CA Yearly Total Debt VS Total AssetsMX.CA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B

2.2 Solvency

Based on the Altman-Z score of 1.70, we must say that MX is in the distress zone and has some risk of bankruptcy.
MX's Altman-Z score of 1.70 is fine compared to the rest of the industry. MX outperforms 62.07% of its industry peers.
MX has a debt to FCF ratio of 5.74. This is a neutral value as MX would need 5.74 years to pay back of all of its debts.
The Debt to FCF ratio of MX (5.74) is better than 82.76% of its industry peers.
MX has a Debt/Equity ratio of 1.48. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.48, MX is not doing good in the industry: 82.76% of the companies in the same industry are doing better.
Industry RankSector Rank
Debt/Equity 1.48
Debt/FCF 5.74
Altman-Z 1.7
ROIC/WACC0.53
WACC7.45%
MX.CA Yearly LT Debt VS Equity VS FCFMX.CA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 1B 2B 3B

2.3 Liquidity

A Current Ratio of 2.62 indicates that MX has no problem at all paying its short term obligations.
MX's Current ratio of 2.62 is fine compared to the rest of the industry. MX outperforms 68.97% of its industry peers.
MX has a Quick Ratio of 2.00. This is a normal value and indicates that MX is financially healthy and should not expect problems in meeting its short term obligations.
MX has a Quick ratio of 2.00. This is in the better half of the industry: MX outperforms 72.41% of its industry peers.
Industry RankSector Rank
Current Ratio 2.62
Quick Ratio 2
MX.CA Yearly Current Assets VS Current LiabilitesMX.CA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B

5

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 65.33% over the past year.
MX shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 31.95% yearly.
Looking at the last year, MX shows a decrease in Revenue. The Revenue has decreased by -0.10% in the last year.
Measured over the past years, MX shows a small growth in Revenue. The Revenue has been growing by 2.53% on average per year.
EPS 1Y (TTM)65.33%
EPS 3Y-14.87%
EPS 5Y31.95%
EPS Q2Q%138.46%
Revenue 1Y (TTM)-0.1%
Revenue growth 3Y-5.55%
Revenue growth 5Y2.53%
Sales Q2Q%2.88%

3.2 Future

Based on estimates for the next years, MX 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 9.22% on average over the next years. This is quite good.
EPS Next Y11.1%
EPS Next 2Y16.11%
EPS Next 3Y21.33%
EPS Next 5Y1.28%
Revenue Next Year13.56%
Revenue Next 2Y10.02%
Revenue Next 3Y9.22%
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.
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.
MX.CA Yearly Revenue VS EstimatesMX.CA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 1B 2B 3B 4B 5B
MX.CA Yearly EPS VS EstimatesMX.CA Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 0 2 4 6

8

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 12.36, MX is valued correctly.
Based on the Price/Earnings ratio, MX is valued cheaply inside the industry as 93.10% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of MX to the average of the S&P500 Index (30.19), we can say MX is valued rather cheaply.
With a Price/Forward Earnings ratio of 11.12, the valuation of MX can be described as very reasonable.
MX's Price/Forward Earnings ratio is rather cheap when compared to the industry. MX is cheaper than 89.66% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of MX to the average of the S&P500 Index (23.58), we can say MX is valued rather cheaply.
Industry RankSector Rank
PE 12.36
Fwd PE 11.12
MX.CA Price Earnings VS Forward Price EarningsMX.CA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40 50

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, MX is valued cheaply inside the industry as 86.21% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, MX is valued cheaper than 100.00% of the companies in the same industry.
Industry RankSector Rank
P/FCF 5.5
EV/EBITDA 7.66
MX.CA Per share dataMX.CA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 20 40 60

4.3 Compensation for Growth

The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of MX may justify a higher PE ratio.
A more expensive valuation may be justified as MX's earnings are expected to grow with 21.33% in the coming years.
PEG (NY)1.11
PEG (5Y)0.39
EPS Next 2Y16.11%
EPS Next 3Y21.33%

4

5. Dividend

5.1 Amount

MX has a Yearly Dividend Yield of 1.60%. Purely for dividend investing, there may be better candidates out there.
MX's Dividend Yield is a higher than the industry average which is at 6.90.
MX's Dividend Yield is slightly below the S&P500 average, which is at 2.30.
Industry RankSector Rank
Dividend Yield 1.6%

5.2 History

The dividend of MX decreases each year by -12.05%.
MX has been paying a dividend for at least 10 years, so it has a reliable track record.
MX has decreased its dividend in the last 3 years.
Dividend Growth(5Y)-12.05%
Div Incr Years2
Div Non Decr Years2
MX.CA Yearly Dividends per shareMX.CA Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.5 1

5.3 Sustainability

MX pays out 30.41% of its income as dividend. This is a sustainable payout ratio.
DP30.41%
EPS Next 2Y16.11%
EPS Next 3Y21.33%
MX.CA Yearly Income VS Free CF VS DividendMX.CA Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 200M 400M 600M
MX.CA Dividend Payout.MX.CA Dividend Payout, showing the Payout Ratio.MX.CA Dividend Payout.PayoutRetained Earnings

METHANEX CORP

TSX:MX (2/14/2025, 7:00:00 PM)

65.24

-0.79 (-1.2%)

Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)01-29 2025-01-29/amc
Earnings (Next)04-22 2025-04-22/amc
Inst Owners82.72%
Inst Owner ChangeN/A
Ins Owners0.63%
Ins Owner ChangeN/A
Market Cap4.40B
Analysts83.08
Price Target61.61 (-5.56%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 1.6%
Yearly Dividend0.74
Dividend Growth(5Y)-12.05%
DP30.41%
Div Incr Years2
Div Non Decr Years2
Ex-Date03-17 2025-03-17 (0.185)
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)66.65%
Min EPS beat(2)11.64%
Max EPS beat(2)121.65%
EPS beat(4)4
Avg EPS beat(4)51.21%
Min EPS beat(4)11.64%
Max EPS beat(4)121.65%
EPS beat(8)8
Avg EPS beat(8)49.62%
EPS beat(12)11
Avg EPS beat(12)34.38%
EPS beat(16)12
Avg EPS beat(16)24.88%
Revenue beat(2)1
Avg Revenue beat(2)-1.17%
Min Revenue beat(2)-8.31%
Max Revenue beat(2)5.98%
Revenue beat(4)2
Avg Revenue beat(4)-1.2%
Min Revenue beat(4)-8.31%
Max Revenue beat(4)5.98%
Revenue beat(8)5
Avg Revenue beat(8)0.94%
Revenue beat(12)6
Avg Revenue beat(12)0.28%
Revenue beat(16)9
Avg Revenue beat(16)2.14%
PT rev (1m)2.03%
PT rev (3m)11.03%
EPS NQ rev (1m)48.39%
EPS NQ rev (3m)55.22%
EPS NY rev (1m)2.49%
EPS NY rev (3m)7.53%
Revenue NQ rev (1m)1.88%
Revenue NQ rev (3m)-3.13%
Revenue NY rev (1m)0.45%
Revenue NY rev (3m)0.87%
Valuation
Industry RankSector Rank
PE 12.36
Fwd PE 11.12
P/S 0.83
P/FCF 5.5
P/OCF 4.2
P/B 1.48
P/tB 1.48
EV/EBITDA 7.66
EPS(TTM)5.28
EY8.09%
EPS(NY)5.86
Fwd EY8.99%
FCF(TTM)11.86
FCFY18.17%
OCF(TTM)15.52
OCFY23.79%
SpS78.31
BVpS44.08
TBVpS44.08
PEG (NY)1.11
PEG (5Y)0.39
Profitability
Industry RankSector Rank
ROA 2.49%
ROE 7.83%
ROCE 5.53%
ROIC 3.98%
ROICexc 4.7%
ROICexgc 4.7%
OM 8.73%
PM (TTM) 4.41%
GM 19.1%
FCFM 15.14%
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 3Y-13.84%
GM growth 5Y-4.27%
F-Score5
Asset Turnover0.56
Health
Industry RankSector Rank
Debt/Equity 1.48
Debt/FCF 5.74
Debt/EBITDA 4.36
Cap/Depr 45.13%
Cap/Sales 4.68%
Interest Coverage 1.92
Cash Conversion 103.77%
Profit Quality 343.39%
Current Ratio 2.62
Quick Ratio 2
Altman-Z 1.7
F-Score5
WACC7.45%
ROIC/WACC0.53
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)65.33%
EPS 3Y-14.87%
EPS 5Y31.95%
EPS Q2Q%138.46%
EPS Next Y11.1%
EPS Next 2Y16.11%
EPS Next 3Y21.33%
EPS Next 5Y1.28%
Revenue 1Y (TTM)-0.1%
Revenue growth 3Y-5.55%
Revenue growth 5Y2.53%
Sales Q2Q%2.88%
Revenue Next Year13.56%
Revenue Next 2Y10.02%
Revenue Next 3Y9.22%
Revenue Next 5YN/A
EBIT growth 1Y23.2%
EBIT growth 3Y-23.02%
EBIT growth 5Y18.41%
EBIT Next Year203.76%
EBIT Next 3Y46.08%
EBIT Next 5Y34.53%
FCF growth 1Y165.85%
FCF growth 3Y-9.07%
FCF growth 5Y24.08%
OCF growth 1Y11.65%
OCF growth 3Y-9.49%
OCF growth 5Y7.42%