METHANEX CORP (MX.CA) Stock Fundamental Analysis
TSX:MX - CA59151K1084 - Common Stock
48.72 CAD
-0.06 (-0.12%)
Taking everything into account, MX scores 6 out of 10 in our fundamental rating. MX was compared to 27 industry peers in the Chemicals industry. While MX has a great profitability rating, 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 could make MX a good candidate for value investing.
1. Profitability
1.1 Basic Checks
MX had positive earnings in the past year.
MX had a positive operating cash flow in the past year.
Of the past 5 years MX 4 years were profitable.
MX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 3.25%, MX is in the better half of the industry, outperforming 77.78% of the companies in the same industry.
MX has a better Return On Equity (9.60%) than 77.78% of its industry peers.
MX has a Return On Invested Capital of 5.02%. This is in the better half of the industry: MX outperforms 74.07% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for MX is below the industry average of 8.88%.
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
With an excellent Profit Margin value of 7.04%, MX belongs to the best of the industry, outperforming 92.59% of the companies in the same industry.
In the last couple of years the Profit Margin of MX has grown nicely.
Looking at the Operating Margin, with a value of 13.66%, MX is in the better half of the industry, outperforming 74.07% 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 66.67% of its industry peers.
In the last couple of years the Gross Margin of MX 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), MX is destroying value.
Compared to 1 year ago, MX has about the same amount of shares outstanding.
MX has less shares outstanding than it did 5 years ago.
The debt/assets ratio for MX is higher compared to a year ago.
2.2 Solvency
MX has an Altman-Z score of 1.44. This is a bad value and indicates that MX is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of MX (1.44) is comparable to the rest of the industry.
MX has a debt to FCF ratio of 4.11. This is a neutral value as MX would need 4.11 years to pay back of all of its debts.
The Debt to FCF ratio of MX (4.11) is better than 96.30% of its industry peers.
A Debt/Equity ratio of 1.37 is on the high side and indicates that MX has dependencies on debt financing.
The Debt to Equity ratio of MX (1.37) is worse than 70.37% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.37 | ||
| Debt/FCF | 4.11 | ||
| Altman-Z | 1.44 |
ROIC/WACC0.64
WACC7.8%
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.
With a decent Current ratio value of 2.13, MX is doing good in the industry, outperforming 66.67% of the companies in the same industry.
A Quick Ratio of 1.43 indicates that MX should not have too much problems paying its short term obligations.
The Quick ratio of MX (1.43) is better than 66.67% 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.
MX shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 31.95% yearly.
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%-13.37%
3.2 Future
Based on estimates for the next years, MX will show a decrease in Earnings Per Share. The EPS will decrease by -8.24% on average per year.
Based on estimates for the next years, MX will show a small growth in Revenue. The Revenue will grow by 7.23% on average per year.
EPS Next Y-1.98%
EPS Next 2Y0.96%
EPS Next 3Y5.82%
EPS Next 5Y-8.24%
Revenue Next Year1.74%
Revenue Next 2Y6.22%
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.
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
A Price/Earnings ratio of 7.48 indicates a rather cheap valuation of MX.
Based on the Price/Earnings ratio, MX is valued cheaply inside the industry as 96.30% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 26.90. MX is valued rather cheaply when compared to this.
MX is valuated reasonably with a Price/Forward Earnings ratio of 9.32.
92.59% of the companies in the same industry are more expensive than MX, based on the Price/Forward Earnings ratio.
MX is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.52, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.48 | ||
| Fwd PE | 9.32 |
4.2 Price Multiples
88.89% of the companies in the same industry are more expensive than MX, based on the Enterprise Value to EBITDA ratio.
100.00% of the companies in the same industry are more expensive than MX, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.99 | ||
| EV/EBITDA | 6.77 |
4.3 Compensation for Growth
The decent profitability rating of MX may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.23
EPS Next 2Y0.96%
EPS Next 3Y5.82%
5. Dividend
5.1 Amount
MX has a Yearly Dividend Yield of 2.15%.
MX's Dividend Yield is a higher than the industry average which is at 5.73.
MX's Dividend Yield is comparable with the S&P500 average which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.15% |
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 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 2Y0.96%
EPS Next 3Y5.82%
TSX:MX (9/2/2025, 7:00:00 PM)
48.72
-0.06 (-0.12%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners82.14%
Inst Owner ChangeN/A
Ins Owners0.68%
Ins Owner ChangeN/A
Market Cap3.77B
Analysts83.08
Price Target50.8 (4.27%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.15% |
Yearly Dividend1.02
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)0%
PT rev (3m)2.05%
EPS NQ rev (1m)-2.45%
EPS NQ rev (3m)-39.93%
EPS NY rev (1m)-3.48%
EPS NY rev (3m)-3.48%
Revenue NQ rev (1m)-4%
Revenue NQ rev (3m)-8.45%
Revenue NY rev (1m)-3.03%
Revenue NY rev (3m)-3.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.48 | ||
| Fwd PE | 9.32 | ||
| P/S | 0.76 | ||
| P/FCF | 2.99 | ||
| P/OCF | 2.52 | ||
| P/B | 1.04 | ||
| P/tB | 1.04 | ||
| EV/EBITDA | 6.77 |
EPS(TTM)6.51
EY13.36%
EPS(NY)5.23
Fwd EY10.73%
FCF(TTM)16.29
FCFY33.44%
OCF(TTM)19.3
OCFY39.62%
SpS63.76
BVpS46.79
TBVpS46.79
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 | 1.44 |
F-Score6
WACC7.8%
ROIC/WACC0.64
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%-13.37%
Revenue Next Year1.74%
Revenue Next 2Y6.22%
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%