METHANEX CORP (MX.CA) Stock Fundamental Analysis
Canada - TSX:MX - CA59151K1084 - Common Stock
53.37 CAD
-1.06 (-1.95%)
We assign a fundamental rating of 6 out of 10 to MX. MX was compared to 30 industry peers in the Chemicals industry. MX has an excellent profitability rating, but there are some minor concerns on its financial health. MX is valued quite cheap, while showing a decent growth score. This is a good combination! This makes MX very considerable for value investing!
1. Profitability
1.1 Basic Checks
In the past year MX was profitable.
MX had a positive operating cash flow in the past year.
Of the past 5 years MX 4 years were profitable.
In the past 5 years MX always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 3.25%, MX belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
MX has a Return On Equity of 9.60%. This is amongst the best in the industry. MX outperforms 83.33% of its industry peers.
With a decent Return On Invested Capital value of 5.02%, MX is doing good in the industry, outperforming 80.00% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for MX is below the industry average of 7.87%.
The last Return On Invested Capital (5.02%) for MX is above the 3 year average (4.64%), which is a sign of increasing profitability.
| 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 has a Profit Margin of 7.04%. This is amongst the best in the industry. MX outperforms 93.33% of its industry peers.
MX's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 13.66%, MX is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
MX's Operating Margin has improved in the last couple of years.
MX has a Gross Margin (24.79%) which is in line with 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so MX is destroying value.
Compared to 1 year ago, MX has about the same amount of shares outstanding.
The number of shares outstanding for MX has been reduced compared to 5 years ago.
Compared to 1 year ago, MX has a worse debt to assets ratio.
2.2 Solvency
MX has an Altman-Z score of 1.48. This is a bad value and indicates that MX is not financially healthy and even has some risk of bankruptcy.
MX has a Altman-Z score of 1.48. This is in the better half of the industry: MX outperforms 63.33% of its industry peers.
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.
Looking at the Debt to FCF ratio, with a value of 4.11, MX belongs to the top of the industry, outperforming 96.67% of the companies in the same industry.
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 70.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.37 | ||
| Debt/FCF | 4.11 | ||
| Altman-Z | 1.48 |
ROIC/WACC0.64
WACC7.87%
2.3 Liquidity
A Current Ratio of 2.13 indicates that MX has no problem at all paying its short term obligations.
The Current ratio of MX (2.13) is better than 63.33% of its industry peers.
A Quick Ratio of 1.43 indicates that MX should not have too much problems paying its short term obligations.
MX has a better Quick ratio (1.43) than 63.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.13 | ||
| Quick Ratio | 1.43 |
3. Growth
3.1 Past
MX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 160.77%, which is quite impressive.
MX shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 31.95% yearly.
MX shows a decrease in Revenue. In the last year, the revenue decreased by -0.14%.
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)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.
The Revenue is expected to grow by 7.23% on average over the next years.
EPS Next Y-1.98%
EPS Next 2Y0.96%
EPS Next 3Y5.82%
EPS Next 5Y-8.24%
Revenue Next Year1.77%
Revenue Next 2Y6.17%
Revenue Next 3Y7.23%
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
MX is valuated reasonably with a Price/Earnings ratio of 8.15.
Compared to the rest of the industry, the Price/Earnings ratio of MX indicates a rather cheap valuation: MX is cheaper than 96.67% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of MX to the average of the S&P500 Index (27.06), we can say MX is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 10.15, the valuation of MX can be described as reasonable.
MX's Price/Forward Earnings ratio is rather cheap when compared to the industry. MX is cheaper than 90.00% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.64, MX is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.15 | ||
| Fwd PE | 10.15 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MX is valued cheaply inside the industry as 90.00% of the companies are valued more expensively.
MX's Price/Free Cash Flow ratio is rather cheap when compared to the industry. MX is cheaper than 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.26 | ||
| EV/EBITDA | 7.12 |
4.3 Compensation for Growth
The excellent profitability rating of MX may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.26
EPS Next 2Y0.96%
EPS Next 3Y5.82%
5. Dividend
5.1 Amount
MX has a Yearly Dividend Yield of 1.94%.
MX's Dividend Yield is a higher than the industry average which is at 5.97.
Compared to an average S&P500 Dividend Yield of 2.38, MX has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.94% |
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
MX pays out 19.80% of its income as dividend. This is a 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 (9/25/2025, 7:00:00 PM)
53.37
-1.06 (-1.95%)
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 Cap4.13B
Analysts84.62
Price Target50.8 (-4.82%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.94% |
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)-11.7%
EPS NQ rev (3m)-46.95%
EPS NY rev (1m)0%
EPS NY rev (3m)-3.48%
Revenue NQ rev (1m)0.1%
Revenue NQ rev (3m)-8.36%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)-3.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.15 | ||
| Fwd PE | 10.15 | ||
| P/S | 0.83 | ||
| P/FCF | 3.26 | ||
| P/OCF | 2.75 | ||
| P/B | 1.13 | ||
| P/tB | 1.13 | ||
| EV/EBITDA | 7.12 |
EPS(TTM)6.55
EY12.27%
EPS(NY)5.26
Fwd EY9.85%
FCF(TTM)16.39
FCFY30.7%
OCF(TTM)19.42
OCFY36.38%
SpS64.13
BVpS47.06
TBVpS47.06
PEG (NY)N/A
PEG (5Y)0.26
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 | 1.48 |
F-Score6
WACC7.87%
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 Year1.77%
Revenue Next 2Y6.17%
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%