METHANEX CORP (MX.CA) Stock Fundamental Analysis
TSX:MX - Toronto Stock Exchange - CA59151K1084 - Common Stock - Currency: CAD
Taking everything into account, MX scores 6 out of 10 in our fundamental rating. MX was compared to 29 industry peers in the Chemicals industry. While MX has a great profitability rating, there are some minor concerns on its financial health. MX may be a bit undervalued, certainly considering the very reasonable score on growth These ratings would make MX suitable 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.
In the past 5 years MX always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of MX (3.34%) is better than 79.31% of its industry peers.
The Return On Equity of MX (9.92%) is better than 79.31% of its industry peers.
MX has a Return On Invested Capital of 5.38%. This is in the better half of the industry: MX outperforms 75.86% 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 7.51%.
The last Return On Invested Capital (5.38%) for MX is above the 3 year average (4.64%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.34% | ||
| ROE | 9.92% | ||
| ROIC | 5.38% |
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 6.02%. This is in the better half of the industry: MX outperforms 79.31% of its industry peers.
MX's Profit Margin has improved in the last couple of years.
MX has a Operating Margin of 12.17%. This is in the better half of the industry: MX outperforms 75.86% of its industry peers.
MX's Operating Margin has improved in the last couple of years.
MX has a Gross Margin (22.88%) which is in line with its industry peers.
MX's Gross Margin has improved in the last couple of years.
| 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), MX is destroying value.
The number of shares outstanding for MX remains at a similar level compared to 1 year ago.
The number of shares outstanding for MX has been reduced compared to 5 years ago.
MX has a worse debt/assets ratio than last year.
2.2 Solvency
MX has an Altman-Z score of 1.69. This is a bad value and indicates that MX is not financially healthy and even has some risk of bankruptcy.
With a decent Altman-Z score value of 1.69, MX is doing good in the industry, outperforming 65.52% of the companies in the same industry.
MX has a debt to FCF ratio of 4.10. This is a neutral value as MX would need 4.10 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 4.10, MX belongs to the best of the industry, outperforming 96.55% of the companies in the same industry.
A Debt/Equity ratio of 1.38 is on the high side and indicates that MX has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.38, MX is doing worse than 72.41% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.38 | ||
| Debt/FCF | 4.1 | ||
| Altman-Z | 1.69 |
ROIC/WACC0.73
WACC7.37%
2.3 Liquidity
A Current Ratio of 3.17 indicates that MX has no problem at all paying its short term obligations.
MX has a better Current ratio (3.17) than 86.21% of its industry peers.
A Quick Ratio of 2.52 indicates that MX has no problem at all paying its short term obligations.
MX has a Quick ratio of 2.52. This is amongst the best in the industry. MX outperforms 89.66% 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 144.13% 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 small growth in Revenue. The Revenue has grown by 2.77% 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)144.13%
EPS 3Y-14.87%
EPS 5Y31.95%
EPS Q2Q%100%
Revenue 1Y (TTM)2.77%
Revenue growth 3Y-5.55%
Revenue growth 5Y2.53%
Sales Q2Q%-2.13%
3.2 Future
MX is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 1.28% yearly.
Based on estimates for the next years, MX will show a small growth in Revenue. The Revenue will grow by 7.97% on average per year.
EPS Next Y1.55%
EPS Next 2Y-0.9%
EPS Next 3Y3.07%
EPS Next 5Y1.28%
Revenue Next Year4.92%
Revenue Next 2Y9.42%
Revenue Next 3Y7.97%
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.
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 7.48 indicates a rather cheap valuation of MX.
96.55% of the companies in the same industry are more expensive than MX, based on the Price/Earnings ratio.
MX is valuated cheaply when we compare the Price/Earnings ratio to 26.31, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 8.95, the valuation of MX can be described as very reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MX indicates a rather cheap valuation: MX is cheaper than 93.10% of the companies listed in the same industry.
MX's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.06.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.48 | ||
| Fwd PE | 8.95 |
4.2 Price Multiples
MX's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. MX is cheaper than 93.10% of the companies in the same industry.
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 | 2.8 | ||
| 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 MX may justify a higher PE ratio.
PEG (NY)4.84
PEG (5Y)0.23
EPS Next 2Y-0.9%
EPS Next 3Y3.07%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.31%, MX has a reasonable but not impressive dividend return.
The stock price of MX dropped by -26.19% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
Compared to an average industry Dividend Yield of 6.34, MX pays a bit more dividend than its industry peers.
MX's Dividend Yield is comparable with the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.31% |
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
22.40% of the earnings are spent on dividend by MX. This is a low number and sustainable payout ratio.
DP22.4%
EPS Next 2Y-0.9%
EPS Next 3Y3.07%
TSX:MX (6/5/2025, 7:00:00 PM)
44.81
-0.57 (-1.26%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners83.16%
Inst Owner ChangeN/A
Ins Owners0.64%
Ins Owner ChangeN/A
Market Cap3.02B
Analysts83.08
Price Target49.78 (11.09%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.31% |
Yearly Dividend1.02
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)-6.19%
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)-7.58%
PT rev (3m)-22.04%
EPS NQ rev (1m)-55.95%
EPS NQ rev (3m)-67.11%
EPS NY rev (1m)0%
EPS NY rev (3m)-12.73%
Revenue NQ rev (1m)-13.32%
Revenue NQ rev (3m)-15.01%
Revenue NY rev (1m)-3.12%
Revenue NY rev (3m)-6.55%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.48 | ||
| Fwd PE | 8.95 | ||
| P/S | 0.6 | ||
| P/FCF | 2.8 | ||
| P/OCF | 2.29 | ||
| P/B | 0.98 | ||
| P/tB | 0.98 | ||
| EV/EBITDA | 5.16 |
EPS(TTM)5.99
EY13.37%
EPS(NY)5.01
Fwd EY11.17%
FCF(TTM)16.02
FCFY35.74%
OCF(TTM)19.56
OCFY43.64%
SpS75.24
BVpS45.66
TBVpS45.66
PEG (NY)4.84
PEG (5Y)0.23
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.34% | ||
| ROE | 9.92% | ||
| ROCE | 7.48% | ||
| ROIC | 5.38% | ||
| ROICexc | 6.57% | ||
| ROICexgc | 6.57% | ||
| 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)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 Turnover0.56
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
WACC7.37%
ROIC/WACC0.73
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)144.13%
EPS 3Y-14.87%
EPS 5Y31.95%
EPS Q2Q%100%
EPS Next Y1.55%
EPS Next 2Y-0.9%
EPS Next 3Y3.07%
EPS Next 5Y1.28%
Revenue 1Y (TTM)2.77%
Revenue growth 3Y-5.55%
Revenue growth 5Y2.53%
Sales Q2Q%-2.13%
Revenue Next Year4.92%
Revenue Next 2Y9.42%
Revenue Next 3Y7.97%
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%