Methanex Corporation
Methanex Corporation Fundamental Analysis
Methanex Corporation (MEOH) shows weak financial fundamentals with a PE ratio of 17.57, profit margin of 6.01%, and ROE of 8.97%. The company generates $3.6B in annual revenue with weak year-over-year growth of -0.10%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 44.0/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze MEOH's fundamental strength across five key dimensions:
Efficiency Score
WeakMEOH struggles to generate sufficient returns from assets.
Valuation Score
ExcellentMEOH trades at attractive valuation levels.
Growth Score
WeakMEOH faces weak or negative growth trends.
Financial Health Score
ModerateMEOH shows balanced financial health with some risks.
Profitability Score
WeakMEOH struggles to sustain strong margins.
Key Financial Metrics
Is MEOH Expensive or Cheap?
P/E Ratio
MEOH trades at 17.57 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, MEOH's PEG of -1.49 indicates potential undervaluation.
Price to Book
The market values Methanex Corporation at 1.46 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 0.59 times EBITDA. This is generally considered low.
How Well Does MEOH Make Money?
Net Profit Margin
For every $100 in sales, Methanex Corporation keeps $6.01 as profit after all expenses.
Operating Margin
Core operations generate 16.14 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $8.97 in profit for every $100 of shareholder equity.
ROA
Methanex Corporation generates $2.84 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Methanex Corporation produces operating cash flow of $878.76M, showing steady but balanced cash generation.
Free Cash Flow
Methanex Corporation generates strong free cash flow of $758.81M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $9.81 in free cash annually.
FCF Yield
MEOH converts 20.17% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
17.57
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-1.49
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.46
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.06
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.41
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.09
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.09
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
0.08
vs 25 benchmark
How MEOH Stacks Against Its Sector Peers
| Metric | MEOH Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 17.57 | 27.01 | Better (Cheaper) |
| ROE | 8.97% | 949.00% | Weak |
| Net Margin | 6.01% | -16159.00% (disorted) | Weak |
| Debt/Equity | 1.41 | 0.48 | Weak (High Leverage) |
| Current Ratio | 2.09 | 4.42 | Strong Liquidity |
| ROA | 2.84% | -6411.00% (disorted) | Weak |
MEOH outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Methanex Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
51.84%
Industry Style: Cyclical, Commodity, Value
High GrowthEPS CAGR
112.36%
Industry Style: Cyclical, Commodity, Value
High GrowthFCF CAGR
62.56%
Industry Style: Cyclical, Commodity, Value
High Growth