TSX:MX

Stock Analysis Report

Executive Summary

Methanex Corporation produces and supplies methanol in North America, the Asia Pacific, Europe, and South America.

Snowflake

Fundamentals

Established dividend payer and good value.


Similar Companies

Share Price & News

How has Methanex's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

6.3%

MX

4.2%

CA Chemicals

-0.1%

CA Market


1 Year Return

-50.9%

MX

-13.8%

CA Chemicals

0.9%

CA Market

Return vs Industry: MX underperformed the Canadian Chemicals industry which returned -13.8% over the past year.

Return vs Market: MX underperformed the Canadian Market which returned 0.9% over the past year.


Shareholder returns

MXIndustryMarket
7 Day6.3%4.2%-0.1%
30 Day0.06%-2.1%-2.1%
90 Day-13.9%-1.0%-1.6%
1 Year-49.4%-50.9%-10.9%-13.8%4.4%0.9%
3 Year7.1%-0.7%-5.0%-10.5%15.5%5.2%
5 Year-13.4%-24.1%-23.5%-31.1%25.7%7.5%

Price Volatility Vs. Market

How volatile is Methanex's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Methanex undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: MX (CA$48.09) is trading below our estimate of fair value (CA$105.92)

Significantly Undervalued: MX is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: MX is good value based on its PE Ratio (7.5x) compared to the Chemicals industry average (14.3x).

PE vs Market: MX is good value based on its PE Ratio (7.5x) compared to the Canadian market (13.6x).


Price to Earnings Growth Ratio

Low PEG Ratio: MX's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: MX is overvalued based on its PB Ratio (1.9x) compared to the CA Chemicals industry average (1.2x).


Next Steps

Future Growth

How is Methanex forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

-4.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MX's earnings are forecast to decline over the next 3 years (-4.8% per year).

Earnings vs Market: MX's earnings are forecast to decline over the next 3 years (-4.8% per year).

High Growth Earnings: MX's earnings are forecast to decline over the next 3 years.

Revenue vs Market: MX's revenue (2% per year) is forecast to grow slower than the Canadian market (5.7% per year).

High Growth Revenue: MX's revenue (2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: MX's Return on Equity is forecast to be low in 3 years time (15.6%).


Next Steps

Past Performance

How has Methanex performed over the past 5 years?

4.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: MX's earnings have grown by 4.8% per year over the past 5 years.

Accelerating Growth: MX's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: MX had negative earnings growth (-0.7%) over the past year, making it difficult to compare to the Chemicals industry average (-25.7%).


Return on Equity

High ROE: MX's Return on Equity (24.2%) is considered high.


Return on Assets

ROA vs Industry: MX has a higher Return on Assets than the Chemicals industry average last year.


Return on Capital Employed

ROCE Improving: MX has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Methanex's financial position?


Financial Position Analysis

Short Term Liabilities: MX's short term assets ($1.1B) exceeds its short term liabilities ($1.1B)

Long Term Liabilities: MX's short term assets (1.1B) do not cover its long term liabilities (2.1B)


Debt to Equity History and Analysis

Debt Level: MX's debt to equity ratio (83%) is considered high

Reducing Debt: MX's debt to equity ratio has increased from 55.1% to 83% over the past 5 years.

Debt Coverage: MX's debt is well covered by operating cash flow (53.7%).

Interest Coverage: MX's interest payments on its debt are well covered by EBIT (5.5x coverage).


Balance Sheet

Inventory Level: MX has a high level of physical assets or inventory.

Debt Coverage by Assets: MX's debt is not covered by short term assets (assets are 0.8x debt).


Next Steps

Dividend

What is Methanex's current dividend yield, its reliability and sustainability?

3.96%

Current Dividend Yield


Dividend Yield vs Market

company4.0%marketbottom25%2.0%markettop25%6.0%industryaverage2.3%forecastin3Years4.3%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: MX's dividend (3.96%) is higher than the bottom 25% of dividend payers in the Canadian market (2.03%).

High Dividend: MX's dividend (3.96%) is low compared to the top 25% of dividend payers in the Canadian market (5.98%).

Stable Dividend: MX's dividends per share have been stable in the past 10 years.

Growing Dividend: MX's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (27.8%), MX's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: MX's dividends in 3 years are forecast to be covered by earnings (56.3% payout ratio).


Next Steps

Management

What is the CEO of Methanex's salary, the management and board of directors tenure and is there insider trading?

6.8yrs

Average management tenure


CEO

John Floren (60yo)

6.8yrs

Tenure

US$8,852,403

Compensation

Mr. John N. Floren has been the Chief Executive Officer and President of Methanex Corporation since January 1, 2013. Mr. Floren served as a Senior Vice President of Global Marketing and Logistics at Methan ...


CEO Compensation Analysis

Compensation vs. Market: John's total compensation ($USD6.69M) is about average for companies of similar size in the Canadian market ($USD2.87M).

Compensation vs Earnings: John's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Management Age and Tenure

6.8yrs

Average Tenure

Experienced Management: MX's management team is seasoned and experienced (6.8 years average tenure).


Board Age and Tenure

5.6yrs

Average Tenure

62.5yo

Average Age

Experienced Board: MX's board of directors are considered experienced (5.6 years average tenure).


Insider Trading

Insider Buying: MX insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$149,15125 Sep 19
Kevin Rodgers
EntityIndividual
Shares3,000
Max PriceUS$49.72
SellUS$244,05913 Sep 19
M&G Investment Management Limited
EntityCompany
Shares5,048
Max PriceUS$48.35
SellUS$353,39730 Aug 19
M&G Investment Management Limited
EntityCompany
Shares8,681
Max PriceUS$40.71
BuyUS$280,08222 Aug 19
James Bertram
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares5,050
Max PriceUS$73.10
SellUS$17,178,28920 Aug 19
M&G Investment Management Limited
EntityCompany
Shares403,000
Max PriceUS$42.96
BuyUS$87,30012 Aug 19
Allard Mark
EntityIndividual
Shares2,000
Max PriceUS$43.65
BuyUS$1,459,69509 Aug 19
Link Fund Solutions Limited
EntityCompany
Shares33,644
Max PriceUS$43.39
BuyUS$1,500,11107 Aug 19
Link Fund Solutions Limited
EntityCompany
Shares33,199
Max PriceUS$45.19
BuyUS$504,89407 Aug 19
M&G Investment Management Limited
EntityCompany
Shares11,594
Max PriceUS$43.55
BuyUS$880,00006 Aug 19
John Floren
EntityIndividual
Role
Chief Executive Officer
President
Shares20,000
Max PriceUS$44.00
SellUS$754,50918 Jul 19
M&G Investment Management Limited
EntityCompany
Shares12,282
Max PriceUS$63.41
BuyUS$567,59418 Jul 19
M&G Investment Management Limited
EntityCompany
Shares8,750
Max PriceUS$64.87
BuyUS$195,13711 Jul 19
M&G Investment Management Limited
EntityCompany
Shares3,446
Max PriceUS$56.63
SellUS$55,14004 Jul 19
M&G Investment Management Limited
EntityCompany
Shares948
Max PriceUS$58.17
BuyUS$84,01628 Jun 19
M&G Investment Management Limited
EntityCompany
Shares1,417
Max PriceUS$59.29
SellUS$37,59228 Jun 19
M&G Investment Management Limited
EntityCompany
Shares638
Max PriceUS$58.92
SellUS$110,10624 Jun 19
M&G Investment Management Limited
EntityCompany
Shares1,795
Max PriceUS$61.34
BuyUS$231,11911 Jun 19
Margaret Walker
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares4,000
Max PriceUS$57.78
BuyUS$600,00029 May 19
John Floren
EntityIndividual
Role
Chief Executive Officer
President
Shares10,000
Max PriceUS$60.00
SellUS$208,22008 May 19
Margaret Walker
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares3,076
Max PriceUS$67.69
SellUS$13,315,54818 Mar 19
M&G Investment Management Limited
EntityCompany
Shares181,756
Max PriceUS$81.68
BuyUS$9,306,03018 Mar 19
M&G Investment Management Limited
EntityCompany
Shares130,000
Max PriceUS$71.58
BuyUS$112,15228 Feb 19
Margaret Walker
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,500
Max PriceUS$74.83
BuyUS$8,95227 Feb 19
Douglas Arnell
EntityIndividual
Role
Chairman of the Board
Chair of the Board
Shares120
Max PriceUS$74.60
BuyUS$144,62204 Feb 19
James Bertram
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares2,600
Max PriceUS$55.62
SellUS$117,036,25631 Jan 19
M&G Investment Management Limited
EntityCompany
Shares1,545,994
Max PriceUS$75.70
BuyUS$117,036,25631 Jan 19
M&G Investment Management Limited
EntityCompany
Shares1,545,994
Max PriceUS$75.70
SellUS$4,465,91431 Jan 19
M&G Investment Management Limited
EntityCompany
Shares61,297
Max PriceUS$73.80
BuyUS$10,233,34031 Jan 19
M&G Investment Management Limited
EntityCompany
Shares151,674
Max PriceUS$73.73
BuyUS$100,76413 Dec 18
Silke Daoust
EntityIndividual
Shares1,350
Max PriceUS$74.64
SellUS$508,777,47812 Dec 18
M&G Investment Management Limited
EntityCompany
Shares4,646,202
Max PriceUS$109.50
BuyUS$433,808,06812 Dec 18
M&G Investment Management Limited
EntityCompany
Shares4,511,898
Max PriceUS$96.15

Ownership Breakdown


Management Team

  • Ian Cameron

    Senior VP of Finance & CFO

    • Tenure: 16.8yrs
    • Compensation: US$2.70m
  • John Floren (60yo)

    President

    • Tenure: 6.8yrs
    • Compensation: US$8.85m
  • Kevin Henderson

    Senior Vice President of Manufacturing

    • Tenure: 3.4yrs
    • Compensation: US$2.46m
  • Kevin Price

    General Counsel & Corporate Secretary

    • Tenure: 0yrs
  • Mike Herz

    Senior Vice President of Corporate Development

    • Tenure: 6.8yrs
    • Compensation: US$2.01m
  • Vanessa James

    Senior Vice President of Global Marketing & Logistics

    • Tenure: 6.8yrs
    • Compensation: US$2.01m
  • Brad Boyd

    Senior Vice President of Corporate Resources

    • Tenure: 1.8yrs
  • Kim Campbell

    Manager of Investor Relations

    • Tenure: 0yrs

Board Members

  • Bruce Aitken (64yo)

    Independent Director

    • Tenure: 15.3yrs
    • Compensation: US$230.00k
  • Janice Rennie (62yo)

    Independent Director

    • Tenure: 13.4yrs
    • Compensation: US$254.89k
  • Bob Kostelnik (67yo)

    Independent Director

    • Tenure: 11.1yrs
    • Compensation: US$250.77k
  • Benita Warmbold (60yo)

    Independent Director

    • Tenure: 3.7yrs
    • Compensation: US$266.69k
  • Phil Cook (72yo)

    Independent Director

    • Tenure: 13.4yrs
    • Compensation: US$250.77k
  • Jim Bertram (63yo)

    Independent Director

    • Tenure: 1yrs
    • Compensation: US$25.00k
  • John Floren (60yo)

    President

    • Tenure: 6.8yrs
    • Compensation: US$8.85m
  • Maureen Howe (61yo)

    Independent Director

    • Tenure: 1.3yrs
    • Compensation: US$60.83k
  • Doug Arnell (53yo)

    Chair of the Board

    • Tenure: 0.5yrs
    • Compensation: US$274.45k
  • Maggi Walker (66yo)

    Independent Director

    • Tenure: 4.5yrs
    • Compensation: US$238.27k

Company Information

Methanex Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Methanex Corporation
  • Ticker: MX
  • Exchange: TSX
  • Founded: 1968
  • Industry: Commodity Chemicals
  • Sector: Materials
  • Market Cap: CA$3.664b
  • Shares outstanding: 76.20m
  • Website: https://www.methanex.com

Number of Employees


Location

  • Methanex Corporation
  • 1800 Waterfront Centre
  • 200 Burrard Street
  • Vancouver
  • British Columbia
  • V6C 3M1
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MEOHNasdaqGS (Nasdaq Global Select)YesCommon SharesUSUSDSep 1991
MXTSX (The Toronto Stock Exchange)YesCommon SharesCACADSep 1991
MX5DB (Deutsche Boerse AG)YesCommon SharesDEEURSep 1991
MEOH NBMV (Bolsa Mexicana de Valores)YesCommon SharesMXMXNSep 1991

Biography

Methanex Corporation produces and supplies methanol in North America, the Asia Pacific, Europe, and South America. It also purchases methanol produced by others under methanol offtake contracts and on the  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/14 23:38
End of Day Share Price2019/10/11 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.