TSX:MX

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Slightly overvalued with concerning outlook.


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

Stable Share Price: MX is not significantly more volatile than the rest of Canadian stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: MX's weekly volatility (8%) has been stable over the past year.


Market Performance


7 Day Return

14.6%

MX

8.9%

CA Chemicals

1.7%

CA Market


1 Year Return

7.8%

MX

1.8%

CA Chemicals

0.2%

CA Market

Return vs Industry: MX exceeded the Canadian Chemicals industry which returned 1.8% over the past year.

Return vs Market: MX exceeded the Canadian Market which returned 0.2% over the past year.


Shareholder returns

MXIndustryMarket
7 Day14.6%8.9%1.7%
30 Day32.9%15.4%7.0%
90 Day82.0%27.2%5.1%
1 Year11.9%7.8%6.8%1.8%3.9%0.2%
3 Year-10.3%-17.8%-10.8%-20.4%13.1%2.1%
5 Year13.8%-1.7%5.9%-12.2%46.5%24.1%

Long-Term 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

Below Fair Value: MX (CA$53.85) is trading below our estimate of fair value (CA$331.37)

Significantly Below Fair Value: MX is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: MX is unprofitable, so we can't compare its PE Ratio to the CA Chemicals industry average.

PE vs Market: MX is unprofitable, so we can't compare its PE Ratio to the Canadian market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate MX's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: MX is overvalued based on its PB Ratio (2.6x) compared to the CA Chemicals industry average (2x).


Next Steps

Future Growth

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

40.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MX is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: MX is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: MX is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: MX's revenue (9.2% per year) is forecast to grow faster than the Canadian market (6% per year).

High Growth Revenue: MX's revenue (9.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: MX is forecast to be unprofitable in 3 years.


Next Steps

Past Performance

How has Methanex performed over the past 5 years?

-2.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MX is currently unprofitable.

Growing Profit Margin: MX is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: MX is unprofitable, and losses have increased over the past 5 years at a rate of 2.2% per year.

Accelerating Growth: Unable to compare MX's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: MX is unprofitable, making it difficult to compare its past year earnings growth to the Chemicals industry (-14.2%).


Return on Equity

High ROE: MX has a negative Return on Equity (-4.91%), as it is currently unprofitable.


Next Steps

Financial Health

How is Methanex's financial position?


Financial Position Analysis

Short Term Liabilities: MX's short term assets ($1.8B) exceed its short term liabilities ($945.2M).

Long Term Liabilities: MX's short term assets ($1.8B) do not cover its long term liabilities ($3.4B).


Debt to Equity History and Analysis

Debt Level: MX's debt to equity ratio (174.2%) is considered high.

Reducing Debt: MX's debt to equity ratio has increased from 72.9% to 174.2% over the past 5 years.

Debt Coverage: MX's debt is not well covered by operating cash flow (18.3%).

Interest Coverage: Insufficient data to determine if MX's interest payments on its debt are well covered by EBIT.


Balance Sheet


Next Steps

Dividend

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

0.36%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: MX's dividend (0.36%) isn’t notable compared to the bottom 25% of dividend payers in the Canadian market (1.65%).

High Dividend: MX's dividend (0.36%) is low compared to the top 25% of dividend payers in the Canadian market (5.28%).


Stability and Growth of Payments

Stable Dividend: MX is not paying a notable dividend for the Canadian market, therefore no need to check if payments are stable.

Growing Dividend: MX is not paying a notable dividend for the Canadian market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: MX is not paying a notable dividend for the Canadian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of MX's dividend in 3 years as they are not forecast to pay a notable one for the Canadian market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

7.8yrs

Average management tenure


CEO

John Floren (61 yo)

7.83yrs

Tenure

US$7,677,584

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 ($USD4.54M) is above average for companies of similar size in the Canadian market ($USD2.97M).

Compensation vs Earnings: John's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
John Floren
President7.83yrsUS$7.68m0.16%
$ 6.4m
Ian Cameron
Senior VP of Finance & CFO17.83yrsUS$2.37m0.042%
$ 1.6m
Michael Herz
Senior Vice President of Corporate Development7.83yrsUS$1.82m0.060%
$ 2.4m
Vanessa James
Senior Vice President of Global Marketing & Logistics7.83yrsUS$1.83m0.048%
$ 1.9m
Kevin Henderson
Senior Vice President of Manufacturing4.5yrsUS$1.98m0.041%
$ 1.6m
Kim Campbell
Director of Investor Relationsno datano datano data
Kevin Price
General Counsel & Corporate Secretaryno datano data0.014%
$ 540.6k
Bradley Boyd
Senior Vice President of Corporate Resources2.83yrsno data0.038%
$ 1.5m

7.8yrs

Average Tenure

Experienced Management: MX's management team is seasoned and experienced (7.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
John Floren
President7.83yrsUS$7.68m0.16%
$ 6.4m
Leslie O'Donoghue
Independent Director0.58yrno data0.013%
$ 511.0k
Janice Rennie
Independent Director14.5yrsUS$290.35k0.0039%
$ 153.5k
Robert Kostelnik
Independent Director12.17yrsUS$277.56k0.035%
$ 1.4m
Benita Warmbold
Independent Director4.75yrsUS$314.52k0.0079%
$ 306.5k
Phillip Cook
Independent Director14.5yrsUS$282.56k0.033%
$ 1.3m
James Bertram
Independent Director2.08yrsUS$250.49k0.017%
$ 646.6k
Maureen Howe
Independent Director2.42yrsUS$259.88k0.030%
$ 1.2m
Paul Dobson
Independent Director1.58yrsUS$88.17k0.0039%
$ 153.5k
Douglas Arnell
Independent Chairman of the Board1.58yrsUS$329.17k0.0012%
$ 46.0k
Margaret Walker
Independent Director5.58yrsUS$265.06k0.012%
$ 485.7k
Kevin Rodgers
Independent Director1.33yrsUS$45.00k0.0079%
$ 306.5k

3.6yrs

Average Tenure

61.5yo

Average Age

Experienced Board: MX's board of directors are considered experienced (3.6 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: MX insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

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$3.895b
  • 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 Analysis2020/11/24 23:55
End of Day Share Price2020/11/24 00:00
Earnings2020/09/30
Annual Earnings2019/12/31


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.