Fact based stock research
Methanex (TSX:MX)

CA59151K1084

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For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".

Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".

Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.

Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.

(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).

(NEW) 360° View - the ultimate rating with all financial and non-financial indicators.

Methanex stock research in summary

methanex.com

ANALYSIS: With an Obermatt Combined Rank of 89 (better than 89% compared with investment alternatives), Methanex (Commodity Chemicals, Canada) shares have much better financial characteristics than comparable stocks. Shares of Methanex are a good value (attractively priced) with a consolidated Value Rank of 93 (better than 93% of alternatives), show above-average growth (Growth Rank of 81) but are riskily financed (Safety Rank of 39), which means above-average debt burdens. ...read more

RECOMMENDATION: A Combined Rank of 89, is a strong buy recommendation based on Methanex's financial characteristics. As the company Methanex's key financial metrics exhibit excellent performance in two areas, such as good value (Obermatt Value Rank of 93) and above-average growth (Obermatt Growth Rank of 81), it could be argued that the risk-taking in financing (Obermatt Safety Rank of only 39) indicates that the company is optimistic about the future and sees debt as an opportunity to boost returns. More debt means more shareholder returns if everything goes well. However, higher debt burdens are risky when interest rates rise or the business deteriorates in a crisis. If you believe the company's future is market-typical or even better, this could be an argument for a share purchase. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more

Latest Obermatt Ranks


360° View^new
Sentiment Rank^new
Value Rank	93
Growth Rank	81
Safety Rank	39
Combined Rank	89

Country	Canada
Industry	Commodity Chemicals
Index	NASDAQ, TSX Composite
Size class	X-Large

14-Nov-2024. Stock data may be delayed. Log in or sign up to get the most recent research.

Further information

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Review the performance ranks of the individual metrics that form each investment strategy.

Research History: Methanex

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	67	83	73	93
GROWTH
GROWTH	72	21	39	81
SAFETY
SAFETY	9	15	25	39
SENTIMENT
SENTIMENT	n/a	31	57	^new
360° VIEW
360° VIEW	n/a	27	37	^new

Most recent update of the stock research: 14-Nov-2024. Financial reporting date used for calculating ranks: 30-Jun-2024. Stock research history is based on the Obermatt Method. The higher the rank, the better Methanex is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	67	83	73	93
GROWTH
GROWTH	72	21	39	81
SAFETY
SAFETY	9	15	25	39
COMBINED
COMBINED	47	29	39	89

Last update of combined financial performance: 14-Nov-2024. Stock analysis on combined financial performance: The higher the rank of Methanex the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 93 (better than 93% compared with alternatives) for 2024, Methanex shares are significantly less expensive than comparable stocks. The Value Rank is based on consolidating four value indicators that are all above average for Methanex. Price-to-Sales is 81 which means that the stock price compared with what market professionals expect for future sales is lower than for 81% of comparable companies, indicating a good value for Methanex's revenue size. The same is valid for expected Price-to-Profits, more favorable than for 86% of alternatives, and this is also true for the Price-to-Book capital ratio (also referred to as market-to-book ratio) with a Price-to-Capital Rank of 62. Compared with other companies in the same industry, dividend yields of Methanex are expected to be higher than for 77% of all competitors (a Dividend Yield rank of 77). ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 93, is a buy recommendation based on Methanex's stock price compared with the company's operational size and dividend yields. Since all value metrics are above the industry average, there is no objection to investing in Methanex based on its detailed value metrics. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision. ...read more

VALUE METRICS	2021	2022	2023	2024
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	80	83	74	81
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	68	75	56	86
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	62	64	67	62
DIVIDEND YIELD
DIVIDEND YIELD	42	55	49	77
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	67	83	73	93

Last update of Value Rank: 14-Nov-2024. Stock analysis on value ratios: The higher the rank, the lower the value ratio of Methanex; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 81 (better than 81% compared with alternatives) for 2024, Methanex shows one of the highest growth dynamics in its industry. Investors also speak of high momentum. The Growth Rank is based on consolidating four value indicators, with all but one indicator above average for Methanex. Sales Growth has a value of 73 which means that currently professionals expect the company to grow more than 73% of its competitors. Profit Growth with a value of 75 and Capital Growth with a rank of 68 means that currently, professionals expect the company to grow both profits and invested capital more than of its competitors. But Stock Returns has only a rank of 41, which means that stock returns have recently been below 59% of alternative investments. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 81, is a buy recommendation for growth and momentum investors. Methanex has only one below-average growth indicator, the stock returns. This is probably the least reliable growth indicator, because it measures company and investor expectations at the same time. The three other growth indicators, which are all positive for Methanex, are more reliable measures of growth momentum. For this reason, the company seems to be on a good trajectory, unless you think the current period is not representative, because of unique events that will not be repeated in the future. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case. ...read more

GROWTH METRICS	2021	2022	2023	2024
REVENUE GROWTH
REVENUE GROWTH	61	1	71	73
PROFIT GROWTH
PROFIT GROWTH	10	94	23	75
CAPITAL GROWTH
CAPITAL GROWTH	n/a	11	4	68
STOCK RETURNS
STOCK RETURNS	72	39	85	41
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	72	21	39	81

Last update of Growth Rank: 14-Nov-2024. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of Methanex.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 39 (better than 39% compared with alternatives), the company Methanex has financing practices on the riskier side, which means that their overall debt burden is above the industry average. This doesn't mean that the business of Methanex is also risky, it only means that the company is on the riskier side in respect to bankruptcy in case things turn sour, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with two out of three indicators above-average for Methanex. Refinancing is at 50, meaning the portion of the debt that is about to be refinanced is below average. It has less debt in the refinancing stage than 50% of its competitors. Liquidity is also good at 58, meaning the company generates more profit to service its debt than 58% of its competitors. This indicates that the company is safer when it comes to debt service. However, Leverage is rather large at 19, which means the company has an above-average debt-to-equity ratio. It has more debt than 81% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 39 (worse than 61% compared with alternatives), Methanex has a financing structure that is riskier than that of its competitors. This is not bad if things go well. The higher debt level means better returns to shareholders if things go well. Many top-performing companies operate with higher debt levels, and Methanex could be in that group. But if you expect the environment to turn rougher, the higher leverage could become a problem. The same is valid if you expect interest rates to rise. That could squeeze shareholder returns, which so far have benefitted from better conditions. In the long-term, investors may have a debt challenge with Methanex and should also compare Obermatt’s Value, Growth, and Sentiment Ranks before making a decision. ...read more

SAFETY METRICS	2021	2022	2023	2024
LEVERAGE
LEVERAGE	6	22	30	19
REFINANCING
REFINANCING	60	71	57	50
LIQUIDITY
LIQUIDITY	9	7	32	58
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	9	15	25	39

Last update of Safety Rank: 14-Nov-2024. Stock analysis on safety metrics: The higher the rank, the lower the leverage of Methanex and the more cash is available to service its debt.

Sentiment Metrics in Detail

SENTIMENT	2021	2022	2023	2024
ANALYST OPINIONS
ANALYST OPINIONS	n/a	36	56	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	6	34	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	39	26	^new
MARKET PULSE
MARKET PULSE	n/a	78	93	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	31	57	^new

Last update of Sentiment Rank: 14-Nov-2024. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for Methanex.
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