Methanex Corporation
Find Ratings ReportsMETHANEX CORP's gross profit margin for the fourth quarter of its fiscal year 2023 has increased when compared to the same period a year ago. Sales and net income have dropped, underperforming the average competitor within its subsector. METHANEX CORP has weak liquidity. Currently, the Quick Ratio is 0.76 which shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year, indicating deteriorating cash flow.
During the same period, stockholders' equity ("net worth") has decreased by 8.57% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.
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Income Statement | Q4 FY23 | Q4 FY22 |
---|---|---|
Net Sales ($mil) | 922.42 | 986.12 |
EBITDA ($mil) | 149.95 | 145.29 |
EBIT ($mil) | 49.84 | 58.93 |
Net Income ($mil) | 33.49 | 41.03 |
Balance Sheet | Q4 FY23 | Q4 FY22 |
---|---|---|
Cash & Equiv. ($mil) | 458.02 | 860.95 |
Total Assets ($mil) | 6426.56 | 6631.48 |
Total Debt ($mil) | 3013.92 | 3021.68 |
Equity ($mil) | 1930.93 | 2112.01 |
Profitability | Q4 FY23 | Q4 FY22 |
---|---|---|
Gross Profit Margin | 16.26 | 14.73 |
EBITDA Margin | 16.25 | 14.73 |
Operating Margin | 5.4 | 5.98 |
Sales Turnover | 0.58 | 0.65 |
Return on Assets | 2.7 | 5.33 |
Return on Equity | 9.02 | 16.75 |
Debt | Q4 FY23 | Q4 FY22 |
---|---|---|
Current Ratio | 1.14 | 1.99 |
Debt/Capital | 0.61 | 0.59 |
Interest Expense | 45.39 | 42.58 |
Interest Coverage | 1.1 | 1.38 |
Share Data | Q4 FY23 | Q4 FY22 |
---|---|---|
Shares outstanding (mil) | 67.39 | 69.24 |
Div / share | 0.19 | 0.18 |
EPS | 0.5 | 0.59 |
Book value / share | 28.65 | 30.5 |
Institutional Own % | n/a | n/a |
Avg Daily Volume | 273297.0 | 284882.0 |
BUY. METHANEX CORP's P/E ratio indicates a significant discount compared to an average of 85.83 for the Chemical Manufacturing subsector and a significant discount compared to the S&P 500 average of 27.95. For additional comparison, its price-to-book ratio of 1.49 indicates a significant discount versus the S&P 500 average of 4.68 and a significant discount versus the subsector average of 19.07. The price-to-sales ratio is well below both the S&P 500 average and the subsector average, indicating a discount. Upon assessment of these and other key valuation criteria, METHANEX CORP proves to trade at a discount to investment alternatives.
Price/Earnings |
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Price/Cash Flow |
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MEOH 17.37 | Peers 85.83 | MEOH 4.36 | Peers 38.76 | |||||||||||||||||||||
Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations. MEOH is trading at a significant discount to its peers. |
Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures. MEOH is trading at a significant discount to its peers. |
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Price/Projected Earnings |
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Price to Earnings/Growth |
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MEOH 8.73 | Peers 18.08 | MEOH 0.88 | Peers 1.16 | |||||||||||||||||||||
Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations. MEOH is trading at a discount to its peers. |
Discount. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples. MEOH trades at a discount to its peers. |
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Price/Book |
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Earnings Growth |
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MEOH 1.49 | Peers 19.07 | MEOH -44.97 | Peers 12.58 | |||||||||||||||||||||
Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet. MEOH is trading at a significant discount to its peers. |
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. However, MEOH is expected to significantly trail its peers on the basis of its earnings growth rate. |
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Price/Sales |
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Sales Growth |
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MEOH 0.77 | Peers 84.44 | MEOH -13.64 | Peers 42.35 | |||||||||||||||||||||
Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales. MEOH is trading at a significant discount to its subsector on this measurement. |
Lower. A sales growth rate that trails the subsector implies that a company is losing market share. MEOH significantly trails its peers on the basis of sales growth. |
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