Methanex Corp

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MEOH : NASDAQ : Basic Materials
$42.1 | %
Today's Range: 40.85 - 42.2
Avg. Daily Volume: 883800.0
06/23/17 - 4:00 PM ET

Financial Analysis


METHANEX CORP's gross profit margin for the first quarter of its fiscal year 2017 has significantly increased when compared to the same period a year ago. The company grew its sales and net income significantly quarter versus same quarter a year prior, and was able to outpace the average competitor in the industry when comparing revenue growth, but not when comparing net income growth. METHANEX CORP has average liquidity. Currently, the Quick Ratio is 1.25 which shows that technically this company has the ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year.

During the same period, stockholders' equity ("net worth") has remained unchanged from the same quarter last year. Together, the key liquidity measurements indicate that it is relatively unlikely that the company will face financial difficulties in the near future.

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Income Statement Q1 FY17 Q1 FY16
Net Sales ($mil)810.35434.85
EBITDA ($mil)251.0431.1
EBIT ($mil)195.06-21.88
Net Income ($mil)131.57-23.4


Balance Sheet Q1 FY17 Q1 FY16
Cash & Equiv. ($mil)315.13275.01
Total Assets ($mil)4679.764396.66
Total Debt ($mil)1532.481519.2
Equity ($mil)1658.231660.62


Profitability Q1 FY17 Q1 FY16
Gross Profit Margin30.987.15
EBITDA Margin30.977.15
Operating Margin24.07-5.03
Sales Turnover0.510.47
Return on Assets3.043.83
Return on Equity8.5810.15
Debt Q1 FY17 Q1 FY16
Current Ratio1.811.84
Debt/Capital0.480.48
Interest Expense23.3221.0
Interest Coverage8.37-1.04


Share Data Q1 FY17 Q1 FY16
Shares outstanding (mil)89.1589.8
Div / share0.280.28
EPS1.46-0.26
Book value / share18.618.49
Institutional Own % n/a n/a
Avg Daily Volume888414.0805996.0

Valuation


BUY. METHANEX CORP's P/E ratio indicates a discount compared to an average of 30.36 for the Chemicals industry and a value on par with the S&P 500 average of 25.75. To use another comparison, its price-to-book ratio of 2.21 indicates a discount versus the S&P 500 average of 3.09 and a significant discount versus the industry average of 5.57. The price-to-sales ratio is well below both the S&P 500 average and the industry average, indicating a discount. Upon assessment of these and other key valuation criteria, METHANEX CORP proves to trade at a discount to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
MEOH 26.72 Peers 30.36   MEOH 9.19 Peers 16.43

Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.

MEOH is trading at a 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.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
MEOH 10.30 Peers 20.06   MEOH NM Peers 4.65

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 significant discount to its peers.

 

Neutral. 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's negative PEG ratio makes this valuation measure meaningless.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
MEOH 2.21 Peers 5.57   MEOH 0.65 Peers 7.05

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.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
MEOH 1.55 Peers 2.41   MEOH 13.92 Peers 3.40

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 industry on this measurement.

 

Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share.

MEOH has a sales growth rate that significantly exceeds its peers.

 

 

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