Methanex Corp. () Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Tidewater Renewables Ltd.

EcoSynthetix, Inc.

Methanex Corp.

Royal Helium Ltd.

Aduro Clean Technologies, Inc.

International Battery Metals Ltd.

E3 Lithium Ltd.

Sona Nanotech, Inc.

BIOSENTA, Inc.

Global Helium Corp.

CO2 Gro, Inc.

Why is Methanex Corp. ?

High Debt Company with a Debt to Equity ratio (avg) at times

Poor long term growth as Net Sales has grown by an annual rate of 7.73% and Operating profit at 131.14% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times

Strong Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 10.89%

Flat results in Jun 25

INTEREST(HY) At CAD 143.62 MM has Grown at 90.98%
INTEREST COVERAGE RATIO(Q) Lowest at 421.03
INVENTORY TURNOVER RATIO(HY) Lowest at 6.46%

With ROE of 15.19%, it has a very attractive valuation with a 1.17 Price to Book Value

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -1.91%, its profits have risen by 72.1% ; the PEG ratio of the company is 0.1

Reducing Promoter Confidence

Promoters have decreased their stake in the company by -0.78% over the previous quarter and currently hold 0.04% of the company
Promoters decreasing their stake may signify reduced confidence in the future of the business

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Specialty Chemicals)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Methanex Corp. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Methanex Corp.

-20.95%

-0.57

42.18%

S&P/TSX 60

19.1%

1.54

14.62%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

7.73%

EBIT Growth (5y)

131.14%

EBIT to Interest (avg)

2.74

Debt to EBITDA (avg)

2.28

Net Debt to Equity (avg)

0.64

Sales to Capital Employed (avg)

0.84

Tax Ratio

17.12%

Dividend Payout Ratio

30.60%

Pledged Shares

Institutional Holding

66.09%

ROCE (avg)

10.89%

ROE (avg)

15.51%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.08

EV to EBIT

10.76

EV to EBITDA

5.95

EV to Capital Employed

1.04

EV to Sales

1.48

PEG Ratio

0.10

Dividend Yield

ROCE (Latest)

9.66%

ROE (Latest)

15.19%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Bearish

RSI

No Signal

Bollinger Bands

Bullish

Mildly Bearish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bearish

Dow Theory

Mildly Bearish

No Trend

OBV

Mildly Bearish

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

9What is working for the Company

NET PROFIT(HY)

At CAD 248.82 MM has Grown at 108.83%

OPERATING CASH FLOW(Y)

Highest at CAD 1,287.25 MM

RAW MATERIAL COST(Y)

Fallen by -84.92% (YoY

-14What is not working for the Company

INTEREST(HY)

At CAD 143.62 MM has Grown at 90.98%

INTEREST COVERAGE RATIO(Q)

Lowest at 421.03

INVENTORY TURNOVER RATIO(HY)

Lowest at 6.46%

DEBTORS TURNOVER RATIO(HY)

Lowest at 6.96%

NET SALES(Q)

Lowest at CAD 1,102.29 MM

Here's what is working for Methanex Corp.

Net Profit

At CAD 248.82 MM has Grown at 108.83%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CAD MM)

Operating Cash Flow

Highest at CAD 1,287.25 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CAD MM)

Raw Material Cost

Fallen by -84.92% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for Methanex Corp.

Interest

At CAD 143.62 MM has Grown at 90.98%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CAD MM)

Interest Coverage Ratio

Lowest at 421.03

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Net Sales

Lowest at CAD 1,102.29 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CAD MM)

Net Sales

At CAD 1,102.29 MM has Fallen at -14.35%

over average net sales of the previous four periods of CAD 1,286.92 MM

MOJO Watch

Near term sales trend is negative

Net Sales (CAD MM)

Inventory Turnover Ratio

Lowest at 6.46%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Debtors Turnover Ratio

Lowest at 6.96%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio