Methanex Corporation (MX:TSX) Analysts rate as a Buy, $53 target

Scotiabank Capital maintains Methanex Corporation as outperform at CAD 62.75 target price.

Methanex Stock Analysis:

Based on the Methanex stock forecast from 11 analysts, the average analyst target price for Methanex Corporation is CAD 53.33 over the next 12 months. Methanex Corporation’s average analyst rating is Buy. Stock Target Advisor’s own stock analysis of Methanex Corporation is Bullish, which is based on 13 positive signals and 4 negative signals. At the last closing, Methanex stock price was CAD 39.37Methanex stock price has changed by -10.09% over the past week, -24.59% over the past month and -31.42% over the last year.

 

Most Recent Analysts Ratings for MX’s stocks:

Maintains STA Research Underperform CAD 35 2022-09-16
Maintains Scotiabank Capital Sector Perform CAD 59.5 2022-09-16
Target Down Barclays Buy CAD 52 2022-08-02
Maintains Scotiabank Capital Sector Perform CAD 64.5 2022-07-28
Target Up TD Research Hold CAD 21 2022-07-25
Target Up Raymond James Capital Outperform CAD 31 2022-07-25
Target Down STA Research Underperform CAD 35 2022-07-13
Target Down UBS Sell CAD 36 2022-07-13
Target Up Raymond James Capital Outperform CAD 26 2022-07-06
Target Down RBC Royalbank Outperform CAD 60 2022-06-30
Target Down Raymond James Capital Market Perform CAD 75 2022-06-22
Target Down STA Research Underperform CAD 40 2022-06-21
Target Down Jefferies Financial LLC Buy CAD 66 2022-06-21
Maintains Scotiabank Capital Sector Perform CAD 65 2022-06-20
Target Down TD Research Buy CAD 59 2022-06-17
Downgraded by Piper Sandler Sell CAD 48 2022-05-10
Reiterated by Alembic Hold CAD 40 2022-05-09
Target Up TD Research Hold CAD 22 2022-05-02
Target Up Raymond James Capital Market Perform CAD 77 2022-05-02
Reiterated by BMO Financial Buy CAD 65 2022-04-30
Target Up Scotiabank Capital Outperform CAD 76 2022-04-29
Assigns Alembic Hold 2022-04-19
Target Down Raymond James Mkt Perform CAD 66 » CAD 60 2022-04-19
Target Up RBC Royalbank Outperform CAD 81 2022-04-01
Target Up TD Research Buy CAD 86 2022-03-28

 

What we like:

High market capitalization

This is one of the largest entities in its sector and is among the top quartile. Such companies tend to be more stable.

Low volatility

Methanex Stock annual returns have been stable and consistent compared to its sector peers(for a hold period of at least 12 months) and is in the top quartile. Although stability is good, also keep in mind it can limit returns.

Superior total returns

The stock has outperformed its sector peers on average annual total returns basis in the past 5 years (for a hold period of at least 12 months) and is in the top quartile.

Underpriced compared to earnings

The stock is trading low compared to its peers on a price to earning basis and is in the top quartile. It may be underpriced but do check its financial performance to make sure there is no specific reason.

Underpriced compared to book value

Methanex Stock is trading low compared to its peers on a price to book value basis and is in the top quartile. It may be underpriced but do check its financial performance to make sure there is no specific reason.

Superior return on equity

The company management has delivered better return on equity in the most recent 4 quarters than its peers, placing it in the top quartile.

Superior capital utilization

The company management has delivered better return on invested capital in the most recent 4 quarters than its peers, placing it in the top quartile.

Superior return on assets

The company management has delivered better return on assets in the most recent 4 quarters than its peers, placing it in the top quartile.

Positive cash flow

The company had positive total cash flow in the most recent four quarters.

Positive free cash flow

The company had positive total free cash flow in the most recent four quarters.

Superior Earnings Growth

Methanex Stock has shown top quartile earnings growth in the previous 5 years compared to its sector.

Superior Revenue Growth

This stock has shown top quartile revenue growth in the previous 5 years compared to its sector.

High Gross Profit to Asset Ratio

Methanex Stock is in the top quartile compared to its peers on Gross Profit to Asset Ratio. This is a popular measure among value investors for showing superior returns in the long run.

 

What we don’t like:

Poor risk adjusted returns

This company is delivering below median risk adjusted returns in its peers. Even if it is outperforming on returns , the returns are unpredictable. Proceed with caution.

Below median dividend returns

The company’s average income yield over the past 5 years has been low compared to its peers. However, it is not a problem if you are not looking for income.

Overpriced on cashflow basis

Methanex Stock is trading high compared to its peers on a price to cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering to buy.

Highly leveraged

The company is in the bottom half compared to its sector peers on debt to equity and is highly leveraged. However, do check the news and look at its sector and management statements. Sometimes this is high because the company is trying to grow aggressively.