MEOH Stock Analysis

Methanex Corporation
BASIC MATERIALS CHEMICALS

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Strong Caution Mixed Weak Unavailable

StockValueFinder Grade

61.34 / 100

Above Average

Confidence: Very High (100.0%) Coverage: 100.0%

Business Quality 39.8

Financial Strength 60.2

Earnings & Growth 73.1

Valuation 59.9

Market Strength 85.2

The grade combines Business Quality, Financial Strength, Earnings & Growth, Valuation, and Market Strength. Rating and Trend remain separate signals.

Rating AVOID

Avoid

The screening rules are warning against this setup.

Rating is the simple decision label from the screening rules.

Trend STRONG BUY TREND

Bullish

The available trend signal is constructive.

Trend shows whether price action is helping or hurting the setup.

P/E Ratio 62.46

High Expectations

Very high P/E requires strong future results to justify the price.

P/E shows how much investors pay for each dollar of earnings.

ROIC 1.34%

Weak

Low ROIC suggests limited profit efficiency.

ROIC measures how efficiently capital turns into profit.

Debt Payback 3.71 yrs

Fair

Manageable, but not as strong as a sub-3-year payback.

Debt payback estimates how quickly debt could be covered.

Interest Coverage 2.11x

Weak

Low coverage can make debt more risky.

Interest coverage shows how easily earnings cover interest costs.

Price $63.08

Market Price

Price alone is not a buy or sell signal.

Price should be judged with valuation, quality, and trend.

Last updated: 2026-10-25 09:50:17

Performance Overview

Trailing adjusted-close returns as of 2026-07-17. Benchmark is SPY.

YTD Return

MEOH +38.95%

SPY +9.58%

1-Year Return

MEOH +63.48%

SPY +19.66%

3-Year Return

MEOH +37.36%

SPY +71.13%

5-Year Return

MEOH +82.94%

SPY +84.41%

Returns are calculated from adjusted close prices and may differ from broker or research-site totals depending on data source, dividend handling, benchmark choice, and latest available trading date.

Legacy Screening Checks

This page uses cached SQL data from the latest StockValueFinder scan, so it loads fast without hitting Alpha Vantage on every page view.

17%

EPS Strength

FAIL

Looks for positive and improving earnings per share.

ROIC 10%+

FAIL

Looks for strong return on invested capital.

Interest Coverage 6+

FAIL

Checks whether operating income comfortably covers interest expense.

Debt Payback ≤ 3 Years

FAIL

Checks whether free cash flow could pay down long-term debt quickly.

P/E 15 or Less

FAIL

Checks whether valuation is reasonable under the current rule set.

Moving Average Trend

STRONG BUY TREND

Uses 20-day, 50-day, and 200-day moving averages for entry timing context.

A high StockValueFinder score is a research signal, not a guarantee. Strong companies can still fall during recessions, sector downturns, valuation resets, or company-specific events. Always review the business, risks, SEC filings, valuation, and your personal investment goals before buying.

Cached Technical Data

Moving average values from the latest stored scan.

20-Day MA61.62

50-Day MA60.38

200-Day MA56.00

MA Score5

Latest Published Stock Research

Research generated: October 24, 2026

MEOH Stock Analysis: Why Methanex Corporation Scored 17% in Stock Value Finder

Methanex Corporation (MEOH): A Detailed StockValueFinder Educational Review

Overview of Methanex Corporation (MEOH)

Methanex Corporation (MEOH) is a global leader in the production and supply of methanol, a versatile chemical used in various industries including construction, automotive, and consumer goods. As a key player in the basic materials sector, specifically within the chemicals industry, Methanex operates in a cyclical and capital-intensive business environment. This educational StockValueFinder review examines the company's financial metrics to help investors understand how to evaluate stocks using objective, number-driven criteria.

This article is not a recommendation to buy or sell MEOH. Instead, it serves as a case study to demonstrate how StockValueFinder's systematic approach evaluates stocks based on earnings consistency, capital efficiency, financial safety, valuation discipline, and trend timing. By the end of this review, readers should gain a clearer understanding of how to interpret these metrics when analyzing other stocks.

Why the StockValueFinder Score Matters

StockValueFinder assigns a composite score to each stock based on a series of quantitative tests. For Methanex Corporation, the overall score is **17%**, which corresponds to an **AVOID** rating. This score reflects the system's assessment of the company's financial health, efficiency, and valuation relative to established benchmarks.

A score of 17% indicates that MEOH did not meet the majority of StockValueFinder's criteria for high-quality stocks. While no scoring system is infallible, the low score suggests that investors should carefully evaluate the company's financials before considering an investment. Below, we break down each metric to explain why MEOH received this rating.

EPS Strength and Consistency

What Is EPS and Why Does It Matter?

Earnings per share (EPS) measures a company's profitability on a per-share basis. Consistent and growing EPS is often a sign of a well-managed business with stable demand for its products or services. StockValueFinder evaluates EPS to determine whether a company has demonstrated reliable earnings over time.

StockValueFinder's EPS Test for MEOH

The system recorded that Methanex Corporation **did not pass** the EPS test. While exact EPS values are not supplied, the failure indicates that the company's earnings history did not meet StockValueFinder's criteria for consistency or growth.

What a Strong EPS Looks Like

A strong EPS profile typically includes

**Consistent year-over-year growth** (e.g., 5-10% annual increases). - **Stability during economic downturns** (e.g., avoiding large losses in recessionary periods). - **Positive earnings in most quarters** (e.g., no more than one or two negative quarters in a five-year span).

For example, a company with EPS of $2.00, $2.10, $2.25, $2.40, and $2.50 over five years demonstrates steady growth. In contrast, a company with EPS of $1.50, -$0.30, $0.80, $1.20, and $1.60 shows volatility and inconsistency.

Why MEOH Failed the EPS Test

Since the exact EPS figures are not provided, we cannot analyze the specific reasons for the failure. However, the result suggests that Methanex's earnings may have been inconsistent, declining, or negative in recent periods. Investors should review the company's earnings reports to identify trends in profitability before making any decisions.

ROIC and Capital Efficiency

What Is ROIC?

Return on invested capital (ROIC) measures how effectively a company uses its capital to generate profits. It is calculated as:

**ROIC = Net Operating Profit After Taxes (NOPAT) / Invested Capital**

A high ROIC indicates that a company is generating strong returns from its investments, while a low ROIC suggests inefficiency or poor capital allocation.

StockValueFinder's ROIC Benchmark

StockValueFinder generally prefers companies with an ROIC of **10% or higher**. This threshold reflects a business that is generating sufficient returns to justify its capital investments.

MEOH's ROIC: 1.34%

Methanex Corporation's ROIC is **1.34%**, which is significantly below StockValueFinder's preferred threshold. This means the company is generating only $1.34 in profit for every $100 of invested capital.

Why 1.34% ROIC Is Weak

An ROIC of 1.34% is concerning for several reasons

1. **Below the cost of capital**: Most companies aim for an ROIC that exceeds their weighted average cost of capital (WACC). A ROIC of 1.34% is likely below Methanex's WACC, meaning the company is not earning enough to cover its financing costs. 2. **Poor capital efficiency**: For comparison, a company with a 15% ROIC is generating $15 in profit for every $100 invested, which is far more efficient than Methanex's 1.34%. 3. **Cyclical industry risks**: Methanex operates in the chemicals industry, which is highly cyclical and capital-intensive. A low ROIC in this sector may indicate vulnerability to economic downturns or pricing pressures.

Example of Strong vs. Weak ROIC

**Strong ROIC**: A company with a 12% ROIC is using its capital efficiently and generating healthy returns. - **Weak ROIC**: A company with a 2% ROIC is struggling to generate profits from its investments and may face challenges in sustaining growth.

Methanex's ROIC of 1.34% falls into the weak category, which is why it **did not pass** StockValueFinder's ROIC test.

Interest Coverage and Financial Safety

What Is Interest Coverage?

Interest coverage measures a company's ability to pay the interest on its debt. It is calculated as:

**Interest Coverage = Earnings Before Interest and Taxes (EBIT) / Interest Expense**

A higher interest coverage ratio indicates greater financial flexibility, while a lower ratio suggests potential difficulty in meeting debt obligations.

StockValueFinder's Interest Coverage Benchmark

StockValueFinder prefers companies with an interest coverage ratio of **6 or higher**. This threshold ensures that a company can comfortably cover its interest payments even during periods of reduced earnings.

MEOH's Interest Coverage Test Result

Methanex Corporation **did not pass** StockValueFinder's interest coverage test. While the exact interest coverage ratio is not supplied, the failure indicates that the company's ratio is likely below 6.

Why Interest Coverage Matters

**Financial safety**: A ratio of 6 or higher means a company earns six times its annual interest expense, providing a buffer during downturns. - **Debt sustainability**: A ratio below 2 or 3 may signal that a company is overleveraged and at risk of defaulting on its debt. - **Example**: A company with $100 million in EBIT and $10 million in interest expense has an interest coverage ratio of 10, which is strong. In contrast, a company with $20 million in EBIT and $10 million in interest expense has a ratio of 2, which is risky.

Since MEOH failed this test, investors should investigate the company's debt levels and interest expenses to assess its financial stability.

Debt Payback and Balance Sheet Discipline

What Is Debt Payback?

Debt payback measures how long it would take a company to pay off its total debt using its current operating cash flow. It is calculated as:

**Debt Payback (Years) = Total Debt / Operating Cash Flow**

A shorter debt payback period indicates a stronger balance sheet and lower financial risk.

StockValueFinder's Debt Payback Benchmark

StockValueFinder prefers companies with a debt payback period of **3 years or less**. This ensures that a company can quickly reduce its debt burden and avoid excessive leverage.

MEOH's Debt Payback: 3.71 Years

Methanex Corporation's debt payback period is **3.71 years**, which exceeds StockValueFinder's preferred threshold of 3 years. This means it would take the company nearly four years to pay off its debt using its current operating cash flow.

Why 3.71 Years Is Concerning

**Higher financial risk**: A debt payback period of 3.71 years is longer than ideal, indicating that Methanex may be carrying more debt than it can comfortably manage. - **Vulnerability to downturns**: In a cyclical industry like chemicals, a longer debt payback period increases the risk of financial distress during economic slowdowns. - **Example**: A company with a debt payback period of 1.5 years can quickly reduce its debt, while a company with a 7-year payback period may struggle to manage its obligations.

Methanex's debt payback period of 3.71 years is why it **did not pass** StockValueFinder's debt payback test.

P/E Ratio and Valuation Discipline

What Is the P/E Ratio?

The price-to-earnings (P/E) ratio measures a company's current stock price relative to its earnings per share. It is calculated as:

**P/E Ratio = Stock Price / Earnings Per Share**

A lower P/E ratio may indicate that a stock is undervalued, while a higher P/E ratio may suggest overvaluation or high growth expectations.

StockValueFinder's P/E Benchmark

StockValueFinder prefers companies with a P/E ratio of **15 or lower**. This threshold reflects a disciplined approach to valuation, ensuring that investors are not overpaying for earnings.

MEOH's P/E Ratio: 62.46

Methanex Corporation's P/E ratio is **62.46**, which is significantly higher than StockValueFinder's preferred threshold. This means investors are paying $62.46 for every $1 of the company's earnings.

Why a P/E of 62.46 Is High

**Overvaluation risk**: A P/E ratio of 62.46 suggests that the market has high expectations for Methanex's future earnings growth. If the company fails to meet these expectations, the stock price could decline. - **Comparison to benchmarks**: For context, the S&P 500's average P/E ratio is typically around 15-20. A P/E of 62.46 is more than three times this average. - **Example**: A company with a P/E of 8 is trading at a lower multiple of its earnings, which may indicate better value. In contrast, a company with a P/E of 40 is trading at a higher multiple, which may reflect growth expectations or overvaluation.

Methanex's P/E ratio of 62.46 is why it **did not pass** StockValueFinder's P/E valuation test.

Moving Average Trend and Entry Timing

What Is the Moving Average Trend?

The moving average trend is a technical indicator that smooths out price fluctuations to identify the overall direction of a stock's price. StockValueFinder uses moving averages to assess whether a stock is in an uptrend, downtrend, or sideways trend.

MEOH's Moving Average Signal: STRONG BUY TREND

Methanex Corporation's moving average signal is **STRONG BUY TREND**. This indicates that the stock's price is currently above its moving averages, suggesting upward momentum.

Why Trend Matters

**Timing discipline**: While a strong buy trend may indicate positive price momentum, it does not guarantee future performance. Investors should use trend signals as one factor in their decision-making process, not as a standalone buy or sell indicator. - **Example**: A stock with a strong buy trend may continue rising, but it could also reverse if fundamentals deteriorate. Conversely, a stock in a downtrend may eventually rebound if its financial health improves.

Entry Signal and Risk Levels

StockValueFinder did not provide specific entry signals, pullback zones, or risk/trend levels for MEOH. This means the system did not identify a clear entry point or risk management level for the stock at this time.

Overall Financial Strengths and Weaknesses

Strengths

1. **Strong buy trend**: Methanex's stock is currently in an uptrend, which may indicate positive price momentum. 2. **Global market position**: As a leader in methanol production, Methanex benefits from its scale and industry expertise.

Weaknesses

1. **Low ROIC (1.34%)**: The company is generating weak returns on its invested capital, indicating inefficiency. 2. **High P/E ratio (62.46)**: The stock is trading at a high multiple of its earnings, suggesting potential overvaluation. 3. **Failed interest coverage test**: The company may be struggling to cover its interest expenses, raising financial safety concerns. 4. **Long debt payback period (3.71 years)**: Methanex's debt levels may be unsustainable in the long term. 5. **Failed EPS test**: The company's earnings history may be inconsistent or declining.

Risks and Limitations

Industry Risks

1. **Cyclicality**: The chemicals industry is highly cyclical, meaning Methanex's earnings and cash flow may fluctuate with economic conditions. 2. **Commodity price volatility**: Methanol prices are subject to supply and demand dynamics, which can impact profitability. 3. **Regulatory risks**: Changes in environmental or trade regulations could affect the company's operations and costs.

Financial Risks

1. **High debt levels**: Methanex's debt payback period of 3.71 years indicates a significant debt burden, which could become problematic during economic downturns. 2. **Low ROIC**: The company's low return on invested capital suggests inefficiency in capital allocation. 3. **High P/E ratio**: The stock's elevated valuation may not be justified by its fundamentals, increasing the risk of a price correction.

Limitations of This Analysis

1. **Incomplete data**: Some metrics, such as exact EPS values and interest coverage ratios, were not provided. This limits the depth of the analysis. 2. **No forward-looking estimates**: This review is based on historical data and does not incorporate future earnings projections or analyst estimates. 3. **No qualitative factors**: The analysis focuses on quantitative metrics and does not consider qualitative factors such as management quality, competitive advantages, or industry trends.

Educational Conclusion

This StockValueFinder review of Methanex Corporation (MEOH) demonstrates how to evaluate a stock using objective, number-driven criteria. By examining metrics such as EPS consistency, ROIC, interest coverage, debt payback, P/E ratio, and moving average trends, investors can gain a clearer understanding of a company's financial health and valuation.

Key Takeaways for Investors

1. **EPS consistency matters**: Reliable earnings growth is a hallmark of high-quality stocks. Methanex failed this test, indicating potential earnings volatility. 2. **ROIC reflects capital efficiency**: A low ROIC (1.34%) suggests that Methanex is not generating strong returns on its investments. 3. **Interest coverage and debt payback are critical for financial safety**: Methanex failed both tests, raising concerns about its ability to manage debt. 4. **P/E ratio indicates valuation**: A high P/E (62.46) may signal overvaluation, especially if earnings growth does not materialize. 5. **Trend signals are useful but not foolproof**: While Methanex is in a strong buy trend, this does not guarantee future performance.

How to Apply This Knowledge to Other Stocks

When evaluating other stocks, use the following benchmarks as a starting point

**EPS**: Look for consistent growth and stability. - **ROIC**: Aim for 10% or higher to ensure capital efficiency. - **Interest coverage**: Prefer ratios of 6 or higher for financial safety. - **Debt payback**: Target 3 years or less for balance sheet discipline. - **P/E ratio**: Consider stocks with a P/E of 15 or lower for valuation discipline.

This article is for research and educational purposes only. It is not personal financial advice, investment advice, or a recommendation to buy or sell any security. Always conduct your own research and consult with a financial advisor before making investment decisions.

Research links: Yahoo Finance | Seeking Alpha | Finviz | SEC Filings

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