MEOHMethanex Corporation
Is the business good?
The checks split: nothing decisive, though earnings fully cash-backed (3.3×).
Operating profit is fully backed by cash. Conversion is improving vs a year ago.
Margins have held roughly steady, a stable cost structure.
A balanced mix of margins, efficiency, and leverage. ROE 6% = margin × turnover × leverage.
Unless marked, from derived.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is MEOH?
Methanex Corporation earns 7.1% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.
Return on invested capital · cost of capital 9.0% · 1.9 points below what the capital costs: growth destroys value
- Operating margin
- 12%
Operating margin · Chemicals median −1.6% · fiscal year to FY2025
- Cash conversion
- 3.31×
Cash conversion · 2.28× a year ago · operating cash flow covers the operating profit after tax
- Share count, year on year
- +7.5%
Share count, year on year · shareholders own a smaller slice than a year ago
| Year | Operating margin |
|---|---|
| FY2020 | −2.0% |
| FY2021 | 16% |
| FY2022 | 14% |
| FY2023 | 7.1% |
| FY2024 | 9.7% |
| FY2025 | 12% |
Details›
- Gross marginfiscal year to FY2025
- 36%
- Operating marginfiscal year to FY2025
- 12%
- Net marginfiscal year to FY2025
- 4.0%
- Free cash flow margin
- 26%
- Revenue, trailing twelve months
- $3.59B
- Free cash flow, trailing twelve months
- $917M
- Net income, trailing twelve months
- $145M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 7.1%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.