Methanex Corporation is the world's largest producer and supplier of methanol to major international markets. The company was founded in 1968 and is based in Vancouver, Canada.
MEOH Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for MEOH, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Methanex Corp ranked in the 45th percentile in terms of potential gain offered. We should note, though, that the most conservative analysis suggests this stock will yield negative results -- and thus may be a potential short opportunity. The most interesting components of our discounted cash flow analysis for Methanex Corp ended up being:
51% of the company's capital comes from equity, which is greater than only 20.92% of stocks in our cash flow based forecasting set.
The business' balance sheet reveals debt to be 49% of the company's capital (with equity being the remaining amount). Approximately 79.04% of US stocks with free cash flow have a lower reliance on debt in their capital structure.
As a business, Methanex Corp experienced a tax rate of about 2% over the past twelve months; relative to its sector (Basic Materials), this tax rate is higher than just 21.2% of stocks generating free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
Want more companies with a valuation profile/forecast similar to that of Methanex Corp? See RFP, ESI, GLT, SSD, and NP.
Methanex Corporation (TSX:MX)(NASDAQ:MEOH) is focused on low cost production and operational excellence. This focus should serve long-term shareholders well. The post 1 TSX Stock to Double Your Money in 2021 appeared first on The Motley Fool Canada .
Methanex ([[MEOH]] +1.6%) says it will restructure its Trinidad operations to support a one-plant operation, as its Titan methanol facility in the country will remain idled indefinitely.The company says it is prudent to cut costs given the uncertain economic recovery path as it continues efforts to secure a longer-term natural...