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:
We started the process of determining a valid price forecast for Methanex Corp with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Methanex Corp ranked in the 57th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 52%. In terms of the factors that were most noteworthy in this DCF analysis for MEOH, they are:
36% of the company's capital comes from equity, which is greater than only 18.52% of stocks in our cash flow based forecasting set.
The business' balance sheet reveals debt to be 64% of the company's capital (with equity being the remaining amount). Approximately 81.44% 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 merely 20.83% 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 PAAS, ESI, EXP, SBSW, and GLT.
Moody's Investors Service (Moody's) downgraded Methanex Corporation's (Methanex) senior unsecured ratings to Ba1 from Baa3. Moody's concurrently assigned a Ba1 corporate family rating (CFR), a probability of default rating of Ba1-PD, and a Speculative Grade Liquidity Rating of SGL-2 to Methanex.
Methanex ([[MEOH]] +5.7%) amends its $300M revolving credit facility and $800M non-revolving construction facility, which is expected to provide financial covenant relief and greater flexibility on the timeline to complete the Geismar 3 project.The financial covenant relief is effective upon Methanex’s election and will provide, more flexibility in the calculation...