Opinions Andrew Pyle
Methanex CorpMX.TOPAST TOP PICKJun 05, 2023
Stock price when the opinion was issued
As of Jul 24, 2026. Market Open.
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Premium contentWe reiterate MX, the largest supplier of methanol to international markets, as a TOP PICK. The company just released earnings, beating analyst expectations by 20%. Production in the quarter was slowed due to extended turnaround times in several key regions, but this should be resolved shortly. It trades at 13x earnings and 1.5x book value. It has used some cash reserves to prudently retire debt and buy back shares. We recommend maintaining a stop-loss at $51, looking to achieve $78 — upside potential over 30%. Yield 1.0%
(Analysts’ price target is $78.17)Premium contentAs the largest supplier of methanol to international markets, we select MX as a TOP PICK. The company just announced the first bio-methanol marine vessel voyage that opens the door to low-emission marine transport. It trades at 9x earnings and 1.5x book value. It has been some cash reserves to prudently retire debt and buy back shares. We recommend placing a stop-loss at $51, looking to achieve $78 — upside potential over 21%. Yield 1.0%
(Analysts’ price target is $78.69)Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research.
Earnings per share were 73c, beating estimates of 37c by a wide margin.
Sales of $986M beat estimates by 4%.
Earnings did fall year over year as prices fell about 16%, even as production increased.
The company continues to buy back its own stock.
The new incoming CEO sounded confident for 2023 and about 30% earnings growth is expected this year.
The market has responded well to these better-than-expected results. Unlock Premium - Try 5i Free
He took profits when it started to rally. A solid company though and will do well in the second half of 2023. Weak natural gas prices benefit Methanex by lowering their costs. China's recovery Will benefit commodity stocks like this, but it will take time.