Many stocks have been testing new highs in 2020, and one of the most notable is Methanex Corporation (MEOH). Currently, MEOH is trading at $24.77 and the avg recommendation for the stock is Moderate Buy. while the current analyst price target stands at $20.00.
To add more color to this target, the company’s high over the last year is $47.55 and the low is $9.00. Over the last 52 weeks, MEOH is down -47.91% while the S&P 500 is up 1.21%. The catalyst for this interesting swing was the company’s recent earnings report.
A Notable Earnings Report
In the last quarter, MEOH reported a profit of $146.55 million. Methanex Corporation also saw revenues increase to $745.09 million. In addition, MEOH has free cash flow of $22.82 million as of 03-2020 The company’s EBITDA came in at $156.39 million which compares well with its peers.
MEOH booked profit margins of 2.20%, its Return on Equity (ROE) is 5.20%, and its Return on Assets is 1.40%. All told, it is clear that, MEOH needs to be on your watchlist.
About Methanex Corporation
If readers are unfamiliar, Methanex Corporation produces and supplies methanol in North America, the Asia Pacific, Europe, and South America. It also purchases methanol produced by others under methanol offtake contracts and on the spot market. In addition, the company owns and leases storage and terminal facilities. It owns and manages a fleet of approximately 30 ocean-going vessels. The company serves chemical and petrochemical producers. Methanex Corporation was founded in 1968 and is headquartered in Vancouver, Canada.
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Of course, we must look beyond the financials and question how well those numbers represent the sustainable earnings power of the business. Investors need to know how sustainable this current run. MEOH has a short ratio of 3.94 and outstanding shares of 76.20M.
MEOH has seen increased volume after this news and investors are putting their support behind the value proposition. Furthermore, 10-day volume stands at 1.17 million and more growth is possible in the weeks ahead. Traders will also note the company’s earnings per share came in at 0.94. Methanex Corporation MEOH also noted assets of $5.72 billion at the end of the last quarter. Investors should also keep an eye on sector updates as MEOH has historically followed its peers on positive news.
All told, Methanex Corporation MEOH has strung together solid data and demonstrated underlying fundamentals. At its current valuation, MEOH represents an interesting risk/reward case. Traders should stay tuned to see if this recent report will push the stock to test recent resistance levels.
Methanex Corporation MEOH is now commanding a market cap of 1.89B and a float of 75.93M. MEOH is increasing its credibility in this sector and that could lead to more upside down the line. Sign-up for continuing coverage on shares of MEOH stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!
Disclosure: we hold no position in MEOH, either long or short, and we have not been compensated for this article.