Subdued Growth No Barrier To Methanex Corporation's (TSE:MX) Price

It's not a stretch to say that Methanex Corporation's (TSE:MX) price-to-earnings (or "P/E") ratio of 14.7x right now seems quite "middle-of-the-road" compared to the market in Canada, where the median P/E ratio is around 16x. However, investors might be overlooking a clear opportunity or potential setback if there is no rational basis for the P/E. AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early. With earnings growth that's superior to most other companies of late, Methanex has been doing relatively well. It might be that many expect the strong earnings performance to wane, which has kept the P/E from rising. If not, then existing shareholders have reason to be feeling optimistic about the future direction of the share price. View our latest analysis for Methanex TSX:MX Price to Earnings Ratio vs Industry December 23rd 2025 If you'd like to see what analysts are forecasting going forward, you should check out our free report on Methanex. Does Growth Match The P/E? Methanex's P/E ratio would be typical for a company that's only expected to deliver moderate growth, and importantly, perform in line with the market. If we review the last year of earnings growth, the company posted a terrific increase of 35%. Still, incredibly EPS has fallen 61% in total from three years ago, which is quite disappointing. So unfortunately, we have to acknowledge that the company has not done a great job of growing earnings over that time. Turning to the outlook, the next year should generate growth of 3.6% as estimated by the nine analysts watching the company. Meanwhile, the rest of the market is forecast to expand by 23%, which is noticeably more attractive. With this information, we find it interesting that Methanex is trading at a fairly similar P/E to the market. Apparently many investors in the company are less bearish than analysts indicate and aren't willing to let go of their stock right now. Maintaining these prices will be difficult to achieve as this level of earnings growth is likely to weigh down the shares eventually. The Key Takeaway While the price-to-earnings ratio shouldn't be the defining factor in whether you buy a stock or not, it's quite a capable barometer of earnings expectations. We've established that Methanex currently trades on a higher than expected P/E since its forecast growth is lower than the wider market. Right now we are uncomfortable with the P/E as the predicted future earnings aren't likely to support a more positive sentiment for long. This places shareholders' investments at risk and potential investors in danger of paying an unnecessary premium. There are also other vital risk factors to consider before investing and we've discovered 2 warning signs for Methanex that you should be aware of. It's important to make sure you look for a great company, not just the first idea you come across. So take a peek at this free list of interesting companies with strong recent earnings growth (and a low P/E). Mobile Infrastructure for Defense and DisasterThe next wave in robotics isn't humanoid. Its fully autonomous towers delivering 5G, ISR, and radar in under 30 minutes, anywhere.Get the investor briefing before the next round of contractsSponsored On Behalf of CiTech