Methanex Corporation (MEOH) Stock Analysis & Winston Score

Methanex is the world's largest producer and supplier of methanol, a basic chemical used to make plastics, paints, adhesives, and fuel additives. Its customers include chemical companies, fuel blenders, and industrial manufacturers around the world. Methanol is also a growing marine fuel, which has opened up a new end market for the company. Methanex makes money by producing methanol at its own plants and also by purchasing methanol from others to resell, earning a margin on the difference between production costs and selling prices. The company operates plants in Canada, Chile, Trinidad, Egypt, New Zealand, and the United States, making it a truly global business. Its scale and low-cost production sites give it a cost advantage over smaller rivals, but methanol prices are tied closely to natural gas costs and global chemical demand, meaning earnings can swing sharply when commodity markets shift.