Q: Can you please comment on MX's latest earnings report? Would you be comfortable buying at the current share price, especially considering the expected new production from its Geismar project in Q4 2023?
Thanks as always for your expertise.
Thanks as always for your expertise.
5i Research Answer:
EPS of $1.11 beat estimates of 93c. Revenue of $1.03B beat estimates of $944M. EBITDA of $209M marginally beat estimates. Profit did fall 50% on lower pricing, but it did raise its dividend 6%. Lower earnings are expected this year before an expected recovery in the 30% range in 2024. The balance sheet remains a bit levered and there is cyclical risk here. But at 13X earnings with a 1.8% dividend, we think it is buyable for those with some patience.