METHODE ELECTRONICS INC (MEI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:MEI - US5915202007 - Common Stock
7.09 USD
-0.01 (-0.14%)
7.09 USD
0 (0%)
We assign a fundamental rating of 3 out of 10 to MEI. MEI was compared to 125 industry peers in the Electronic Equipment, Instruments & Components industry. MEI scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. MEI has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year MEI has reported negative net income.
MEI had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: MEI reported negative net income in multiple years.
In the past 5 years MEI always reported a positive cash flow from operatings.
1.2 Ratios
MEI's Return On Assets of -4.89% is on the low side compared to the rest of the industry. MEI is outperformed by 61.60% of its industry peers.
The Return On Equity of MEI (-9.26%) is worse than 60.80% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -4.89% | ||
| ROE | -9.26% | ||
| ROIC | N/A |
ROA(3y)-2.9%
ROA(5y)1.4%
ROE(3y)-5.65%
ROE(5y)1.51%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
With a Gross Margin value of 15.53%, MEI is not doing good in the industry: 72.00% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of MEI has declined.
The Profit Margin and Operating Margin are not available for MEI so they could not be analyzed.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 15.53% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-11.8%
GM growth 5Y-10.69%
2. Health
2.1 Basic Checks
MEI does not have a ROIC to compare to the WACC, probably because it is not profitable.
Compared to 1 year ago, MEI has more shares outstanding
The number of shares outstanding for MEI has been reduced compared to 5 years ago.
MEI has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 1.82 indicates that MEI is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 1.82, MEI is not doing good in the industry: 72.00% of the companies in the same industry are doing better.
The Debt to FCF ratio of MEI is 6.36, which is on the high side as it means it would take MEI, 6.36 years of fcf income to pay off all of its debts.
MEI has a Debt to FCF ratio of 6.36. This is comparable to the rest of the industry: MEI outperforms 56.80% of its industry peers.
MEI has a Debt/Equity ratio of 0.49. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.49, MEI is doing worse than 69.60% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.49 | ||
| Debt/FCF | 6.36 | ||
| Altman-Z | 1.82 |
ROIC/WACCN/A
WACC9.65%
2.3 Liquidity
A Current Ratio of 2.55 indicates that MEI has no problem at all paying its short term obligations.
MEI's Current ratio of 2.55 is in line compared to the rest of the industry. MEI outperforms 54.40% of its industry peers.
MEI has a Quick Ratio of 1.68. This is a normal value and indicates that MEI is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.68, MEI is in line with its industry, outperforming 51.20% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.55 | ||
| Quick Ratio | 1.68 |
3. Growth
3.1 Past
The earnings per share for MEI have decreased strongly by -90.41% in the last year.
The Revenue has decreased by -9.51% in the past year.
The Revenue has been growing slightly by 0.47% on average over the past years.
EPS 1Y (TTM)-90.41%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-235.71%
Revenue 1Y (TTM)-9.51%
Revenue growth 3Y-3.42%
Revenue growth 5Y0.47%
Sales Q2Q%-15.62%
3.2 Future
The Earnings Per Share is expected to grow by 55.33% on average over the next years. This is a very strong growth
The Revenue is expected to decrease by -1.56% on average over the next years.
EPS Next Y49.5%
EPS Next 2Y55.33%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-6.38%
Revenue Next 2Y-1.56%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
MEI reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
A Price/Forward Earnings ratio of 14.94 indicates a correct valuation of MEI.
Based on the Price/Forward Earnings ratio, MEI is valued cheaply inside the industry as 86.40% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 24.04. MEI is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 14.94 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of MEI indicates a rather cheap valuation: MEI is cheaper than 84.00% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of MEI indicates a rather cheap valuation: MEI is cheaper than 96.80% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.8 | ||
| EV/EBITDA | 11.13 |
4.3 Compensation for Growth
MEI's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
MEI's earnings are expected to grow with 55.33% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y55.33%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.84%, MEI has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 0.47, MEI pays a better dividend. On top of this MEI pays more dividend than 98.40% of the companies listed in the same industry.
MEI's Dividend Yield is a higher than the S&P500 average which is at 1.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.84% |
5.2 History
The dividend of MEI has a limited annual growth rate of 5.46%.
MEI has paid a dividend for at least 10 years, which is a reliable track record.
MEI has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)5.46%
Div Incr Years0
Div Non Decr Years11
5.3 Sustainability
The earnings of MEI are negative and hence is the payout ratio. MEI will probably not be able to sustain this dividend level.
The dividend of MEI is growing, but earnings are growing more, so the dividend growth is sustainable.
DP-24.01%
EPS Next 2Y55.33%
EPS Next 3YN/A
7.09
-0.01 (-0.14%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners93.63%
Inst Owner Change-0.01%
Ins Owners3.31%
Ins Owner Change12.48%
Market Cap251.06M
Revenue(TTM)984.40M
Net Income(TTM)-62.90M
Analysts77.14
Price Target9.69 (36.67%)
Short Float %3.65%
Short Ratio4.44
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.84% |
Yearly Dividend0.57
Dividend Growth(5Y)5.46%
DP-24.01%
Div Incr Years0
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)8.2%
Min EPS beat(2)3.53%
Max EPS beat(2)12.87%
EPS beat(4)2
Avg EPS beat(4)-609.76%
Min EPS beat(4)-2278.22%
Max EPS beat(4)12.87%
EPS beat(8)3
Avg EPS beat(8)-341.26%
EPS beat(12)3
Avg EPS beat(12)-246.51%
EPS beat(16)6
Avg EPS beat(16)-181.52%
Revenue beat(2)2
Avg Revenue beat(2)4.66%
Min Revenue beat(2)3.98%
Max Revenue beat(2)5.35%
Revenue beat(4)3
Avg Revenue beat(4)2.04%
Min Revenue beat(4)-10.46%
Max Revenue beat(4)9.31%
Revenue beat(8)5
Avg Revenue beat(8)0.8%
Revenue beat(12)6
Avg Revenue beat(12)-0.13%
Revenue beat(16)8
Avg Revenue beat(16)0.32%
PT rev (1m)-9.52%
PT rev (3m)-7.32%
EPS NQ rev (1m)-69.57%
EPS NQ rev (3m)-95%
EPS NY rev (1m)-38.55%
EPS NY rev (3m)-47.44%
Revenue NQ rev (1m)-3.52%
Revenue NQ rev (3m)-2.71%
Revenue NY rev (1m)0.85%
Revenue NY rev (3m)0.93%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 14.94 | ||
| P/S | 0.26 | ||
| P/FCF | 4.8 | ||
| P/OCF | 3.09 | ||
| P/B | 0.37 | ||
| P/tB | 0.91 | ||
| EV/EBITDA | 11.13 |
EPS(TTM)-1.39
EYN/A
EPS(NY)0.47
Fwd EY6.7%
FCF(TTM)1.48
FCFY20.83%
OCF(TTM)2.29
OCFY32.34%
SpS27.8
BVpS19.18
TBVpS7.83
PEG (NY)N/A
PEG (5Y)N/A
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -4.89% | ||
| ROE | -9.26% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 15.53% | ||
| FCFM | 5.31% |
ROA(3y)-2.9%
ROA(5y)1.4%
ROE(3y)-5.65%
ROE(5y)1.51%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-11.8%
GM growth 5Y-10.69%
F-Score3
Asset Turnover0.76
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.49 | ||
| Debt/FCF | 6.36 | ||
| Debt/EBITDA | 7.95 | ||
| Cap/Depr | 48.17% | ||
| Cap/Sales | 2.94% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | 194.26% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.55 | ||
| Quick Ratio | 1.68 | ||
| Altman-Z | 1.82 |
F-Score3
WACC9.65%
ROIC/WACCN/A
Cap/Depr(3y)80.89%
Cap/Depr(5y)72.65%
Cap/Sales(3y)4.01%
Cap/Sales(5y)3.52%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-90.41%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-235.71%
EPS Next Y49.5%
EPS Next 2Y55.33%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-9.51%
Revenue growth 3Y-3.42%
Revenue growth 5Y0.47%
Sales Q2Q%-15.62%
Revenue Next Year-6.38%
Revenue Next 2Y-1.56%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-80.2%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year306.07%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y4.6%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-17.56%
OCF growth 3Y-35.59%
OCF growth 5Y-28.43%
METHODE ELECTRONICS INC / MEI FAQ
Can you provide the ChartMill fundamental rating for METHODE ELECTRONICS INC?
ChartMill assigns a fundamental rating of 3 / 10 to MEI.
What is the valuation status for MEI stock?
ChartMill assigns a valuation rating of 6 / 10 to METHODE ELECTRONICS INC (MEI). This can be considered as Fairly Valued.
Can you provide the profitability details for METHODE ELECTRONICS INC?
METHODE ELECTRONICS INC (MEI) has a profitability rating of 1 / 10.
How sustainable is the dividend of METHODE ELECTRONICS INC (MEI) stock?
The dividend rating of METHODE ELECTRONICS INC (MEI) is 6 / 10 and the dividend payout ratio is -24.01%.