METHODE ELECTRONICS INC (MEI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:MEI - US5915202007 - Common Stock
6.94 USD
+0.13 (+1.91%)
6.94 USD
0 (0%)
MEI gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 124 industry peers in the Electronic Equipment, Instruments & Components industry. While MEI seems to be doing ok healthwise, there are quite some concerns on its profitability. MEI is valued correctly, but it does not seem to be growing. MEI also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year MEI has reported negative net income.
In the past year MEI had a positive cash flow from operations.
In multiple years MEI reported negative net income over the last 5 years.
Each year in the past 5 years MEI had a positive operating cash flow.
1.2 Ratios
MEI has a Return On Assets of -4.89%. This is in the lower half of the industry: MEI underperforms 63.71% of its industry peers.
MEI has a worse Return On Equity (-9.26%) than 60.48% 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
The Gross Margin of MEI (15.53%) is worse than 72.58% of its industry peers.
MEI's Gross Margin has declined in the last couple of years.
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.
MEI has more shares outstanding than it did 1 year ago.
The number of shares outstanding for MEI has been reduced compared to 5 years ago.
Compared to 1 year ago, MEI has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 1.81 indicates that MEI is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 1.81, MEI is doing worse than 71.77% of the companies in the same industry.
MEI has a debt to FCF ratio of 6.36. This is a slightly negative value and a sign of low solvency as MEI would need 6.36 years to pay back of all of its debts.
MEI's Debt to FCF ratio of 6.36 is in line compared to the rest of the industry. MEI outperforms 56.45% 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.
The Debt to Equity ratio of MEI (0.49) is worse than 70.16% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.49 | ||
| Debt/FCF | 6.36 | ||
| Altman-Z | 1.81 |
ROIC/WACCN/A
WACC9.21%
2.3 Liquidity
MEI has a Current Ratio of 2.55. This indicates that MEI is financially healthy and has no problem in meeting its short term obligations.
MEI has a Current ratio (2.55) which is comparable to the rest of the industry.
A Quick Ratio of 1.68 indicates that MEI should not have too much problems paying its short term obligations.
MEI has a Quick ratio of 1.68. This is comparable to the rest of the industry: MEI outperforms 49.19% of its industry peers.
| 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.
MEI shows a decrease in Revenue. In the last year, the revenue decreased by -9.51%.
Measured over the past years, MEI shows a small growth in Revenue. The Revenue has been growing by 0.47% on average per year.
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
Based on estimates for the next years, MEI will show a very strong growth in Earnings Per Share. The EPS will grow by 57.86% on average per year.
The Revenue is expected to decrease by -2.02% on average over the next years.
EPS Next Y63.55%
EPS Next 2Y57.86%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-7.16%
Revenue Next 2Y-2.02%
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 12.27 indicates a correct valuation of MEI.
88.71% of the companies in the same industry are more expensive than MEI, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 24.01. MEI is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 12.27 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MEI is valued cheaper than 83.06% of the companies in the same industry.
96.77% of the companies in the same industry are more expensive than MEI, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.7 | ||
| EV/EBITDA | 10.89 |
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.
A more expensive valuation may be justified as MEI's earnings are expected to grow with 57.86% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y57.86%
EPS Next 3YN/A
5. Dividend
5.1 Amount
MEI has a Yearly Dividend Yield of 2.97%.
MEI's Dividend Yield is rather good when compared to the industry average which is at 0.47. MEI pays more dividend than 98.39% of the companies in the same industry.
MEI's Dividend Yield is rather good when compared to the S&P500 average which is at 1.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.97% |
5.2 History
The dividend of MEI has a limited annual growth rate of 5.46%.
MEI has been paying a dividend for at least 10 years, so it has a reliable track record.
MEI has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
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 2Y57.86%
EPS Next 3YN/A
6.94
+0.13 (+1.91%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners93.79%
Inst Owner Change0.9%
Ins Owners3.34%
Ins Owner Change12.48%
Market Cap245.75M
Revenue(TTM)984.40M
Net Income(TTM)-62.90M
Analysts77.14
Price Target10.71 (54.32%)
Short Float %3.72%
Short Ratio4.48
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.97% |
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)2.44%
PT rev (3m)2.44%
EPS NQ rev (1m)-77.27%
EPS NQ rev (3m)-116.67%
EPS NY rev (1m)0%
EPS NY rev (3m)-9.21%
Revenue NQ rev (1m)-2.88%
Revenue NQ rev (3m)-2.71%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 12.27 | ||
| P/S | 0.25 | ||
| P/FCF | 4.7 | ||
| P/OCF | 3.03 | ||
| P/B | 0.36 | ||
| P/tB | 0.89 | ||
| EV/EBITDA | 10.89 |
EPS(TTM)-1.39
EYN/A
EPS(NY)0.57
Fwd EY8.15%
FCF(TTM)1.48
FCFY21.28%
OCF(TTM)2.29
OCFY33.04%
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 | 1.81 |
F-Score3
WACC9.21%
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 Y63.55%
EPS Next 2Y57.86%
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-7.16%
Revenue Next 2Y-2.02%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-80.2%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year325.79%
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.
Can you provide the valuation status for METHODE ELECTRONICS INC?
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 financially healthy is METHODE ELECTRONICS INC?
The financial health rating of METHODE ELECTRONICS INC (MEI) is 4 / 10.
What is the expected EPS growth for METHODE ELECTRONICS INC (MEI) stock?
The Earnings per Share (EPS) of METHODE ELECTRONICS INC (MEI) is expected to grow by 63.55% in the next year.