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METHODE ELECTRONICS INC (MEI) Stock Fundamental Analysis

NYSE:MEI - New York Stock Exchange, Inc. - US5915202007 - Common Stock - Currency: USD

7.52  +0.09 (+1.21%)

After market: 7.52 0 (0%)

Fundamental Rating

4

We assign a fundamental rating of 4 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 is valued correctly, but it does not seem to be growing. Finally MEI also has an excellent dividend rating.


Dividend Valuation Growth Profitability Health

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2

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.
MEI had positive earnings in 4 of the past 5 years.
In the past 5 years MEI always reported a positive cash flow from operatings.
MEI Yearly Net Income VS EBIT VS OCF VS FCFMEI Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 100M -100M

1.2 Ratios

MEI's Return On Assets of -7.02% is in line compared to the rest of the industry. MEI outperforms 40.80% of its industry peers.
The Return On Equity of MEI (-13.01%) is comparable to the rest of the industry.
Industry RankSector Rank
ROA -7.02%
ROE -13.01%
ROIC N/A
ROA(3y)1.15%
ROA(5y)4.16%
ROE(3y)1.09%
ROE(5y)6.47%
ROIC(3y)N/A
ROIC(5y)N/A
MEI Yearly ROA, ROE, ROICMEI Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 10 -10 20

1.3 Margins

The Gross Margin of MEI (16.90%) is worse than 68.80% of its industry peers.
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 RankSector Rank
OM N/A
PM (TTM) N/A
GM 16.9%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-14.19%
GM growth 5Y-9.8%
MEI Yearly Profit, Operating, Gross MarginsMEI Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 10 -10 20

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4

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 less shares outstanding
The number of shares outstanding for MEI has been reduced compared to 5 years ago.
The debt/assets ratio for MEI is higher compared to a year ago.
MEI Yearly Shares OutstandingMEI Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10M 20M 30M
MEI Yearly Total Debt VS Total AssetsMEI Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B

2.2 Solvency

MEI has an Altman-Z score of 2.00. This is not the best score and indicates that MEI is in the grey zone with still only limited risk for bankruptcy at the moment.
The Altman-Z score of MEI (2.00) is worse than 65.60% of its industry peers.
A Debt/Equity ratio of 0.47 indicates that MEI is not too dependend on debt financing.
MEI has a Debt to Equity ratio of 0.47. This is in the lower half of the industry: MEI underperforms 70.40% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.47
Debt/FCF N/A
Altman-Z 2
ROIC/WACCN/A
WACC8.99%
MEI Yearly LT Debt VS Equity VS FCFMEI Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 200M 400M 600M 800M

2.3 Liquidity

MEI has a Current Ratio of 2.84. This indicates that MEI is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 2.84, MEI is in the better half of the industry, outperforming 63.20% of the companies in the same industry.
MEI has a Quick Ratio of 1.75. This is a normal value and indicates that MEI is financially healthy and should not expect problems in meeting its short term obligations.
MEI has a Quick ratio of 1.75. This is comparable to the rest of the industry: MEI outperforms 56.00% of its industry peers.
Industry RankSector Rank
Current Ratio 2.84
Quick Ratio 1.75
MEI Yearly Current Assets VS Current LiabilitesMEI Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M

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3

3. Growth

3.1 Past

The earnings per share for MEI have decreased strongly by -1425.00% in the last year.
MEI shows a decrease in Revenue. In the last year, the revenue decreased by -6.16%.
The Revenue has been growing slightly by 2.19% on average over the past years.
EPS 1Y (TTM)-1425%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%36.36%
Revenue 1Y (TTM)-6.16%
Revenue growth 3Y0.81%
Revenue growth 5Y2.19%
Sales Q2Q%-7.55%

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 60.88% on average per year.
The Revenue is expected to grow by 0.68% on average over the next years.
EPS Next Y30.95%
EPS Next 2Y79.34%
EPS Next 3Y60.88%
EPS Next 5YN/A
Revenue Next Year-7.01%
Revenue Next 2Y-3.01%
Revenue Next 3Y0.68%
Revenue Next 5YN/A

3.3 Evolution

When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
MEI Yearly Revenue VS EstimatesMEI Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 200M 400M 600M 800M 1B
MEI Yearly EPS VS EstimatesMEI Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 0 1 2 3

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4

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings Ratio is negative for MEI. In the last year negative earnings were reported.
Based on the Price/Forward Earnings ratio of 12.62, the valuation of MEI can be described as correct.
85.60% 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 22.43. MEI is valued slightly cheaper when compared to this.
Industry RankSector Rank
PE N/A
Fwd PE 12.62
MEI Price Earnings VS Forward Price EarningsMEI Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 20 40

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, MEI is valued cheaper than 81.60% of the companies in the same industry.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 10.32
MEI Per share dataMEI EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 10 20

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 60.88% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y79.34%
EPS Next 3Y60.88%

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8

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 7.44%, MEI is a good candidate for dividend investing.
In the last 3 months the price of MEI has falen by -28.52%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
MEI's Dividend Yield is rather good when compared to the industry average which is at 2.07. MEI pays more dividend than 98.40% of the companies in the same industry.
MEI's Dividend Yield is rather good when compared to the S&P500 average which is at 2.36.
Industry RankSector Rank
Dividend Yield 7.44%

5.2 History

The dividend of MEI has a limited annual growth rate of 4.88%.
MEI has paid a dividend for at least 10 years, which is 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)4.88%
Div Incr Years0
Div Non Decr Years11
MEI Yearly Dividends per shareMEI Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.1 0.2 0.3 0.4 0.5

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-22.05%
EPS Next 2Y79.34%
EPS Next 3Y60.88%
MEI Yearly Income VS Free CF VS DividendMEI Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 50M -50M 100M -100M 150M

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METHODE ELECTRONICS INC

NYSE:MEI (5/20/2025, 8:15:33 PM)

After market: 7.52 0 (0%)

7.52

+0.09 (+1.21%)

Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)03-05 2025-03-05/amc
Earnings (Next)07-09 2025-07-09/amc
Inst Owners95.53%
Inst Owner Change-3.73%
Ins Owners2.38%
Ins Owner Change1.17%
Market Cap268.39M
Analysts77.14
Price Target10.71 (42.42%)
Short Float %4.4%
Short Ratio3.1
Dividend
Industry RankSector Rank
Dividend Yield 7.44%
Yearly Dividend0.56
Dividend Growth(5Y)4.88%
DP-22.05%
Div Incr Years0
Div Non Decr Years11
Ex-Date04-17 2025-04-17 (0.14)
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)4.7%
Min EPS beat(2)-177.23%
Max EPS beat(2)186.63%
EPS beat(4)1
Avg EPS beat(4)-1.32%
Min EPS beat(4)-177.23%
Max EPS beat(4)186.63%
EPS beat(8)1
Avg EPS beat(8)-84.03%
EPS beat(12)3
Avg EPS beat(12)-54.15%
EPS beat(16)7
Avg EPS beat(16)-38.99%
Revenue beat(2)1
Avg Revenue beat(2)-1.1%
Min Revenue beat(2)-10.46%
Max Revenue beat(2)8.27%
Revenue beat(4)2
Avg Revenue beat(4)-0.38%
Min Revenue beat(4)-10.46%
Max Revenue beat(4)8.27%
Revenue beat(8)3
Avg Revenue beat(8)-1.86%
Revenue beat(12)4
Avg Revenue beat(12)-1.33%
Revenue beat(16)8
Avg Revenue beat(16)0.2%
PT rev (1m)-8.7%
PT rev (3m)-25%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-44.73%
EPS NY rev (1m)0%
EPS NY rev (3m)-57.03%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-20.66%
Revenue NY rev (1m)-0.19%
Revenue NY rev (3m)-7.01%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE 12.62
P/S 0.25
P/FCF N/A
P/OCF 16.88
P/B 0.38
P/tB 0.89
EV/EBITDA 10.32
EPS(TTM)-0.61
EYN/A
EPS(NY)0.6
Fwd EY7.92%
FCF(TTM)-0.72
FCFYN/A
OCF(TTM)0.45
OCFY5.92%
SpS29.93
BVpS19.73
TBVpS8.44
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -7.02%
ROE -13.01%
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) N/A
GM 16.9%
FCFM N/A
ROA(3y)1.15%
ROA(5y)4.16%
ROE(3y)1.09%
ROE(5y)6.47%
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
ROICexcg growth 3YN/A
ROICexcg 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-14.19%
GM growth 5Y-9.8%
F-Score5
Asset Turnover0.82
Health
Industry RankSector Rank
Debt/Equity 0.47
Debt/FCF N/A
Debt/EBITDA 6.87
Cap/Depr 72.85%
Cap/Sales 3.89%
Interest Coverage N/A
Cash Conversion 33.33%
Profit Quality N/A
Current Ratio 2.84
Quick Ratio 1.75
Altman-Z 2
F-Score5
WACC8.99%
ROIC/WACCN/A
Cap/Depr(3y)81.26%
Cap/Depr(5y)77.1%
Cap/Sales(3y)3.78%
Cap/Sales(5y)3.6%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-1425%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%36.36%
EPS Next Y30.95%
EPS Next 2Y79.34%
EPS Next 3Y60.88%
EPS Next 5YN/A
Revenue 1Y (TTM)-6.16%
Revenue growth 3Y0.81%
Revenue growth 5Y2.19%
Sales Q2Q%-7.55%
Revenue Next Year-7.01%
Revenue Next 2Y-3.01%
Revenue Next 3Y0.68%
Revenue Next 5YN/A
EBIT growth 1Y-157.67%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year2336.93%
EBIT Next 3Y238.83%
EBIT Next 5YN/A
FCF growth 1Y-129.68%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-87.36%
OCF growth 3Y-35.83%
OCF growth 5Y-14.17%