METHODE ELECTRONICS INC (MEI) Fundamental Analysis & Valuation
NYSE:MEI • US5915202007
Current stock price
5.78 USD
-0.37 (-6.02%)
Last:
This MEI fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
1. MEI Profitability Analysis
1.1 Basic Checks
- MEI had negative earnings in the past year.
- 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 -4.93% is on the low side compared to the rest of the industry. MEI is outperformed by 61.29% of its industry peers.
- With a Return On Equity value of -9.54%, MEI is not doing good in the industry: 60.48% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -4.93% | ||
| ROE | -9.54% | ||
| 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
- Looking at the Gross Margin, with a value of 15.38%, MEI is doing worse than 72.58% of the companies in the same industry.
- MEI's Gross Margin has declined in the last couple of years.
- MEI does not have Profit Margin and Operating Margin available, so we won't be analyzing them here.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 15.38% |
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. MEI Health Analysis
2.1 Basic Checks
- MEI does not have a ROIC to compare to the WACC, probably because it is not profitable.
- The number of shares outstanding for MEI has been increased compared to 1 year ago.
- 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
- Based on the Altman-Z score of 1.73, we must say that MEI is in the distress zone and has some risk of bankruptcy.
- The Altman-Z score of MEI (1.73) is worse than 68.55% of its industry peers.
- MEI has a debt to FCF ratio of 7.96. This is a slightly negative value and a sign of low solvency as MEI would need 7.96 years to pay back of all of its debts.
- With a Debt to FCF ratio value of 7.96, MEI perfoms like the industry average, outperforming 55.65% of the companies in the same industry.
- A Debt/Equity ratio of 0.50 indicates that MEI is somewhat dependend on debt financing.
- MEI has a Debt to Equity ratio of 0.50. This is in the lower half of the industry: MEI underperforms 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | 7.96 | ||
| Altman-Z | 1.73 |
ROIC/WACCN/A
WACC9.64%
2.3 Liquidity
- MEI has a Current Ratio of 2.41. This indicates that MEI is financially healthy and has no problem in meeting its short term obligations.
- The Current ratio of MEI (2.41) is comparable to the rest of the industry.
- A Quick Ratio of 1.55 indicates that MEI should not have too much problems paying its short term obligations.
- MEI has a Quick ratio of 1.55. This is comparable to the rest of the industry: MEI outperforms 42.74% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.41 | ||
| Quick Ratio | 1.55 |
3. MEI Growth Analysis
3.1 Past
- The earnings per share for MEI have decreased strongly by -154.10% in the last year.
- Looking at the last year, MEI shows a decrease in Revenue. The Revenue has decreased by -8.43% in the last year.
- The Revenue has been growing slightly by 0.47% on average over the past years.
EPS 1Y (TTM)-154.1%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-76.19%
Revenue 1Y (TTM)-8.43%
Revenue growth 3Y-3.42%
Revenue growth 5Y0.47%
Sales Q2Q%-2.58%
3.2 Future
- The Earnings Per Share is expected to grow by 55.90% on average over the next years. This is a very strong growth
- The Revenue is expected to grow by 0.55% on average over the next years.
EPS Next Y48.18%
EPS Next 2Y55.9%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-6.17%
Revenue Next 2Y-3.38%
Revenue Next 3Y0.55%
Revenue Next 5YN/A
3.3 Evolution
- The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. MEI Valuation Analysis
4.1 Price/Earnings Ratio
- The Price/Earnings Ratio is negative for MEI. In the last year negative earnings were reported.
- With a Price/Forward Earnings ratio of 11.68, the valuation of MEI can be described as very reasonable.
- Based on the Price/Forward Earnings ratio, MEI is valued cheaper than 84.68% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 22.79. MEI is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 11.68 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, MEI is valued cheaply inside the industry as 81.45% of the companies are valued more expensively.
- 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 | 4.78 | ||
| EV/EBITDA | 10.96 |
4.3 Compensation for Growth
- The 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 55.90% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y55.9%
EPS Next 3YN/A
5. MEI Dividend Analysis
5.1 Amount
- MEI has a Yearly Dividend Yield of 3.77%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 0.46, MEI pays a better dividend. On top of this MEI pays more dividend than 98.39% of the companies listed in the same industry.
- MEI's Dividend Yield is rather good when compared to the S&P500 average which is at 1.89.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.77% |
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
- MEI has negative earnings and hence a negative payout ratio. The dividend may be in danger.
- The dividend of MEI is growing, but earnings are growing more, so the dividend growth is sustainable.
DP-18.01%
EPS Next 2Y55.9%
EPS Next 3YN/A
MEI Fundamentals: All Metrics, Ratios and Statistics
NYSE:MEI (3/26/2026, 1:35:09 PM)
5.78
-0.37 (-6.02%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)03-05 2026-03-05/amc
Earnings (Next)07-07 2026-07-07/bmo
Inst Owners91%
Inst Owner Change-3.57%
Ins Owners3.31%
Ins Owner Change-0.44%
Market Cap204.79M
Revenue(TTM)978.20M
Net Income(TTM)-64.40M
Analysts77.14
Price Target9.44 (63.32%)
Short Float %2.26%
Short Ratio1.83
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.77% |
Yearly Dividend0.57
Dividend Growth(5Y)5.46%
DP-18.01%
Div Incr Years0
Div Non Decr Years11
Ex-Date01-16 2026-01-16 (0.05)
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-39.82%
Min EPS beat(2)-83.17%
Max EPS beat(2)3.53%
EPS beat(4)2
Avg EPS beat(4)-586.25%
Min EPS beat(4)-2278.22%
Max EPS beat(4)12.87%
EPS beat(8)3
Avg EPS beat(8)-293.78%
EPS beat(12)3
Avg EPS beat(12)-251.43%
EPS beat(16)5
Avg EPS beat(16)-187.17%
Revenue beat(2)2
Avg Revenue beat(2)4.29%
Min Revenue beat(2)3.98%
Max Revenue beat(2)4.61%
Revenue beat(4)4
Avg Revenue beat(4)5.81%
Min Revenue beat(4)3.98%
Max Revenue beat(4)9.31%
Revenue beat(8)6
Avg Revenue beat(8)2.72%
Revenue beat(12)7
Avg Revenue beat(12)0.7%
Revenue beat(16)8
Avg Revenue beat(16)0.45%
PT rev (1m)0%
PT rev (3m)-11.9%
EPS NQ rev (1m)-161.19%
EPS NQ rev (3m)-783.33%
EPS NY rev (1m)0%
EPS NY rev (3m)-42.17%
Revenue NQ rev (1m)-2.83%
Revenue NQ rev (3m)-3.34%
Revenue NY rev (1m)0.58%
Revenue NY rev (3m)1.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 11.68 | ||
| P/S | 0.21 | ||
| P/FCF | 4.78 | ||
| P/OCF | 2.99 | ||
| P/B | 0.3 | ||
| P/tB | 0.75 | ||
| EV/EBITDA | 10.96 |
EPS(TTM)-1.55
EYN/A
EPS(NY)0.49
Fwd EY8.56%
FCF(TTM)1.21
FCFY20.9%
OCF(TTM)1.93
OCFY33.45%
SpS27.61
BVpS19.05
TBVpS7.73
PEG (NY)N/A
PEG (5Y)N/A
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -4.93% | ||
| ROE | -9.54% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 15.38% | ||
| FCFM | 4.38% |
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 Turnover0.75
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | 7.96 | ||
| Debt/EBITDA | 8.78 | ||
| Cap/Depr | 42.48% | ||
| Cap/Sales | 2.63% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | 176.55% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.41 | ||
| Quick Ratio | 1.55 | ||
| Altman-Z | 1.73 |
F-Score3
WACC9.64%
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)-154.1%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-76.19%
EPS Next Y48.18%
EPS Next 2Y55.9%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-8.43%
Revenue growth 3Y-3.42%
Revenue growth 5Y0.47%
Sales Q2Q%-2.58%
Revenue Next Year-6.17%
Revenue Next 2Y-3.38%
Revenue Next 3Y0.55%
Revenue Next 5YN/A
EBIT growth 1Y-130.85%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year306.07%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y121.76%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-4.33%
OCF growth 3Y-35.59%
OCF growth 5Y-28.43%
METHODE ELECTRONICS INC / MEI Fundamental Analysis 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 7 / 10 and the dividend payout ratio is -18.01%.