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

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.
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 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 100M -100M

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 RankSector 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
MEI Yearly ROA, ROE, ROICMEI Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 10 -10

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 RankSector 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%
MEI Yearly Profit, Operating, Gross MarginsMEI Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 10 -10 20

3

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.
MEI Yearly Shares OutstandingMEI Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10M 20M 30M
MEI Yearly Total Debt VS Total AssetsMEI Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B

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 RankSector Rank
Debt/Equity 0.5
Debt/FCF 7.96
Altman-Z 1.73
ROIC/WACCN/A
WACC9.64%
MEI Yearly LT Debt VS Equity VS FCFMEI Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 200M 400M 600M 800M

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 RankSector Rank
Current Ratio 2.41
Quick Ratio 1.55
MEI Yearly Current Assets VS Current LiabilitesMEI Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M

3

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.
MEI Yearly Revenue VS EstimatesMEI Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 200M 400M 600M 800M 1B
MEI Yearly EPS VS EstimatesMEI Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 0 1 -1 2 3

6

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 RankSector Rank
PE N/A
Fwd PE 11.68
MEI Price Earnings VS Forward Price EarningsMEI Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 10 20 30 40

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 RankSector Rank
P/FCF 4.78
EV/EBITDA 10.96
MEI Per share dataMEI EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 5 10 15 20 25

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

7

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 RankSector 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
MEI Yearly Dividends per shareMEI Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.1 0.2 0.3 0.4 0.5

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 Yearly Income VS Free CF VS DividendMEI Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 50M -50M 100M -100M 150M

MEI Fundamentals: All Metrics, Ratios and Statistics

METHODE ELECTRONICS INC

NYSE:MEI (3/26/2026, 1:35:09 PM)

5.78

-0.37 (-6.02%)

Chartmill FA Rating
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)03-05
Earnings (Next)07-07
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 RankSector 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
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 RankSector 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 RankSector 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 RankSector 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%.