METHODE ELECTRONICS INC (MEI) Stock Fundamental Analysis
USA - NYSE:MEI - US5915202007 - Common Stock
6.85 USD
-0.05 (-0.72%)
We assign a fundamental rating of 3 out of 10 to MEI. MEI was compared to 123 industry peers in the Electronic Equipment, Instruments & Components industry. The financial health of MEI is average, but there are quite some concerns on its profitability. MEI is valued correctly, 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.
In multiple years MEI reported negative net income over the last 5 years.
MEI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of MEI (-4.23%) is worse than 60.16% of its industry peers.
The Return On Equity of MEI (-7.93%) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -4.23% | ||
| ROE | -7.93% | ||
| 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 15.83%, MEI is not doing good in the industry: 73.17% 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 | 15.83% |
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.
The number of shares outstanding for MEI has been increased compared to 1 year ago.
MEI has less shares outstanding than it did 5 years ago.
MEI has a worse debt/assets ratio than last year.
2.2 Solvency
MEI has an Altman-Z score of 1.87. 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.
MEI has a Altman-Z score of 1.87. This is in the lower half of the industry: MEI underperforms 69.11% of its industry peers.
MEI has a debt to FCF ratio of 58.80. This is a negative value and a sign of low solvency as MEI would need 58.80 years to pay back of all of its debts.
MEI's Debt to FCF ratio of 58.80 is in line compared to the rest of the industry. MEI outperforms 47.97% of its industry peers.
MEI has a Debt/Equity ratio of 0.47. This is a healthy value indicating a solid balance between debt and equity.
With a Debt to Equity ratio value of 0.47, MEI is not doing good in the industry: 70.73% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 58.8 | ||
| Altman-Z | 1.87 |
ROIC/WACCN/A
WACC9.44%
2.3 Liquidity
A Current Ratio of 2.50 indicates that MEI has no problem at all paying its short term obligations.
The Current ratio of MEI (2.50) is comparable to the rest of the industry.
MEI has a Quick Ratio of 1.63. 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 (1.63) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.5 | ||
| Quick Ratio | 1.63 |
3. Growth
3.1 Past
The earnings per share for MEI have decreased strongly by -29.27% in the last year.
MEI shows a decrease in Revenue. In the last year, the revenue decreased by -4.91%.
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)-29.27%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%29.03%
Revenue 1Y (TTM)-4.91%
Revenue growth 3Y-3.42%
Revenue growth 5Y0.47%
Sales Q2Q%-6.96%
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.
Based on estimates for the next years, MEI will show a decrease in Revenue. The Revenue will decrease by -2.02% on average per year.
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
The Price/Earnings Ratio is negative for MEI. In the last year negative earnings were reported.
Based on the Price/Forward Earnings ratio of 12.11, the valuation of MEI can be described as correct.
91.06% of the companies in the same industry are more expensive than MEI, based on the Price/Forward Earnings ratio.
MEI is valuated cheaply when we compare the Price/Forward Earnings ratio to 34.43, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 12.11 |
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 86.99% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, MEI is valued a bit cheaper than the industry average as 62.60% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 43.86 | ||
| EV/EBITDA | 9.56 |
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 3.08%. Purely for dividend investing, there may be better candidates out there.
MEI's Dividend Yield is rather good when compared to the industry average which is at 2.13. MEI pays more dividend than 97.56% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.36, MEI pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.08% |
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.
MEI's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP-33.15%
EPS Next 2Y57.86%
EPS Next 3YN/A
NYSE:MEI (11/13/2025, 12:15:47 PM)
6.85
-0.05 (-0.72%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners93.56%
Inst Owner Change1.43%
Ins Owners3.38%
Ins Owner Change12.56%
Market Cap241.26M
Revenue(TTM)1.03B
Net Income(TTM)-54.60M
Analysts77.14
Price Target10.46 (52.7%)
Short Float %3.99%
Short Ratio3.48
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.08% |
Yearly Dividend0.57
Dividend Growth(5Y)5.46%
DP-33.15%
Div Incr Years0
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-1132.67%
Min EPS beat(2)-2278.22%
Max EPS beat(2)12.87%
EPS beat(4)2
Avg EPS beat(4)-563.98%
Min EPS beat(4)-2278.22%
Max EPS beat(4)186.63%
EPS beat(8)2
Avg EPS beat(8)-349.25%
EPS beat(12)3
Avg EPS beat(12)-245.25%
EPS beat(16)6
Avg EPS beat(16)-181.53%
Revenue beat(2)2
Avg Revenue beat(2)7.33%
Min Revenue beat(2)5.35%
Max Revenue beat(2)9.31%
Revenue beat(4)3
Avg Revenue beat(4)3.12%
Min Revenue beat(4)-10.46%
Max Revenue beat(4)9.31%
Revenue beat(8)4
Avg Revenue beat(8)-0.02%
Revenue beat(12)6
Avg Revenue beat(12)0.07%
Revenue beat(16)8
Avg Revenue beat(16)0.64%
PT rev (1m)0%
PT rev (3m)-2.38%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-225.81%
EPS NY rev (1m)-6.41%
EPS NY rev (3m)-190.22%
Revenue NQ rev (1m)1.01%
Revenue NQ rev (3m)-10.18%
Revenue NY rev (1m)0.08%
Revenue NY rev (3m)-4.86%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 12.11 | ||
| P/S | 0.23 | ||
| P/FCF | 43.86 | ||
| P/OCF | 5.94 | ||
| P/B | 0.35 | ||
| P/tB | 0.86 | ||
| EV/EBITDA | 9.56 |
EPS(TTM)-1.06
EYN/A
EPS(NY)0.57
Fwd EY8.26%
FCF(TTM)0.16
FCFY2.28%
OCF(TTM)1.15
OCFY16.83%
SpS29.25
BVpS19.54
TBVpS7.93
PEG (NY)N/A
PEG (5Y)N/A
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -4.23% | ||
| ROE | -7.93% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 15.83% | ||
| FCFM | 0.53% |
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-Score6
Asset Turnover0.8
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 58.8 | ||
| Debt/EBITDA | 6.94 | ||
| Cap/Depr | 59.19% | ||
| Cap/Sales | 3.41% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | 87.12% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.5 | ||
| Quick Ratio | 1.63 | ||
| Altman-Z | 1.87 |
F-Score6
WACC9.44%
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)-29.27%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%29.03%
EPS Next Y63.55%
EPS Next 2Y57.86%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-4.91%
Revenue growth 3Y-3.42%
Revenue growth 5Y0.47%
Sales Q2Q%-6.96%
Revenue Next Year-7.16%
Revenue Next 2Y-2.02%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y7.97%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year325.8%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-91.95%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-64.54%
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 2 / 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.