METHODE ELECTRONICS INC (MEI) Stock Fundamental Analysis
USA - NYSE:MEI - US5915202007 - Common Stock
6.9 USD
+0.32 (+4.86%)
6.9 USD
0 (0%)
Overall MEI gets a fundamental rating of 3 out of 10. We evaluated MEI against 123 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.
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.
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
Looking at the Return On Assets, with a value of -4.23%, MEI is doing worse than 60.16% of the companies in the same industry.
MEI has a Return On Equity (-7.93%) which 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
The Gross Margin of MEI (15.83%) is worse than 73.17% 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 | 15.83% |
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.
MEI has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, MEI has less shares outstanding
MEI has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 1.86 indicates that MEI is not a great score, but indicates only limited risk for bankruptcy at the moment.
MEI's Altman-Z score of 1.86 is on the low side compared to the rest of the industry. MEI is outperformed by 69.11% of its industry peers.
The Debt to FCF ratio of MEI is 58.80, which is on the high side as it means it would take MEI, 58.80 years of fcf income to pay off all of its debts.
MEI has a Debt to FCF ratio (58.80) which is comparable to the rest of the industry.
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 70.73% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 58.8 | ||
| Altman-Z | 1.86 |
ROIC/WACCN/A
WACC9.45%
2.3 Liquidity
MEI has a Current Ratio of 2.50. This indicates that MEI is financially healthy and has no problem in meeting its short term obligations.
MEI has a Current ratio (2.50) which is in line with its industry peers.
A Quick Ratio of 1.63 indicates that MEI should not have too much problems paying its short term obligations.
The Quick ratio of MEI (1.63) 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.
Looking at the last year, MEI shows a decrease in Revenue. The Revenue has decreased by -4.91% in the last year.
MEI shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.47% yearly.
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.
MEI is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -2.02% yearly.
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
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.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings Ratio is negative for MEI. In the last year negative earnings were reported.
The Price/Forward Earnings ratio is 12.20, which indicates a correct valuation of MEI.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MEI indicates a rather cheap valuation: MEI is cheaper than 91.06% of the companies listed in the same industry.
MEI's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 34.43.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 12.2 |
4.2 Price Multiples
MEI's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. MEI is cheaper than 86.99% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, MEI is valued a bit cheaper than 65.04% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 44.19 | ||
| EV/EBITDA | 9.31 |
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 57.86% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y57.86%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.08%, MEI has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.13, MEI pays a better dividend. On top of this MEI pays more dividend than 97.56% of the companies listed in the same industry.
MEI's Dividend Yield is a higher than the S&P500 average which is at 2.36.
| 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 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
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-33.15%
EPS Next 2Y57.86%
EPS Next 3YN/A
6.9
+0.32 (+4.86%)
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 Cap243.02M
Revenue(TTM)1.03B
Net Income(TTM)-54.60M
Analysts77.14
Price Target10.46 (51.59%)
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 | 12.2 | ||
| P/S | 0.24 | ||
| P/FCF | 44.19 | ||
| P/OCF | 5.99 | ||
| P/B | 0.35 | ||
| P/tB | 0.87 | ||
| EV/EBITDA | 9.31 |
EPS(TTM)-1.06
EYN/A
EPS(NY)0.57
Fwd EY8.2%
FCF(TTM)0.16
FCFY2.26%
OCF(TTM)1.15
OCFY16.71%
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 | 1.86 |
F-Score6
WACC9.45%
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.