METHODE ELECTRONICS INC (MEI) Stock Fundamental Analysis
NYSE:MEI - New York Stock Exchange, Inc. - US5915202007 - Common Stock - Currency: USD
Overall MEI gets a fundamental rating of 3 out of 10. We evaluated MEI against 124 industry peers in the Electronic Equipment, Instruments & Components industry. MEI may be in some trouble as it scores bad on both profitability and health. MEI has a valuation in line with the averages, but on the other hand it scores bad on growth. MEI also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
MEI had negative earnings in the past year.
In the past year MEI had a positive cash flow from operations.
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
With a Return On Assets value of -4.79%, MEI perfoms like the industry average, outperforming 41.94% of the companies in the same industry.
The Return On Equity of MEI (-9.03%) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -4.79% | ||
| ROE | -9.03% | ||
| 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 15.70%, MEI is doing worse than 71.77% 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 | 15.7% |
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
The debt/assets ratio for MEI is higher compared to a year ago.
2.2 Solvency
MEI has an Altman-Z score of 1.84. 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's Altman-Z score of 1.84 is on the low side compared to the rest of the industry. MEI is outperformed by 70.97% of its industry peers.
MEI has a Debt/Equity ratio of 0.46. This is a healthy value indicating a solid balance between debt and equity.
MEI has a worse Debt to Equity ratio (0.46) than 67.74% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.84 |
ROIC/WACCN/A
WACC9.59%
2.3 Liquidity
MEI has a Current Ratio of 2.40. 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 2.40, MEI is in line with its industry, outperforming 50.81% of the companies in the same industry.
MEI has a Quick Ratio of 1.57. 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 1.57. This is comparable to the rest of the industry: MEI outperforms 42.74% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.4 | ||
| Quick Ratio | 1.57 |
3. Growth
3.1 Past
MEI shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -134.69%.
Looking at the last year, MEI shows a decrease in Revenue. The Revenue has decreased by -5.96% in the last year.
The Revenue has been growing slightly by 0.47% on average over the past years.
EPS 1Y (TTM)-134.69%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-234.78%
Revenue 1Y (TTM)-5.96%
Revenue growth 3Y-3.42%
Revenue growth 5Y0.47%
Sales Q2Q%-7.28%
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 70.94% on average per year.
The Revenue is expected to grow by 4.77% on average over the next years.
EPS Next Y140.4%
EPS Next 2Y70.94%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year1.16%
Revenue Next 2Y4.77%
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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings Ratio is negative for MEI. In the last year negative earnings were reported.
A Price/Forward Earnings ratio of 14.51 indicates a correct valuation of MEI.
MEI's Price/Forward Earnings ratio is rather cheap when compared to the industry. MEI is cheaper than 87.10% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 37.67, MEI is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 14.51 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MEI is valued a bit cheaper than 75.81% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 12.12 |
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 70.94% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y70.94%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.30%, MEI is a good candidate for dividend investing.
MEI's Dividend Yield is rather good when compared to the industry average which is at 1.76. MEI pays more dividend than 98.39% of the companies in the same industry.
MEI's Dividend Yield is rather good when compared to the S&P500 average which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.3% |
5.2 History
The dividend of MEI has a limited annual growth rate of 5.46%.
MEI has been paying a dividend for at least 10 years, so it has 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-32.59%
EPS Next 2Y70.94%
EPS Next 3YN/A
6.74
+0.13 (+1.97%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners92.5%
Inst Owner Change0.06%
Ins Owners2.47%
Ins Owner Change-0.69%
Market Cap237.32M
Analysts77.14
Price Target10.71 (58.9%)
Short Float %4.86%
Short Ratio4.91
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.3% |
Yearly Dividend0.57
Dividend Growth(5Y)5.46%
DP-32.59%
Div Incr Years0
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-1227.72%
Min EPS beat(2)-2278.22%
Max EPS beat(2)-177.23%
EPS beat(4)1
Avg EPS beat(4)-567.5%
Min EPS beat(4)-2278.22%
Max EPS beat(4)186.63%
EPS beat(8)1
Avg EPS beat(8)-362.29%
EPS beat(12)3
Avg EPS beat(12)-243.98%
EPS beat(16)6
Avg EPS beat(16)-182.23%
Revenue beat(2)1
Avg Revenue beat(2)-0.58%
Min Revenue beat(2)-10.46%
Max Revenue beat(2)9.31%
Revenue beat(4)2
Avg Revenue beat(4)0.96%
Min Revenue beat(4)-10.46%
Max Revenue beat(4)9.31%
Revenue beat(8)3
Avg Revenue beat(8)-0.73%
Revenue beat(12)5
Avg Revenue beat(12)-0.46%
Revenue beat(16)8
Avg Revenue beat(16)0.38%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)-54.55%
EPS NQ rev (3m)-54.55%
EPS NY rev (1m)-22.03%
EPS NY rev (3m)-22.03%
Revenue NQ rev (1m)-2.93%
Revenue NQ rev (3m)-4.68%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 14.51 | ||
| P/S | 0.23 | ||
| P/FCF | N/A | ||
| P/OCF | 8.99 | ||
| P/B | 0.34 | ||
| P/tB | 0.84 | ||
| EV/EBITDA | 12.12 |
EPS(TTM)-1.15
EYN/A
EPS(NY)0.46
Fwd EY6.89%
FCF(TTM)-0.43
FCFYN/A
OCF(TTM)0.75
OCFY11.12%
SpS29.77
BVpS19.69
TBVpS8.01
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -4.79% | ||
| ROE | -9.03% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 15.7% | ||
| FCFM | 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
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-11.8%
GM growth 5Y-10.69%
F-Score5
Asset Turnover0.8
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 8.61 | ||
| Cap/Depr | 71.11% | ||
| Cap/Sales | 3.97% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | 71.54% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.4 | ||
| Quick Ratio | 1.57 | ||
| Altman-Z | 1.84 |
F-Score5
WACC9.59%
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)-134.69%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-234.78%
EPS Next Y140.4%
EPS Next 2Y70.94%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-5.96%
Revenue growth 3Y-3.42%
Revenue growth 5Y0.47%
Sales Q2Q%-7.28%
Revenue Next Year1.16%
Revenue Next 2Y4.77%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-800%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year452.87%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-462.96%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-44.42%
OCF growth 3Y-35.59%
OCF growth 5Y-28.43%