MEI Fundamental Analysis - METHODE ELECTRONICS INC

Fundamental Rating

MEI gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 124 industry peers in the Electronic Equipment, Instruments & Components industry. MEI has a bad profitability rating. Also its financial health evaluation is rather negative. MEI has a expensive valuation and it also scores bad on growth. Finally MEI also has an excellent dividend rating.

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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.

In multiple years MEI reported negative net income over the last 5 years.

In the past 5 years MEI always reported a positive cash flow from operatings.

1.2 Ratios

MEI has a Return On Assets of -4.79%. This is comparable to the rest of the industry: MEI outperforms 40.32% of its industry peers.

MEI has a Return On Equity of -9.03%. This is comparable to the rest of the industry: MEI outperforms 42.74% of its industry peers.

		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

With a Gross Margin value of 15.70%, MEI is not doing good in the industry: 72.58% of the companies in the same industry are doing better.

In the last couple of years the Gross Margin of MEI has declined.

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%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

MEI does not have a ROIC to compare to the WACC, probably because it is not profitable.

Compared to 1 year ago, MEI has more shares outstanding

The number of shares outstanding for MEI has been reduced compared to 5 years ago.

The debt/assets ratio for MEI is higher compared to a year ago.

2.2 Solvency

An Altman-Z score of 1.87 indicates that MEI is not a great score, but indicates only limited risk for bankruptcy at the moment.

The Altman-Z score of MEI (1.87) is worse than 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	1.87

ROIC/WACCN/A

WACC9.6%

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.

MEI has a Current ratio of 2.40. This is comparable to the rest of the industry: MEI outperforms 54.03% of its industry peers.

A Quick Ratio of 1.57 indicates that MEI should not have too much problems paying its short term obligations.

Looking at the Quick ratio, with a value of 1.57, MEI is in line with its industry, outperforming 45.97% of the companies in the same industry.

		Industry Rank	Sector Rank
Current Ratio	2.4
Quick Ratio	1.57

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WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

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3. Growth

3.1 Past

The earnings per share for MEI have decreased strongly by -134.69% in the last year.

The Revenue has decreased by -5.96% in the past 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)-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

MEI is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 59.38% yearly.

MEI is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -2.64% yearly.

EPS Next Y66.63%

EPS Next 2Y59.38%

EPS Next 3YN/A

EPS Next 5YN/A

Revenue Next Year-5.64%

Revenue Next 2Y-2.64%

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.

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4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings Ratio is negative for MEI. In the last year negative earnings were reported.

Besides the negative Price/Earnings Ratio, also the Forward Price/Earnings Ratio is negative for MEI. No positive earnings are expected for the next year.

		Industry Rank	Sector Rank
PE	N/A
Fwd PE	N/A

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of MEI indicates a somewhat cheap valuation: MEI is cheaper than 78.23% of the companies listed in the same industry.

		Industry Rank	Sector Rank
P/FCF	N/A
EV/EBITDA	12.97

4.3 Compensation for Growth

A more expensive valuation may be justified as MEI's earnings are expected to grow with 59.38% in the coming years.

PEG (NY)N/A

PEG (5Y)N/A

EPS Next 2Y59.38%

EPS Next 3YN/A

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5. Dividend

5.1 Amount

MEI has a Yearly Dividend Yield of 4.20%, which is a nice return.

MEI's Dividend Yield is rather good when compared to the industry average which is at 1.60. MEI pays more dividend than 98.39% of the companies in the same industry.

Compared to an average S&P500 Dividend Yield of 2.32, MEI pays a better dividend.

		Industry Rank	Sector Rank
Dividend Yield	4.2%

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-32.59%

EPS Next 2Y59.38%

EPS Next 3YN/A

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METHODE ELECTRONICS INC

NYSE:MEI (8/22/2025, 8:23:18 PM)

After market: 7.5 0 (0%)

7.5

+0.84 (+12.61%)

Chartmill FA Rating

GICS SectorInformation Technology

GICS IndustryGroupTechnology Hardware & Equipment

GICS IndustryElectronic Equipment, Instruments & Components

Earnings (Last)07-09 2025-07-09/amc

Earnings (Next)09-04 2025-09-04

Inst Owners93.98%

Inst Owner Change0.88%

Ins Owners2.5%

Ins Owner Change12.23%

Market Cap264.15M

Analysts77.14

Price Target9.69 (29.2%)

Short Float %5.01%

Short Ratio3.68

Dividend

		Industry Rank	Sector Rank
Dividend Yield	4.2%

Yearly Dividend0.57

Dividend Growth(5Y)5.46%

DP-32.59%

Div Incr Years0

Div Non Decr Years11

Ex-Date07-21 2025-07-21 (0.07)

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)-9.52%

PT rev (3m)-9.52%

EPS NQ rev (1m)-1100%

EPS NQ rev (3m)-554.54%

EPS NY rev (1m)-182.61%

EPS NY rev (3m)-164.41%

Revenue NQ rev (1m)-2.07%

Revenue NQ rev (3m)-6.65%

Revenue NY rev (1m)-6.72%

Revenue NY rev (3m)-6.72%

Valuation

		Industry Rank	Sector Rank
PE	N/A
Fwd PE	N/A
P/S	0.25
P/FCF	N/A
P/OCF	10.01
P/B	0.38
P/tB	0.94
EV/EBITDA	12.97

EPS(TTM)-1.15

EYN/A

EPS(NY)-0.38

Fwd EYN/A

FCF(TTM)-0.43

FCFYN/A

OCF(TTM)0.75

OCFY9.99%

SpS29.76

BVpS19.68

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	1.87

F-Score5

WACC9.6%

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 Y66.63%

EPS Next 2Y59.38%

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 Year-5.64%

Revenue Next 2Y-2.64%

Revenue Next 3YN/A

Revenue Next 5YN/A

EBIT growth 1Y-800%

EBIT growth 3YN/A

EBIT growth 5YN/A

EBIT Next Year415.06%

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%

METHODE ELECTRONICS INC (MEI) Stock Fundamental Analysis

1. Profitability

1.1 Basic Checks

1.2 Ratios

1.3 Margins

More info and screens

2. Health

2.1 Basic Checks

2.2 Solvency

2.3 Liquidity

More info and screens

3. Growth

3.1 Past

3.2 Future

3.3 Evolution

More info and screens

4. Valuation

4.1 Price/Earnings Ratio

4.2 Price Multiples

4.3 Compensation for Growth

More info and screens

5. Dividend

5.1 Amount

5.2 History

5.3 Sustainability

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