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METHODE ELECTRONICS INC (MEI) Stock Fundamental Analysis

USA - NYSE:MEI - US5915202007 - Common Stock

7.245 USD
-0.21 (-2.75%)
Last: 10/9/2025, 12:58:39 PM
Fundamental Rating

3

We assign a fundamental rating of 3 out of 10 to MEI. MEI was compared to 124 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 has a valuation in line with the averages, but it does not seem to be growing.


Dividend Valuation Growth Profitability Health

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2

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.
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 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 100M -100M

1.2 Ratios

The Return On Assets of MEI (-4.23%) is comparable to the rest of the industry.
With a Return On Equity value of -7.93%, MEI perfoms like the industry average, outperforming 41.94% of the companies in the same industry.
Industry RankSector 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
MEI Yearly ROA, ROE, ROICMEI Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 10 -10 20

1.3 Margins

With a Gross Margin value of 15.83%, MEI is not doing good in the industry: 73.39% of the companies in the same industry are doing better.
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 RankSector 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%
MEI Yearly Profit, Operating, Gross MarginsMEI Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 10 -10 20

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4

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
Compared to 5 years ago, MEI has less shares outstanding
MEI has a worse debt/assets ratio than last year.
MEI Yearly Shares OutstandingMEI Yearly Shares OutstandingYearly Shares Outstanding 2015 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 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B

2.2 Solvency

An Altman-Z score of 1.89 indicates that MEI is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 1.89, MEI is not doing good in the industry: 72.58% of the companies in the same industry are doing better.
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 has a Debt to FCF ratio (58.80) which is in line with its industry peers.
A Debt/Equity ratio of 0.47 indicates that MEI is not too dependend on debt financing.
MEI's Debt to Equity ratio of 0.47 is on the low side compared to the rest of the industry. MEI is outperformed by 69.35% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.47
Debt/FCF 58.8
Altman-Z 1.89
ROIC/WACCN/A
WACC9.41%
MEI Yearly LT Debt VS Equity VS FCFMEI Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 200M 400M 600M 800M

2.3 Liquidity

MEI has a Current Ratio of 2.50. This indicates that MEI is financially healthy and has no problem in meeting its short term obligations.
With a Current ratio value of 2.50, MEI perfoms like the industry average, outperforming 54.84% of the companies in the same industry.
A Quick Ratio of 1.63 indicates that MEI should not have too much problems paying its short term obligations.
MEI has a Quick ratio of 1.63. This is comparable to the rest of the industry: MEI outperforms 48.39% of its industry peers.
Industry RankSector Rank
Current Ratio 2.5
Quick Ratio 1.63
MEI Yearly Current Assets VS Current LiabilitesMEI Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M

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2

3. Growth

3.1 Past

MEI shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -29.27%.
The Revenue has decreased by -4.91% in the past year.
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 58.27% on average per year.
MEI is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -2.00% yearly.
EPS Next Y65.75%
EPS Next 2Y58.27%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-7.24%
Revenue Next 2Y-2%
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.
MEI Yearly Revenue VS EstimatesMEI Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 200M 400M 600M 800M 1B
MEI Yearly EPS VS EstimatesMEI Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 0 1 -1 2 3

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5

4. Valuation

4.1 Price/Earnings Ratio

MEI reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
With a Price/Forward Earnings ratio of 12.48, MEI is valued correctly.
Based on the Price/Forward Earnings ratio, MEI is valued cheaply inside the industry as 91.94% of the companies are valued more expensively.
MEI is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.30, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE N/A
Fwd PE 12.48
MEI Price Earnings VS Forward Price EarningsMEI Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 10 20 30

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, MEI is valued cheaper than 84.68% of the companies in the same industry.
MEI's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. MEI is cheaper than 63.71% of the companies in the same industry.
Industry RankSector Rank
P/FCF 46.39
EV/EBITDA 9.97
MEI Per share dataMEI EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 10 20

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 58.27% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y58.27%
EPS Next 3YN/A

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6

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 3.60%, MEI has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.05, MEI pays a better dividend. On top of this MEI pays more dividend than 97.58% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.44, MEI pays a bit more dividend than the S&P500 average.
Industry RankSector Rank
Dividend Yield 3.6%

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
MEI Yearly Dividends per shareMEI Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 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.
MEI's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP-33.15%
EPS Next 2Y58.27%
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 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 50M -50M 100M -100M 150M

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METHODE ELECTRONICS INC

NYSE:MEI (10/9/2025, 12:58:39 PM)

7.245

-0.21 (-2.75%)

Chartmill FA Rating
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)09-09 2025-09-09/amc
Earnings (Next)12-03 2025-12-03
Inst Owners93.56%
Inst Owner Change0%
Ins Owners3.38%
Ins Owner Change12.17%
Market Cap255.17M
Analysts77.14
Price Target10.46 (44.38%)
Short Float %3.98%
Short Ratio2.97
Dividend
Industry RankSector Rank
Dividend Yield 3.6%
Yearly Dividend0.57
Dividend Growth(5Y)5.46%
DP-33.15%
Div Incr Years0
Div Non Decr Years11
Ex-Date07-21 2025-07-21 (0.07)
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)7.89%
PT rev (3m)-2.38%
EPS NQ rev (1m)13.33%
EPS NQ rev (3m)-208.33%
EPS NY rev (1m)-2.63%
EPS NY rev (3m)-166.1%
Revenue NQ rev (1m)-4.16%
Revenue NQ rev (3m)-14.24%
Revenue NY rev (1m)-1.7%
Revenue NY rev (3m)-8.31%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE 12.48
P/S 0.25
P/FCF 46.39
P/OCF 6.28
P/B 0.37
P/tB 0.91
EV/EBITDA 9.97
EPS(TTM)-1.06
EYN/A
EPS(NY)0.58
Fwd EY8.02%
FCF(TTM)0.16
FCFY2.16%
OCF(TTM)1.15
OCFY15.91%
SpS29.25
BVpS19.54
TBVpS7.93
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector 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
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-Score6
Asset Turnover0.8
Health
Industry RankSector 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 1.89
F-Score6
WACC9.41%
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 Y65.75%
EPS Next 2Y58.27%
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-7.24%
Revenue Next 2Y-2%
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%