METHODE ELECTRONICS INC (MEI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:MEI - US5915202007 - Common Stock
7.51 USD
+0.09 (+1.21%)
7.51 USD
0 (0%)
Taking everything into account, MEI scores 3 out of 10 in our fundamental rating. MEI was compared to 125 industry peers in the Electronic Equipment, Instruments & Components industry. MEI scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. MEI has a valuation in line with the averages, 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
- MEI's Return On Assets of -4.89% is on the low side compared to the rest of the industry. MEI is outperformed by 62.10% of its industry peers.
- Looking at the Return On Equity, with a value of -9.26%, MEI is doing worse than 61.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -4.89% | ||
| ROE | -9.26% | ||
| 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 15.53%, MEI is not doing good in the industry: 72.58% of the companies in the same industry are doing better.
- 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 | 15.53% |
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
- Compared to 1 year ago, MEI has a worse debt to assets ratio.
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.
- Looking at the Altman-Z score, with a value of 1.84, MEI is doing worse than 70.16% of the companies in the same industry.
- The Debt to FCF ratio of MEI is 6.36, which is on the high side as it means it would take MEI, 6.36 years of fcf income to pay off all of its debts.
- The Debt to FCF ratio of MEI (6.36) is comparable to the rest of the industry.
- A Debt/Equity ratio of 0.49 indicates that MEI is not too dependend on debt financing.
- MEI has a Debt to Equity ratio of 0.49. This is in the lower half of the industry: MEI underperforms 69.35% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.49 | ||
| Debt/FCF | 6.36 | ||
| Altman-Z | 1.84 |
ROIC/WACCN/A
WACC10.26%
2.3 Liquidity
- MEI has a Current Ratio of 2.55. This indicates that MEI is financially healthy and has no problem in meeting its short term obligations.
- With a Current ratio value of 2.55, MEI perfoms like the industry average, outperforming 54.84% of the companies in the same industry.
- A Quick Ratio of 1.68 indicates that MEI should not have too much problems paying its short term obligations.
- MEI has a Quick ratio (1.68) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.55 | ||
| Quick Ratio | 1.68 |
3. Growth
3.1 Past
- MEI shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -90.41%.
- Looking at the last year, MEI shows a decrease in Revenue. The Revenue has decreased by -9.51% in the last year.
- The Revenue has been growing slightly by 0.47% on average over the past years.
EPS 1Y (TTM)-90.41%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-235.71%
Revenue 1Y (TTM)-9.51%
Revenue growth 3Y-3.42%
Revenue growth 5Y0.47%
Sales Q2Q%-15.62%
3.2 Future
- The Earnings Per Share is expected to grow by 55.33% on average over the next years. This is a very strong growth
- Based on estimates for the next years, MEI will show a decrease in Revenue. The Revenue will decrease by -1.56% on average per year.
EPS Next Y49.5%
EPS Next 2Y55.33%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-6.38%
Revenue Next 2Y-1.56%
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.
- A Price/Forward Earnings ratio of 15.82 indicates a correct valuation of MEI.
- 85.48% of the companies in the same industry are more expensive than MEI, based on the Price/Forward Earnings ratio.
- MEI is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 24.29, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 15.82 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, MEI is valued cheaper than 83.87% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, MEI is valued cheaper than 96.77% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.08 | ||
| EV/EBITDA | 11.48 |
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.
- A more expensive valuation may be justified as MEI's earnings are expected to grow with 55.33% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y55.33%
EPS Next 3YN/A
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 2.70%, MEI has a reasonable but not impressive dividend return.
- MEI's Dividend Yield is rather good when compared to the industry average which is at 0.46. MEI pays more dividend than 97.58% of the companies in the same industry.
- MEI's Dividend Yield is a higher than the S&P500 average which is at 1.85.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.7% |
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.
- The dividend of MEI is growing, but earnings are growing more, so the dividend growth is sustainable.
DP-24.01%
EPS Next 2Y55.33%
EPS Next 3YN/A
7.51
+0.09 (+1.21%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)12-03 2025-12-03/amc
Earnings (Next)03-03 2026-03-03
Inst Owners93.63%
Inst Owner Change-0.01%
Ins Owners3.31%
Ins Owner Change12.68%
Market Cap265.93M
Revenue(TTM)984.40M
Net Income(TTM)-62.90M
Analysts77.14
Price Target9.69 (29.03%)
Short Float %3.65%
Short Ratio4.44
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.7% |
Yearly Dividend0.57
Dividend Growth(5Y)5.46%
DP-24.01%
Div Incr Years0
Div Non Decr Years11
Ex-Date01-16 2026-01-16 (0.05)
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)8.2%
Min EPS beat(2)3.53%
Max EPS beat(2)12.87%
EPS beat(4)2
Avg EPS beat(4)-609.76%
Min EPS beat(4)-2278.22%
Max EPS beat(4)12.87%
EPS beat(8)3
Avg EPS beat(8)-341.26%
EPS beat(12)3
Avg EPS beat(12)-246.51%
EPS beat(16)6
Avg EPS beat(16)-181.52%
Revenue beat(2)2
Avg Revenue beat(2)4.66%
Min Revenue beat(2)3.98%
Max Revenue beat(2)5.35%
Revenue beat(4)3
Avg Revenue beat(4)2.04%
Min Revenue beat(4)-10.46%
Max Revenue beat(4)9.31%
Revenue beat(8)5
Avg Revenue beat(8)0.8%
Revenue beat(12)6
Avg Revenue beat(12)-0.13%
Revenue beat(16)8
Avg Revenue beat(16)0.32%
PT rev (1m)-9.52%
PT rev (3m)-7.32%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-77.27%
EPS NY rev (1m)-38.55%
EPS NY rev (3m)-47.44%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.88%
Revenue NY rev (1m)0.85%
Revenue NY rev (3m)0.93%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 15.82 | ||
| P/S | 0.27 | ||
| P/FCF | 5.08 | ||
| P/OCF | 3.27 | ||
| P/B | 0.39 | ||
| P/tB | 0.96 | ||
| EV/EBITDA | 11.48 |
EPS(TTM)-1.39
EYN/A
EPS(NY)0.47
Fwd EY6.32%
FCF(TTM)1.48
FCFY19.67%
OCF(TTM)2.29
OCFY30.53%
SpS27.8
BVpS19.18
TBVpS7.83
PEG (NY)N/A
PEG (5Y)N/A
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -4.89% | ||
| ROE | -9.26% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 15.53% | ||
| FCFM | 5.31% |
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-Score3
Asset Turnover0.76
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.49 | ||
| Debt/FCF | 6.36 | ||
| Debt/EBITDA | 7.95 | ||
| Cap/Depr | 48.17% | ||
| Cap/Sales | 2.94% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | 194.26% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.55 | ||
| Quick Ratio | 1.68 | ||
| Altman-Z | 1.84 |
F-Score3
WACC10.26%
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)-90.41%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-235.71%
EPS Next Y49.5%
EPS Next 2Y55.33%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-9.51%
Revenue growth 3Y-3.42%
Revenue growth 5Y0.47%
Sales Q2Q%-15.62%
Revenue Next Year-6.38%
Revenue Next 2Y-1.56%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-80.2%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year306.07%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y4.6%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-17.56%
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.
What is the valuation status for MEI stock?
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 1 / 10.
How sustainable is the dividend of METHODE ELECTRONICS INC (MEI) stock?
The dividend rating of METHODE ELECTRONICS INC (MEI) is 6 / 10 and the dividend payout ratio is -24.01%.