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METHODE ELECTRONICS INC (MEI) Stock Fundamental Analysis

NYSE:MEI - New York Stock Exchange, Inc. - US5915202007 - Common Stock - Currency: USD

8.68  +0.11 (+1.28%)

After market: 8.68 0 (0%)

Fundamental Rating

4

Taking everything into account, MEI scores 4 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 on the other hand it scores bad on growth. MEI also has an excellent dividend rating.


Dividend Valuation Growth Profitability Health

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2

1. Profitability

1.1 Basic Checks

MEI had negative earnings in the past year.
MEI had a positive operating cash flow in the past year.
MEI had positive earnings in 4 of the past 5 years.
MEI had a positive operating cash flow in each of the past 5 years.
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 0 100M -100M

1.2 Ratios

Looking at the Return On Assets, with a value of -7.02%, MEI is in line with its industry, outperforming 40.80% of the companies in the same industry.
MEI's Return On Equity of -13.01% is in line compared to the rest of the industry. MEI outperforms 41.60% of its industry peers.
Industry RankSector Rank
ROA -7.02%
ROE -13.01%
ROIC N/A
ROA(3y)1.15%
ROA(5y)4.16%
ROE(3y)1.09%
ROE(5y)6.47%
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 0 10 -10 20

1.3 Margins

Looking at the Gross Margin, with a value of 16.90%, MEI is doing worse than 71.20% of the companies in the same industry.
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 16.9%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-14.19%
GM growth 5Y-9.8%
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 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 less shares outstanding
MEI has less shares outstanding than it did 5 years ago.
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 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 500M 1B 1.5B

2.2 Solvency

An Altman-Z score of 2.04 indicates that MEI is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of MEI (2.04) is worse than 68.00% of its industry peers.
MEI has a Debt/Equity ratio of 0.47. This is a healthy value indicating a solid balance between debt and equity.
With a Debt to Equity ratio value of 0.47, MEI is not doing good in the industry: 70.40% of the companies in the same industry are doing better.
Industry RankSector Rank
Debt/Equity 0.47
Debt/FCF N/A
Altman-Z 2.04
ROIC/WACCN/A
WACC8.96%
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 0 200M 400M 600M 800M

2.3 Liquidity

MEI has a Current Ratio of 2.84. This indicates that MEI is financially healthy and has no problem in meeting its short term obligations.
With a decent Current ratio value of 2.84, MEI is doing good in the industry, outperforming 60.80% of the companies in the same industry.
A Quick Ratio of 1.75 indicates that MEI should not have too much problems paying its short term obligations.
The Quick ratio of MEI (1.75) is comparable to the rest of the industry.
Industry RankSector Rank
Current Ratio 2.84
Quick Ratio 1.75
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 200M 400M 600M

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3

3. Growth

3.1 Past

MEI shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -1425.00%.
MEI shows a decrease in Revenue. In the last year, the revenue decreased by -6.16%.
MEI shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.19% yearly.
EPS 1Y (TTM)-1425%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%36.36%
Revenue 1Y (TTM)-6.16%
Revenue growth 3Y0.81%
Revenue growth 5Y2.19%
Sales Q2Q%-7.55%

3.2 Future

The Earnings Per Share is expected to grow by 60.88% on average over the next years. This is a very strong growth
Based on estimates for the next years, MEI will show a small growth in Revenue. The Revenue will grow by 0.68% on average per year.
EPS Next Y30.95%
EPS Next 2Y79.34%
EPS Next 3Y60.88%
EPS Next 5YN/A
Revenue Next Year-7.01%
Revenue Next 2Y-3.01%
Revenue Next 3Y0.68%
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 2 3

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4

4. Valuation

4.1 Price/Earnings Ratio

MEI reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
MEI is valuated correctly with a Price/Forward Earnings ratio of 14.57.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MEI indicates a rather cheap valuation: MEI is cheaper than 82.40% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of MEI to the average of the S&P500 Index (22.27), we can say MEI is valued slightly cheaper.
Industry RankSector Rank
PE N/A
Fwd PE 14.57
MEI Price Earnings VS Forward Price EarningsMEI Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 20 40 60

4.2 Price Multiples

MEI's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. MEI is cheaper than 80.00% of the companies in the same industry.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 11.11
MEI Per share dataMEI EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 10 20

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 60.88% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y79.34%
EPS Next 3Y60.88%

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8

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 7.00%, MEI is a good candidate for dividend investing.
MEI's Dividend Yield is rather good when compared to the industry average which is at 2.07. MEI pays more dividend than 98.40% of the companies in the same industry.
MEI's Dividend Yield is rather good when compared to the S&P500 average which is at 2.39.
Industry RankSector Rank
Dividend Yield 7%

5.2 History

The dividend of MEI has a limited annual growth rate of 4.88%.
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)4.88%
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-22.05%
EPS Next 2Y79.34%
EPS Next 3Y60.88%
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 0 50M -50M 100M -100M 150M

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METHODE ELECTRONICS INC

NYSE:MEI (6/10/2025, 4:02:04 PM)

After market: 8.68 0 (0%)

8.68

+0.11 (+1.28%)

Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)03-05 2025-03-05/amc
Earnings (Next)06-19 2025-06-19/amc
Inst Owners95.53%
Inst Owner Change-3.24%
Ins Owners2.38%
Ins Owner Change-0.46%
Market Cap309.79M
Analysts77.14
Price Target10.71 (23.39%)
Short Float %4.24%
Short Ratio4.39
Dividend
Industry RankSector Rank
Dividend Yield 7%
Yearly Dividend0.56
Dividend Growth(5Y)4.88%
DP-22.05%
Div Incr Years0
Div Non Decr Years11
Ex-Date04-17 2025-04-17 (0.14)
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)4.7%
Min EPS beat(2)-177.23%
Max EPS beat(2)186.63%
EPS beat(4)1
Avg EPS beat(4)-1.32%
Min EPS beat(4)-177.23%
Max EPS beat(4)186.63%
EPS beat(8)1
Avg EPS beat(8)-84.03%
EPS beat(12)3
Avg EPS beat(12)-54.15%
EPS beat(16)7
Avg EPS beat(16)-38.99%
Revenue beat(2)1
Avg Revenue beat(2)-1.1%
Min Revenue beat(2)-10.46%
Max Revenue beat(2)8.27%
Revenue beat(4)2
Avg Revenue beat(4)-0.38%
Min Revenue beat(4)-10.46%
Max Revenue beat(4)8.27%
Revenue beat(8)3
Avg Revenue beat(8)-1.86%
Revenue beat(12)4
Avg Revenue beat(12)-1.33%
Revenue beat(16)8
Avg Revenue beat(16)0.2%
PT rev (1m)0%
PT rev (3m)-25%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-44.73%
EPS NY rev (1m)0%
EPS NY rev (3m)-57.03%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-20.66%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-7.01%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE 14.57
P/S 0.29
P/FCF N/A
P/OCF 19.48
P/B 0.44
P/tB 1.03
EV/EBITDA 11.11
EPS(TTM)-0.61
EYN/A
EPS(NY)0.6
Fwd EY6.87%
FCF(TTM)-0.72
FCFYN/A
OCF(TTM)0.45
OCFY5.13%
SpS29.93
BVpS19.73
TBVpS8.44
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -7.02%
ROE -13.01%
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) N/A
GM 16.9%
FCFM N/A
ROA(3y)1.15%
ROA(5y)4.16%
ROE(3y)1.09%
ROE(5y)6.47%
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-14.19%
GM growth 5Y-9.8%
F-Score5
Asset Turnover0.82
Health
Industry RankSector Rank
Debt/Equity 0.47
Debt/FCF N/A
Debt/EBITDA 6.87
Cap/Depr 72.85%
Cap/Sales 3.89%
Interest Coverage N/A
Cash Conversion 33.33%
Profit Quality N/A
Current Ratio 2.84
Quick Ratio 1.75
Altman-Z 2.04
F-Score5
WACC8.96%
ROIC/WACCN/A
Cap/Depr(3y)81.26%
Cap/Depr(5y)77.1%
Cap/Sales(3y)3.78%
Cap/Sales(5y)3.6%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-1425%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%36.36%
EPS Next Y30.95%
EPS Next 2Y79.34%
EPS Next 3Y60.88%
EPS Next 5YN/A
Revenue 1Y (TTM)-6.16%
Revenue growth 3Y0.81%
Revenue growth 5Y2.19%
Sales Q2Q%-7.55%
Revenue Next Year-7.01%
Revenue Next 2Y-3.01%
Revenue Next 3Y0.68%
Revenue Next 5YN/A
EBIT growth 1Y-157.67%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year2336.93%
EBIT Next 3Y238.83%
EBIT Next 5YN/A
FCF growth 1Y-129.68%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-87.36%
OCF growth 3Y-35.83%
OCF growth 5Y-14.17%