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METHODE ELECTRONICS INC (MEI) Stock Fundamental Analysis

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

5.69  +0.05 (+0.89%)

After market: 5.46 -0.23 (-4.04%)

Fundamental Rating

4

Overall MEI gets a fundamental rating of 4 out of 10. We evaluated MEI against 124 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. Finally 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.
Of the past 5 years MEI 4 years were profitable.
Each year in the past 5 years MEI had a positive operating cash flow.
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

With a Return On Assets value of -7.02%, MEI is not doing good in the industry: 60.48% of the companies in the same industry are doing better.
MEI has a worse Return On Equity (-13.01%) than 61.29% 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

With a Gross Margin value of 16.90%, MEI is not doing good in the industry: 70.16% 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 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.
MEI has less shares outstanding than it did 1 year ago.
MEI has less shares outstanding than it did 5 years ago.
The debt/assets ratio for MEI is higher compared to a year ago.
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

MEI has an Altman-Z score of 1.94. 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 1.94, MEI is doing worse than 65.32% of the companies in the same industry.
MEI has a Debt/Equity ratio of 0.47. This is a healthy value indicating a solid balance between debt and equity.
MEI has a Debt to Equity ratio of 0.47. This is in the lower half of the industry: MEI underperforms 69.35% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.47
Debt/FCF N/A
Altman-Z 1.94
ROIC/WACCN/A
WACC8.55%
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.
MEI has a better Current ratio (2.84) than 61.29% of its industry peers.
MEI has a Quick Ratio of 1.75. This is a normal value and indicates that MEI is financially healthy and should not expect problems in meeting its short term obligations.
MEI's Quick ratio of 1.75 is in line compared to the rest of the industry. MEI outperforms 56.45% of its industry peers.
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

The earnings per share for MEI have decreased strongly by -1425.00% in the last year.
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

MEI is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 60.88% yearly.
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-6.83%
Revenue Next 2Y-2.09%
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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5

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 9.55 indicates a reasonable valuation of MEI.
92.74% of the companies in the same industry are more expensive than MEI, based on the Price/Forward Earnings ratio.
MEI's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 21.32.
Industry RankSector Rank
PE N/A
Fwd PE 9.55
MEI Price Earnings VS Forward Price EarningsMEI Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 10 20

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of MEI indicates a rather cheap valuation: MEI is cheaper than 81.45% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 8.96
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.
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 9.84%, MEI is a good candidate for dividend investing.
The stock price of MEI dropped by -52.02% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
Compared to an average industry Dividend Yield of 2.39, MEI pays a better dividend. On top of this MEI pays more dividend than 100.00% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.51, MEI pays a better dividend.
Industry RankSector Rank
Dividend Yield 9.84%

5.2 History

The dividend of MEI has a limited annual growth rate of 4.88%.
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)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

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-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 (4/17/2025, 8:04:00 PM)

After market: 5.46 -0.23 (-4.04%)

5.69

+0.05 (+0.89%)

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)07-09 2025-07-09/amc
Inst Owners95.53%
Inst Owner Change-0.07%
Ins Owners2.38%
Ins Owner Change1.62%
Market Cap203.08M
Analysts77.14
Price Target11.73 (106.15%)
Short Float %5.43%
Short Ratio4.22
Dividend
Industry RankSector Rank
Dividend Yield 9.84%
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)-17.86%
PT rev (3m)-21.59%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-65%
EPS NY rev (1m)-57.03%
EPS NY rev (3m)6.94%
Revenue NQ rev (1m)-0.92%
Revenue NQ rev (3m)-19.69%
Revenue NY rev (1m)-6.83%
Revenue NY rev (3m)-6.58%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE 9.55
P/S 0.19
P/FCF N/A
P/OCF 12.77
P/B 0.29
P/tB 0.67
EV/EBITDA 8.96
EPS(TTM)-0.61
EYN/A
EPS(NY)0.6
Fwd EY10.47%
FCF(TTM)-0.72
FCFYN/A
OCF(TTM)0.45
OCFY7.83%
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 1.94
F-Score5
WACC8.55%
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-6.83%
Revenue Next 2Y-2.09%
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%