METHODE ELECTRONICS INC (MEI)
US5915202007 - Common Stock
MEI gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 126 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 is valued correctly, but it does not seem to be growing. Finally MEI also has an excellent dividend rating.
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.
Each year in the past 5 years MEI had a positive operating cash flow.
1.2 Ratios
MEI has a Return On Assets of -10.34%. This is in the lower half of the industry: MEI underperforms 68.00% of its industry peers.
MEI has a worse Return On Equity (-19.14%) than 66.40% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -10.34% | ||
| ROE | -19.14% | ||
| 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
1.3 Margins
MEI has a Gross Margin of 15.77%. This is in the lower half of the industry: MEI underperforms 72.00% of its industry peers.
In the last couple of years the Gross Margin of MEI has declined.
The Profit Margin and Operating Margin are not available for MEI so they could not be analyzed.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 15.77% |
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%
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
Compared to 5 years ago, MEI has less shares outstanding
The debt/assets ratio for MEI is higher compared to a year ago.
2.2 Solvency
MEI has an Altman-Z score of 2.08. 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.
MEI has a worse Altman-Z score (2.08) than 66.40% of its industry peers.
The Debt to FCF ratio of MEI is 21.14, which is on the high side as it means it would take MEI, 21.14 years of fcf income to pay off all of its debts.
MEI has a Debt to FCF ratio (21.14) which is in line with its industry peers.
MEI has a Debt/Equity ratio of 0.40. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.40, MEI is doing worse than 68.80% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.4 | ||
| Debt/FCF | 21.14 | ||
| Altman-Z | 2.08 |
ROIC/WACCN/A
WACC10.07%
2.3 Liquidity
A Current Ratio of 2.35 indicates that MEI has no problem at all paying its short term obligations.
MEI has a Current ratio (2.35) which is in line with its industry peers.
MEI has a Quick Ratio of 1.50. This is a normal value and indicates that MEI is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.50, MEI is doing worse than 60.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.35 | ||
| Quick Ratio | 1.5 |
3. Growth
3.1 Past
The earnings per share for MEI have decreased strongly by -187.95% in the last year.
The Revenue has decreased by -5.52% in the past year.
Measured over the past years, MEI shows a small growth in Revenue. The Revenue has been growing by 2.19% on average per year.
EPS 1Y (TTM)-187.95%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%180%
Revenue 1Y (TTM)-5.52%
Revenue growth 3Y0.81%
Revenue growth 5Y2.19%
Sales Q2Q%1.6%
3.2 Future
The Earnings Per Share is expected to grow by 79.59% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 6.23% on average over the next years.
EPS Next Y18.24%
EPS Next 2Y93.97%
EPS Next 3Y79.59%
EPS Next 5YN/A
Revenue Next Year-1.89%
Revenue Next 2Y2%
Revenue Next 3Y6.23%
Revenue Next 5YN/A
3.3 Evolution
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
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 14.00.
Based on the Price/Forward Earnings ratio, MEI is valued cheaper than 84.00% of the companies in the same industry.
MEI is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.65, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 14 |
4.2 Price Multiples
73.60% of the companies in the same industry are more expensive than MEI, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of MEI indicates a somewhat cheap valuation: MEI is cheaper than 64.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.79 | ||
| EV/EBITDA | 14.38 |
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 79.59% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y93.97%
EPS Next 3Y79.59%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.27%, MEI is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.81, MEI pays a better dividend. On top of this MEI pays more dividend than 97.60% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.24, MEI pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.27% |
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
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-13.82%
EPS Next 2Y93.97%
EPS Next 3Y79.59%
METHODE ELECTRONICS INC
NYSE:MEI (12/18/2024, 8:04:00 PM)
After market: 12.09 0 (0%)12.09
-0.56 (-4.43%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap431.13M
Analysts
Price Target
Short Float %
Short Ratio
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.27% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 14 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -10.34% | ||
| ROE | -19.14% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 15.77% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.79
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.4 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.35 | ||
| Quick Ratio | 1.5 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-187.95%
EPS 3YN/A
EPS 5Y
EPS Q2Q%
EPS Next Y18.24%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-5.52%
Revenue growth 3Y0.81%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y