METHODE ELECTRONICS INC (MEI) Stock Fundamental Analysis
NYSE:MEI - New York Stock Exchange, Inc. - US5915202007 - Common Stock - Currency: USD
We assign a fundamental rating of 4 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 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.
In the past 5 years MEI always reported a positive cash flow from operatings.
1.2 Ratios
With a Return On Assets value of -6.46%, MEI is not doing good in the industry: 62.50% of the companies in the same industry are doing better.
Looking at the Return On Equity, with a value of -12.03%, MEI is doing worse than 60.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -6.46% | ||
| ROE | -12.03% | ||
| 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
The Gross Margin of MEI (16.21%) is worse than 71.67% of its industry peers.
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 | 16.21% |
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.
The number of shares outstanding for MEI has been reduced compared to 1 year ago.
The number of shares outstanding for MEI has been reduced compared to 5 years ago.
Compared to 1 year ago, MEI has a worse debt to assets ratio.
2.2 Solvency
MEI has an Altman-Z score of 2.05. 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.
With a Altman-Z score value of 2.05, MEI is not doing good in the industry: 65.00% of the companies in the same industry are doing better.
A Debt/Equity ratio of 0.46 indicates that MEI is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.46, MEI is doing worse than 69.17% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.05 |
ROIC/WACCN/A
WACC8.39%
2.3 Liquidity
A Current Ratio of 2.75 indicates that MEI has no problem at all paying its short term obligations.
MEI has a Current ratio (2.75) which is in line with its industry peers.
MEI has a Quick Ratio of 1.73. This is a normal value and indicates that MEI is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of MEI (1.73) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.75 | ||
| Quick Ratio | 1.73 |
3. Growth
3.1 Past
MEI shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -187.95%.
MEI shows a decrease in Revenue. In the last year, the revenue decreased by -6.13%.
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)-6.13%
Revenue growth 3Y0.81%
Revenue growth 5Y2.19%
Sales Q2Q%1.6%
3.2 Future
MEI is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 78.95% yearly.
The Revenue is expected to grow by 6.28% on average over the next years.
EPS Next Y56.03%
EPS Next 2Y98.17%
EPS Next 3Y78.95%
EPS Next 5YN/A
Revenue Next Year0%
Revenue Next 2Y2.66%
Revenue Next 3Y6.28%
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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings Ratio is negative for MEI. In the last year negative earnings were reported.
MEI is valuated reasonably with a Price/Forward Earnings ratio of 11.14.
91.67% 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 22.68.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 11.14 |
4.2 Price Multiples
MEI's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. MEI is cheaper than 74.17% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 12.99 |
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 78.95% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y98.17%
EPS Next 3Y78.95%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.30%, MEI is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.92, MEI pays a better dividend. On top of this MEI pays more dividend than 97.50% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.29, MEI pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.3% |
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-22.3%
EPS Next 2Y98.17%
EPS Next 3Y78.95%
10.52
-0.06 (-0.57%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners99.11%
Inst Owner Change1.81%
Ins Owners2.29%
Ins Owner Change4.91%
Market Cap375.14M
Analysts49.09
Price Target14.28 (35.74%)
Short Float %4.94%
Short Ratio4.01
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.3% |
Yearly Dividend0.56
Dividend Growth(5Y)4.88%
DP-22.3%
Div Incr Years0
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)92.72%
Min EPS beat(2)-1.19%
Max EPS beat(2)186.63%
EPS beat(4)1
Avg EPS beat(4)-72.77%
Min EPS beat(4)-463.04%
Max EPS beat(4)186.63%
EPS beat(8)1
Avg EPS beat(8)-64.88%
EPS beat(12)4
Avg EPS beat(12)-38.78%
EPS beat(16)8
Avg EPS beat(16)-27.5%
Revenue beat(2)1
Avg Revenue beat(2)2.49%
Min Revenue beat(2)-3.29%
Max Revenue beat(2)8.27%
Revenue beat(4)2
Avg Revenue beat(4)-0.44%
Min Revenue beat(4)-10.72%
Max Revenue beat(4)8.27%
Revenue beat(8)3
Avg Revenue beat(8)-1.22%
Revenue beat(12)5
Avg Revenue beat(12)-0.25%
Revenue beat(16)9
Avg Revenue beat(16)1.19%
PT rev (1m)-4.55%
PT rev (3m)23.53%
EPS NQ rev (1m)-218.16%
EPS NQ rev (3m)-391.67%
EPS NY rev (1m)40.74%
EPS NY rev (3m)39.62%
Revenue NQ rev (1m)0.36%
Revenue NQ rev (3m)5.52%
Revenue NY rev (1m)0.27%
Revenue NY rev (3m)1.18%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 11.14 | ||
| P/S | 0.34 | ||
| P/FCF | N/A | ||
| P/OCF | 22.6 | ||
| P/B | 0.51 | ||
| P/tB | 1.17 | ||
| EV/EBITDA | 12.99 |
EPS(TTM)-0.73
EYN/A
EPS(NY)0.94
Fwd EY8.98%
FCF(TTM)-0.93
FCFYN/A
OCF(TTM)0.47
OCFY4.42%
SpS30.51
BVpS20.7
TBVpS9.03
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -6.46% | ||
| ROE | -12.03% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 16.21% | ||
| 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-Score4
Asset Turnover0.79
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 7.12 | ||
| Cap/Depr | 85.84% | ||
| Cap/Sales | 4.57% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | 34.73% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.75 | ||
| Quick Ratio | 1.73 | ||
| Altman-Z | 2.05 |
F-Score4
WACC8.39%
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)-187.95%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%180%
EPS Next Y56.03%
EPS Next 2Y98.17%
EPS Next 3Y78.95%
EPS Next 5YN/A
Revenue 1Y (TTM)-6.13%
Revenue growth 3Y0.81%
Revenue growth 5Y2.19%
Sales Q2Q%1.6%
Revenue Next Year0%
Revenue Next 2Y2.66%
Revenue Next 3Y6.28%
Revenue Next 5YN/A
EBIT growth 1Y-121.72%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year2752.41%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-159.64%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-81.6%
OCF growth 3Y-35.83%
OCF growth 5Y-14.17%