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METHODE ELECTRONICS INC (MEI) Stock Fundamental Analysis

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

13.05  +1.19 (+10.03%)

After market: 13.05 0 (0%)

Fundamental Rating

4

MEI gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 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 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

In the past year MEI has reported negative net income.
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 -6.46%, MEI is doing worse than 62.50% of the companies in the same industry.
MEI's Return On Equity of -12.03% is on the low side compared to the rest of the industry. MEI is outperformed by 60.00% of its industry peers.
Industry RankSector 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
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

MEI has a Gross Margin of 16.21%. This is in the lower half of the industry: MEI underperforms 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 RankSector 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%
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.
The number of shares outstanding for MEI has been reduced compared to 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

An Altman-Z score of 2.14 indicates that MEI is not a great score, but indicates only limited risk for bankruptcy at the moment.
MEI has a Altman-Z score of 2.14. This is in the lower half of the industry: MEI underperforms 70.00% of its industry peers.
A Debt/Equity ratio of 0.46 indicates that MEI is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.46, MEI is not doing good in the industry: 70.83% of the companies in the same industry are doing better.
Industry RankSector Rank
Debt/Equity 0.46
Debt/FCF N/A
Altman-Z 2.14
ROIC/WACCN/A
WACC10.18%
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 2.75. This indicates that MEI is financially healthy and has no problem in meeting its short term obligations.
MEI's Current ratio of 2.75 is in line compared to the rest of the industry. MEI outperforms 57.50% of its industry peers.
A Quick Ratio of 1.73 indicates that MEI should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.73, MEI perfoms like the industry average, outperforming 51.67% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 2.75
Quick Ratio 1.73
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 -187.95%.
The Revenue has decreased by -6.13% in the past year.
MEI shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.19% yearly.
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 77.22% yearly.
Based on estimates for the next years, MEI will show a small growth in Revenue. The Revenue will grow by 5.24% on average per year.
EPS Next Y25.8%
EPS Next 2Y98.95%
EPS Next 3Y77.22%
EPS Next 5YN/A
Revenue Next Year-0.27%
Revenue Next 2Y2.71%
Revenue Next 3Y5.24%
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.
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.
Based on the Price/Forward Earnings ratio of 13.60, the valuation of MEI can be described as correct.
Based on the Price/Forward Earnings ratio, MEI is valued cheaply inside the industry as 89.17% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 24.44. MEI is valued slightly cheaper when compared to this.
Industry RankSector Rank
PE N/A
Fwd PE 13.6
MEI Price Earnings VS Forward Price EarningsMEI Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 10 -10 20

4.2 Price Multiples

71.67% of the companies in the same industry are more expensive than MEI, based on the Enterprise Value to EBITDA ratio.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 14.83
MEI Per share dataMEI EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 10 20 30

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 77.22% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y98.95%
EPS Next 3Y77.22%

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8

5. Dividend

5.1 Amount

MEI has a Yearly Dividend Yield of 4.57%, which is a nice return.
MEI's Dividend Yield is rather good when compared to the industry average which is at 1.87. MEI pays more dividend than 97.50% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.28, MEI pays a better dividend.
Industry RankSector Rank
Dividend Yield 4.57%

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

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-22.3%
EPS Next 2Y98.95%
EPS Next 3Y77.22%
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 (1/21/2025, 8:13:42 PM)

After market: 13.05 0 (0%)

13.05

+1.19 (+10.03%)

Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)12-05 2024-12-05/bmo
Earnings (Next)N/A N/A
Inst Owners99.11%
Inst Owner Change-0.02%
Ins Owners2.29%
Ins Owner Change7.13%
Market Cap465.36M
Analysts49.09
Price Target14.96 (14.64%)
Short Float %5.25%
Short Ratio3.85
Dividend
Industry RankSector Rank
Dividend Yield 4.57%
Yearly Dividend0.56
Dividend Growth(5Y)4.88%
DP-22.3%
Div Incr Years0
Div Non Decr Years11
Ex-Date01-17 2025-01-17 (0.14)
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)29.41%
PT rev (3m)29.41%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-191.67%
EPS NY rev (1m)0%
EPS NY rev (3m)-9.76%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)5.14%
Revenue NY rev (1m)0.54%
Revenue NY rev (3m)0.18%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE 13.6
P/S 0.43
P/FCF N/A
P/OCF 28.03
P/B 0.63
P/tB 1.45
EV/EBITDA 14.83
EPS(TTM)-0.73
EYN/A
EPS(NY)0.96
Fwd EY7.35%
FCF(TTM)-0.93
FCFYN/A
OCF(TTM)0.47
OCFY3.57%
SpS30.51
BVpS20.7
TBVpS9.03
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector 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 RankSector 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 2.14
F-Score4
WACC10.18%
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 Y25.8%
EPS Next 2Y98.95%
EPS Next 3Y77.22%
EPS Next 5YN/A
Revenue 1Y (TTM)-6.13%
Revenue growth 3Y0.81%
Revenue growth 5Y2.19%
Sales Q2Q%1.6%
Revenue Next Year-0.27%
Revenue Next 2Y2.71%
Revenue Next 3Y5.24%
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%