MEI Stock Analysis: Methode Electronics | NYSE
Electronic Components | NYSE, USA | Market Cap: 543m USD | 12M Return: 132.3% | Charts, Fundamentals & Technical Analysis
Avg Turnover: 11.8M
Qual. Beats: 0
Rev. Trend: -96.3%
Qual. Beats: 1
Warnings
Tailwinds
Seasonality 10.5 years of data
How good or bad each month usually is (without trend). The score below shows how much you can trust it: 0 = pure chance, >40 gets interesting and >55 is strong.
Methode Electronics (NYSE: MEI) is a mechatronic product designer and manufacturer operating through three segments: Automotive, Industrial, and Interface. The Automotive segment supplies electronic and electro-mechanical devices to OEMs and tiered suppliers, while the Industrial segment produces lighting, cabling, busbars, and power-product assemblies for markets such as aerospace, commercial vehicles, data centers, and defense. The Interface segment delivers high-speed digital communication solutions for data centers and broadband, along with touch-panel solutions for consumer appliances.
Founded in 1946 and headquartered in Southfield, Michigan, MEI is classified in the Electronic Manufacturing Services (EMS) sub-industry, a business model in which companies design, engineer, and produce electronic components and assemblies on behalf of OEM customers. The company serves a diversified end-market mix spanning transportation (automotive, commercial vehicle, e-bike, aerospace, bus, and rail), cloud computing infrastructure, construction equipment, and consumer appliances, which provides exposure across both cyclical industrial/automotive demand and growing data-center and electrification-related markets.
- Auto segment revenue pressured by North American light vehicle production softness
- Industrial data center busbar revenue accelerates on AI infrastructure spending
- Restructuring and cost actions target margin recovery across segments
| Net Income: -35.7m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.01 > 0.02 and ΔFCF/TA -0.13 > 1.0 |
| NWC/Revenue: 34.00% < 20% (prev 31.17%; Δ 2.83% < -1%) |
| CFO/TA 0.03 > 3% & CFO 38.0m > Net Income -35.7m |
| Net Debt (233.2m) to EBITDA (69.2m): 3.37 < 3 |
| Current Ratio: 2.37 > 1.5 & < 3 |
| Outstanding Shares: last quarter (35.5m) vs 12m ago -0.06% < -2% |
| Gross Margin: 19.27% > 18% (prev 15.59%; Δ 3.68% > 0.5%) |
| Asset Turnover: 78.04% > 50% (prev 80.26%; Δ -2.22% > 0%) |
| Interest Coverage Ratio: 0.45 > 6 (EBIT TTM 10.4m / Interest Expense TTM 23.3m) |
| A: 0.27 (Total Current Assets 600.0m - Total Current Liabilities 253.5m) / Total Assets 1.31b |
| B: 0.37 (Retained Earnings 479.3m / Total Assets 1.31b) |
| C: 0.01 (EBIT TTM 10.4m / Avg Total Assets 1.31b) |
| D: 1.08 (Book Value of Equity 677.5m / Total Liabilities 628.6m) |
| Altman-Z'' = 4.12 = AA |
| DSRI: 1.09 (Receivables 260.5m/245.1m, Revenue 1.02b/1.05b) |
| GMI: 0.81 (GM 15.59% / 19.27%) |
| AQI: 0.95 (AQ_t 0.36 / AQ_t-1 0.38) |
| SGI: 0.97 (Revenue 1.02b / 1.05b) |
| TATA: -0.06 (NI -35.7m - CFO 38.0m) / TA 1.31b) |
| Beneish M = -3.18 (Cap -4..+1) = AA |
As of July 28, 2026, the stock is trading at USD 15.28 with a total of 257,712 shares traded. Over the past week, the price has changed by +1.06%, over one month by -21.06%, over three months by +93.31% and over the past year by +132.25%.
Current recommended Stop Loss: 12.80 (which is 16.2% or 1.8 ATR below the current price).
Methode Electronics has received a consensus analysts rating of 3.67. Therefore, it is recommended to hold MEI.
- StrongBuy: 1
- Buy: 0
- Hold: 2
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 19.3 | 26.5% |
P/E Forward = 10.2354
P/S = 0.5328
P/B = 0.8016
P/EG = 0.7789
Revenue TTM = 1.02b USD
EBIT TTM = 10.4m USD
EBITDA TTM = 69.2m USD
Long Term Debt = 324.8m USD (from longTermDebt, last quarter)
Short Term Debt = 9.30m USD (from shortTermDebt, last quarter)
Debt = 372.8m USD (from shortLongTermDebtTotal, last quarter) + Leases 23.7m
Net Debt = 233.2m USD (calculated: Debt 372.8m - CCE 139.6m)
Enterprise Value = 776.3m USD (543.1m + Debt 372.8m - CCE 139.6m)
Interest Coverage Ratio = 0.45 (Ebit TTM 10.4m / Interest Expense TTM 23.3m)
EV/FCF = 49.76x (Enterprise Value 776.3m / FCF TTM 15.6m)
FCF Yield = 2.01% (FCF TTM 15.6m / Enterprise Value 776.3m)
FCF Margin = 1.53% (FCF TTM 15.6m / Revenue TTM 1.02b)
Net Margin = -3.50% (Net Income TTM -35.7m / Revenue TTM 1.02b)
Gross Margin = 19.27% ((Revenue TTM 1.02b - Cost of Revenue TTM 822.8m) / Revenue TTM)
Gross Margin QoQ = 24.22% (prev 14.12%)
Tobins Q-Ratio = 0.59 (Enterprise Value 776.3m / Total Assets 1.31b)
Interest Expense / Debt = 6.25% (Interest Expense 23.3m / Debt 372.8m)
Taxrate = 21.0% (US federal default 21%)
NOPAT = 8.22m (EBIT 10.4m * (1 - 21.00%))
Current Ratio = 2.37 (Total Current Assets 600.0m / Total Current Liabilities 253.5m)
Debt / Equity = 0.55 (Debt 372.8m / totalStockholderEquity, last quarter 677.5m)
Debt / EBITDA = 3.37 (Net Debt 233.2m / EBITDA 69.2m)
Debt / FCF = 14.95 (Net Debt 233.2m / FCF TTM 15.6m)
Total Stockholder Equity = 680.0m (last 4 quarters mean from totalStockholderEquity)
RoA = -2.73% (Net Income -35.7m / Total Assets 1.31b)
RoE = -5.25% (Net Income TTM -35.7m / Total Stockholder Equity 680.0m)
RoCE = 1.04% (EBIT 10.4m / Capital Employed (Equity 680.0m + L.T.Debt 324.8m))
RoIC = 0.81% (NOPAT 8.22m / Invested Capital 1.01b)
WACC = 12.30% (E(543.1m)/V(915.9m) * Re(17.36%) + D(372.8m)/V(915.9m) * Rd(6.25%) * (1-Tc(0.21)))
Discount Rate = 17.36% (= CAPM, Blume Beta Adj.) -> capped to 13.17%
Shares (quarterly) Correlation: 69.60 | Cagr: 0.18%
[DCF] Terminal Value 61.02% ; FCFF base≈16.3m ; Y1≈15.0m ; Y5≈13.4m
[DCF] Fair Price = N/A (negative equity: EV 128.2m - Net Debt 233.2m = -105.0m; debt exceeds intrinsic value)
EPS Correlation: N/A | EPS CAGR: N/A | SUE: -0.62 | # QB: 0
Revenue Correlation: -96.27 | Revenue CAGR: -6.40% | SUE: 3.42 | # QB: 1
EPS current Quarter (2026-07-31): EPS=-0.14 | Chg30d=N/A | Revisions=-25% | Analysts=2
EPS next Quarter (2026-10-31): EPS=-0.09 | Chg30d=-160.71% | Revisions=-25% | Analysts=2
EPS current Year (2027-04-30): EPS=-0.21 | Chg30d=-238.71% | Revisions=-40% | GrowthEPS=+79.9% | GrowthRev=+2.8%
EPS next Year (2028-04-30): EPS=0.66 | Chg30d=-5.71% | Revisions=+25% | GrowthEPS=+407.0% | GrowthRev=+5.4%
[Analyst] Revisions Ratio: -38% (up=1, down=4)