Methode Electronics
Market Cap
US$1.5b
Last Updated
2021/02/24 00:21 UTC
Data Sources
Company Financials +
Executive Summary
Methode Electronics, Inc. designs, manufactures, and markets component and subsystem devices worldwide. More Details
Rewards
Risk Analysis
Earnings are forecast to decline by an average of 6.9% per year for the next 3 years
Snowflake Analysis
Undervalued with solid track record.
Similar Companies
Share Price & News
How has Methode Electronics's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: MEI is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 5% a week.
Volatility Over Time: MEI's weekly volatility (5%) has been stable over the past year.
Market Performance
7 Day Return
-1.4%
MEI
-4.0%
US Electronic
-2.5%
US Market
1 Year Return
20.9%
MEI
46.5%
US Electronic
34.1%
US Market
Return vs Industry: MEI underperformed the US Electronic industry which returned 46.5% over the past year.
Return vs Market: MEI underperformed the US Market which returned 34.1% over the past year.
Shareholder returns
| MEI | Industry | Market | |
|---|---|---|---|
| 7 Day | -1.4% | -4.0% | -2.5% |
| 30 Day | -8.7% | 0.9% | 0.1% |
| 90 Day | 9.2% | 13.3% | 4.5% |
| 1 Year | 22.6%20.9% | 50.2%46.5% | 37.1%34.1% |
| 3 Year | 0.8%-3.3% | 52.9%46.4% | 58.0%47.9% |
| 5 Year | 41.4%33.0% | 160.4%143.5% | 131.9%106.2% |
Long-Term Price Volatility Vs. Market
How volatile is Methode Electronics's share price compared to the market and industry in the last 5 years?
Simply Wall St News
4 days ago | Simply Wall St
Is Methode Electronics, Inc.'s (NYSE:MEI) Recent Performance Tethered To Its Attractive Financial Prospects?2 weeks ago | Simply Wall St
Is There An Opportunity With Methode Electronics, Inc.'s (NYSE:MEI) 28% Undervaluation?3 weeks ago | Simply Wall St
Methode Electronics, Inc. (NYSE:MEI) Has Got What It Takes To Be An Attractive Dividend StockValuation
Is Methode Electronics undervalued compared to its fair value and its price relative to the market?
29.2%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: MEI ($39.02) is trading below our estimate of fair value ($55.09)
Significantly Below Fair Value: MEI is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: MEI is good value based on its PE Ratio (11.3x) compared to the US Electronic industry average (28.4x).
PE vs Market: MEI is good value based on its PE Ratio (11.3x) compared to the US market (21.5x).
Price to Earnings Growth Ratio
PEG Ratio: MEI's earnings are forecast to decline next year, so we can't calculate its PEG ratio.
Price to Book Ratio
PB vs Industry: MEI is good value based on its PB Ratio (1.7x) compared to the US Electronic industry average (2.9x).
Next Steps
Future Growth
How is Methode Electronics forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?
-6.9%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: MEI's earnings are forecast to decline over the next 3 years (-6.9% per year).
Earnings vs Market: MEI's earnings are forecast to decline over the next 3 years (-6.9% per year).
High Growth Earnings: MEI's earnings are forecast to decline over the next 3 years.
Revenue vs Market: MEI's revenue (10.1% per year) is forecast to grow slower than the US market (10.5% per year).
High Growth Revenue: MEI's revenue (10.1% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: Insufficient data to determine if MEI's Return on Equity is forecast to be high in 3 years time
Next Steps
Past Performance
How has Methode Electronics performed over the past 5 years?
7.0%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: MEI has high quality earnings.
Growing Profit Margin: MEI's current net profit margins (13.2%) are higher than last year (10.2%).
Past Earnings Growth Analysis
Earnings Trend: MEI's earnings have grown by 7% per year over the past 5 years.
Accelerating Growth: MEI's earnings growth over the past year (23.2%) exceeds its 5-year average (7% per year).
Earnings vs Industry: MEI earnings growth over the past year (23.2%) exceeded the Electronic industry -12.1%.
Return on Equity
High ROE: MEI's Return on Equity (15.3%) is considered low.
Next Steps
Financial Health
How is Methode Electronics's financial position?
Financial Position Analysis
Short Term Liabilities: MEI's short term assets ($682.3M) exceed its short term liabilities ($198.7M).
Long Term Liabilities: MEI's short term assets ($682.3M) exceed its long term liabilities ($439.2M).
Debt to Equity History and Analysis
Debt Level: MEI's debt to equity ratio (40.8%) is considered high.
Reducing Debt: MEI's debt to equity ratio has increased from 4.9% to 40.8% over the past 5 years.
Debt Coverage: MEI's debt is well covered by operating cash flow (37.3%).
Interest Coverage: MEI's interest payments on its debt are well covered by EBIT (20.4x coverage).
Balance Sheet
Next Steps
Dividend
What is Methode Electronics's current dividend yield, its reliability and sustainability?
1.13%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: MEI's dividend (1.13%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.34%).
High Dividend: MEI's dividend (1.13%) is low compared to the top 25% of dividend payers in the US market (3.75%).
Stability and Growth of Payments
Stable Dividend: MEI's dividends per share have been stable in the past 10 years.
Growing Dividend: MEI's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its low payout ratio (12.7%), MEI's dividend payments are thoroughly covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
2.9yrs
Average management tenure
CEO
Don Duda (65 yo)
16.75yrs
Tenure
US$1,515,118
Compensation
Mr. Donald W. Duda, also known as Don, has been the Chief Executive Officer of Methode Electronics, Inc. since May 1, 2004 and its President since February 2001. Mr. Duda served as Vice President of Interc...
CEO Compensation Analysis
Compensation vs Market: Don's total compensation ($USD1.52M) is below average for companies of similar size in the US market ($USD3.68M).
Compensation vs Earnings: Don's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 16.75yrs | US$1.52m | 2.43% $ 35.5m | |
| VP of Corporate Finance & CFO | 2.92yrs | US$630.06k | 0.36% $ 5.2m | |
| Chief Operating Officer | 2.58yrs | US$711.75k | 0.85% $ 12.4m | |
| VP & President of Dabir Surfaces | 2.42yrs | US$652.19k | 0.25% $ 3.6m | |
| Chief Accounting Officer | no data | no data | no data | |
| Vice President of Investor Relations | no data | no data | no data | |
| Vice President of Corporate Communications | no data | no data | no data | |
| Vice President of Corporate Development | no data | no data | no data | |
| Chief Human Resources Officer | 4.08yrs | US$1.41m | 0.18% $ 2.6m |
2.9yrs
Average Tenure
57yo
Average Age
Experienced Management: MEI's management team is considered experienced (2.9 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 16.75yrs | US$1.52m | 2.43% $ 35.5m | |
| Independent Vice Chairman of the Board | 1.42yrs | US$159.28k | 0.10% $ 1.5m | |
| Independent Director | 1.67yrs | US$142.03k | 0.018% $ 269.3k | |
| Independent Chairman of the Board | 8.42yrs | US$194.78k | 0.072% $ 1.1m | |
| Independent Director | 1.67yrs | US$129.28k | 0.016% $ 234.2k | |
| Independent Director | 1.17yrs | US$20.50k | 0.0080% $ 117.0k | |
| Independent Director | 16.67yrs | US$175.53k | 0.051% $ 741.4k | |
| Independent Director | 0.92yr | US$11.00k | 0.0080% $ 117.0k | |
| Independent Director | 3yrs | US$159.28k | 0.024% $ 351.2k | |
| Independent Director | 1.17yrs | US$18.50k | 0.0080% $ 117.0k | |
| Independent Director | 0.92yr | US$11.00k | 0.0080% $ 117.0k |
1.7yrs
Average Tenure
65yo
Average Age
Experienced Board: MEI's board of directors are not considered experienced ( 1.7 years average tenure), which suggests a new board.
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: MEI insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Methode Electronics, Inc.'s company bio, employee growth, exchange listings and data sources
Key Information
- Name: Methode Electronics, Inc.
- Ticker: MEI
- Exchange: NYSE
- Founded: 1946
- Industry: Electronic Manufacturing Services
- Sector: Tech
- Market Cap: US$1.464b
- Shares outstanding: 37.53m
- Website: https://www.methode.com
Number of Employees
Location
- Methode Electronics, Inc.
- 8750 West Bryn Mawr Avenue
- Suite 1000
- Chicago
- Illinois
- 60631-3518
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| MEI | NYSE (New York Stock Exchange) | Yes | Common Shares | US | USD | Sep 1982 |
| ME5A | DB (Deutsche Boerse AG) | Yes | Common Shares | DE | EUR | Sep 1982 |
Biography
Methode Electronics, Inc. designs, manufactures, and markets component and subsystem devices worldwide. It operates through four segments: Automotive, Industrial, Interface, and Medical. The Automotive seg...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/02/24 00:21 |
| End of Day Share Price | 2021/02/23 00:00 |
| Earnings | 2020/10/31 |
| Annual Earnings | 2020/05/02 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.