Methode Electronics
Market Cap
US$1.4b
Last Updated
2020/01/26 00:11 UTC
Data Sources
Company Financials +
Executive Summary
Methode Electronics, Inc. designs, manufactures, and markets component and subsystem devices worldwide.
Rewards
Risk Analysis
No risks detected for MEI from our risk checks.
Snowflake Analysis
Very undervalued with excellent balance sheet.
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 has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
-4.5%
MEI
-1.5%
US Electronic
-1.3%
US Market
1 Year Return
43.9%
MEI
23.9%
US Electronic
22.0%
US Market
Return vs Industry: MEI exceeded the US Electronic industry which returned 30.2% over the past year.
Return vs Market: MEI exceeded the US Market which returned 24.7% over the past year.
Shareholder returns
| MEI | Industry | Market | |
|---|---|---|---|
| 7 Day | -4.5% | -1.5% | -1.3% |
| 30 Day | -4.8% | 1.1% | 1.6% |
| 90 Day | 9.6% | 7.3% | 8.9% |
| 1 Year | 45.9%43.9% | 25.2%23.9% | 24.7%22.0% |
| 3 Year | -8.3%-11.6% | 48.0%43.8% | 49.4%39.7% |
| 5 Year | 9.4%3.2% | 88.8%79.2% | 78.1%58.5% |
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
Should You Be Pleased About The CEO Pay At Methode Electronics, Inc.'s (NYSE:MEI)2 weeks ago | Simply Wall St
Here's What We Like About Methode Electronics, Inc. (NYSE:MEI)'s Upcoming Dividend3 weeks ago | Simply Wall St
Does The Methode Electronics, Inc. (NYSE:MEI) Share Price Fall With The Market?Valuation
Is Methode Electronics undervalued compared to its fair value and its price relative to the market?
37.7%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: MEI ($38.84) is trading below our estimate of fair value ($60.3)
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 (13.8x) compared to the Electronic industry average (21.2x).
PE vs Market: MEI is good value based on its PE Ratio (13.8x) compared to the US market (18.9x).
Price to Earnings Growth Ratio
PEG Ratio: MEI is good value based on its PEG Ratio (1x)
Price to Book Ratio
PB vs Industry: MEI is good value based on its PB Ratio (2x) compared to the US Electronic industry average (2.1x).
Next Steps
Future Growth
How is Methode Electronics forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?
13.8%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: MEI's forecast earnings growth (13.8% per year) is above the savings rate (1.7%).
Earnings vs Market: MEI's earnings (13.8% per year) are forecast to grow slower than the US market (14.3% per year).
High Growth Earnings: MEI's earnings are forecast to grow, but not significantly.
Revenue vs Market: MEI's revenue (5.5% per year) is forecast to grow slower than the US market (7.5% per year).
High Growth Revenue: MEI's revenue (5.5% 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?
-5.8%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: MEI has high quality earnings.
Growing Profit Margin: MEI's current net profit margins (10.1%) are higher than last year (5.3%).
Past Earnings Growth Analysis
Earnings Trend: MEI's earnings have declined by -5.8% per year over the past 5 years.
Accelerating Growth: MEI's earnings growth over the past year (107.1%) exceeds its 5-year average (-5.8% per year).
Earnings vs Industry: MEI earnings growth over the past year (107.1%) exceeded the Electronic industry 53.6%.
Return on Equity
High ROE: MEI's Return on Equity (14.4%) is considered low.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is Methode Electronics's financial position?
Financial Position Analysis
Short Term Liabilities: MEI's short term assets ($465.4M) exceed its short term liabilities ($184.3M).
Long Term Liabilities: MEI's short term assets ($465.4M) exceed its long term liabilities ($365.8M).
Debt to Equity History and Analysis
Debt Level: MEI's debt to equity ratio (37.6%) is considered satisfactory.
Reducing Debt: MEI's debt to equity ratio has increased from 7.2% to 37.6% over the past 5 years.
Debt Coverage: MEI's debt is well covered by operating cash flow (48.6%).
Interest Coverage: MEI's interest payments on its debt are well covered by EBIT (11.8x coverage).
Balance Sheet
Inventory Level: MEI has a high level of physical assets or inventory.
Debt Coverage by Assets: MEI's debt is covered by short term assets (assets are 1.7x debt).
Next Steps
Dividend
What is Methode Electronics's current dividend yield, its reliability and sustainability?
1.18%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: MEI's dividend (1.13%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.4%).
High Dividend: MEI's dividend (1.13%) is low compared to the top 25% of dividend payers in the US market (3.66%).
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 (15.7%), MEI's dividend payments are well 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
What is the CEO of Methode Electronics's salary, the management and board of directors tenure and is there insider trading?
1.7yrs
Average management tenure
CEO
Donald Duda (64yo)
15.7yrs
Tenure
US$1,389,578
Compensation
Mr. Donald W. Duda, also known as Don, has been the Chief Executive Officer of Methode Electronics, Inc. since May 1, 2004 and its President since February 2001. Mr. Duda served as Vice President of Interc ...
CEO Compensation Analysis
Compensation vs Market: Donald's total compensation ($USD1.39M) is below average for companies of similar size in the US market ($USD3.86M).
Compensation vs Earnings: Donald's compensation has been consistent with company performance over the past year.
Management Age and Tenure
1.7yrs
Average Tenure
55.5yo
Average Age
Experienced Management: MEI's management team is not considered experienced ( 1.7 years average tenure), which suggests a new team.
Board Age and Tenure
1.3yrs
Average Tenure
65.5yo
Average Age
Experienced Board: MEI's board of directors are not considered experienced ( 1.3 years average tenure), which suggests a new board.
Insider Trading
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
| Entity | Individual |
| Role | Member of the Board of Directors Independent Director |
| Shares | 900 |
| Max Price | US$31.58 |
| Entity | Individual |
| Shares | 21 |
| Max Price | US$28.93 |
| Entity | Individual |
| Shares | 1,000 |
| Max Price | US$27.51 |
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Management Team
Donald Duda (64yo)
President
- Tenure: 15.7yrs
- Compensation: US$1.39m
Ron Tsoumas (58yo)
VP of Corporate Finance & CFO
- Tenure: 1.8yrs
- Compensation: US$489.03k
Kristine Walczak
Vice President of Corporate Communications
Joseph Khoury (55yo)
Chief Operating Officer
- Tenure: 1.5yrs
- Compensation: US$645.52k
Mark Shermetaro
Vice President of Corporate Development
Andrea Barry (56yo)
Chief Human Resources Officer
- Tenure: 1.8yrs
- Compensation: US$1.41m
Anil Shetty (53yo)
VP & President of Dabir Surfaces
- Tenure: 1.3yrs
- Compensation: US$838.50k
Michael Brotherton (42yo)
VP & President of Grakon Parent
- Tenure: 1.3yrs
- Compensation: US$817.18k
Board Members
Lawrence Skatoff (79yo)
Independent Vice Chairman of the Board
- Tenure: 0.3yrs
- Compensation: US$194.25k
Bruce Crowther (67yo)
Independent Director
- Tenure: 0.6yrs
Donald Duda (64yo)
President
- Tenure: 15.7yrs
- Compensation: US$1.39m
Bud Aspatore (76yo)
Independent Chairman of the Board
- Tenure: 7.3yrs
- Compensation: US$235.25k
Mark Schwabero (66yo)
Independent Director
- Tenure: 0.6yrs
Dave Blom (65yo)
Director
- Tenure: 0.08yrs
Isabelle Goossen (67yo)
Independent Director
- Tenure: 15.6yrs
- Compensation: US$224.25k
Darren Dawson (56yo)
Independent Director
- Tenure: 15.6yrs
- Compensation: US$206.25k
Angelo Pantaleo (60yo)
Director
- Tenure: 0.08yrs
Brian Cadwallader (60yo)
Independent Director
- Tenure: 1.9yrs
- Compensation: US$191.25k
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$1.384b
- Shares outstanding: 37.09m
- Website: https://www.methode.com
Number of Employees
Location
- Methode Electronics, Inc.
- 8750 West Bryn Mawr Avenue
- Suite 1000
- Chicago
- Illinois
- 60631
- 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 Automotive, Industrial, Interface, and Medical segments. The Automotive segment supplies electronic and electro-mechanical devices, and related products to automobile OEMs directly or through their tiered suppliers. Its products include integrated center consoles, hidden switches, ergonomic switches, transmission lead-frames, LED-based lighting, and sensors, which incorporate magneto-elastic sensing and other technologies that monitor the operation or status of a component or system. The Industrial segment manufactures external lighting solutions; industrial safety radio remote controls; braided flexible cables; current-carrying laminated busbars and devices; custom power-product assemblies, such as PowerRail solution; high-current low-voltage flexible power cabling systems; and powder-coated busbars that are used in various markets and applications comprising aerospace, computers, industrial, power conversion, military, telecommunications, and transportation. The Interface segment provides various copper and fiber-optic interface, and interface solutions for the appliance, commercial food service, construction, consumer, material handling, point-of-sale, and telecommunications markets. Its solutions comprise copper transceivers and solid-state field-effect consumer touch panels. The Medical segment offers Dabir Surfaces, a surface support technology aimed at pressure injury prevention for use by patients who are immobilized or otherwise at risk for pressure injuries, including patients undergoing long-duration surgical procedures. The company was founded in 1946 and is headquartered in Chicago, Illinois.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/01/26 00:11 |
| End of Day Share Price | 2020/01/24 00:00 |
| Earnings | 2019/10/26 |
| Annual Earnings | 2019/04/27 |
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.