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Methode Electronics

NYSE:MEI
Snowflake Description

Very undervalued with adequate balance sheet and pays a dividend.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
MEI
NYSE
$1B
Market Cap
  1. Home
  2. US
  3. Tech
Company description

Methode Electronics, Inc. designs, manufactures, and markets component and subsystem devices worldwide. The last earnings update was 12 days ago. More info.


Add to Portfolio Compare Print
  • Methode Electronics has significant price volatility in the past 3 months.
MEI Share Price and Events
7 Day Returns
-2.7%
NYSE:MEI
0.7%
US Electronic
1.6%
US Market
1 Year Returns
-27.5%
NYSE:MEI
0%
US Electronic
3.2%
US Market
MEI Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Methode Electronics (MEI) -2.7% 5.6% 30.2% -27.5% 4.5% -5.8%
US Electronic 0.7% 0.9% 18.9% 0% 58.7% 59.1%
US Market 1.6% 2.1% 12.8% 3.2% 38.6% 43.6%
1 Year Return vs Industry and Market
  • MEI underperformed the Electronic industry which returned 0% over the past year.
  • MEI underperformed the Market in United States of America which returned 3.2% over the past year.
Price Volatility
MEI
Industry
5yr Volatility vs Market
Related Companies

Value

 Is Methode Electronics undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Methode Electronics to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data    Our intrinsic value calculation method has changed recently, learn more here.

Below are the data sources, inputs and calculation used to determine the intrinsic value for Methode Electronics.

NYSE:MEI Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 3 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 9.9%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:MEI
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Electronic Unlevered Beta Simply Wall St/ S&P Global 1.07
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.071 (1 + (1- 21%) (27.46%))
1.203
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.2
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.203 * 5.96%)
9.9%

Discounted Cash Flow Calculation for NYSE:MEI using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Methode Electronics is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NYSE:MEI DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 9.9%)
2019 90.00 Analyst x1 81.89
2020 132.30 Analyst x1 109.53
2021 154.76 Est @ 16.98% 116.59
2022 174.42 Est @ 12.7% 119.56
2023 191.36 Est @ 9.71% 119.35
2024 205.94 Est @ 7.62% 116.87
2025 218.60 Est @ 6.15% 112.88
2026 229.81 Est @ 5.12% 107.98
2027 239.93 Est @ 4.41% 102.58
2028 249.30 Est @ 3.9% 96.98
Present value of next 10 years cash flows $1,084.22
NYSE:MEI DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $249.30 × (1 + 2.73%) ÷ (9.9% – 2.73%)
$3,571.17
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $3,571.17 ÷ (1 + 9.9%)10
$1,389.24
NYSE:MEI Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $1,084.22 + $1,389.24
$2,473.46
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $2,473.46 / 36.99
$66.87
NYSE:MEI Discount to Share Price
Calculation Result
Value per share (USD) From above. $66.87
Current discount Discount to share price of $29.82
= -1 x ($29.82 - $66.87) / $66.87
55.4%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Methode Electronics is available for.
Intrinsic value
>50%
Share price is $29.82 vs Future cash flow value of $66.87
Current Discount Checks
For Methode Electronics to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Methode Electronics's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Methode Electronics's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Methode Electronics's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Methode Electronics's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:MEI PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-01-26) in USD $2.83
NYSE:MEI Share Price ** NYSE (2019-03-19) in USD $29.82
United States of America Electronic Industry PE Ratio Median Figure of 92 Publicly-Listed Electronic Companies 19.48x
United States of America Market PE Ratio Median Figure of 3,056 Publicly-Listed Companies 17.77x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Methode Electronics.

NYSE:MEI PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:MEI Share Price ÷ EPS (both in USD)

= 29.82 ÷ 2.83

10.53x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Methode Electronics is good value based on earnings compared to the US Electronic industry average.
  • Methode Electronics is good value based on earnings compared to the United States of America market.
Price based on expected Growth
Does Methode Electronics's expected growth come at a high price?
Raw Data
NYSE:MEI PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 10.53x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 3 Analysts
17.3%per year
United States of America Electronic Industry PEG Ratio Median Figure of 60 Publicly-Listed Electronic Companies 1.55x
United States of America Market PEG Ratio Median Figure of 2,107 Publicly-Listed Companies 1.49x

*Line of best fit is calculated by linear regression .

NYSE:MEI PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 10.53x ÷ 17.3%

0.61x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Methode Electronics is good value based on expected growth next year.
Price based on value of assets
What value do investors place on Methode Electronics's assets?
Raw Data
NYSE:MEI PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-01-26) in USD $18.23
NYSE:MEI Share Price * NYSE (2019-03-19) in USD $29.82
United States of America Electronic Industry PB Ratio Median Figure of 151 Publicly-Listed Electronic Companies 2.1x
United States of America Market PB Ratio Median Figure of 5,154 Publicly-Listed Companies 1.89x
NYSE:MEI PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:MEI Share Price ÷ Book Value per Share (both in USD)

= 29.82 ÷ 18.23

1.64x

* Primary Listing of Methode Electronics.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Methode Electronics is good value based on assets compared to the US Electronic industry average.
X
Value checks
We assess Methode Electronics's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Electronic industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Electronic industry average (and greater than 0)? (1 check)
  5. Methode Electronics has a total score of 6/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Methode Electronics expected to perform in the next 1 to 3 years based on estimates from 3 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
17.3%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Methode Electronics expected to grow at an attractive rate?
  • Methode Electronics's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Methode Electronics's earnings growth is expected to exceed the United States of America market average.
  • Methode Electronics's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:MEI Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:MEI Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 3 Analysts 17.3%
NYSE:MEI Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 3 Analysts 5.5%
United States of America Electronic Industry Earnings Growth Rate Market Cap Weighted Average 17%
United States of America Electronic Industry Revenue Growth Rate Market Cap Weighted Average 5.6%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14.3%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.1%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:MEI Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 3 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:MEI Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-04-30 1,238 199 1
2022-04-30 1,212 182 1
2021-04-30 1,173 153 1
2020-04-30 1,131 182 133 3
2019-04-30 1,011 136 97 3
NYSE:MEI Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-01-26 983 95 106
2018-10-27 964 109 51
2018-07-28 931 114 60
2018-04-28 908 118 57
2018-01-27 879 126 44
2017-10-28 847 127 92
2017-07-29 826 134 92
2017-04-29 817 145 93
2017-01-28 810 134 92
2016-10-29 799 125 86
2016-07-30 798 126 82
2016-04-30 809 111 85
2016-01-30 824 98 89

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Methode Electronics's earnings are expected to grow by 17.3% yearly, however this is not considered high growth (20% yearly).
  • Methode Electronics's revenue is expected to grow by 5.5% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:MEI Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 3 Analyst Estimates (S&P Global) See Below

All data from Methode Electronics Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:MEI Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-04-30 5.28 5.28 5.28 1.00
2022-04-30 4.84 4.84 4.84 1.00
2021-04-30 4.05 4.05 4.05 1.00
2020-04-30 3.53 3.70 3.44 3.00
2019-04-30 2.57 2.61 2.50 3.00
NYSE:MEI Past Financials Data
Date (Data in USD Millions) EPS *
2019-01-26 2.83
2018-10-27 1.36
2018-07-28 1.62
2018-04-28 1.53
2018-01-27 1.17
2017-10-28 2.46
2017-07-29 2.47
2017-04-29 2.49
2017-01-28 2.47
2016-10-29 2.28
2016-07-30 2.17
2016-04-30 2.21
2016-01-30 2.29

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Methode Electronics will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Methode Electronics's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Methode Electronics has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Methode Electronics performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Methode Electronics's growth in the last year to its industry (Electronic).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Methode Electronics's year on year earnings growth rate was negative over the past 5 years, however the most recent earnings are above average.
  • Methode Electronics's 1-year earnings growth exceeds its 5-year average (139.8% vs -7.3%)
  • Methode Electronics's earnings growth has exceeded the US Electronic industry average in the past year (139.8% vs 48.8%).
Earnings and Revenue History
Methode Electronics's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Methode Electronics Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:MEI Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-01-26 983.30 105.80 128.20
2018-10-27 964.40 50.80 118.00
2018-07-28 930.50 60.40 106.10
2018-04-28 908.30 57.20 101.60
2018-01-27 879.10 43.60 95.80
2017-10-28 846.70 91.70 96.80
2017-07-29 825.80 92.20 94.30
2017-04-29 816.50 92.90 92.70
2017-01-28 809.50 92.30 92.30
2016-10-29 798.50 85.70 93.60
2016-07-30 797.70 82.30 91.40
2016-04-30 809.10 84.60 90.90
2016-01-30 823.60 88.60 88.60
2015-10-31 845.00 98.50 86.80
2015-08-01 866.30 103.20 90.70
2015-05-02 881.10 101.10 90.90
2015-01-31 878.70 122.60 88.10
2014-11-01 862.40 110.00 88.70
2014-08-02 823.60 103.90 82.90
2014-05-03 772.80 96.10 79.60
2014-02-01 696.22 58.12 78.65
2013-10-26 629.50 46.95 72.33
2013-07-27 568.36 50.41 67.90
2013-04-27 519.80 40.70 66.30
2013-01-26 497.88 36.34 64.52
2012-10-27 486.90 33.83 65.58
2012-07-28 473.03 10.78 69.48
2012-04-28 465.10 8.40 69.90

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Methode Electronics has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Methode Electronics used its assets more efficiently than the US Electronic industry average last year based on Return on Assets.
  • Methode Electronics's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Methode Electronics's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Electronic industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Methode Electronics has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Methode Electronics's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Methode Electronics's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Methode Electronics is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Methode Electronics's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Methode Electronics's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 1.5x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Methode Electronics Company Filings, last reported 1 month ago.

NYSE:MEI Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-01-26 674.10 302.90 73.70
2018-10-27 643.30 357.60 110.90
2018-07-28 632.20 53.10 228.50
2018-04-28 630.00 57.80 246.10
2018-01-27 607.20 118.90 304.00
2017-10-28 606.80 107.80 258.60
2017-07-29 589.40 51.40 297.90
2017-04-29 541.10 27.00 294.00
2017-01-28 507.90 37.00 268.80
2016-10-29 492.80 49.00 249.60
2016-07-30 485.90 54.00 249.30
2016-04-30 470.10 57.00 227.80
2016-01-30 437.10 55.00 202.30
2015-10-31 464.70 22.00 186.60
2015-08-01 470.00 2.00 167.90
2015-05-02 459.00 5.00 168.10
2015-01-31 430.90 20.00 167.80
2014-11-01 422.60 30.00 144.20
2014-08-02 407.90 38.00 135.70
2014-05-03 392.20 48.00 116.40
2014-02-01 342.08 50.00 96.78
2013-10-26 330.20 51.50 87.82
2013-07-27 305.31 52.50 73.41
2013-04-27 289.60 43.50 65.80
2013-01-26 283.23 40.00 73.38
2012-10-27 277.99 46.00 77.00
2012-07-28 250.82 56.50 85.15
2012-04-28 255.56 48.00 86.80
  • Methode Electronics's level of debt (44.9%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (14.7% vs 44.9% today).
  • Debt is well covered by operating cash flow (31.4%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 21.8x coverage).
X
Financial health checks
We assess Methode Electronics's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Methode Electronics has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Methode Electronics's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
1.48%
Current annual income from Methode Electronics dividends.
If you bought $2,000 of Methode Electronics shares you are expected to receive $30 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Methode Electronics's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.44%).
  • Methode Electronics's dividend is below the markets top 25% of dividend payers in United States of America (3.63%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:MEI Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 3 Analyst Estimates (S&P Global) See Below
United States of America Electronic Industry Average Dividend Yield Market Cap Weighted Average of 38 Stocks 1.6%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2004 Stocks 2.5%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.6%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:MEI Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2023-04-30
2022-04-30
2021-04-30
2020-04-30
2019-04-30
NYSE:MEI Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-03-15 0.440 1.458
2018-12-13 0.440 1.696
2018-09-13 0.440 1.448
2018-06-14 0.440 1.102
2018-03-15 0.440 1.085
2017-12-15 0.440 1.085
2017-09-14 0.360 0.813
2017-06-15 0.360 0.910
2017-03-16 0.360 0.848
2016-12-15 0.360 0.854
2016-09-19 0.360 1.021
2016-09-01 0.360 1.035
2016-03-21 0.360 1.153
2015-12-17 0.360 1.300
2015-09-17 0.360 1.071
2015-06-18 0.360 1.273
2015-03-19 0.360 0.783
2014-12-08 0.360 0.944
2014-09-18 0.360 0.949
2014-06-19 0.360 1.035
2014-03-13 0.360 1.196
2013-12-12 0.280 0.835
2013-09-12 0.280 1.020
2013-06-14 0.280 1.506
2013-03-15 0.280 1.984
2012-12-04 0.280 2.620
2012-09-13 0.280 2.932
2012-06-21 0.280 3.151
2012-03-15 0.280 3.443
2011-12-15 0.280 3.004
2011-09-15 0.280 3.326
2011-06-24 0.280 2.905
2011-03-17 0.280 2.439
2010-12-16 0.280 2.275
2010-09-22 0.280 2.824
2010-06-24 0.280 2.904
2010-03-19 0.280 2.650
2009-12-17 0.280 2.589
2009-09-17 0.280 3.403
2009-06-25 0.280 3.561
2009-03-20 0.280 5.124

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Methode Electronics's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (6.4x coverage).
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess Methode Electronics's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Methode Electronics afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Methode Electronics has a total score of 4/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Methode Electronics's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Donald Duda
COMPENSATION $1,545,626
AGE 63
TENURE AS CEO 14.8 years
CEO Bio

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 Interconnect Products Group of Methode Electronics Inc. since March 2000. Prior thereto, he held several positions with Amphenol Corporation, a manufacturer of electronic connectors, lastly as General Manager of its Fiber Optic Products Division from 1988 to November 1998. He has executive background. He has been a Director of Methode Electronics, Inc. since February 2001 and joined it in 2000. He serves as a Director of HID Biometrics.

CEO Compensation
  • Donald's compensation has been consistent with company performance over the past year.
  • Donald's remuneration is about average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Methode Electronics management team in years:

1
Average Tenure
56
Average Age
  • The average tenure for the Methode Electronics management team is less than 2 years, this suggests a new team.
Management Team

Donald Duda

TITLE
President
COMPENSATION
$2M
AGE
63
TENURE
14.8 yrs

Ron Tsoumas

TITLE
VP of Corporate Finance & CFO
COMPENSATION
$432K
AGE
57
TENURE
1 yrs

Joseph Khoury

TITLE
Chief Operating Officer
COMPENSATION
$696K
AGE
54
TENURE
0.7 yrs

Andrea Barry

TITLE
Chief Human Resources Officer
COMPENSATION
$1M
AGE
55
TENURE
1 yrs

Theodore Kill

TITLE
Consultant
COMPENSATION
$413K
AGE
67
TENURE
0.8 yrs

Timothy Glandon

TITLE
Vice President
COMPENSATION
$326K
AGE
54
TENURE
12.5 yrs
Board of Directors Tenure

Average tenure and age of the Methode Electronics board of directors in years:

14.8
Average Tenure
66
Average Age
  • The average tenure for the Methode Electronics board of directors is over 10 years, this suggests they are a seasoned and experienced board.
Board of Directors

Bud Aspatore

TITLE
Chairman of the Board
COMPENSATION
$240K
AGE
75
TENURE
6.5 yrs

Donald Duda

TITLE
President
COMPENSATION
$2M
AGE
63
TENURE
18.1 yrs

Christopher Hornung

TITLE
Vice Chairman of the Board
COMPENSATION
$196K
AGE
66
TENURE
8.3 yrs

Isabelle Goossen

TITLE
Independent Director
COMPENSATION
$228K
AGE
66
TENURE
14.8 yrs

Darren Dawson

TITLE
Independent Director
COMPENSATION
$209K
AGE
55
TENURE
14.8 yrs

Martha Aronson

TITLE
Independent Director
COMPENSATION
$212K
AGE
51
TENURE
2.9 yrs

Lawrence Skatoff

TITLE
Independent Director
COMPENSATION
$200K
AGE
78
TENURE
15.2 yrs

Paul Shelton

TITLE
Independent Director
COMPENSATION
$211K
AGE
68
TENURE
15.2 yrs

Brian Cadwallader

TITLE
Independent Director
COMPENSATION
$19K
AGE
59
TENURE
1.1 yrs
Who owns this company?
Recent Insider Trading
  • More shares have been bought than sold by Methode Electronics insiders in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
02. Jan 19 Buy Ronald Tsoumas Individual 28. Dec 18 28. Dec 18 5,735 $24.98 $143,260
26. Dec 18 Buy Christopher Hornung Individual 21. Dec 18 21. Dec 18 8,200 $22.16 $181,712
20. Dec 18 Sell Lawrence Skatoff Individual 18. Dec 18 18. Dec 18 -1,000 $23.16 $-23,160
12. Dec 18 Buy Donald Duda Individual 11. Dec 18 11. Dec 18 70,848 $23.79 $1,685,474
12. Sep 18 Sell Isabelle Goossen Individual 10. Sep 18 10. Sep 18 -2,500 $39.32 $-98,310
X
Management checks
We assess Methode Electronics's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Methode Electronics has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

At US$30.66, Is It Time To Put Methode Electronics, Inc. (NYSE:MEI) On Your Watch List?

As a small cap stock, which tends to lack high analyst coverage, there is generally more of an opportunity for mispricing as there is less activity to push the stock closer to fair value? … Is there still an opportunity here to buy. … Let’s examine Methode Electronics’s valuation and outlook in more detail to determine if there’s still a bargain opportunity

Simply Wall St -

If You Had Bought Methode Electronics Stock A Year Ago, You'd Be Sitting On A 28% Loss, Today

(NYSE:MEI) shareholders over the last year, as the share price declined 28%. … One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS). … The company's earnings per share (over time) is depicted in the image below (click to see the exact numbers)

Simply Wall St -

Is Methode Electronics, Inc.'s (NYSE:MEI) CEO Salary Justified?

Donald Duda has been the CEO of Methode Electronics, Inc. … This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. … How Does Donald Duda's Compensation Compare With Similar Sized Companies?

Simply Wall St -

What To Know Before Buying Methode Electronics, Inc. (NYSE:MEI) For Its Dividend

Dividends can be underrated but they form a large part of investment returns, playing an important role in compounding returns in the long run. … Historically, Methode Electronics, Inc. … Let's take a look at Methode Electronics in more detail.

Simply Wall St -

Should Methode Electronics, Inc. (NYSE:MEI) Be Your Next Stock Pick?

Building up an investment case requires looking at a stock holistically. … Today I've chosen to put the spotlight on Methode Electronics, Inc. … that has been able to sustain great financial health over the past

Simply Wall St -

Who Has Been Buying Methode Electronics, Inc. (NYSE:MEI) Shares?

So before you buy or sell Methode Electronics, Inc. … (NYSE:MEI), you may well want to know whether insiders have been buying or selling. … Methode Electronics Insider Transactions Over The Last Year.

Simply Wall St -

Interested In Methode Electronics, Inc. (NYSE:MEI)’s Upcoming US$0.11 Dividend? You Have 4 Days Left

(NYSE:MEI) will be distributing its dividend of US$0.11 per share on the 25 January 2019, and will start trading ex-dividend in 4 days time on the 10 January 2019. … 5 checks you should use to assess a dividend stock? … Is their annual yield among the top 25% of dividend payers?

Simply Wall St -

Calculating The Intrinsic Value Of Methode Electronics, Inc. (NYSE:MEI)

by projecting its future cash flows and then discounting them to today's value. … Discounted Cash Flows (DCF). … If you want to learn more about discounted cash flow, the basis for my calcs can be read in detail in the Simply Wall St analysis model

Simply Wall St -

Why Methode Electronics, Inc.’s (NYSE:MEI) Use Of Investor Capital Doesn’t Look Great

In particular, we'll consider its Return On Capital Employed (ROCE), as that can give us insight into how profitably the company is able to employ capital in its business. … Return On Capital Employed (ROCE): What is it? … ROCE measures the amount of pre-tax profits a company can generate from the capital employed in its business.

Simply Wall St -

Here's What Methode Electronics Inc's (NYSE:MEI) P/E Ratio Is Telling Us

This article is written for those who want to get better at using price to earnings ratios (P/E ratios). … Based on the last twelve months, Methode Electronics's P/E ratio is 19.27. … Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS)

Simply Wall St -

Company Info

Description

Methode Electronics, Inc. designs, manufactures, and markets component and subsystem devices worldwide. The company operates through four segments: Automotive, Interface, Power Products, and Other. The Automotive segment offers electronic and electro-mechanical devices, and related products to automobile original equipment manufacturers directly or through their tiered suppliers. Its products include integrated center consoles, hidden switches, ergonomic switches, transmission lead frames, and light-emitting diode based lighting sensors, which incorporate magneto-elastic sensing and other technologies that monitor the operation or status of a component or system. The Interface segment provides various copper and fiber-optic interface and interface solutions for the aerospace, appliance, commercial food service, construction, consumer, material handling, medical, military, mining, point-of-sale, and telecommunication markets. Its solutions consist of conductive polymers, industrial safety radio remote controls, optical and copper transceivers, and solid-state field-effect consumer touch panels; and services include the design and installation of fiber optic and copper infrastructure systems, and manufacturing active and passive optical components. The Power Products segment manufactures braided flexible cables, current-carrying laminated bus bars and devices, custom power-product assemblies, high-current low voltage flexible power cabling systems, and powder coated bus bars that are used in aerospace, computer, industrial and power conversion, military, telecommunication, and transportation markets and applications. The Other segment offers medical devices, inverters and battery systems, and insulated gate bipolar transistor solutions. Methode Electronics, Inc. was founded in 1946 and is headquartered in Chicago, Illinois.

Details
Name: Methode Electronics, Inc.
MEI
Exchange: NYSE
Founded: 1946
$1,102,950,908
36,986,952
Website: http://www.methode.com
Address: Methode Electronics, Inc.
7401 West Wilson Avenue,
Chicago,
Illinois, 60706,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE MEI Common Shares New York Stock Exchange US USD 27. Sep 1982
DB ME5A Common Shares Deutsche Boerse AG DE EUR 27. Sep 1982
Number of employees
Current staff
Staff numbers
5,056
Methode Electronics employees.
Industry
Electronic Manufacturing Services
Tech
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/03/19 23:39
End of day share price update: 2019/03/19 00:00
Last estimates confirmation: 2019/03/08
Last earnings filing: 2019/03/07
Last earnings reported: 2019/01/26
Last annual earnings reported: 2018/04/28


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.