Methode Electronics, Inc. designs, manufactures, and markets component and subsystem devices worldwide. More Details
Excellent balance sheet and good value.
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 not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 4% a week.
Volatility Over Time: MEI's weekly volatility (4%) has been stable over the past year.
7 Day Return
1 Year Return
Return vs Industry: MEI underperformed the US Electronic industry which returned 64.9% over the past year.
Return vs Market: MEI exceeded the US Market which returned 48.3% over the past year.
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
1 week ago | Simply Wall StHow Does Methode Electronics, Inc. (NYSE:MEI) Fare As A Dividend Stock?
1 month ago | Simply Wall StMethode Electronics, Inc. (NYSE:MEI) Looks Like A Good Stock, And It's Going Ex-Dividend Soon
1 month ago | Simply Wall StMethode Electronics (NYSE:MEI) Shareholders Booked A 61% Gain In The Last Year
Is Methode Electronics undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: MEI ($46) is trading below our estimate of fair value ($50.86)
Significantly Below Fair Value: MEI is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: MEI is good value based on its PE Ratio (14.4x) compared to the US Electronic industry average (24.8x).
PE vs Market: MEI is good value based on its PE Ratio (14.4x) compared to the US market (20.2x).
Price to Earnings Growth Ratio
PEG Ratio: MEI is poor value based on its PEG Ratio (1.8x)
Price to Book Ratio
PB vs Industry: MEI is good value based on its PB Ratio (2x) compared to the US Electronic industry average (2.8x).
How is Methode Electronics forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: MEI's forecast earnings growth (8% per year) is above the savings rate (2%).
Earnings vs Market: MEI's earnings (8% per year) are forecast to grow slower than the US market (15% per year).
High Growth Earnings: MEI's earnings are forecast to grow, but not significantly.
Revenue vs Market: MEI's revenue (12.6% per year) is forecast to grow faster than the US market (9% per year).
High Growth Revenue: MEI's revenue (12.6% 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
How has Methode Electronics performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: MEI has high quality earnings.
Growing Profit Margin: MEI's current net profit margins (12.2%) are higher than last year (10.7%).
Past Earnings Growth Analysis
Earnings Trend: MEI's earnings have grown by 9.1% per year over the past 5 years.
Accelerating Growth: MEI's earnings growth over the past year (4.8%) is below its 5-year average (9.1% per year).
Earnings vs Industry: MEI earnings growth over the past year (4.8%) underperformed the Electronic industry 13.1%.
Return on Equity
High ROE: MEI's Return on Equity (13.5%) is considered low.
How is Methode Electronics's financial position?
Financial Position Analysis
Short Term Liabilities: MEI's short term assets ($645.0M) exceed its short term liabilities ($209.2M).
Long Term Liabilities: MEI's short term assets ($645.0M) exceed its long term liabilities ($337.7M).
Debt to Equity History and Analysis
Debt Level: MEI's debt to equity ratio (27.3%) is considered satisfactory.
Reducing Debt: MEI's debt to equity ratio has increased from 12.6% to 27.3% over the past 5 years.
Debt Coverage: MEI's debt is well covered by operating cash flow (82.5%).
Interest Coverage: MEI's interest payments on its debt are well covered by EBIT (22.8x coverage).
What is Methode Electronics's current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: MEI's dividend (0.96%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.24%).
High Dividend: MEI's dividend (0.96%) is low compared to the top 25% of dividend payers in the US market (3.41%).
Stability and Growth of Payments
Stable Dividend: MEI's dividends per share have been stable in the past 10 years.
Growing Dividend: MEI's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its low payout ratio (13.8%), MEI's dividend payments are thoroughly covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Don Duda (65 yo)
Mr. Donald W. Duda, also known as Don, has been the Chief Executive Officer of Methode Electronics, Inc. since May 1, 2004 and its President since February 2001. Mr. Duda served as Vice President of Interc...
CEO Compensation Analysis
Compensation vs Market: Don's total compensation ($USD1.52M) is below average for companies of similar size in the US market ($USD3.75M).
Compensation vs Earnings: Don's compensation has been consistent with company performance over the past year.
Experienced Management: MEI's management team is considered experienced (3.2 years average tenure).
Experienced Board: MEI's board of directors are not considered experienced ( 1.8 years average tenure), which suggests a new board.
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
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 3.7%.
Methode Electronics, Inc.'s company bio, employee growth, exchange listings and data sources
- Name: Methode Electronics, Inc.
- Ticker: MEI
- Exchange: NYSE
- Founded: 1946
- Industry: Electronic Manufacturing Services
- Sector: Tech
- Market Cap: US$1.769b
- Shares outstanding: 38.45m
- Website: https://www.methode.com
Number of Employees
- Methode Electronics, Inc.
- 8750 West Bryn Mawr Avenue
- Suite 1000
- United States
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||2021/05/11 06:23|
|End of Day Share Price||2021/05/10 00:00|
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.