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Methode Electronics

Market Cap

US$1.8b

Last Updated

2021/05/08 07:13 UTC

Data Sources

Company Financials +

Executive Summary

Methode Electronics, Inc. designs, manufactures, and markets component and subsystem devices worldwide. More Details


Snowflake Analysis

Excellent balance sheet and good value.


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 +/- 4% a week.

Volatility Over Time: MEI's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

5.3%

MEI

-1.4%

US Electronic

-0.3%

US Market


1 Year Return

59.3%

MEI

66.1%

US Electronic

50.2%

US Market

Return vs Industry: MEI underperformed the US Electronic industry which returned 66.1% over the past year.

Return vs Market: MEI exceeded the US Market which returned 50.2% over the past year.


Shareholder returns

MEIIndustryMarket
7 Day5.3%-1.4%-0.3%
30 Day6.3%-0.9%2.2%
90 Day20.0%5.0%3.8%
1 Year61.3%59.3%69.6%66.1%52.7%50.2%
3 Year16.3%11.6%65.3%58.4%63.4%53.1%
5 Year79.0%68.5%180.4%162.5%129.6%104.0%

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

Valuation

Is Methode Electronics undervalued compared to its fair value and its price relative to the market?

7.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: MEI ($47.33) is trading below our estimate of fair value ($51)

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 (14.8x) compared to the US Electronic industry average (24x).

PE vs Market: MEI is good value based on its PE Ratio (14.8x) 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).


Future Growth

How is Methode Electronics forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

8.0%

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 (15.1% 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 (9.1% 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


Past Performance

How has Methode Electronics performed over the past 5 years?

9.1%

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 9.4%.


Return on Equity

High ROE: MEI's Return on Equity (13.5%) is considered low.


Financial Health

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).


Balance Sheet


Dividend

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

0.93%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: MEI's dividend (0.93%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.24%).

High Dividend: MEI's dividend (0.93%) 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.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.2yrs

Average management tenure


CEO

Don Duda (65 yo)

17yrs

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 ($USD1.52M) is below average for companies of similar size in the US market ($USD3.75M).

Compensation vs Earnings: Don's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: MEI's management team is considered experienced (3.2 years average tenure).


Board Members

Experienced Board: MEI's board of directors are not considered experienced ( 1.8 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 been diluted in the past year, with total shares outstanding growing by 3.7%.


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$1.803b
  • Shares outstanding: 38.45m
  • 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


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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/05/08 07:13
End of Day Share Price2021/05/07 00:00
Earnings2021/01/30
Annual Earnings2020/05/02


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.