Methode Electronics (NYSE:MEI) - Share price, News & Analysis

MEI fundamental analysis
Snowflake Score
Valuation	5/6
Future Growth	2/6
Past Performance	2/6
Financial Health	5/6
Dividends	4/6

MEI Stock Overview

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

Rewards

Trading at 48.2% below our estimate of its fair value

Earnings are forecast to grow 12.34% per year

Risk Analysis

No risks detected for MEI from our risk checks.

Methode Electronics Competitors

Jabil

NYSE:JBL

US$8.0b

Applied Materials

NasdaqGS:AMAT

US$94.2b

DENSO

TSE:6902

JP¥5.7t

AMETEK

NYSE:AME

US$27.4b

Price History & Performance

Summary of all time highs, changes and price drops for Methode Electronics
Historical stock prices
Current Share Price	US$42.27
52 Week High	US$50.20
52 Week Low	US$40.83
Beta	1.08
1 Month Change	-7.20%
3 Month Change	-7.08%
1 Year Change	-9.60%
3 Year Change	60.17%
5 Year Change	5.28%
Change since IPO	2,154.40%

Recent News & Updates

May 21

Is There Now An Opportunity In Methode Electronics, Inc. (NYSE:MEI)?

Methode Electronics, Inc. ( NYSE:MEI ), might not be a large cap stock, but it saw significant share price movement...

May 05

Is Methode Electronics, Inc. (NYSE:MEI) Trading At A 42% Discount?

How far off is Methode Electronics, Inc. ( NYSE:MEI ) from its intrinsic value? Using the most recent financial data...

Shareholder Returns

	MEI	US Electronic	US Market
7D	-8.8%	-5.0%	-4.0%
1Y	-9.6%	-16.2%	-13.2%

Return vs Industry: MEI exceeded the US Electronic industry which returned -15% over the past year.

Return vs Market: MEI exceeded the US Market which returned -12.3% over the past year.

Price Volatility

Is MEI's price volatile compared to industry and market?
MEI volatility
MEI Average Weekly Movement	4.2%
Electronic Industry Average Movement	7.7%
Market Average Movement	7.8%
10% most volatile stocks in US Market	16.8%
10% least volatile stocks in US Market	2.9%

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.

About the Company

Founded	Employees	CEO	Website
1946	7,200	Don Duda	https://www.methode.com

Methode Electronics, Inc. designs, manufactures, and markets component and subsystem devices worldwide. It operates through four segments: Automotive, Industrial, Interface, and Medical. The Automotive segment supplies electronic and electro-mechanical devices, and related products to automobile original equipment manufacturers directly or through their tiered suppliers.

Methode Electronics Fundamentals Summary

How do Methode Electronics's earnings and revenue compare to its market cap?
MEI fundamental statistics
Market Cap	US$1.56b
Earnings (TTM)	US$117.10m
Revenue (TTM)	US$1.18b

13.3x

P/E Ratio

1.3x

P/S Ratio

Is MEI overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
MEI income statement (TTM)
Revenue	US$1.18b
Cost of Revenue	US$889.30m
Gross Profit	US$286.60m
Other Expenses	US$169.50m
Earnings	US$117.10m

Last Reported Earnings

Jan 29, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	3.17
Gross Margin	24.37%
Net Profit Margin	9.96%
Debt/Equity Ratio	23.5%

How did MEI perform over the long term?

See historical performance and comparison

Dividends

1.3%

Current Dividend Yield

17%

Payout Ratio

Valuation

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

Valuation Score

5/6

Valuation Score 5/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

48.2%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: MEI ($42.27) is trading below our estimate of fair value ($81.66)

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 Price-To-Earnings Ratio (13.3x) compared to the US Electronic industry average (16.4x).

PE vs Market: MEI is good value based on its Price-To-Earnings Ratio (13.3x) compared to the US market (15.1x).

Price to Earnings Growth Ratio

PEG Ratio: MEI is poor value based on its PEG Ratio (1.1x)

Price to Book Ratio

PB vs Industry: MEI is good value based on its Price-To-Book Ratio (1.7x) compared to the US Electronic industry average (1.9x).

Future Growth

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

Future Growth Score

2/6

Future Growth Score 2/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

12.3%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: MEI's forecast earnings growth (12.3% per year) is above the savings rate (1.9%).

Earnings vs Market: MEI's earnings (12.3% per year) are forecast to grow faster than the US market (12.3% per year).

High Growth Earnings: MEI's earnings are forecast to grow, but not significantly.

Revenue vs Market: MEI's revenue (5% per year) is forecast to grow slower than the US market (7.8% per year).

High Growth Revenue: MEI's revenue (5% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: MEI's Return on Equity is forecast to be low in 3 years time (14.4%).

Past Performance

How has Methode Electronics performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

12.2%

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%) are lower than last year (12.2%).

Past Earnings Growth Analysis

Earnings Trend: MEI's earnings have grown by 12.2% per year over the past 5 years.

Accelerating Growth: MEI's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: MEI had negative earnings growth (-3.5%) over the past year, making it difficult to compare to the Electronic industry average (34.4%).

Return on Equity

High ROE: MEI's Return on Equity (12.8%) is considered low.

Financial Health

How is Methode Electronics's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: MEI's short term assets ($640.4M) exceed its short term liabilities ($203.7M).

Long Term Liabilities: MEI's short term assets ($640.4M) exceed its long term liabilities ($291.2M).

Debt to Equity History and Analysis

Debt Level: MEI's net debt to equity ratio (6.8%) is considered satisfactory.

Reducing Debt: MEI's debt to equity ratio has increased from 7.2% to 23.5% over the past 5 years.

Debt Coverage: MEI's debt is well covered by operating cash flow (43%).

Interest Coverage: MEI's interest payments on its debt are well covered by EBIT (35.9x coverage).

Balance Sheet

Dividend

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

Dividend Score

3/6

Dividend Score 3/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

1.32%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: MEI's dividend (1.32%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.57%).

High Dividend: MEI's dividend (1.32%) is low compared to the top 25% of dividend payers in the US market (4.05%).

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.

Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (17%), MEI's dividend payments are well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its reasonably low cash payout ratio (35.4%), MEI's dividend payments are well covered by cash flows.

Discover strong dividend paying companies

Management

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

3.8yrs

Average management tenure

CEO

Don Duda (66 yo)

21.25yrs

Tenure

US$13,331,554

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 ($USD13.33M) is above average for companies of similar size in the US market ($USD5.43M).

Compensation vs Earnings: Don's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.

Leadership Team

Experienced Management: MEI's management team is considered experienced (3.8 years average tenure).

Board Members

Experienced Board: MEI's board of directors are not considered experienced ( 2.9 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: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.

Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/05/24 00:00
End of Day Share Price	2022/05/24 00:00
Earnings	2022/01/29
Annual Earnings	2021/05/01