NYSE:MEI

Stock Analysis Report

Methode Electronics

Executive Summary

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

Snowflake

Fundamentals

Undervalued with excellent balance sheet.

Risks

  • Methode Electronics has significant price volatility in the past 3 months.

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


Market Performance


7 Day Return

-5.1%

NYSE:MEI

1.2%

US Electronic

0.8%

US Market


1 Year Return

-4.5%

NYSE:MEI

-1.0%

US Electronic

1.9%

US Market

MEI underperformed the Electronic industry which returned -1% over the past year.

MEI underperformed the Market in United States of America which returned 1.9% over the past year.


Share holder returns

MEIIndustryMarket
7 Day-5.1%1.2%0.8%
30 Day28.2%7.7%3.4%
90 Day29.5%1.8%2.1%
1 Year-3.0%-4.5%-0.03%-1.0%4.2%1.9%
3 Year3.2%-0.3%53.5%49.2%46.7%37.2%
5 Year-5.1%-10.4%71.0%62.5%62.3%44.5%

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

Valuation

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

32%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

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, but not at a substantial discount (< 40%).


Price Based on Earnings

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

Methode Electronics is good value based on expected growth next year.


Price Based on Value of Assets

Methode Electronics is good value based on assets compared to the US Electronic industry average.


Next Steps

Future Growth

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

14.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Methode Electronics's revenue is expected to grow by 4.4% yearly, however this is not considered high growth (20% yearly).

Methode Electronics's earnings are expected to grow by 14.9% yearly, however this is not considered high growth (20% yearly).

Methode Electronics's revenue growth is positive but not above the United States of America market average.

Methode Electronics's earnings growth is expected to exceed the United States of America market average.

Methode Electronics's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Methode Electronics will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has Methode Electronics performed over the past 5 years?

-7.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

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 (59.4% vs -7.8%)

Methode Electronics's earnings growth has exceeded the US Electronic industry average in the past year (59.4% vs 49.8%).


Return on Equity

Methode Electronics has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Methode Electronics used its assets more efficiently than the US Electronic industry average last year based on Return on Assets.


Return on Capital Employed

Methode Electronics's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Methode Electronics's financial position?


Financial Position Analysis

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.


Debt to Equity History and Analysis

Methode Electronics's level of debt (39.6%) compared to net worth is satisfactory (less than 40%).

The level of debt compared to net worth has increased over the past 5 years (9.5% vs 39.6% today).

Debt is well covered by operating cash flow (35.7%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 12.9x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 1.6x debt.


Next Steps

Dividend

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

1.26%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Methode Electronics before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield and Payments Analysis

Methode Electronics's pays a lower 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 (3.69%).

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

Dividends paid are well covered by earnings (5.8x 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.


Next Steps

Management

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

1.5yrs

Average management tenure


CEO

Donald Duda (64yo)

15.3yrs

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

Donald's remuneration is lower than average for companies of similar size in United States of America.

Donald's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

1.5yrs

Average Tenure

55yo

Average Age

The average tenure for the Methode Electronics management team is less than 2 years, this suggests a new team.


Board Age and Tenure

7.0yrs

Average Tenure

66.5yo

Average Age

The tenure for the Methode Electronics board of directors is about average.


Insider Trading

More shares have been bought than sold by Methode Electronics individual insiders in the past 3 months, but not in substantial volumes.


Recent Insider Transactions

BuyUS$28,41806 Sep 19
Bruce Crowther
EntityIndividual
Role
Member of the Board of Directors
Director
Shares900
Max PriceUS$31.58
BuyUS$60828 Mar 19
Amit Patel
EntityIndividual
Shares21
Max PriceUS$28.93
BuyUS$27,51028 Mar 19
Amit Patel
EntityIndividual
Shares1,000
Max PriceUS$27.51
BuyUS$143,26002 Jan 19
Ronald Tsoumas
EntityIndividual
Role
Chief Financial Officer
VP of Corporate Finance & CFO
Shares5,735
Max PriceUS$24.98
BuyUS$181,71226 Dec 18
Christopher Hornung
EntityIndividual
Shares8,200
Max PriceUS$22.16
SellUS$23,16020 Dec 18
Lawrence Skatoff
EntityIndividual
Role
Vice Chairman
Vice Chairman of the Board
Shares1,000
Max PriceUS$23.16
BuyUS$1,685,47412 Dec 18
Donald Duda
EntityIndividual
Role
Chief Executive Officer
President
Shares70,848
Max PriceUS$23.79

Ownership Breakdown


Management Team

  • Donald Duda (64yo)

    President

    • Tenure: 15.3yrs
    • Compensation: US$1.39m
  • Timothy Glandon (55yo)

    Vice President

    • Tenure: 13yrs
    • Compensation: US$326.46k
  • Ron Tsoumas (58yo)

    VP of Corporate Finance & CFO

    • Tenure: 1.5yrs
    • Compensation: US$489.03k
  • Kristine Walczak

    Vice President of Corporate Communications

    • Tenure: 0yrs
  • Joseph Khoury (55yo)

    Chief Operating Officer

    • Tenure: 1.2yrs
    • Compensation: US$645.52k
  • Andrea Barry (56yo)

    Chief Human Resources Officer

    • Tenure: 1.5yrs
    • Compensation: US$1.41m
  • Anil Shetty (53yo)

    VP & President of Dabir Surfaces

    • Tenure: 1yrs
    • Compensation: US$838.50k
  • Michael Brotherton (42yo)

    VP & President of Grakon Parent

    • Tenure: 1yrs
    • Compensation: US$817.18k

Board Members

  • Lawrence Skatoff (79yo)

    Vice Chairman of the Board

    • Tenure: 0yrs
    • Compensation: US$194.25k
  • Bruce Crowther (67yo)

    Director

    • Tenure: 0.3yrs
  • Donald Duda (64yo)

    President

    • Tenure: 15.3yrs
    • Compensation: US$1.39m
  • Bud Aspatore (76yo)

    Chairman of the Board

    • Tenure: 7yrs
    • Compensation: US$235.25k
  • Mark Schwabero (66yo)

    Director

    • Tenure: 0.3yrs
  • Isabelle Goossen (67yo)

    Independent Director

    • Tenure: 15.3yrs
    • Compensation: US$224.25k
  • Darren Dawson (56yo)

    Independent Director

    • Tenure: 15.3yrs
    • Compensation: US$206.25k
  • Brian Cadwallader (60yo)

    Independent Director

    • Tenure: 1.6yrs
    • 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$1.297b
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MEINYSE (New York Stock Exchange)YesCommon SharesUSUSDSep 1982
ME5ADB (Deutsche Boerse AG)YesCommon SharesDEEURSep 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 s ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/18 23:37
End of Day Share Price2019/09/18 00:00
Earnings2019/07/27
Annual Earnings2019/04/27


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.