Methode Electronics, Inc.

Methode Electronics, Inc.

MEIยทNYSE

$13.19

+13%
TechnologyHardware, Equipment & Parts

Methode Electronics, Inc. designs, engineers, and produces mechatronic products 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. Its products include integrated center consoles, hidden switches, ergonomic switches, transmission lead-frames, and LED-based lighting and sensors, which incorporate magneto-elastic sensing and other technologies that monitor the operation or status of a component or system. The Industrial segment manufactures lighting solutions; industrial safety radio remote controls; braided flexible cables; current-carrying laminated busbars and devices; custom power-product assemblies, such as PowerRail solution; high-current low-voltage flexible power cabling systems; and powder-coated busbars that are used in various markets and applications comprising aerospace, cloud computing, commercial vehicles, industrial, military, power conversion, and transportation. The Interface segment provides various copper-based transceivers and related accessories for the cloud computing hardware equipment and telecommunications broadband equipment markets; user interface solutions for the appliance, commercial food service, and point-of-sale equipment markets; and fluid-level sensors for the marine/recreational vehicle and sump pump markets. The Medical segment offers Dabir Surfaces, a surface support technology aimed at pressure injury prevention for use by patients who are immobilized or otherwise at risk for pressure injuries, including patients undergoing long-duration surgical procedures. Methode Electronics, Inc. was incorporated in 1946 and is headquartered in Chicago, Illinois.

At a Glance

Live Snapshot
Market Cap$467.33M
EPS-1.7600
P/E Ratio-7.49
Earnings Date06/18/2026

Intrinsic Alpha Methodology

Thesis Lenses

Signal ยท Driver ยท Risk

Signal

Medium confidence

Valuation multiple is compressed (P/E -7.5).

Valuation inputs: P/E -7.5, earnings yield N/A, momentum +13.4%.

If multiples stay elevated while momentum fades, downside repricing risk rises.

Driver

High confidence

Return profile is soft (ROE -9.0%, ROIC -2.2%).

Profitability stack: net margin -6.0%, ROE -9.0%, ROIC -2.2%.

Quality deterioration often appears in margins before it shows up in headline EPS.

Risk

High confidence

Risk profile is balanced but has notable pressure points to monitor.

Risk factors: liabilities/assets +46.9%, momentum +13.4%, net margin -6.0%.

Higher leverage with weak momentum and thin margins can amplify drawdown severity.

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Methode Electronics, Inc. Market vs Earnings Trajectory

MEI ยท NYSE

Loading price and EPS data...

Methode Electronics, Inc.

Methode Electronics, Inc. Fair Value Envelope

MEI ยท NYSE

Our analysis suggests that MEI has a fair value of HIDDEN per share in the Base Case projection. With shares currently trading at $13.19, this represents a potential HIDDEN relative to our calculated worth for Methode Electronics, Inc..

Intrinsic Value
Current Price: $13.19
3Y-49.0%
5Y-182.0%
10Y-154.0%
3Y-6.0%
5Y-11.0%
10Y+2.0%
3Y-49.0%
5Y-181.0%
10Y-151.0%
3Y-44.0%
5Y-80.0%
10Y-81.0%
3Y+463.0%
5Y-117.0%
10Y-116.0%
3Y-7.0%
5Y-17.0%
10Y-5.0%
Methode Electronics, Inc.

Methode Electronics, Inc. Profit Bridge

MEI ยท NYSE
Revenue1.05B
Cost of Goods Sold (884.70M)
Gross Profit163.40M
Operating Expenses (187.30M)
Operating Income-23.90M
Interest Expense (22.70M)
Other Income/Expense-26.20M
Pretax Income-50.10M
Income Tax (12.50M)
Net Income-62.60M
Net Income
-62.60M

Profitability Analysis

Gross Margin

15.6%

Thin margins leave little room for error. Cost management and pricing strategy are critical.

Operating Margin

-2.3%

Operating losses indicate the core business is unprofitable. Requires restructuring or revenue growth.

Net Profit Margin

-6.0%

Net losses indicate the company is burning cash. Sustainability depends on path to profitability.

15.59%
Gross Profit Margin
3Y-4.0%
5Y-30.0%
10Y-44.0%
-2.28%
Operating Profit Margin
3Y-77.0%
5Y-130.0%
10Y-116.0%
-5.97%
Net Profit Margin
3Y-46.0%
5Y-191.0%
10Y-150.0%
-9.03%
Return on Equity
3Y-44.0%
5Y-210.0%
10Y-157.0%
-4.79%
Return on Assets
3Y-45.0%
5Y-198.0%
10Y-153.0%
-2.21%
Return on Invested Capital
3Y-76.0%
5Y-139.0%
10Y-123.0%
MEI

Methode Electronics, Inc. Cash Conversion Engine

MEI ยท NYSE
Net Income-62.60M
Depreciation & Amortization58.50M
Stock-Based Compensation7.40M
Change in Working Capital3.70M
Others25.20M
Capital Expenditures-41.60M
Free Cash Flow-15.20M

Cash Flow Quality Analysis

FCF Conversion Rate

24.3%

Weak cash conversion. Significant portion of earnings not converting to cashโ€”review working capital trends and capital intensity.

CapEx Intensity

157.6%

Very high capital intensity consumes most operating cash flow. Limited flexibility for dividends or debt reduction.

FCF Growth Trend

0.0%

Flat FCF growth. Stable but not expandingโ€”monitor for signs of business maturity or temporary headwinds.

Working Capital Impact

+$3.70M

Working capital inflow boosted cash flow. Efficient management of receivables, inventory, and payables contributing positively.

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Methode Electronics, Inc. Funding & Solvency Profile

MEI ยท NYSE
Cash & Cash Equivalents133.70M
Net Receivables218.60M
Inventory209.80M
Other Current Assets23.20M
Total Current Assets585 M
Property, Plant & Equipment246.20M
Goodwill & Intangible Assets401.10M
Long-Term Investments0.00
Other Non-Current Assets32.60M
Total Non-Current Assets279 M
Total Assets
1.31B

Financial Health Analysis

Current Ratio

2.41x

Excellent liquidity position. The company can easily cover its short-term obligations with substantial cushion.

Debt-to-Equity Ratio

0.94x

Balanced capital structure with moderate leverage. Equity exceeds debt, suggesting healthy financial stability.

Working Capital

343 M

Strong working capital position provides significant operational flexibility and financial cushion.

Asset Composition

45% Current

Balanced asset mix between current and non-current assets, typical of many stable businesses.

Financial Health Insight

Strong financial foundation: Excellent liquidity combined with conservative leverage suggests the company is well-positioned to weather economic uncertainties and fund growth opportunities.

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Methode Electronics, Inc. Street Expectations Map

MEI ยท NYSE

Wall Street analysts project that MEI stock may decline over the coming 12 months. The consensus 1-year price target stands at 8.50, with estimates ranging from a low of 8.50 to a high of 8.50.

Lowest Target
8.50
-35.56%
Consensus Target
8.50
-35.56%
Highest Target
8.50
-35.56%

The consensus 1-year price target stands at 8.50, with estimates ranging from a low of 8.50 to a high of 8.50.

Analyst Consensus Analysis

Upside Potential

-35.6%

Significant downside risk. Stock trading well above analyst consensus suggests elevated valuation concerns and potential correction.

Analyst Agreement

0.0% spread

High analyst agreement. Narrow target range indicates strong consensus on valuation, suggesting clear investment thesis and predictable outlook.

Risk-Reward Profile

1.00x

Balanced risk-reward. Upside and downside potential relatively symmetric. Suitable for moderate risk tolerance with conviction in thesis.

Analyst Conviction

Low

Bearish or uncertain outlook. Limited upside or poor consensus suggests challenges ahead or fundamental concerns.

Market Sentiment Insight

Consensus overvaluation: Analysts agree the stock is richly valued with limited upside. Consider booking profits or defensive positioning unless you have contrarian conviction in unrecognized catalysts.

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Methode Electronics, Inc. Insider Positioning

MEI ยท NYSE

During the last 12 months, insiders have purchased $908K and sold $204K worth of MEI shares, resulting in $703K of net buying activity.

3 Months

Bought

0

0.00

Sold

0

0.00

Net Activity

+0

+$0

3-6 Months

Bought

0

0.00

Sold

0

0.00

Net Activity

+0

+$0

6-9 Months

Bought

112.4K

897.58K

Sold

19.7K

152.62K

Net Activity

+745K

+$745K

9-12 Months

Bought

1.6K

10.14K

Sold

8.0K

51.75K

Net Activity

-42K

-$42K

Top Buyers

1
SMD

Schwabero Mark D

Director

19.2K sharesโ€ข3 transactions

$153K

2
CBJ

Cadwallader Brian J

Director

19.2K sharesโ€ข3 transactions

$153K

3
BTM

Bobek Therese M

Director

19.0K sharesโ€ข3 transactions

$152K

4
LMA

Lindsey Mary A

Director

18.9K sharesโ€ข3 transactions

$151K

5
CBK

Crowther Bruce K

Director

18.5K sharesโ€ข1 transactions

$148K

Top Sellers

1
KLM

Kowalchik Laura Michele

Officer: Chief Financial Officer

14.0K sharesโ€ข1 transactions

$106K

2
DJB

Degaynor Jonathan B

Director, Officer: Ceo And President

8.0K sharesโ€ข1 transactions

$52K

3
EJT

Erwin John Thomas

Officer: Cpo & Ehs Officer

5.7K sharesโ€ข1 transactions

$46K

Insider Activity Analysis

Net Insider Sentiment

Bullish

Strong bullish signal with $703K net buying. Insiders are aggressively accumulating shares, suggesting significant confidence in future prospects.

Buy/Sell Ratio

4.44:1

Exceptional buy/sell ratio. Buying dramatically outweighs sellingโ€”one of the strongest possible insider signals.

Insider Participation

Moderate Buying

5 insider buyers vs. 3 sellers. More insiders buying than selling indicates positive sentiment.

Insider Activity Insight

Compelling insider conviction: The combination of strong buy/sell ratio and multiple buyers suggests insiders see attractive risk/reward. Consider this alongside fundamental analysis for confirmation.

0.64%
Dividend Yield
-20%
3Y+40.0%
5Y+122.0%
10Y+119.0%
ย 

mei Dividend History

MEI
10Y CAGR 6%
Latest $0.05
Annual $0.36
Stable dividend payments
Last Period: +0%