(MEI) Methode Electronics - NYSE
Sector: Technology | Industry: Electronic Components | Exchange: NYSE (USA) | Market Cap: 497m USD | Total Return: 61.1% in 12m
Avg Turnover: 6.41M
Qual. Beats: 0
Rev. Trend: -98.7%
Qual. Beats: 0
Warnings
High Debt/EBITDA (6.5) with thin interest coverage (-0.9)
Interest Coverage Ratio -0.9 is critical
Tailwinds
Supp Ema20, Rs Leader, Idiosyncratic Leader, Tailwind
Methode Electronics, Inc. (MEI) is a global manufacturer of mechatronic components and subsystems, organized into Automotive, Industrial, and Interface segments. The company specializes in integrating mechanical and electrical engineering to produce sensors, switches, LED lighting, and power distribution systems for diverse end markets including transportation, data centers, and consumer appliances.
Operating within the Electronic Manufacturing Services (EMS) sub-industry, the company utilizes a business model focused on custom-engineered solutions rather than high-volume commodity components. This sector often faces cyclical demand patterns tied to automotive production volumes and capital expenditure cycles in the aerospace and telecommunications industries.
The Automotive segment remains a primary revenue driver, supplying original equipment manufacturers (OEMs) with complex assemblies like integrated consoles and transmission lead-frames. In the Industrial and Interface segments, the company addresses the growing demand for high-current power cabling and high-speed digital communication hardware required for modern cloud computing infrastructure.
For a more detailed breakdown of these segments and historical performance, consider reviewing the comprehensive data available on ValueRay.
Founded in 1946 and headquartered in Southfield, Michigan, Methode Electronics maintains an international manufacturing footprint to support its global supply chain. The company’s technical focus on magneto-elastic sensing and high-voltage power solutions positions it to serve the ongoing electrification of commercial and passenger vehicle platforms.
- Electric vehicle adoption rates impact demand for complex automotive sensing solutions
- Global data center expansion drives high-speed digital communication interface revenue
- Fluctuating raw material costs for copper and resins affect manufacturing margins
- Automotive OEM production volume shifts directly influence integrated console sales growth
- Shift toward mechatronic systems in commercial vehicles increases industrial segment backlog
| Net Income: -64.4m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.03 > 0.02 and ΔFCF/TA 2.76 > 1.0 |
| NWC/Revenue: 35.01% < 20% (prev 34.71%; Δ 0.30% < -1%) |
| CFO/TA 0.05 > 3% & CFO 68.5m > Net Income -64.4m |
| Net Debt (253.6m) to EBITDA (39.2m): 6.47 < 3 |
| Current Ratio: 2.41 > 1.5 & < 3 |
| Outstanding Shares: last quarter (35.5m) vs 12m ago -0.06% < -2% |
| Gross Margin: 14.70% > 18% (prev 16.36%; Δ -1.66% > 0.5%) |
| Asset Turnover: 74.93% > 50% (prev 81.89%; Δ -6.96% > 0%) |
| Interest Coverage Ratio: -0.92 > 6 (EBIT TTM -21.3m / Interest Expense TTM 23.2m) |
| A: 0.26 (Total Current Assets 585.3m - Total Current Liabilities 242.8m) / Total Assets 1.31b |
| B: 0.37 (Retained Earnings 481.0m / Total Assets 1.31b) |
| C: -0.02 (EBIT TTM -21.3m / Avg Total Assets 1.31b) |
| D: 1.07 (Book Value of Equity 675.0m / Total Liabilities 631.3m) |
| Altman-Z'' = 3.93 = AA |
| DSRI: 1.06 (Receivables 218.6m/224.2m, Revenue 978.2m/1.07b) |
| GMI: 1.11 (GM 16.36% / 14.70%) |
| AQI: 0.95 (AQ_t 0.36 / AQ_t-1 0.38) |
| SGI: 0.92 (Revenue 978.2m / 1.07b) |
| TATA: -0.10 (NI -64.4m - CFO 68.5m) / TA 1.31b) |
| Beneish M = -2.97 (Cap -4..+1) = A |
As of June 21, 2026, the stock is trading at USD 14.02 with a total of 1,617,300 shares traded.
Over the past week, the price has changed by +22.77%,
over one month by +37.86%,
over three months by +165.91% and
over the past year by +61.13%.
Methode Electronics has received a consensus analysts rating of 3.67. Therefore, it is recommended to hold MEI.
- StrongBuy: 1
- Buy: 0
- Hold: 2
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 11.3 | -19.8% |
P/E Forward = 10.2354
P/S = 0.5078
P/B = 0.7359
P/EG = 0.7789
Revenue TTM = 978.2m USD
EBIT TTM = -21.3m USD
EBITDA TTM = 39.2m USD
Long Term Debt = 340.7m USD (from longTermDebt, last quarter)
Short Term Debt = 16.2m USD (from shortTermDebt, last quarter)
Debt = 387.3m USD (from shortLongTermDebtTotal, last quarter) + Leases 23.2m
Net Debt = 253.6m USD (calculated: Debt 387.3m - CCE 133.7m)
Enterprise Value = 750.3m USD (496.7m + Debt 387.3m - CCE 133.7m)
Interest Coverage Ratio = -0.92 (Ebit TTM -21.3m / Interest Expense TTM 23.2m)
EV/FCF = 17.53x (Enterprise Value 750.3m / FCF TTM 42.8m)
FCF Yield = 5.70% (FCF TTM 42.8m / Enterprise Value 750.3m)
FCF Margin = 4.38% (FCF TTM 42.8m / Revenue TTM 978.2m)
Net Margin = -6.58% (Net Income TTM -64.4m / Revenue TTM 978.2m)
Gross Margin = 14.70% ((Revenue TTM 978.2m - Cost of Revenue TTM 834.4m) / Revenue TTM)
Gross Margin QoQ = 14.12% (prev 19.32%)
Tobins Q-Ratio = 0.57 (Enterprise Value 750.3m / Total Assets 1.31b)
Interest Expense / Debt = 5.99% (Interest Expense 23.2m / Debt 387.3m)
Taxrate = 21.0% (US federal default 21%)
NOPAT = -16.8m (EBIT -21.3m * (1 - 21.00%)) [loss with tax shield]
Current Ratio = 2.41 (Total Current Assets 585.3m / Total Current Liabilities 242.8m)
Debt / Equity = 0.57 (Debt 387.3m / totalStockholderEquity, last quarter 675.0m)
Debt / EBITDA = 6.47 (Net Debt 253.6m / EBITDA 39.2m)
Debt / FCF = 5.93 (Net Debt 253.6m / FCF TTM 42.8m)
Total Stockholder Equity = 683.9m (last 4 quarters mean from totalStockholderEquity)
RoA = -4.93% (Net Income -64.4m / Total Assets 1.31b)
RoE = -9.42% (Net Income TTM -64.4m / Total Stockholder Equity 683.9m)
RoCE = -2.08% (EBIT -21.3m / Capital Employed (Equity 683.9m + L.T.Debt 340.7m))
RoIC = -1.63% (negative operating profit) (NOPAT -16.8m / Invested Capital 1.03b)
WACC = 11.25% (E(496.7m)/V(884.0m) * Re(16.33%) + D(387.3m)/V(884.0m) * Rd(5.99%) * (1-Tc(0.21)))
Discount Rate = 16.33% (= CAPM, Blume Beta Adj.) -> capped to 13.17%
Shares (quarterly) Correlation: 11.64 | Cagr: -0.25%
[DCF] Terminal Value 69.19% ; FCFF base≈28.4m ; Y1≈32.6m ; Y5≈47.9m
[DCF] Fair Price = 6.28 (EV 476.1m - Net Debt 253.6m = Equity 222.5m / Shares 35.4m; r=11.25% [WACC]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: N/A | EPS CAGR: N/A | SUE: 0.09 | # QB: 0
Revenue Correlation: -98.69 | Revenue CAGR: -6.89% | SUE: 0.65 | # QB: 0
EPS current Quarter (2026-07-31): EPS=0.03 | Chg30d=N/A | Revisions=-20% | Analysts=1