Methode Electronics (MEI) AI Stock Analysis

• Market Cap: $184.24M
• Dividend Yield: 5.93%
• Average Volume (3M): 247.15K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.12
• Revenue Growth: -9.51%
• EPS Growth: 29.57%
• Country: US
• Employees: 7,500
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): -0.45
• Shares Outstanding: 35,430,420
• 10 Day Avg. Volume: 226,219
• 30 Day Avg. Volume: 247,147
• PEG Ratio: 0.08
• Price to Book (P/B): 0.34
• Price to Sales (P/S): 0.23
• P/FCF Ratio: -15.60
• Enterprise Value/Market Cap: 2.25
• Enterprise Value/Revenue: 0.42
• Enterprise Value/Gross Profit: 2.88
• Enterprise Value/Ebitda: 10.57
• 1Y Price Target: $9.25
• Price Target Upside: 77.88% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): -0.96
• Revenue Forecast (FY): $950.88M

• Rating: 47 Neutral
• Price Target: $5.00 ▼(-3.85% Downside)
• Action: Reiterated Date: 03/13/26
• Date: Action: Reiterated 03/13/26

The score is held down primarily by weak profitability and contracting revenue, alongside a bearish technical trend. Offsetting factors include positive TTM free cash flow, a non-distressed balance sheet, and earnings-call evidence of liquidity strength and industrial/data-center momentum, though the lowered EBITDA outlook and automotive execution issues limit near-term upside.

Positive Factors

Positive free cash flow and strong cash position

Consistent trailing‑twelve‑month free cash flow and a meaningful cash balance provide durable financial flexibility. Positive FCF supports capex discipline, deleveraging and funding of restructuring or growth initiatives without relying on external capital, reducing solvency risk over coming quarters.

Data‑center and industrial revenue diversification

Growing data‑center and industrial power businesses reduce reliance on cyclical North American automotive programs. A visible $120M run‑rate and double‑digit industrial growth point to structurally higher‑growth end markets and repeatable program revenue that can stabilize top line and margin mix.

Manageable leverage and non‑distressed balance sheet

Debt at roughly half of equity and a non‑distressed capital structure afford balance‑sheet flexibility to absorb cyclical shocks. This positioning enables the company to fund transformation, repay debt with proceeds from asset sales, and invest selectively without immediate liquidity strain.

Negative Factors

Sustained net losses and weak profitability

Persistent negative net margins and operating losses erode equity and limit reinvestment capacity. Unless structural cost, pricing or product‑mix improvements occur, continued losses threaten long‑term returns on capital and constrain the ability to sustainably fund R&D or facility investments.

Lowered adjusted EBITDA guidance

A material downward revision to adjusted EBITDA signals persistent profitability pressures that are not merely timing driven. Reduced EBITDA guidance limits reinvestment and cushion for operating volatility, making margin recovery and return on capital harder to achieve over the medium term.

Automotive EV program delays and cancellations

Automotive is a core revenue driver; enduring program delays or cancellations create multi‑period volume shortfalls, idle launch costs and reduced forward visibility. These structural disruptions compress gross margins and can necessitate capacity and workforce adjustments with lasting profit impact.

Methode Electronics Business Overview & Revenue Model

Company Description

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.

How the Company Makes Money

Methode makes money primarily by selling engineered electronic components and subsystems to OEMs and tiered suppliers, with revenue recognized from manufacturing and delivering products under customer supply agreements and purchase orders. Its key revenue stream is the sale of automotive electronics (including application-specific modules and electronic assemblies used in vehicles), which typically involves long-running platform programs where Methode designs a product to meet a customer’s requirements and then produces it in volume over the life of the vehicle program. Additional revenue is generated from sales into non-automotive markets (e.g., industrial or other specialized applications) where it supplies similar categories of electronics such as sensors, power distribution/interconnect products, and interface/switching solutions. Earnings are driven by (1) program awards and production volumes tied to customers’ product cycles, (2) pricing and contractual terms (including any negotiated pass-throughs or adjustments for materials or other inputs where applicable), (3) manufacturing efficiency and yield that determine gross margin on produced assemblies, and (4) the mix of products (higher-value engineered modules versus more commodity-like components). Information on specific named partnerships that materially drive earnings is null.

Methode Electronics Financial Statement Overview

Summary

Overall financials are pressured by contracting revenue and sustained net losses (weak income statement), partially offset by a manageable leverage profile and positive TTM operating/free cash flow. Key risk remains restoring operating profitability to avoid further equity erosion.

Income Statement

TTM (Trailing-Twelve-Months) results show continued losses (net margin around -6%) with negative operating profit, while revenue fell sharply versus the prior period. Profitability has deteriorated meaningfully from 2021–2023 (when the company produced solid positive margins) to 2024–TTM, indicating weaker pricing/power, costs, or demand conditions. A modest positive EBITDA margin in TTM is a relative bright spot, but overall earnings quality is currently weak due to sustained net losses.

Balance Sheet

Leverage looks manageable with debt at roughly half of equity in TTM, providing some balance-sheet flexibility versus highly levered peers. However, equity has trended down from earlier years and returns on equity are negative in TTM, reflecting that the business is not currently generating profits on its capital base. Overall, the capital structure is not distressed, but profitability-driven pressure on equity is a key risk if losses persist.

Cash Flow

TTM (Trailing-Twelve-Months) cash generation is a clear positive: operating cash flow and free cash flow are both solidly positive, and free cash flow exceeds net loss (helped by non-cash charges and/or working-capital benefits). The main concern is volatility—free cash flow dropped sharply versus the prior period, and operating cash flow covers only a modest portion of total debt, which limits deleveraging speed if conditions worsen. Still, the shift from negative free cash flow in 2024/2025 annual periods to positive in TTM is constructive.

Breakdown	TTM	Apr 2025	Apr 2024	Apr 2023	Apr 2022	Apr 2021
Income Statement
Total Revenue	978.20M	1.05B	1.11B	1.18B	1.16B	1.09B
Gross Profit	143.80M	163.40M	180.50M	264.10M	264.90M	274.10M
EBITDA	39.20M	31.10M	-53.50M	142.30M	174.60M	191.60M
Net Income	-64.40M	-62.60M	-123.30M	77.10M	102.20M	122.30M
Balance Sheet
Total Assets	1.31B	1.31B	1.40B	1.58B	1.39B	1.47B
Cash, Cash Equivalents and Short-Term Investments	133.70M	103.60M	161.50M	157.00M	172.00M	233.20M
Total Debt	364.10M	343.20M	358.20M	335.40M	231.30M	263.70M
Total Liabilities	631.30M	612.50M	637.50M	626.20M	475.30M	549.00M
Stockholders Equity	675.00M	693.30M	766.00M	941.80M	913.80M	918.00M
Cash Flow
Free Cash Flow	42.80M	-15.20M	-2.70M	90.80M	60.80M	154.90M
Operating Cash Flow	68.50M	26.40M	47.50M	132.80M	98.80M	179.80M
Investing Cash Flow	-19.80M	-32.90M	-17.50M	-153.10M	-37.40M	-24.80M
Financing Cash Flow	-41.30M	-58.90M	-18.90M	3.20M	-114.60M	-142.90M

Methode Electronics Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 5.20
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MEI, the sentiment is Negative. The current price of 5.2 is below the 20-day moving average (MA) of 6.84, below the 50-day MA of 7.58, and below the 200-day MA of 7.41, indicating a bearish trend. The MACD of -0.84 indicates Positive momentum. The RSI at 25.53 is Positive, neither overbought nor oversold. The STOCH value of 23.77 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MEI.

Methode Electronics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VICR	77 Outperform	$7.47B	41.35	18.74%	―	11.55%	1745.46%
CTS	68 Neutral	$1.32B	19.37	11.94%	0.36%	3.70%	1.68%
ROG	68 Neutral	$1.76B	-27.26	-5.07%	―	-4.87%	-235.48%
BHE	62 Neutral	$1.93B	61.39	2.25%	1.44%	-2.93%	-40.33%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
PENG	58 Neutral	$920.85M	53.09	4.25%	―	10.76%	―
MEI	47 Neutral	$184.24M	-4.46	-9.42%	5.93%	-9.51%	29.57%

Methode Electronics Corporate Events

Methode Electronics Reshapes Executive Benefits and Compensation Plans

On December 16, 2025, Methode Electronics amended the change-in-control agreements for several top executives, including its chief financial officer, head of global automotive, chief procurement and EHS officer, and general counsel, reducing the duration of COBRA continuation coverage in the event of a qualifying change in control from 24 months to 18 months as part of the compensation committee’s annual review of these arrangements. Separately, on December 17, 2025, the board of directors approved the termination of the company’s Deferred Compensation Plan effective December 31, 2025, signaling a tightening and reshaping of executive benefits and post-employment protections that could affect the company’s cost structure and the overall design of its executive compensation program.

The most recent analyst rating on (MEI) stock is a Hold with a $7.00 price target. To see the full list of analyst forecasts on Methode Electronics stock, see the MEI Stock Forecast page.