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Methode Electronics
(NYSE:MEI)
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Rating:49Neutral
Price Target:
$16.50
▲(7.77% Upside)
Action:Reiterated
Date:07/30/26
MEI scores below average primarily due to weak recent financial performance (multi-year losses, margin compression, and inconsistent free cash flow). The outlook is partially supported by improved operational execution and FY2027 EBITDA guidance (including a sizable data-center growth ramp), but near-term technicals are soft and valuation remains constrained by ongoing unprofitability; the closed SEC inquiry is a modest positive.
Positive Factors
Data center revenue ramp
A planned ~$50M uplift in data-center sales reflects diversification away from cyclical automotive exposure into hyperscale bus-bar programs. The shift from spot buys to multi-week EDI relationships improves revenue predictability and recurring content per customer, supporting sustainable top-line and margin mix benefits over the coming years.
Negative Factors
Persistent net losses
Three consecutive years of net losses and compressed gross margins (~16–20% vs prior low/mid‑20% range) indicate structural profitability challenges. Continued adjusted net losses pressure equity, limit reinvestment capacity and require sustained margin recovery to restore long-term financial stability and shareholder returns.
Read all positive and negative factors
Positive Factors
Negative Factors
Data center revenue ramp
A planned ~$50M uplift in data-center sales reflects diversification away from cyclical automotive exposure into hyperscale bus-bar programs. The shift from spot buys to multi-week EDI relationships improves revenue predictability and recurring content per customer, supporting sustainable top-line and margin mix benefits over the coming years.
Read all positive factors
Methode Electronics Key Performance Indicators (KPIs)
Any
Operating Income by Segment
Shows the profit earned from each segment after deducting operating expenses, indicating which segments are most profitable and efficient.
Shows the profit earned from each segment after deducting operating expenses, indicating which segments are most profitable and efficient.
Data provided by:
The Fly
The FlyMethode Electronics (MEI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$608.38M
Dividend Yield1.17%
Average Volume (3M)858.11K
Price to Earnings (P/E)―
Beta (1Y)2.02
Revenue Growth-2.76%
EPS Growth42.91%
CountryUS
Employees6,650
SectorTechnology
Sector Strength88
IndustryHardware, Equipment & Parts
Share Statistics
EPS (TTM)-1.01
Shares Outstanding35,494,940
10 Day Avg. Volume629,053
30 Day Avg. Volume858,113
Financial Highlights & Ratios
PEG Ratio0.20
Price to Book (P/B)0.45
Price to Sales (P/S)0.30
P/FCF Ratio19.62
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$19.33Price Target Upside26.28% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)-0.37
Revenue Forecast (FY)$1.00B
Methode Electronics Business Overview & Revenue Model
Company Description
Methode Electronics, Inc. designs, engineers, produces, and sells mechatronic products internationally. The company operates in three segments: Automotive, Industrial, and Interface. The Automotive segment supplies electronic and electro-mechanica...
How the Company Makes Money
Methode makes money primarily by selling engineered electronic/electromechanical products and assemblies to OEMs and tiered suppliers, with automotive programs representing the core of its business. Its revenue model is largely based on (1) long-t...
Methode Electronics Earnings Call Summary
Earnings Call Date:Jun 24, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Aug 27, 2026
Earnings Call Sentiment Positive
The call presented a clear turnaround narrative: the company achieved meaningful margin expansion, positive free cash flow, debt reduction, and strong growth prospects in data centers and industrial end markets. However, material headwinds remain from automotive EV program delays, a heavily contracted Interface business, ongoing adjusted net losses, and realizable timing risk around customer recoveries. Management provided constructive guidance for modest top-line growth and higher adjusted EBITDA in the coming year, supported by operational improvements and portfolio focus.Positive Updates
Adjusted EBITDA and Margin Expansion
Adjusted EBITDA increased 60% year-over-year to $68.2 million for the fiscal year; fourth quarter adjusted EBITDA was $26.9 million versus a loss of $7.1 million in the prior-year quarter, reflecting stronger operational execution, customer recoveries and disciplined cost management.
Negative Updates
Full-Year Revenue Decline
Fiscal year net sales declined ~2.8% (management also referenced ~3%) to approximately $1.0 billion, reflecting North American auto program roll-offs, EV program delays/cancellations, a one-week shorter fiscal year, and portfolio divestitures.
Read all updates
Q4-2026 Updates
Positive
Negative
Adjusted EBITDA and Margin Expansion
Adjusted EBITDA increased 60% year-over-year to $68.2 million for the fiscal year; fourth quarter adjusted EBITDA was $26.9 million versus a loss of $7.1 million in the prior-year quarter, reflecting stronger operational execution, customer recoveries and disciplined cost management.
Read all positive updates
Company Guidance
For fiscal 2027 Methode guided net sales of $1.025–$1.075 billion (≈3% growth vs FY2026; ≈8% growth excluding portfolio refinements and FY2026 customer recoveries), adjusted EBITDA of $72–$82 million (implying a ~7.0–7.6% margin; ~13% growth vs FY2026 and ~82% growth ex-refinements/recoveries), capital expenditures of $25–$30 million, depreciation & amortization of $58–$62 million, interest expense of $20–$22 million, income tax expense of $24–$26 million, and free cash flow expected to be comparable to FY2026; management also expects data center sales to increase from about $80 million to $130 million (~60% / ~$50 million incremental), a lighter first quarter with a second-half ramp, ongoing operational improvements (including Mexico and European restructuring savings) and continued focus on margin expansion and debt reduction.Methode Electronics Financial Statement Overview
Summary
Income Statement
38
Negative
Balance Sheet
55
Neutral
Cash Flow
52
Neutral
| Breakdown | Apr 2026 | Apr 2025 | Apr 2024 | Apr 2023 | Apr 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.02B | 1.05B | 1.11B | 1.18B | 1.16B |
| Gross Profit | 202.20M | 163.40M | 180.50M | 264.10M | 264.90M |
| EBITDA | 72.60M | 31.10M | -53.50M | 142.30M | 174.60M |
| Net Income | -35.70M | -62.60M | -123.30M | 77.10M | 102.20M |
Balance Sheet | |||||
| Total Assets | 1.31B | 1.31B | 1.40B | 1.58B | 1.39B |
| Cash, Cash Equivalents and Short-Term Investments | 139.60M | 103.60M | 161.50M | 157.00M | 172.00M |
| Total Debt | 349.10M | 343.20M | 358.20M | 335.40M | 231.30M |
| Total Liabilities | 628.60M | 612.50M | 637.50M | 626.20M | 475.30M |
| Stockholders Equity | 677.50M | 693.30M | 766.00M | 941.80M | 913.80M |
Cash Flow | |||||
| Free Cash Flow | 15.60M | -15.20M | -2.70M | 90.80M | 60.80M |
| Operating Cash Flow | 38.00M | 26.40M | 47.50M | 132.80M | 98.80M |
| Investing Cash Flow | 1.30M | -32.90M | -17.50M | -153.10M | -37.40M |
| Financing Cash Flow | -14.20M | -58.90M | -18.90M | 3.20M | -114.60M |
Methode Electronics Technical Analysis
Positive
15.31
Price Trends
14.97
Positive
11.76
Positive
9.46
Positive
Market Momentum
0.54
Negative
59.18
Neutral
82.41
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MEI, the sentiment is Positive. The current price of 15.31 is below the 20-day moving average (MA) of 15.68, above the 50-day MA of 14.97, and above the 200-day MA of 9.46, indicating a bullish trend. The MACD of 0.54 indicates Negative momentum. The RSI at 59.18 is Neutral, neither overbought nor oversold. The STOCH value of 82.41 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MEI.
Methode Electronics Risk Analysis
Methode Electronics disclosed 40 risk factors in its most recent earnings report. Methode Electronics reported the most risks in the "Production" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Methode Electronics Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $2.55B | 82.61 | 2.61% | ― | 4.90% | ― | |
73 Outperform | $1.81B | 26.23 | 12.52% | 0.27% | 8.48% | 13.14% | |
71 Outperform | $10.82B | 73.59 | 19.83% | ― | 24.95% | 120.02% | |
68 Neutral | $2.94B | 55.24 | 4.81% | 0.84% | 8.87% | 39.10% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
57 Neutral | $3.27B | 43.46 | 17.37% | ― | 11.97% | ― | |
49 Neutral | $608.38M | -16.99 | -5.25% | 1.31% | -2.76% | 42.91% |
* Technology Sector Average
MEI
Methode Electronics
17.14
10.57
160.92%
BHE
Benchmark Electronics
81.75
42.65
109.06%
CTS
CTS
63.47
22.30
54.16%
ROG
Rogers
142.91
67.13
88.59%
VICR
Vicor
234.74
186.61
387.72%
PENG
Penguin Solutions
63.80
39.08
158.09%
Methode Electronics Corporate Events
Legal ProceedingsRegulatory Filings and Compliance
Methode Electronics Cleared as SEC Inquiry Concludes
Positive
May 15, 2026
Methode Electronics disclosed that it had been under investigation by the U.S. Securities and Exchange Commission regarding unspecified matters. On May 14, 2026, the company was informed by SEC staff that the inquiry was closed with no recommendat...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.