Methode Electronics (MEI)
NYSE:MEI
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Methode Electronics
(NYSE:MEI)
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Rating:51Neutral
Price Target:
$7.00
▼(-5.41% Downside)
Action:ReiteratedDate:04/11/26
The score is held down primarily by weak financial performance (revenue contraction and sustained losses) and a reduced profitability outlook from the latest earnings call. Positive free cash flow, improved liquidity, and a high dividend yield provide partial support, while technicals remain mixed with the stock still below longer-term moving averages.
Positive Factors
Positive free cash flow & improved liquidity
Sustained positive free cash flow and a growing cash balance provide durable financial flexibility: they enable debt reduction, selective reinvestment, and funding for restructuring without relying on external financing. That cushioning supports multi-quarter recovery and execution of strategic shifts.
Negative Factors
Sustained net losses and revenue contraction
Ongoing net losses and shrinking revenue indicate impaired earnings power and capital erosion. Persistent negative margins undermine ROE, limit organic reinvestment, and can force continued asset sales or cost cuts if profitability does not recover, a multi‑month structural risk.
Read all positive and negative factors
Positive Factors
Negative Factors
Positive free cash flow & improved liquidity
Sustained positive free cash flow and a growing cash balance provide durable financial flexibility: they enable debt reduction, selective reinvestment, and funding for restructuring without relying on external financing. That cushioning supports multi-quarter recovery and execution of strategic shifts.
Read all positive factors
Methode Electronics (MEI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$253.33M
Dividend Yield5.93%
Average Volume (3M)247.15K
Price to Earnings (P/E)―
Beta (1Y)2.17
Revenue Growth-9.51%
EPS Growth29.57%
CountryUS
Employees7,500
SectorTechnology
Sector Strength88
IndustryHardware, Equipment & Parts
Share Statistics
EPS (TTM)-0.45
Shares Outstanding35,430,420
10 Day Avg. Volume226,219
30 Day Avg. Volume247,147
Financial Highlights & Ratios
PEG Ratio0.08
Price to Book (P/B)0.34
Price to Sales (P/S)0.23
P/FCF Ratio-15.60
Enterprise Value/Market Cap1.94
Enterprise Value/Revenue0.50
Enterprise Value/Gross Profit3.42
Enterprise Value/Ebitda12.56
Forecast
1Y Price Target
$10.00Price Target Upside35.14% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)-0.96
Revenue Forecast (FY)$960.63M
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...
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...
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 Earnings Call Summary
Earnings Call Date:Mar 05, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Jun 18, 2026
Earnings Call Sentiment Neutral
The call conveyed a mixed picture: strong cash generation, a healthier balance sheet, Industrial growth, and accelerating data center momentum are clear positives, as is active portfolio rationalization. Offsetting those strengths are material near-term profitability pressures — a sharply reduced adjusted EBITDA outlook, a worsening quarterly adjusted loss, and operational challenges in Mexico driven by EV program delays and some cancellations in North American automotive. Given the combination of meaningful operational and reporting headwinds alongside solid liquidity and strategic progress, the tone of the call is balanced between progress on long-term repositioning and near-term execution challenges.Positive Updates
Positive Free Cash Flow and Strong Cash Position
Generated $10.1M of free cash flow in Q3 and approximately $16.5M year-to-date; operating cash generation of $15.4M in the quarter. Ended the quarter with $133.7M in cash, up $30.1M year-over-year, and net debt down $16.9M versus prior year.
Negative Updates
Revenue Decline in the Quarter
Third quarter net sales were $233.7M, down 3% year-over-year from $239.9M, driven by lower automotive volumes (North American EV reductions) and an interface segment appliance program roll-off; Q3 is also seasonally the weakest quarter.
Read all updates
Q3-2026 Updates
Positive
Negative
Positive Free Cash Flow and Strong Cash Position
Generated $10.1M of free cash flow in Q3 and approximately $16.5M year-to-date; operating cash generation of $15.4M in the quarter. Ended the quarter with $133.7M in cash, up $30.1M year-over-year, and net debt down $16.9M versus prior year.
Read all positive updates
Company Guidance
Methode narrowed and updated its fiscal 2026 guidance, raising the low end of net sales by $50 million to a range of $950 million to $1.0 billion while lowering adjusted EBITDA to $58 million–$62 million (previously $70M–$80M), citing a ~$30 million FY foreign‑exchange tailwind (≈$25M through the first nine months) and EBITDA pressure concentrated in North American automotive and higher Mexico transformation costs (wages, professional fees); the company expects positive free cash flow in Q4 and for the full year (vs. a $15 million outflow in the prior year), and noted that the DataMate and Harvard Heights facility sales and any customer recoveries are not included in the guidance—key recent metrics: Q3 net sales $233.7M (down 3% YoY), Q3 adjusted EBITDA $7.3M, Q3 free cash flow $10.1M (operating cash generation $15.4M), cash of $133.7M (up $30.1M YoY), year‑to‑date free cash flow $16.5M, and net debt down $16.9M YoY; management also has line‑of‑sight to a $120M annualized data‑center run rate (vs. an $80–85M FY base) with a near‑term ~50% run‑rate increase YoY.Methode Electronics Financial Statement Overview
Summary
Income Statement
30
Negative
Balance Sheet
55
Neutral
Cash Flow
58
Neutral
| 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
Positive
7.40
Price Trends
7.14
Positive
7.14
Positive
7.20
Positive
Market Momentum
0.06
Negative
66.03
Neutral
94.00
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 7.4 is above the 20-day moving average (MA) of 5.93, above the 50-day MA of 7.14, and above the 200-day MA of 7.20, indicating a bullish trend. The MACD of 0.06 indicates Negative momentum. The RSI at 66.03 is Neutral, neither overbought nor oversold. The STOCH value of 94.00 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 36 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 |
|---|---|---|---|---|---|---|---|
77 Outperform | $8.45B | 41.35 | 18.74% | ― | 11.55% | 1745.46% | |
68 Neutral | $1.59B | 19.37 | 11.94% | 0.36% | 3.70% | 1.68% | |
68 Neutral | $2.12B | 91.57 | -5.07% | ― | -4.87% | -235.48% | |
62 Neutral | $2.31B | 63.85 | 2.25% | 1.44% | -2.93% | -40.33% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
61 Neutral | $1.24B | 7.25 | 9.21% | ― | 10.76% | ― | |
51 Neutral | $253.33M | -4.46 | -9.42% | 5.93% | -9.51% | 29.57% |
* Technology Sector Average
MEI
Methode Electronics
7.40
2.03
37.88%
BHE
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63.82
28.95
83.02%
CTS
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18.91
51.58%
ROG
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117.97
65.28
123.89%
VICR
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190.10
143.43
307.33%
PENG
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25.72
9.28
56.45%
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.