Methode Electronics (MEI) AI Stock Analysis

• Market Cap: $232.79M
• Dividend Yield: 6.15%
• Average Volume (3M): 271.80K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.03
• Revenue Growth: -4.91%
• EPS Growth: 61.77%
• Country: US
• Employees: 7,500
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): -0.29
• Shares Outstanding: 35,217,140
• 10 Day Avg. Volume: 234,882
• 30 Day Avg. Volume: 271,799
• 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: 1.93
• Enterprise Value/Revenue: 0.44
• Enterprise Value/Gross Profit: 2.78
• Enterprise Value/Ebitda: 36.62
• 1Y Price Target: $8.50
• Price Target Upside: 20.91% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 54 Neutral
• Price Target: $6.50 ▼(-7.54% Downside)

Methode Electronics' overall stock score is primarily influenced by its financial challenges, including declining revenues and profitability. However, the company's strong cash flow improvements and positive earnings call guidance provide some optimism for recovery. The technical indicators suggest a bearish trend, but the high dividend yield may appeal to certain investors.

Positive Factors

Cash Flow Improvements

Improved cash flow and debt reduction enhance financial flexibility, allowing Methode Electronics to invest in growth opportunities and manage economic downturns effectively.

Data Center Power Product Growth

Growth in data center products positions Methode Electronics to capitalize on the expanding demand for data infrastructure, supporting long-term revenue growth.

Leadership Updates

New leadership appointments bring experienced management, potentially improving strategic decision-making and financial oversight, strengthening the company's operational capabilities.

Negative Factors

Declining Revenue

Declining sales highlight challenges in maintaining revenue growth, which could affect long-term profitability and market competitiveness if not addressed.

Automotive Segment Challenges

Challenges in the automotive segment, a key market, may hinder overall growth and require strategic adjustments to align with industry shifts and customer needs.

Negative Profitability

Negative profitability metrics indicate operational inefficiencies and market pressures, potentially impacting long-term financial health and investment capacity.

Methode Electronics Business Overview & Revenue Model

Company Description

Methode Electronics, Inc. (MEI) is a global leader in the design and manufacture of customized solutions for various industries, including automotive, telecommunications, industrial, and medical sectors. The company specializes in providing advanced electronic and electromechanical components, including sensors, connectors, and control systems. MEI's innovative products are integral to enhancing connectivity, safety, and functionality in a range of applications, positioning the company as a key player in the evolving landscape of electronic solutions.

How the Company Makes Money

Methode Electronics generates revenue primarily through the sale of its electronic and electromechanical components and systems to OEMs (Original Equipment Manufacturers) and Tier 1 suppliers in its target industries. The company operates on a project-based revenue model, where it engages in long-term contracts with clients to develop customized solutions tailored to specific needs. Key revenue streams include sales of sensors, connectors, and other electronic components, as well as engineering and prototyping services. Additionally, Methode benefits from strategic partnerships with major players in the automotive and telecommunications sectors, which not only provides a steady stream of orders but also enhances its market visibility and growth potential. The company's focus on innovation and R&D further strengthens its competitive advantage, allowing it to capture emerging opportunities in high-demand markets.

Methode Electronics Financial Statement Overview

Summary

Methode Electronics faces financial challenges with declining revenues, profitability, and cash flow generation. The company shows increased leverage and reduced shareholder equity. Despite some balance sheet stability, the overall financial health reflects operational and strategic challenges that need addressing to improve financial performance.

Income Statement

Methode Electronics has experienced a declining revenue trajectory with a decrease in total revenue from $1.179 billion in 2023 to $1.048 billion in 2025. The net profit margin has turned negative, from a positive margin in earlier years to -5.97% in 2025, indicating profitability challenges. Gross profit margins have also decreased, pointing to increased cost pressures. The company's EBIT and EBITDA margins are also negative, reflecting operational inefficiencies.

Balance Sheet

The balance sheet shows a mixed picture. Stockholders' equity has decreased over the years, and the debt-to-equity ratio has increased, indicating rising leverage. The equity ratio remains relatively stable, suggesting some balance sheet stability. However, the declining return on equity, turning negative in 2025, raises concerns about shareholder value creation.

Cash Flow

Operating cash flow has declined significantly from 2021 to 2025, showing a weakening ability to generate cash from core operations. Free cash flow has also turned negative, primarily due to reduced operating cash flow and continuous capital expenditures. The ratio of operating cash flow to net income is volatile, and the free cash flow to net income ratio is negative, indicating cash flow challenges.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.03B	1.05B	1.11B	1.18B	1.16B	1.09B
Gross Profit	162.30M	163.40M	178.80M	264.10M	264.90M	274.10M
EBITDA	12.30M	31.10M	-52.80M	151.60M	174.60M	191.60M
Net Income	-54.60M	-62.60M	-123.30M	77.10M	102.20M	122.30M
Balance Sheet
Total Assets	742.10M	1.31B	1.40B	1.58B	1.39B	1.47B
Cash, Cash Equivalents and Short-Term Investments	121.10M	103.60M	161.50M	157.00M	172.00M	233.20M
Total Debt	347.60M	343.20M	358.20M	335.40M	231.30M	263.70M
Total Liabilities	603.20M	612.50M	637.50M	637.30M	475.30M	549.00M
Stockholders Equity	688.10M	693.30M	766.00M	941.80M	913.80M	918.00M
Cash Flow
Free Cash Flow	38.00M	-15.20M	-2.70M	90.80M	60.80M	154.90M
Operating Cash Flow	40.60M	26.40M	47.50M	132.80M	98.80M	179.80M
Investing Cash Flow	-25.10M	-32.90M	-17.50M	-153.10M	-37.40M	-24.80M
Financing Cash Flow	-15.20M	-58.90M	-18.90M	3.20M	-114.60M	-142.90M

Methode Electronics Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 7.03
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 7.03 is above the 20-day moving average (MA) of 6.96, below the 50-day MA of 7.40, and below the 200-day MA of 7.64, indicating a bearish trend. The MACD of -0.21 indicates Positive momentum. The RSI at 36.49 is Neutral, neither overbought nor oversold. The STOCH value of 13.07 is Positive, 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	73 Outperform	$3.95B	48.40	13.89%	―	11.55%	1745.46%
BHE	69 Neutral	$1.54B	41.01	3.37%	1.50%	-2.93%	-40.33%
CTS	68 Neutral	$1.26B	21.99	10.98%	0.39%	3.70%	1.68%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
PENG	57 Neutral	$1.14B	77,513.97	6.17%	―	16.91%	―
ROG	56 Neutral	$1.48B	-22.69	-5.34%	―	-4.87%	-235.48%
MEI	54 Neutral	$232.79M	―	-7.62%	6.15%	-4.91%	61.77%

Methode Electronics Corporate Events

Methode Electronics Stockholders Approve Key Proposals

At the annual meeting of stockholders held on September 17, 2025, Methode Electronics, Inc. stockholders voted on several proposals. These included the election of seven directors, ratification of Ernst & Young LLP as the independent accounting firm for the fiscal year ending May 2, 2026, and an advisory vote on executive compensation. The results showed strong support for the directors and the accounting firm, while the executive compensation received mixed feedback.

The most recent analyst rating on (MEI) stock is a Hold with a $8.50 price target. To see the full list of analyst forecasts on Methode Electronics stock, see the MEI Stock Forecast page.

Methode Electronics’ Earnings Call: Growth Amid Challenges

The recent earnings call for Methode Electronics painted a picture of robust performance in certain areas, tempered by challenges in others. The company reported strong sales growth in its Data Center Power Products and significant operational improvements, including increased operating income and strong free cash flow. However, these positive developments were somewhat overshadowed by difficulties in the Automotive segment and a decline in overall sales. Despite these hurdles, the company remains optimistic about its future, particularly with its guidance for fiscal 2026, which projects a doubling of EBITDA.

Methode Electronics Appoints New Chief Accounting Officer

On September 7, 2025, Methode Electronics appointed Stacie Schulz as Chief Accounting Officer, effective September 11, 2025. Schulz, with a robust background in accounting roles at Superior Industries International and Tenneco, will report to CFO Laura Kowalchik. Her compensation package includes a $350,000 annual salary, bonuses, and long-term incentives. This strategic appointment aims to bolster Methode’s financial leadership and operational efficiency.

The most recent analyst rating on (MEI) stock is a Hold with a $8.50 price target. To see the full list of analyst forecasts on Methode Electronics stock, see the MEI Stock Forecast page.

Methode Electronics Reports Q1 Fiscal 2026 Results

Methode Electronics, Inc. is a global supplier specializing in custom-engineered solutions for user interface, lighting, and power distribution applications across various industries, including automotive and cloud computing infrastructure.

Methode Electronics Awards RSUs and PSUs to Executives

On August 8, 2025, Methode Electronics‘ Compensation Committee awarded restricted stock units (RSUs) and performance-based stock units (PSUs) to its executive officers as part of the 2026 Long-Term Incentive Program. This initiative, developed with insights from an independent consultant and investor feedback, aims to enhance the company’s operating performance and retention objectives by balancing performance-based and time-based awards.

The most recent analyst rating on (MEI) stock is a Buy with a $14.00 price target. To see the full list of analyst forecasts on Methode Electronics stock, see the MEI Stock Forecast page.