Methode Electronics (MEI) AI Stock Analysis

• Market Cap: $272.93M
• Dividend Yield: 6.32%
• Average Volume (3M): 470.63K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.89
• 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: 530,548
• 30 Day Avg. Volume: 470,626
• 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: 1.65
• Enterprise Value/Revenue: 0.44
• Enterprise Value/Gross Profit: 2.78
• Enterprise Value/Ebitda: 36.62
• 1Y Price Target: $11.25
• Price Target Upside: 49.80% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 54 Neutral
• Price Target: $7.50 ▼(-0.13% Downside)

Methode Electronics' overall stock score reflects financial challenges with declining revenues and profitability, offset by strong cash flow improvements and positive earnings call guidance. Technical indicators are mixed, and valuation concerns persist due to a negative P/E ratio, though the high dividend yield provides some support.

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. 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 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: Neutral
• Last Price: 7.51
• 50DMA: Positive
• 100DMA: Positive
• 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 Neutral. The current price of 7.51 is below the 20-day moving average (MA) of 7.82, above the 50-day MA of 7.15, and below the 200-day MA of 8.39, indicating a neutral trend. The MACD of 0.21 indicates Positive momentum. The RSI at 51.18 is Neutral, neither overbought nor oversold. The STOCH value of 16.17 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for MEI.

Methode Electronics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TTMI	79 Outperform	5.59B	61.17	3.60%	―	14.24%	424.78%
CTS	76 Outperform	1.20B	19.30	6.05%	0.40%	1.16%	19.81%
BHE	69 Neutral	1.42B	37.75	1.89%	1.77%	-5.95%	-43.46%
VPG	67 Neutral	430.11M	-330.08	3.08%	―	-11.47%	-106.18%
ROG	62 Neutral	1.44B	-22.38	-5.37%	―	-7.61%	-212.91%
MEI	54 Neutral	$272.93M	―	-7.62%	6.32%	-4.91%	61.77%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Methode Electronics Corporate Events

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.