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Methode Electronics
(NYSE:MEI)
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Rating:51Neutral
Price Target:
$14.50
▼(-15.01% Downside)
Action:Reiterated
Date:09/26/26
MEI scores in the low-50s primarily due to weak financial performance (ongoing losses and especially weak TTM cash flow with negative free cash flow), partially offset by manageable leverage and signs of operational recovery. Technicals are mixed with near-term weakness but longer-term trend support. Valuation is constrained by loss-making earnings, while the latest earnings call was supportive due to reaffirmed FY2027 guidance and strong Industrial/data-center momentum despite continued execution and cash-flow risks.
Positive Factors
Industrial and Data Center Growth
Strong Industrial growth, particularly in data center power distribution, demonstrates demand for Methode’s engineered electronic solutions beyond automotive. Higher volumes and mix also lifted segment operating income, supporting a more diversified revenue base and a potentially stronger earnings trajectory.
Negative Factors
Persistent Losses
Methode has improved from its deeper 2024 loss, but it has not yet restored consistent earnings power. Negative net margins and thin operating profitability leave limited room for execution setbacks, reduce internally generated capital, and make the recovery dependent on sustained operational improvement.
Read all positive and negative factors
Positive Factors
Negative Factors
Industrial and Data Center Growth
Strong Industrial growth, particularly in data center power distribution, demonstrates demand for Methode’s engineered electronic solutions beyond automotive. Higher volumes and mix also lifted segment operating income, supporting a more diversified revenue base and a potentially stronger earnings trajectory.
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
$554.28M
Dividend Yield1.29%
Average Volume (3M)728.73K
Price to Earnings (P/E)―
Beta (1Y)2.13
Revenue Growth1.36%
EPS Growth32.69%
CountryUS
Employees6,650
SectorTechnology
Sector Strength88
IndustryHardware, Equipment & Parts
Share Statistics
EPS (TTM)-1.04
Shares Outstanding35,645,054
10 Day Avg. Volume600,823
30 Day Avg. Volume728,727
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 Cap1.29
Enterprise Value/Revenue0.69
Enterprise Value/Gross Profit3.56
Enterprise Value/Ebitda11.19
Forecast
1Y Price Target
$25.00Price Target Upside46.54% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)-0.57
Revenue Forecast (FY)$1.06B
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 components, modules, and subsystems to OEMs and Tier 1 suppliers (especially in automotive) under manufacturing supply arrangements. Revenue is largely generated on a per-unit basis as...
Methode Electronics Earnings Call Summary
Earnings Call Date:Sep 02, 2026
(Q1-2027)
| % Change Since: |
Next Earnings Date:Dec 03, 2026
Earnings Call Sentiment Positive
The call was predominantly positive. Revenue increased 10.4%, Industrial results were strong, new awards totaled $75 million of peak annual revenue, operational improvements were reported across several facilities and fiscal 2027 guidance was reaffirmed. These positives outweighed the adjusted EBITDA decline, higher selling and administrative expenses, automotive and Interface pressure, free cash flow outflow and ongoing restructuring work.Positive Updates
Strong First-Quarter Revenue Growth
First-quarter net sales increased 10.4% year-over-year to $265.4 million, primarily reflecting higher volumes and mix in the Industrial segment, including continued data center momentum.
Negative Updates
Adjusted EBITDA Decline and Ongoing Loss
First-quarter adjusted EBITDA declined to $13.7 million from $15.7 million. Adjusted net loss was $7.7 million, or $0.22 per diluted share, compared with an adjusted net loss of $7.8 million, or $0.22 per diluted share.
Read all updates
Q1-2027 Updates
Positive
Negative
Strong First-Quarter Revenue Growth
First-quarter net sales increased 10.4% year-over-year to $265.4 million, primarily reflecting higher volumes and mix in the Industrial segment, including continued data center momentum.
Read all positive updates
Company Guidance
Methode reaffirmed fiscal 2027 guidance for net sales in the range of $1.025 billion to $1.075 billion and adjusted EBITDA between $72 million and $82 million, representing an adjusted EBITDA margin of approximately 7% to 7.6%, with free cash flow comparable to fiscal 2026; all other elements of fiscal 2027 guidance remain unchanged. The guidance reflects data center growth, ongoing operational improvement in Mexico, improving commercial vehicle demand and further cost savings and operational improvements across the business, based on third-party industry forecasts, customer production schedules, current U.S. tariff policies and bank forecast for currency. Management said automotive revenue is flat, expects 500 basis points of performance improvement in Mexico to continue, and said 800-volt development is not included in fiscal 2027 revenue guidance; proof of concept is expected later this fiscal year, while the majority of the $75 million of peak annual revenue awards are expected to launch late next fiscal year or after.Methode Electronics Financial Statement Overview
Summary
Income Statement
42
Neutral
Balance Sheet
58
Neutral
Cash Flow
39
Negative
| Breakdown | TTM | Apr 2026 | Apr 2025 | Apr 2024 | Apr 2023 | Apr 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.04B | 1.02B | 1.05B | 1.11B | 1.18B | 1.16B |
| Gross Profit | 201.30M | 202.20M | 163.40M | 180.50M | 264.10M | 264.90M |
| EBITDA | 64.00M | 72.60M | 31.10M | -53.50M | 142.30M | 174.60M |
| Net Income | -36.80M | -35.70M | -62.60M | -123.30M | 77.10M | 102.20M |
Balance Sheet | ||||||
| Total Assets | 1.26B | 1.31B | 1.31B | 1.40B | 1.58B | 1.39B |
| Cash, Cash Equivalents and Short-Term Investments | 116.20M | 139.60M | 103.60M | 161.50M | 157.00M | 172.00M |
| Total Debt | 333.20M | 349.10M | 343.20M | 358.20M | 335.40M | 231.30M |
| Total Liabilities | 600.60M | 628.60M | 612.50M | 637.50M | 626.20M | 475.30M |
| Stockholders Equity | 663.10M | 677.50M | 693.30M | 766.00M | 941.80M | 913.80M |
Cash Flow | ||||||
| Free Cash Flow | -13.30M | 15.60M | -15.20M | -2.70M | 90.80M | 60.80M |
| Operating Cash Flow | 5.10M | 38.00M | 26.40M | 47.50M | 132.80M | 98.80M |
| Investing Cash Flow | 4.00M | 1.30M | -32.90M | -17.50M | -153.10M | -37.40M |
| Financing Cash Flow | -22.00M | -14.20M | -58.90M | -18.90M | 3.20M | -114.60M |
Methode Electronics Technical Analysis
Positive
17.06
Price Trends
15.28
Negative
14.59
Positive
11.02
Positive
Market Momentum
<0.01
Negative
53.44
Neutral
63.10
Neutral
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 17.06 is above the 20-day moving average (MA) of 14.27, above the 50-day MA of 15.28, and above the 200-day MA of 11.02, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 53.44 is Neutral, neither overbought nor oversold. The STOCH value of 63.10 is Neutral, 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 |
|---|---|---|---|---|---|---|---|
77 Outperform | $12.27B | 83.41 | 19.83% | 1.26% | 24.95% | 120.02% | |
73 Outperform | $1.63B | 23.78 | 12.52% | 0.28% | 8.48% | 13.14% | |
70 Outperform | $2.63B | 86.01 | 2.61% | ― | 4.90% | ― | |
66 Neutral | $2.93B | 55.32 | 4.81% | 0.83% | 8.87% | 39.10% | |
65 Neutral | $3.91B | 26.62 | 30.67% | ― | 26.50% | 186.04% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
51 Neutral | $554.28M | -15.37 | -5.46% | 1.29% | 1.36% | 32.69% |
* Technology Sector Average
MEI
Methode Electronics
15.55
8.58
123.13%
BHE
Benchmark Electronics
81.47
44.85
122.49%
CTS
CTS
57.25
20.89
57.45%
ROG
Rogers
147.41
62.84
74.31%
VICR
Vicor
266.07
214.11
412.07%
PENG
Penguin Solutions
76.28
53.96
241.76%
Methode Electronics Corporate Events
Business Operations and StrategyExecutive/Board Changes
Methode Electronics Adopts New Long-Term Executive Incentive Plan
Positive
Sep 25, 2026
On September 22, 2026, Methode Electronics’ Compensation Committee approved a fiscal 2027 long-term incentive program for executive officers, built around time-based restricted stock units and performance-based units under the new 2026 Omnib...
Business Operations and StrategyExecutive/Board ChangesShareholder Meetings
Methode Electronics Shareholders Approve 2026 Incentive Plan
Neutral
Sep 17, 2026
At its annual meeting on September 16, 2026, Methode Electronics’ stockholders approved the company’s 2026 Omnibus Incentive Plan, reinforcing its framework for equity and incentive compensation for directors, executives and employees....
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.