Methode Electronics Inc
🔔 Watch stock
Assessment
Our Rating
A journalistic assessment by our editorial team at the time of the deep dive — it rates the company, not the entry point. Not investment advice and not a solicitation to buy or sell.
We found at least one documented issue that threatens the company itself — regardless of how the stock is currently valued.
Why this colour
This rating judges the company, not the share price — and here the substance findings outweigh the operating improvement. On the record: interest coverage of 0.38 in fiscal 2026, a revolving facility cut in three steps from $750 million to $400 million with $326.4 million drawn and maturity on October 31, 2027, an event of default acknowledged and waived on September 8, 2025, monthly reporting to the lenders through maturity, and a goodwill cushion below ten percent at the largest reporting unit. Against that stand real strengths: an industrial business at a 21.9 percent margin, an equity ratio of roughly 51.9 percent, $139.6 million of cash and free cash flow that is positive again. That rules out an existential scenario, but it does not lift the rating: interest coverage below one, combined with a refinancing the company itself will not guarantee, is a substance risk — and in case of doubt the more cautious grade applies. The decision is yours.
What the thesis turns on
Assessment: Opportunities & Risks
Methode Electronics is two companies in one wrapper. The industrial business earned $114.6 million on a 21.9 percent margin in fiscal 2026 and grew 7.6 percent; the automotive business lost $30.1 million as series programs rolled off and the electric ramp arrived more slowly than planned. Operationally, 2026 was the best year in three: gross margin from 15.6 to 19.8 percent, operating income positive again at $8.8 million, $38.0 million of cash from operations, and the SEC investigation closed with no enforcement action. All of that rests on a balance sheet that puts $326.4 million of borrowings due on October 31, 2027 and whose interest bill is covered only 0.38 times by operating income — and on a tax charge that turned the progress into a third consecutive annual loss. Not investment advice.
Industrial business
The Industrial segment lifted net sales 7.6 percent to $524.3 million in fiscal 2026, gross margin from 29.6 to 31.9 percent and income from operations from $90.0 million to $114.6 million — 21.9 percent of net sales. At 51.4 percent of consolidated net sales it is the largest segment for the first time. Power distribution for data centers and lighting for the off-highway market carried the growth.
Automotive segment
Automotive lost 8.1 percent of net sales in fiscal 2026, falling to $467.7 million, and posted minus $30.1 million (prior year: minus $47.7 million). In North America revenue dropped $49.0 million to $188.1 million as programs rolled off. Segment gross margin rose from 0.9 to 5.9 percent only because $22.5 million of customer recoveries came in — a negotiated outcome, not recurring income.
Interest burden and maturity
Operating income of $8.8 million met interest expense of $23.3 million in fiscal 2026 — interest coverage of 0.38. The revolving facility was cut from $750 million to $500 million and then $400 million, $326.4 million was drawn as of May 2, 2026, and maturity falls on October 31, 2027. The company itself does not rule out that refinancing succeeds only on less favorable terms.
Earnings quality and taxes
A pre-tax loss of $10.7 million became a net loss of $35.7 million through $25.0 million of income tax expense — the third consecutive annual loss after $62.6 million (2025) and $123.3 million (2024). The cause is the split between a $90.7 million U.S. loss and $80.0 million of foreign profit; the valuation allowance on deferred tax assets rose from $5.8 million to $21.1 million within two years.
Balance sheet and goodwill
As of May 2, 2026 equity stood at $677.5 million against $1,306.1 million of total assets, cash rose to $139.6 million, and operating cash flow reached $38.0 million against $22.4 million of capital expenditure. Against that: $393.8 million of the balance sheet is goodwill and intangibles, and at the largest position — $125.1 million at Grakon Industrial — the impairment cushion is below ten percent.
Regulator and governance
The SEC concluded its 2024 investigation on May 14, 2026 without recommending enforcement, and Ernst & Young issued unqualified opinions on the statements and on internal control as of May 2, 2026. Shareholder suits from 2024 remain open and the company cannot estimate the possible loss. An event of default under the credit agreement ($2.8 million of restricted payments against a $2.5 million basket) was waived on September 8, 2025.
Worth Noting
Hook: in-house stock scanner, "Richard Moglen: 1 Week Top Performers" (U.S. selection), rank 19 of 28, RS rating 94, as of July 25, 2026. The lists are recalculated daily.
Metrics as of July 25, 2026 (closing price of July 24, 2026). All business figures come from the Form 10-K for the fiscal year ended May 2, 2026, filed June 24, 2026.
Market capitalization cross-check: the last price documented in a required filing is $6.94 (average for shares surrendered for tax withholding, April 5 to May 2, 2026); the price as of July 24, 2026 was more than twice as high. The analysis therefore gives a range for the price-to-sales ratio rather than a fixed market capitalization.
Possible confusion: the Form 15-12G and 25-NSE filings from January 2014 under the same CIK relate to moving the listing from Nasdaq to the NYSE, not to a deregistration of the common stock. Methode remains listed on the NYSE and files 10-K and 10-Q reports.
No pending transaction: filings through July 26, 2026 contain no indication of an acquisition, a take-private or a merger.
Stock Watch
This analysis is as of August 26, 2026. Stock Watch will tell you what's changed at MEI since then.
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Price history
Chart
Interactive price chart (TradingView).
52-week range: 5.10 $ to 19.40 $ · Last price: 13.50 $ (As of: September 17, 2026)
Key figures
Key figures at a glance
Every figure we hold for this stock, grouped by topic. The question mark next to a label explains what the number means.
Basics
Performance
Technical Indicators
Calculated from the price history · as of 09/18/2026
Valuation
Profitability
Balance Sheet & Safety
Growth
Dividend
Quality & Screener
Highlighted are things our editorial team noticed: green = stands out as strong, red = deserves a closer look. No single metric is a verdict on its own — always read it in context.
Comparison
Industry comparison
The stock alongside the largest companies in the same group. The median row is the middle value of the companies shown above — not of the whole industry.
Industry: Electronic Components
| Company | Market cap ($B) | P/E | EV/EBITDA | Gross Margin % | EBIT Margin % | Sales Growth (Year) % | Perf. 1Y % |
|---|---|---|---|---|---|---|---|
| Methode Electronics Inc MEI | 0.5 | – | 10.8 | 19.8 | – | -2.8 | 71.2 |
| Corning Incorporated GLW | 127.2 | 68.9 | 35.8 | 36.4 | 15.7 | 19.1 | 93.9 |
| Amphenol Corporation APH | 96.5 | 22.3 | 23.8 | 39.0 | 27.3 | 51.7 | 33.1 |
| TE Connectivity Ltd TEL | 59.8 | 20.2 | 13.2 | 36.1 | 20.8 | 7.9 | -3.5 |
| Flex Ltd FLEX | 41.0 | 41.3 | 20.9 | 9.5 | 5.7 | 8.1 | 93.1 |
| Jabil Circuit Inc JBL | 31.6 | 35.3 | 16.7 | 9.2 | 5.2 | 3.2 | 39.5 |
| Fabrinet FN | 14.4 | 30.6 | 20.6 | 12.0 | 9.9 | 18.6 | 6.3 |
| TTM Technologies Inc TTMI | 11.9 | 93.8 | 30.2 | 21.2 | 8.6 | 19.0 | 134.1 |
| Vicor Corporation VICR | 10.7 | 69.1 | 73.4 | 56.6 | 15.0 | 13.6 | 314.5 |
| Median of companies shown | 31.6 | 38.3 | 20.9 | 21.2 | 12.4 | 13.6 | 71.2 |
Based on the most recently reported figures. Only stocks from the same trading venue are lined up, so the market caps are counted in one currency. Compare in a chart →
Fiscal years
Annual Figures
Fiscal years from the audited annual reports, oldest first. EBIT is the operating profit before interest and taxes; total assets are everything the company owns.
Revenue, operating income and net income per fiscal year $M
Revenue Operating income Net income
| Fiscal Year | Revenue ($M) | EBIT ($M) | Net Income ($M) | EPS ($) | Operating Cash Flow ($M) | Equity ($M) | Total Assets ($M) |
|---|---|---|---|---|---|---|---|
| 2017 | 817 | 111 | 93 | 2.48 | 145 | 541 | 704 |
| 2018 | 908 | 118 | 57 | 1.52 | 118 | 630 | 916 |
| 2019 | 1,000 | 107 | 92 | 2.43 | 102 | 690 | 1,232 |
| 2020 | 1,024 | 147 | 123 | 3.26 | 141 | 783 | 1,371 |
| 2021 | 1,088 | 128 | 122 | 3.19 | 180 | 918 | 1,467 |
| 2022 | 1,164 | 112 | 102 | 2.70 | 99 | 914 | 1,389 |
| 2023 | 1,180 | 90 | 77 | 2.10 | 133 | 942 | 1,579 |
| 2024 | 1,115 | -112 | -123 | -3.48 | 48 | 766 | 1,404 |
| 2025 | 1,048 | -24 | -63 | -1.76 | 26 | 693 | 1,306 |
| 2026 | 1,019 | 9 | -36 | -1.01 | 38 | 678 | 1,306 |
Quarters
Quarterly Figures
Each bar is one quarter, the last one is the most recent. Use the switch to step through the individual figures.
Revenue & Profit
Cash Flow
Balance Sheet
Margins
Per Share
Click the chart or tab into it, then use ← and → to step through the periods.
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· Total · per year
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The figures could not be loaded right now.
Source: fundamental data
| Quarter | EPS (Earnings Per Share) | EPS YoY (%) | Sales ($M) | Sales YoY (%) | Net Margin (%) | OCF ($M) | FCF ($M) |
|---|---|---|---|---|---|---|---|
| 2024: Q4 | -0.05 | – | 293 | 1.60 | -0.50 | -48 | -58 |
| 2025: Q1 | -0.41 | – | 240 | -7.60 | -6.00 | 28 | 52 |
| 2025: Q2 | -0.80 | – | 257 | -7.30 | -11.00 | 35 | 26 |
| 2025: Q3 | -0.29 | – | 241 | -7.00 | -4.30 | 25 | 18 |
| 2025: Q4 | -0.28 | – | 247 | -15.60 | -4.00 | -7 | -12 |
| 2026: Q1 | -0.45 | – | 234 | -2.60 | -6.80 | 15 | 10 |
| 2026: Q2 | 0.01 | 101.30 | 298 | 15.90 | 0.10 | 5 | -1 |
| 2026: Q3 | -0.32 | -10.30 | 265 | 10.40 | -4.30 | -8 | -11 |
What Do These Terms Mean?
- EPS (Earnings Per Share):
- Quarterly profit divided by the total share count — how much of the profit works out to a single share.
- YoY (Year over Year):
- Change versus the same quarter a year ago — this is how you compare without seasonal distortion (e.g. the holiday shopping season).
- Sales:
- All revenue for the quarter, before any costs are deducted — the top line of the income statement.
- Net Margin:
- What percentage of sales is left over as profit in the end. Negative means the company is posting a loss.
- OCF (Operating Cash Flow):
- The cash that actually flows into the till from the core business during the quarter — harder to dress up than book profit.
- FCF (Free Cash Flow):
- Operating cash flow minus capital expenditures — the money that's genuinely free to use, say for paying down debt, buybacks, or dividends.
Screening
Appears in These Scanners
This stock currently matches 18 of our scanner strategies — each hit links to the scanner.
Growth
Quality & Balance Sheet
Breakout & Setup
Dividends
Momentum & Trend
- 21-EMA Trend
- Above the 50- & 200-SMA
- High ADR (≥5%)
- Mark Minervini: Trend Criteria — 1 Month
- Near 52-Week High
- Qullamaggie: Trend Intensity (13/65)
- RS Leader (≥90)
- RS New Highs
- Richard Moglen: 1 Week Top Performers
- Richard Moglen: Top Performers 3/6 Month
- Stan Weinstein: Checklist
- Stan Weinstein: Stage 2
Research
Only genuine hits from verified scanners count; pure ranking metrics (P/E, P/S, and similar, which just sort the whole universe) don't count as a hit. Scanners marked in red are red-flag signals (risk/short scanners) — appearing there is not a seal of approval. View all scanners
Outlook
Analysts & Price Target
Combined picture of the price targets and recommendations of every analyst covering the stock. Price targets are expectations for the next 12 months, not promises — and they often follow the price rather than predict it.
Distribution of Recommendations
Estimates by Fiscal Year
| Fiscal Year | EPS Estimate ($) | EPS Range ($) | Revenue Estimate ($M) | Expected Growth | Analysts |
|---|---|---|---|---|---|
| 04/30/2027 | -0.44 | -0.69 – -0.26 | 1,061 | 58.6% | 3 |
| 04/30/2028 | 0.41 | -0.07 – 0.69 | 1,122 | 192.5% | 3 |
Average of the analyst estimates for the coming fiscal years. The range shows how far the most optimistic and the most cautious estimate sit apart — the wider it is, the less certain the expectation.
Valuation
What is priced in?
Free cash flow over the past twelve months is negative, which rules out a serious reverse calculation. Any growth rate only makes a negative cash flow more negative; no present value comes out of it. What the price reflects here is therefore not a stream of cash flows, but the expectation that there will be one at all.
A simplified model calculation — not a forecast and not a recommendation.
AI classification
AI Rating
Methode Electronics setzt KI- und Maschinenlern-Werkzeuge nach eigener Angabe intern in Entwicklung, Fertigung, Finanzen und weiteren Funktionen ein; eigene KI-Umsaetze weist der Konzern nicht aus, benennt aber die Abhaengigkeit des Rechenzentrums-Geschaefts von KI-Investitionen als Risiko.
View the full file — quotes, sources, reviewed filings
„We also use artificial intelligence and machine learning tools internally, including in engineering, manufacturing, finance, and other business functions."
Wir setzen zudem intern Werkzeuge der kuenstlichen Intelligenz und des maschinellen Lernens ein, unter anderem in Entwicklung, Fertigung, Finanzen und anderen Unternehmensfunktionen.
10-K · 2026-06-24 · View SEC filing
„Additional risks for the data center market include rapid technological change, evolving standards, pricing pressure and margin compression, scalability challenges, dependence on AI investment and broader technological trends, capital intensity, and inventory risk."
Weitere Risiken fuer den Rechenzentrumsmarkt sind rascher technologischer Wandel, sich veraendernde Standards, Preisdruck und Margenverfall, Skalierungsprobleme, die Abhaengigkeit von Investitionen in kuenstliche Intelligenz und breiteren technologischen Trends, Kapitalintensitaet sowie Bestandsrisiken.
10-K · 2026-06-24 · View SEC filing
Filings Reviewed: 10-K 2026-06-24 · 8-K 2026-06-24 · 8-K 2026-05-15 · 10-Q 2026-03-05 · 8-K 2025-12-18 · 10-Q 2025-12-03
Rated on July 26, 2026 · How the Rating Is Built
Growth
Growth Score
Ten checks against the annual reports — each one passed counts a point.
- Revenue grows by more than 15% a year over three years -4.8%
- More than 10% revenue growth is expected for the coming year 4.2%
- Share count grows by less than 3% a year -1.2%
- Revenue growth plus cash-flow margin add up to at least 40 ("Rule of 40") -1.2%
- Gross margin at 40% or higher and without meaningful erosion 19.8%
- Goodwill from acquisitions does not grow faster than revenue 13.4%
- Net debt below twice EBITDA 2.9 x EBITDA
- Operating cash flow covers the profits of the last three years 334 m
- Return on capital at 15% or higher, or up versus two years ago 0.8%
- Insiders hold at least 10% or are net buyers 3.6%
A criterion without figures counts neither as passed nor as failed; a score is only produced from 7 judgeable criteria upwards. Source: fundamental data. All ten criteria in detail
Quality check
AAQS
0/10The AAQS (AlleAktien Quality Score) checks 10 quality criteria on growth, profitability, and balance-sheet strength — per the methodology developed and published by AlleAktien, calculated by us from our own fundamental data. A stock counts as a quality stock from 9 out of 10 points. Where a company has a shorter listing history, we calculate over the fiscal years available (at least five).
- Sales growth 10Y > 5% 2.5%
- Exp. sales growth 3Y > 5% 4.9%
- EBIT growth 10Y > 5% -24.5%
- Exp. EBIT growth 3Y > 5% 4.9%
- Net debt < 4x EBIT 23.8x
- EBIT positive, 10Y straight 8
- Max. EBIT decline < 50% 100.0%
- Return on equity > 15% -12.6%
- ROCE > 15% 0.8%
- Expected return > 10% 8.2%
View stocks with the full AAQS score · Read the methodology at AlleAktien
Source: fundamental data
Insiders
Insider Transactions
Reportable transactions by officers and major shareholders from SEC Form 4 filings. "Other" includes things like stock grants and option exercises without a buy/sell character.
| Date | Person | Role | Type | Shares | Price | Value |
|---|---|---|---|---|---|---|
| Sep 11, 2026 | Erwin John Thomas | CPO & EHS Officer | Other | 5,667 | 14.61 | 82,795 |
| Sep 2, 2026 | Schulz Stacie | Chief Accounting Officer | Other | 1,649 | 18.10 | 29,847 |
| Aug 8, 2026 | Erwin John Thomas | CPO & EHS Officer | Other | 4,068 | 16.67 | 67,814 |
| Aug 8, 2026 | Ullrich Lars | SVP Global Automotive Business | Other | 8,157 | 16.67 | 135,977 |
| Aug 8, 2026 | Vyverberg Kerry A. | General Counsel | Other | 4,327 | 16.67 | 72,131 |
| Aug 8, 2026 | DeGaynor Jonathan B | CEO and President | Other | 47,268 | 16.67 | 787,958 |
| Aug 8, 2026 | Kowalchik Laura Michele | Chief Financial Officer | Other | 11,268 | 16.67 | 187,838 |
| Jul 31, 2026 | Bobek Therese M | Director | Other | 100 | 13.99 | 1,399 |
| Jul 31, 2026 | Lindsey Mary A | Director | Other | 112 | 13.99 | 1,567 |
| Jul 31, 2026 | Cadwallader Brian J | Director | Other | 168 | 13.99 | 2,350 |
The company
About the Company
Methode Electronics, Inc. entwirft, konstruiert, produziert und verkauft international mechatronische Produkte.
- Employees
- 6,650
- Headquarters
- Southfield, MI
- Address
- 25650 West Eleven Mile Road, 48034-2253 Southfield, United States
- Phone
- 708 867 6777
- Website
- methode.com
- IPO Date
- 03/23/1990
- ISIN
- US5915202007
- Stock Split
- 10000:3742 on 04/30/2001
- Stock Split
- 3:2 on 11/01/1995
- Stock Split
- 2:1 on 01/19/1993
Management
| Name | Title | Birth Year |
|---|---|---|
| Jonathan B. DeGaynor | President, CEO & Director | 1967 |
| Laura Michele Kowalchik | VP of Corporate Finance & CFO | 1969 |
| Kerry A. Vyverberg | General Counsel | 1969 |
| John T. Erwin | Chief Procurement & EHS Officer | 1968 |
| Lars Ullrich | Senior Vice President of Global Automotive Business | – |
| Stacie R. Schulz | Chief Accounting Officer | 1979 |
| Mark Shermetaro | Vice President of Corporate Development | – |
| Karen L. Keegans | Chief Human Resources Officer | 1966 |
| Bradley J. Corrodi | Chief Strategy Officer | – |
Executives per the latest required filings; titles kept in their original language. Source: fundamental data.
Filings
Company Filings (8-K)
An 8-K is the filing a US company must use to disclose material events immediately — takeovers, changes at the top, major contracts or payment troubles, for instance. The links open the original document at the US Securities and Exchange Commission (SEC).
- 09/17/2026 METHODE ELECTRONICS INC (MEI): Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers: Compensatory Arrangements of Certain Officers; Submission of Matters to a Vote of Security Holders; Financial Statements and Exhibits SEC ↗
- 09/02/2026 METHODE ELECTRONICS INC (MEI): Results of Operations and Financial Condition; Financial Statements and Exhibits SEC ↗
Data as of: September 17, 2026 · Source: fundamental data & SEC filings (annual and quarterly reports, 10-K/10-Q)
Note: pure fact-based analysis, not investment advice and not a solicitation to buy or sell. All figures without guarantee.