Methode Electronics Inc (MEI)
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We found at least one documented issue that threatens the company itself — regardless of how the stock is currently valued.
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.
symbol.quality_note
Methode Electronics builds busbars, user interface components, lighting and sensors for cars, commercial vehicles, construction equipment and data centers. In fiscal 2026 the Industrial segment produced $114.6 million of income from operations while the Automotive segment lost $30.1 million. Group operating income turned positive for the first time in three years at $8.8 million — and a $25.0 million tax charge wiped it out again. On top of that sits a credit agreement that runs to October 2027, caps dividends and demands monthly reporting to the lenders. We read the annual report line by line and separate the business that carries the group from the one being carried.
Read the analysis
Stock Watch
This analysis is as of July 26, 2026. Stock Watch will tell you what's changed at MEI since then.
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Appears in These Scanners
This stock currently matches 19 of our scanner strategies — each hit links to the scanner.
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Trading Day
Key levels of the most recently completed trading day — not a live quote.
52-Week Range
Current price 14.00 $ — 62% of the range above the low.
Lowest and highest closing price over the last 52 weeks. The marker shows where the current price sits within that range: close to the high speaks for strength, close to the low for weakness.
Basics
Performance
Technical Indicators
Calculated from the price history · as of 08/03/2026
Valuation
Profitability
Balance Sheet & Safety
Growth
Dividend
Quality & Screener
AI Rating
Uses AIMethode 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.
„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.
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
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.
Analysts & Price Target
The price target sits 38.1% above the current price.
- Consensus
- Sell
- Analyst Ratings
- 3
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.
Estimates by Fiscal Year
| Fiscal Year | EPS Estimate ($) | EPS Range ($) | Revenue Estimate ($M) | Expected Growth | Analysts |
|---|---|---|---|---|---|
| 04/30/2027 | -0.22 | -0.44 – 0.01 | 1,048 | 79.9% | 2 |
| 04/30/2028 | 0.66 | 0.60 – 0.72 | 1,105 | 407.0% | 2 |
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.
Next Reporting Date
- Expected Earnings per Share
- -0.47 $
Expected date of the next quarterly or annual figures. Dates do shift occasionally — only the invitation issued by the company is binding.
Revenue & Profit
Cash Flow
Balance Sheet
Margins
Per Share
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· Total · per year
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The figures could not be loaded right now.
Source: fundamental data
Quarterly Figures
| Quarter | EPS (Earnings Per Share) | EPS YoY (%) | Sales ($M) | Sales YoY (%) | Net Margin (%) | OCF ($M) | FCF ($M) |
|---|---|---|---|---|---|---|---|
| 2024: Q4 | -0.05 | – | 293 | 1.60 | -0.50 | -48 | -58 |
| 2025: Q1 | -0.41 | – | 240 | -7.60 | -6.00 | 28 | 52 |
| 2025: Q2 | -0.80 | – | 257 | -7.30 | -11.00 | 35 | 26 |
| 2025: Q3 | -0.29 | – | 241 | -7.00 | -4.30 | 25 | 18 |
| 2025: Q4 | -0.28 | – | 247 | -15.60 | -4.00 | -7 | -12 |
| 2026: Q1 | -0.45 | – | 234 | -2.60 | -6.80 | 15 | 10 |
- EPS (Earnings Per Share):
- Quarterly profit divided by the total share count — how much of the profit works out to a single share.
- YoY (Year over Year):
- Change versus the same quarter a year ago — this is how you compare without seasonal distortion (e.g. the holiday shopping season).
- Sales:
- All revenue for the quarter, before any costs are deducted — the top line of the income statement.
- Net Margin:
- What percentage of sales is left over as profit in the end. Negative means the company is posting a loss.
- OCF (Operating Cash Flow):
- The cash that actually flows into the till from the core business during the quarter — harder to dress up than book profit.
- FCF (Free Cash Flow):
- Operating cash flow minus capital expenditures — the money that's genuinely free to use, say for paying down debt, buybacks, or dividends.
Annual Figures
| Fiscal Year | Revenue ($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 |
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.
Assessment: Opportunities & Risks
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 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.
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.
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.
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.
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.
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.
- 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.
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 | 23. Mar 1990 |
| ISIN | US5915202007 |
| Stock Split | 10000:3742 on 04/30/2001 |
Management
| Name | Title | Birth Year |
|---|---|---|
| Jonathan B. DeGaynor | President, CEO & Director | 1967 |
| Laura Michele Kowalchik | VP of Corporate Finance & CFO | 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.
Insider Transactions
| Date | Person | Role | Type | Shares | Price | Value |
|---|---|---|---|---|---|---|
| 15. Jul 2026 | DeGaynor Jonathan B | CEO and President | Other | 7,986 | 15.76 | 125,859 |
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.
View all insider transactions →Chart
Interactive price chart (TradingView).
Data as of: July 31, 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.