📊 MEI Key Takeaways
Is Methode Electronics Inc. (MEI) a Good Investment?
Methode Electronics faces significant near-term headwinds with negative operating margins (-0.3%) and substantial net losses (-36.1M) despite extraordinary revenue growth (4864.1% YoY), suggesting acquisition-related consolidation or one-time charges. While balance sheet strength and positive free cash flow provide stability, the profitability deterioration and weak net margins (-5.0%) indicate operational challenges that must be resolved before confidence can return.
Why Buy Methode Electronics Inc. Stock? MEI Key Strengths
- Strong balance sheet with 2.41x current ratio and manageable 0.51x debt-to-equity leverage
- Positive free cash flow of 16.5M despite losses, indicating underlying operational capability
- Substantial revenue base of 721.1M with asset base of 1.3B suggesting market presence
- Adequate cash position of 133.7M providing financial flexibility
MEI Stock Risks: Methode Electronics Inc. Investment Risks
- Operating income negative at -2.1M with -0.3% operating margin showing core business distress
- Net loss of 36.1M with -5.0% net margin indicates significant unprofitability
- Abnormal 4864% YoY revenue growth suggests major acquisition/restructuring with execution risk
- Long-term debt of 340.9M represents 50% of equity and growing interest burden
- ROE of -5.3% and ROA of -2.8% demonstrate destruction of shareholder capital
Key Metrics to Watch
- Operating margin recovery toward positive territory
- Path to GAAP profitability and normalized net income margins
- Organic revenue growth excluding acquisition impacts
- Free cash flow sustainability and debt reduction progress
- Gross margin stability at 18% and potential for operating leverage
Methode Electronics Inc. (MEI) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The relatively thin 2.3% FCF margin may limit capital allocation flexibility. Strong liquidity with a 2.41x current ratio provides a solid financial cushion.
MEI Profit Margin, ROE & Profitability Analysis
MEI vs Technology Sector: How Methode Electronics Inc. Compares
How Methode Electronics Inc. compares to Technology sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Methode Electronics Inc. Stock Overvalued? MEI Valuation Analysis 2026
Based on fundamental analysis, Methode Electronics Inc. shows some fundamental concerns relative to the Technology sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Methode Electronics Inc. Balance Sheet: MEI Debt, Cash & Liquidity
MEI Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Methode Electronics Inc.'s revenue has shown modest growth of 8% over the 5-year period. The most recent EPS of $2.10 reflects profitable operations.
MEI Revenue Growth, EPS Growth & YoY Performance
MEI Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2026 | $233.7M | -$14.4M | $-0.41 |
| Q2 2026 | $246.9M | -$1.6M | $-0.05 |
| Q1 2026 | $240.5M | -$10.3M | $-0.29 |
| Q3 2025 | $239.9M | -$11.6M | $-0.33 |
| Q2 2025 | $288.0M | -$1.6M | $-0.05 |
| Q1 2025 | $258.5M | $900.0K | $0.02 |
| Q3 2024 | $259.5M | -$11.6M | $-0.33 |
| Q2 2024 | $288.0M | $27.6M | $0.75 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Methode Electronics Inc. Dividends, Buybacks & Capital Allocation
MEI SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Methode Electronics Inc. (CIK: 0000065270)
📋 Recent SEC Filings
❓ Frequently Asked Questions about MEI
What is the AI rating for MEI?
Methode Electronics Inc. (MEI) has an AI rating of SELL with 78% confidence, based on fundamental analysis of SEC EDGAR filings.
What are MEI's key strengths?
Claude: Strong balance sheet with 2.41x current ratio and manageable 0.51x debt-to-equity leverage. Positive free cash flow of 16.5M despite losses, indicating underlying operational capability.
What are the risks of investing in MEI?
Claude: Operating income negative at -2.1M with -0.3% operating margin showing core business distress. Net loss of 36.1M with -5.0% net margin indicates significant unprofitability.
What is MEI's revenue and growth?
Methode Electronics Inc. reported revenue of $721.1M.
Does MEI pay dividends?
Methode Electronics Inc. pays dividends, with $6.5M distributed to shareholders in the trailing twelve months.
Where can I find MEI SEC filings?
Official SEC filings for Methode Electronics Inc. (CIK: 0000065270) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is MEI's EPS?
Methode Electronics Inc. has a diluted EPS of $-1.02.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is MEI a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Methode Electronics Inc. has a SELL rating with 78% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is MEI stock overvalued or undervalued?
Valuation metrics for MEI: ROE of -5.3% (sector avg: 22%), net margin of -5.0% (sector avg: 18%). Compare these metrics with sector averages to assess valuation.
Should I buy MEI stock in 2026?
Our dual AI analysis gives Methode Electronics Inc. a combined SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is MEI's free cash flow?
Methode Electronics Inc.'s operating cash flow is $33.1M, with capital expenditures of $16.6M. FCF margin is 2.3%.
How does MEI compare to other Technology stocks?
Vs Technology sector averages: Net margin -5.0% (avg: 18%), ROE -5.3% (avg: 22%), current ratio 2.41 (avg: 2.5).