Methode Electronics Inc

Technology
Electrical Products
www.methode.com

Earnings Score
Moat Score
Safety Score

Market Cap $451.41M
PE -5
Debt $340.80M
Cash $97.00M
EV $695.21M
FCF -$33.10M

Earnings

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Sales & Net Margins

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Earnings	-$88.80M
EBIT	-$62.60M
ROE	-12%
ROA	-5%
FCF	-$33.10M
Equity	$738.30M
Growth Stability	-123%
PE	-5.08
PEG	3.35
PB	0.61
P/FCF	-13.64
P/S	0.41
Price/Cash	0.21
Debt/Equity	0.46
Debt/FCF	-10.3
Net Margins	-4%
Gross Margins	16%
Op. Margins	-6%
Earnings CAGR	0%
Sales Growth YoY	2%
Sales Growth QoQ	13%
Sales CAGR	4%
FCF CAGR	-3%
Equity CAGR	6%
Earnings Stability	0
Earnings Growth YoY	-97%
Earnings Growth QoQ	-91%
Earnings CAGR 5Y	-2%

Sales CAGR 5Y	-1%
FCF CAGR 5Y	-17%
Equity CAGR 5Y	-3%
Earnings CAGR 3Y	-3%
Sales CAGR 3Y	-3%
FCF CAGR 3Y	-25%
Equity CAGR 3Y	-8%
Market Cap	$451.41M
Revenue	$1.09B
Dividend Yield	4%
Payout Ratio	-22%
Assets	$1.38B
Total Debt	$340.80M
Cash	$97.00M
Shares Outstanding	35.46M
EV	695.21M
Earnings Score	6%
Moat Score	9%
Safety Score	38%
Final Score	18%
Working Capital	390.3M
Current Ratio	2.75
Gross Profit	$175.00M
Shares Growth 3y	-2%
Equity Growth QoQ	-1%
Equity Growth YoY	-13%

Assets & ROA

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Stockholders Equity & ROE

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Methode Electronics Inc makes component and subsystem devices employing electrical, radio remote control, electronic, wireless, and sensing technologies. The firm is organized in various business segments: Automotive, Industrial, interface and Medical. The Automotive segment supplies electronic and electro-mechanical devices and related products to automobile. The Industrial segment manufactures external lighting solutions, industrial safety radio remote controls, braided flexible cables and custom power-product assemblies. The Interface segment provides a variety of copper and fiber-optic interface and interface solutions. The Medical segment is made up of the Company's medical device business, Dabir Surfaces, its surface support technology aimed at pressure injury prevention.

SEC Filings

Direct access to Methode Electronics Inc (MEI) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2024
- 10-Q Nov 02
- 10-Q Jul 27
- 10-K Apr 27
- 10-Q Jan 27
2023
- 10-Q Oct 28
- 10-Q Jul 29
- 10-K Apr 29
- 10-Q Jan 28
2022
- 10-Q Oct 29
- 10-Q Jul 30
- 10-K Apr 30
- 10-Q Jan 29

Sector Comparison

How does Methode Electronics Inc compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of Methode Electronics Inc compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR 0%

Stability 0%

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Methode Electronics Inc Discounted Cash Flow

Fully customizable DCF calculator online for Methode Electronics Inc.

Years

Calculation mode

= -$271M

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	-$33M	-$32M	-$31M	-$30M	-$29M	-$28M	-$28M	-$27M	-$26M	-$25M	-$24M	-$245M
DCF		-$29M	-$26M	-$23M	-$20M	-$18M	-$16M	-$14M	-$12M	-$11M	-$9.4M	-$94M
Value	-$271M

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

Years	05/2015	04/2016	04/2017	04/2018	04/2019	05/2020	04/2021	04/2022	04/2023	04/2024	TTM
Net Margins	11%	10%	11%	6%	9%	12%	11%	9%	7%	-11%	-4%
ROA	-	17%	16%	14%	9%	11%	9%	9%	6%	-8%	-5%
ROE	-	18%	17%	9%	13%	16%	13%	11%	8%	-16%	-12%

Bad Net Margins (-3.61%)

Net Margins are too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Safety and Stability

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Years	05/2015	04/2016	04/2017	04/2018	04/2019	05/2020	04/2021	04/2022	04/2023	04/2024	TTM
Debt over FCF	-	0.65	0.22	0.82	5.61	3.85	1.65	3.68	3.41	-122.63	-10.3
Debt over Equity	0.01	0.12	0.05	0.09	0.42	0.47	0.28	0.24	0.33	0.43	0.46
Growth Stability	-	-	-	62%	100%	100%	100%	91%	66%	-123%	-123%

Good Debt/FCF ratio (-10.3)

Net Margins are high enough to offer a good protection on the profits in case of higher costs or higher interests. Furthermore higher margins reduce earnings’ volatility.

Good Debt/Equity ratio (0.46)

The company is not overleveraged and has a good balance between equity and debt.

Bad Graham’s Stability (-123%)

The company has a bad stability in its earnings, which is a sign of a bad competitive advantage.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Years	05/2015	04/2016	04/2017	04/2018	04/2019	05/2020	04/2021	04/2022	04/2023	04/2024	CAGR 5Y
Revenue YoY growth	-	-8%	1%	11%	10%	2%	6%	7%	1%	-6%	-1%
Earnings YoY growth	-	-16%	10%	-38%	60%	35%	-1%	-16%	-25%	-260%	-2%
Equity YoY growth	-	2%	15%	16%	9%	14%	17%	-0%	3%	-19%	-3%
FCF YoY growth	-	-13%	40%	-43%	-26%	83%	62%	-61%	49%	-103%	-17%