📊 MEI Key Takeaways
Is Methode Electronics Inc. (MEI) a Good Investment?
Methode Electronics is unprofitable with dangerously thin operating margins (0.9%) despite 4474% revenue growth, likely acquisition-driven rather than organic. While positive cash flow and solid liquidity provide near-term stability, the company must demonstrate sustained margin expansion and return to profitability to justify investment.
Methode Electronics remains fundamentally challenged, with a net loss, near-breakeven operating margin, and thin free cash flow despite positive operating cash generation. Strong liquidity and moderate leverage provide turnaround capacity, but the extraordinary reported revenue growth likely reflects a period-comparison distortion and does not demonstrate high-quality organic growth.
Methode Electronics Inc. Key Strengths (MEI)
- Positive operating cash flow of 38.0M and free cash flow of 15.6M despite net losses
- Strong liquidity position with current ratio of 2.37x and quick ratio of 1.66x
- Moderate leverage profile (Debt/Equity 0.48x) provides financial flexibility
- Strong liquidity with a 2.37x current ratio and 1.66x quick ratio
- Positive operating cash flow of $38.0M and free cash flow of $15.6M
- Moderate long-term debt relative to equity at 0.48x
MEI Stock Risks: Methode Electronics Inc. Investment Risks
- Company is unprofitable with net loss of 35.7M and operating margin of only 0.9%, indicating severe operational stress
- Massive revenue growth (4474% YoY) appears acquisition-driven rather than organic, masking core business weakness
- Interest coverage N/A suggests operating income insufficient to cover debt service on 325.0M long-term debt
- Negative ROE (-5.3%) and ROA (-2.7%) indicate shareholder value destruction
- Negative net income of $35.7M and a -3.5% net margin
- Operating margin of only 0.9% leaves little protection against cost or demand pressure
- Reported 4474.2% revenue growth appears distorted and is not reliable evidence of sustainable growth
Key Metrics to Watch
- Operating margin expansion - critical threshold is reaching 5%+ sustainability
- Net profitability timeline - path to positive net income essential for viability
- Free cash flow generation relative to total debt - ability to deleverage
- Operating margin and progress toward sustained net profitability
- Free cash flow margin and debt coverage
Methode Electronics Inc. (MEI) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The relatively thin 1.5% FCF margin may limit capital allocation flexibility. Strong liquidity with a 2.37x 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 remained relatively flat over the 5-year period, with a 4% decline. The most recent EPS of $-3.48 indicates the company is currently unprofitable.
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 a Combined AI Grade of C from Claude (C) and ChatGPT (B) with 81% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are MEI's key strengths?
Claude: Positive operating cash flow of 38.0M and free cash flow of 15.6M despite net losses. Strong liquidity position with current ratio of 2.37x and quick ratio of 1.66x. ChatGPT: Strong liquidity with a 2.37x current ratio and 1.66x quick ratio. Positive operating cash flow of $38.0M and free cash flow of $15.6M.
What are the risks of investing in MEI?
Claude: Company is unprofitable with net loss of 35.7M and operating margin of only 0.9%, indicating severe operational stress. Massive revenue growth (4474% YoY) appears acquisition-driven rather than organic, masking core business weakness. ChatGPT: Negative net income of $35.7M and a -3.5% net margin. Operating margin of only 0.9% leaves little protection against cost or demand pressure.
What is MEI's revenue and growth?
Methode Electronics Inc. reported revenue of $1.0B.
Does MEI pay dividends?
Methode Electronics Inc. pays dividends, with $8.3M 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 $-1.01.
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 grade reflects both perspectives for balanced insights.
What is MEI's fundamental grade?
Based on our AI fundamental analysis in August 2026, Methode Electronics Inc. has a C grade with 81% confidence. Review the strengths and risks sections above for full context. 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 -3.5% (sector avg: 18%). Compare these metrics with sector averages to assess valuation.
What is MEI's AI grade for 2026?
Our dual AI analysis gives Methode Electronics Inc. a combined C grade 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 $38.0M, with capital expenditures of $22.4M. FCF margin is 1.5%.
How does MEI compare to other Technology stocks?
Vs Technology sector averages: Net margin -3.5% (avg: 18%), ROE -5.3% (avg: 22%), current ratio 2.37 (avg: 2.5).