Methode Electronics, Inc. (MEI) AI Stock Analysis

Established in 1946 and based in Chicago, Illinois, Methode Electronics, Inc. designs, engineers, and manufactures mechatronic products worldwide across four segments: Automotive, Industrial, Interface, and Medical. The Automotive segment supplies automobile original equipment manufacturers and tiered suppliers with integrated center consoles, switches, transmission lead-frames, and sensor technologies. The Industrial segment produces lighting systems, industrial safety radio remote controls, braided flexible cables, and laminated busbars for aerospace, commercial vehicles, and power conversion. The Interface segment supplies copper-based transceivers, user interface solutions, and fluid-level sensors.

Methode Electronics saw annual revenue decline from $1.16B in FY2022 and $1.18B in FY2023 to $1.11B in FY2024, $1.05B in FY2025, and $1.02B in FY2026, reflecting a 5-year revenue CAGR of -1.3%. Operating margin decreased from 9.6% in FY2022 to -10.0% in FY2024, before recovering to 0.9% in FY2026. Gross margin expanded to 19.8% in FY2026 from 15.6% in FY2025. Annual net income was -$35.7M in FY2026, improving from -$62.6M in FY2025 and -$123.3M in FY2024. In the latest quarter ended July 31, 2026, quarterly revenue grew 10.4% year-over-year, while quarterly earnings declined 96.6%.

As of July 31, 2026, Methode Electronics held $116.2M in cash and short-term investments against total debt of $333.2M, resulting in net debt of $217.0M. Shareholders' equity stood at $663.1M with a debt-to-equity ratio of 0.50 and a current ratio of 2.41. In FY2026, the company generated $38.0M in operating cash flow and $15.6M in free cash flow. Cash usage during FY2026 included $22.4M for capital expenditures, $8.3M paid in dividends, and $1.4M for share buybacks.

Methode Electronics trades at a forward P/E of 10.2x and an EV/EBITDA of 10.2x, below the median of its US-listed Technology peers of 18.8x forward P/E and 16.6x EV/EBITDA. Its price-to-sales ratio is 0.5x, compared to 2.8x for the peer group median. Over the past year, the stock returned 86.4%, outperforming the S&P 500 return of 16.8%. However, its 5-year return of -63.6% trails the S&P 500 5-year return of 83.0%.

The company pays a forward annual dividend of $0.20 per share, yielding 1.50% based on its last close of $13.33. Methode Electronics has maintained 42 consecutive years of dividend payments, with a payout ratio of 36.4%. Its annualized dividend growth over the past 5 years is -1.9%, and its last ex-dividend date was October 16, 2026.

Wall Street coverage consists of 1 Strong Buy, 1 Buy, and 2 Hold ratings. The mean price target is $22.00, representing a 65.0% premium over the last close of $13.33. For the current fiscal year ending April 30, 2027, consensus estimates project an EPS of -$0.44 on revenue of $1.06B. Methode has beaten EPS estimates in 1 of the last 4 quarters, and its next earnings date is December 2, 2026.

This page is an AI-written research summary of Methode Electronics, Inc. (MEI). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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