Methode Electronics Inc. Common Stock (MEI)

FairStock Score: 37/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

As a value investor, I look first for a durable business that earns more than its cost of capital. Methode designs mechatronic products across automotive, industrial, interface, and medical markets, but the numbers show a company still searching for stability. In fiscal 2026, the year ended 2026-05-02, revenue was $1.0 billion and net income was a loss of $35.7 million, or diluted EPS of -$1.01. That loss narrowed from fiscal 2025, when net income was -$62.6 million and diluted EPS was -$1.77, and from fiscal 2024, when net income was -$123.3 million and diluted EPS was -$3.48. Still, in fiscal Q1 2027, the quarter ended 2026-08-01, revenue was $265.4 million and net income was -$11.4 million, or diluted EPS of -$0.32. The company remains loss-making. Financial health is not comforting. Trailing free cash flow is negative $13.3 million, giving a FairStock-calculated FCF yield of -2.5%. FairStock also calculates ROE at -5.45%, ROCE at 0.48%, Piotroski F-score at 3/9, and Altman Z-score at 1.58. Debt-to-equity is 0.50, not overwhelming, but the 1.51% dividend yield looks fragile against losses. Valuation is mixed. At the close on 2026-10-13, the price was $15.12 and market cap was $539.0 million. FairStock calculates P/B at 0.79 and P/E at -14.54, while EV/EBITDA is 11.00. A low price-to-book can be a trap when returns are negative. The FairStock score is 37/100, and its Lynch category is TURNAROUND, based on a loss in the latest year after earlier profits. I would want evidence of sustained positive earnings and cash flow before treating this as a genuine bargain.

In plain English: Methode Electronics makes electronic and mechatronic parts, mainly for cars and other equipment. The business looks weak right now: it is losing money and burning cash, though its losses have gotten smaller over the past few years. At the recent price, the stock trades below its accounting value, but with no profits and negative cash flow, it is hard to call it clearly cheap; it looks like a risky turnaround.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q1 2027 10-Q (period ended 2026-08-01) · fiscal Q3 2026 10-Q (period ended 2026-01-31) · fiscal Q2 2026 10-Q (period ended 2025-11-01) · fiscal Q1 2026 10-Q (period ended 2025-08-02) · FY2026 10-K (period ended 2026-05-02) · FY2025 10-K (period ended 2025-05-03) · FY2024 10-K (period ended 2024-04-27)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer