Methode Electronics, Inc. (MEI) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

-75.0%

$3.81

vs $15.23 price

Levered DCF

$5.79

After debt service

Piotroski score

5 / 9

Average

Altman Z-score

2.22

Grey zone

Rating

C+

Overall 2 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2026	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019
P/E	-8.54×	-3.8×	-3.51×	19.15×	16.28×	13.95×	8.7×	12.04×
P/B	0.45×	0.34×	0.57×	1.57×	1.82×	1.86×	1.37×	1.6×
P/S	0.3×	0.23×	0.39×	1.25×	1.43×	1.57×	1.05×	1.1×
EV / EBITDA	7.1×	15.33×	-11.77×	11.63×	9.85×	9.08×	5.95×	7.77×
Gross margin	19.8%	15.6%	16.2%	22.4%	22.8%	25.2%	27.6%	26.6%
Operating margin	0.9%	-2.3%	-10.0%	7.7%	9.6%	11.8%	14.4%	10.7%
Net margin	-3.5%	-6.0%	-11.1%	6.5%	8.8%	11.2%	12.1%	9.2%
Current ratio	2.37×	2.4×	2.76×	2.91×	3.34×	3.03×	3.93×	2.51×
Debt / equity	0.52×	0.5×	0.47×	0.36×	0.25×	0.29×	0.48×	0.42×
Interest coverage	0.38×	-1.05×	-6.71×	33.48×	31.91×	24.6×	14.56×	12.87×
Dividend yield	2.7%	8.6%	4.6%	1.3%	1.2%	1.0%	1.5%	1.5%
Payout ratio	-23.2%	-32.6%	-16.1%	25.7%	20.0%	14.2%	13.2%	17.8%

Key metrics by fiscal year

Metric	FY2026	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019
Return on equity	-5.3%	-9.0%	-16.1%	8.2%	11.2%	13.3%	15.8%	13.3%
Return on invested capital	0.8%	-2.2%	-9.1%	5.7%	7.9%	9.2%	9.7%	8.9%
Return on assets	-2.7%	-4.8%	-8.8%	4.9%	7.4%	8.3%	9.0%	7.4%
Free cash flow yield	5.1%	-6.4%	-0.6%	6.2%	3.7%	9.1%	8.9%	4.7%
Earnings yield	-11.7%	-26.4%	-28.5%	5.2%	6.2%	7.2%	11.5%	8.3%
Enterprise value	$515.6M	$476.7M	$629.7M	$1.7B	$1.7B	$1.7B	$1.2B	$1.3B
Net debt / EBITDA	2.89×	7.7×	-3.68×	1.25×	0.34×	0.16×	0.78×	1.24×
Cash conversion cycle (days)	114	113	108	110	109	99	100	98