MEI
Methode Electronics, Inc.

Methode Electronics, Inc.MEI

Technology · Electronic Components
10.76USD
+5.91%
Nov 09, 2026
MEI overview ready
Power Distribution Hardware Supplier for Automotive and Data Centers
Methode is a diversified engineered-components manufacturer whose current Power Solutions activities supply power-distribution hardware, including busbars, interconnects, battery disconnect units, smart-connect systems and high-density power solutions, to transportation, industrial, cloud-computing and data-center customers.
Primary theme is lagging
Connectors & Electronic Components is lagging (-11.9pp vs SPY over 21 sessions; 2 of 8 members ahead of SPY).
Price trend is broken
Longer-term context reads damaged structure, with a near-term setup of distribution pressure.
The tactical setup reads distribution pressure, but the weekly structure is broken.
Fair valuation
The price broadly reflects how its multiples compare with businesses of the same kind, with upside and risk reasonably balanced.
Mixed fundamentals
Ev / ebitda is strong, while free cash flow yield is weak.
Primary risk
Exposure to automotive industry cyclicality.
Market Nov 6Filing Aug 1Price action Nov 8Research Sep 2

Conviction Level

PriceAction3.4BusinessPerformance5.0BusinessQuality4.4Valuation3.5ThemeMomentum1.0Mixed — Revenue is growing at a steady pace (+10% year over year). The company is still loss-making: the diluted loss per share widened to -$0.32 from -$0.29 a year earlier. — From filed financial statements. Describes the recent trajectory of the business, not the stock. 20 of the 100 Conviction points.

Conviction uses Price Action, Business Performance, Business Quality, Valuation. Theme Momentum is research context, not an input.

Theme momentumPrimary theme · group context, not entry timing
vs SPY
−11.9pp
Theme return
−16.9%
Beating SPY
2 of 8
21 sessions to Nov 6, 2026 · Theme Leadership V2
Price
Loading price history…

Price Action

Price trend is broken
Longer-term context reads damaged structure, with a near-term setup of distribution pressure.
The tactical setup reads distribution pressure, but the weekly structure is broken.
EntryWeak / unconfirmed recovery

The daily chart may be improving, but the weekly fast averages have not been reclaimed — the recovery is not yet confirmed on the higher timeframe.

Key Financials

Market Cap
$383.5M
Avg Volume (60D)
676.9K
60 sessions
Revenue Growth YoY
-2.8%
FY2026 vs FY2025
Gross Margin
+19.8%
Trailing twelve months
Operating Margin
+0.4%
Trailing twelve months
Free Cash Flow Yield
-3.5%
Distance from 200DMA
-8.1%
Next Earnings
2026-12-02
P/E
N/M
EV / EBITDA
9.4x
EV / Sales
0.6x
Market metrics as of Nov 6, 2026
Financial results for the period ended Aug 1, 2026
Filed balance-sheet data as of Aug 1, 2026

Business Performance

Mixed

Revenue is growing at a steady pace (+10% year over year). The company is still loss-making: the diluted loss per share widened to -$0.32 from -$0.29 a year earlier.

Latest reported: Q1 FY2027, ended Aug 1
Revenue growthGrowing
+10%
$265M in Q1 FY2027 · YoY
YoY growth, last 4 quarters
  1. -16%
  2. -2.6%
  3. +16%
  4. +10%
Earnings growthLoss widening
-$0.32
Diluted EPS -$0.32 vs -$0.29 a year earlier · GAAP
Too few comparable EPS quarters: a loss or a turn to profit has no meaningful percentage.
Operating marginContracting
-1.5%
-1.9 pp YoY · gross margin 18.0% (-0.1 pp)

Business Quality

4.4 / 10

How well the business earns on its assets, converts earnings to cash and funds itself — read from its SEC filings.

Fundamentals & Valuation

One of the two valuation perspectives says cheap; own history is the dissenting view. The published stance is held at fair because no positive free cash flow behind the low multiple.
Methode Electronics, Inc. has a Fair valuation stance because the price broadly reflects how its multiples compare with businesses of the same kind, with upside and risk reasonably balanced.

Company Research

Thesis
Methode is a diversified engineered-components manufacturer whose current Power Solutions activities supply power-distribution hardware, including busbars, interconnects, battery disconnect units, smart-connect systems and high-density power solutions, to transportation, industrial, cloud-computing and data-center customers.
Opportunity
High opportunity
Hyperscaler and colocation capital spending on high-density AI data-center electrical and liquid-cooling infrastructure.
Key risk
Exposure to automotive industry cyclicality.

Economic classification

Loading the economic classification…

Business & Markets

Technology · Electronic Components
What they do

Methode Electronics designs, engineers, manufactures, and sells mechatronic products across multiple regions through four segments: Automotive, Industrial, Interface, and Medical.

How it earns

The company generates revenue primarily through transactional sales of electronic and electro-mechanical components to OEMs and tiered suppliers.

Products & services
Power distribution hardware
Busbars
Smart connect systems
Battery disconnect units
Integrated circuit boards
Customers & end markets
Automobile original equipment manufacturers (OEMs)
Tiered automotive suppliers
Industrial customers
Cloud-computing and data-center operators
Market position

A diversified engineered-components manufacturer with a broad product portfolio serving multiple end markets.

Demand drivers
Medium cyclicality

Automotive and industrial end markets are cyclical, influenced by capital spending and economic conditions.

Related companies

Finding other covered companies in the same part of this story…