MEI
Methode Electronics, Inc.

Methode Electronics, Inc.MEI

Technology · Electronic Components
14.56USD
-1.82%
Sep 25, 2026
MEI overview ready
Provider of high-density power distribution hardware for AI 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.
Narrative not measured
AI Compute Infrastructure BuildoutAI Data Center Power and Thermal SystemsComponent supplier
Price structure is giving way
Longer-term context reads damaged structure, with a near-term setup of constructive pullback.
Demanding valuation
The price embeds expectations that run ahead of the cash the business currently produces.
Mixed fundamentals
Ev / ebitda is strong, while free cash flow yield is weak.
Primary risk
Exposure to automotive industry cyclicality.
Market Sep 24Filing Aug 1Price action Sep 24Research Sep 2

Conviction Level

NarrativeHeat—ThemeHeat9.3PriceAction6.3Valuation2.9CompanyPosition7.3
Price
Loading price history…

Price Action

Price structure is giving way
Longer-term context reads damaged structure, with a near-term setup of constructive pullback.
EntryReset + recovery

The stock is still rebuilding below its long-term weekly base, and the recent reset toward the daily SMA100 aligned with support at the weekly EMA21. Daily structure is recovering above the fast averages, improving the current entry location.

Key Financials

Market Cap
$519.0M
Avg Volume (60D)
691.5K
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
-2.6%
Distance from 200DMA
+37.6%
Next Earnings
2026-12-02
P/E
N/M
EV / EBITDA
11.5x
EV / Sales
0.7x
Market metrics as of Sep 24, 2026
Financial results for the period ended Aug 1, 2026
Filed balance-sheet data as of Aug 1, 2026

Fundamentals & Valuation

Two of the three valuation perspectives say expensive; peers is the dissenting view.
Methode Electronics, Inc. has an Expensive valuation stance because the price embeds expectations that run ahead of the cash the business currently produces. It trades at 11.7x EBITDA and 0.7x revenue, which require sustained delivery to be justified.

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.

Narrative & Theme

AI Compute Infrastructure Buildout
Part of AI Data Center Power and Thermal Systems, with moderate fit.
The company has a real adjacent fit: high-density AI racks require more capable electrical distribution, and Methode is directing Power Solutions resources toward data-center growth and next-generation 800-volt architectures.
Narrative HeatHot9.5 / 10
This reading is no longer current (last measured 2026-09-11). It is kept until the next scheduled measurement replaces it.
Theme HeatHot9.3 / 10
This reading is no longer current (last measured 2026-07-22). It is kept until the next scheduled measurement replaces it.

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 and systems.

Products & services
Electronic and electro-mechanical devices
Power distribution solutions including busbars and battery disconnect units
Customers & end markets
Automobile original equipment manufacturers (OEMs) and their tiered suppliers
Industrial and medical equipment manufacturers
Market position

Niche supplier specializing in mechatronic and electronic components for automotive and industrial markets.

Demand drivers
Medium cyclicality

Business is influenced by automotive and industrial production cycles which are sensitive to economic conditions.

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