Is Methode Electronics Stock a Good Investment?
Methode Electronics Investment Advice | MEI |
- Examine Methode Electronics' financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research Methode Electronics' leadership team and their track record. Good management can help Methode Electronics navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Electronic Equipment, Instruments & Components space and any emerging trends that could impact Methode Electronics' business and its evolving consumer preferences.
- Compare Methode Electronics' performance and market position to its competitors. Analyze how Methode Electronics is positioned in terms of product offerings, innovation, and market share.
- Check if Methode Electronics pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about Methode Electronics' stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in Methode Electronics stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Methode Electronics is a good investment.
Sell | Buy |
Cautious Hold
Market Performance | Weak | Details | |
Volatility | Not too volatile | Details | |
Hype Condition | Low key | Details | |
Current Valuation | Undervalued | Details | |
Odds Of Distress | Below Average | Details | |
Economic Sensitivity | Hyperactively responds to market trends | Details | |
Investor Sentiment | Excited | Details | |
Analyst Consensus | Hold | Details | |
Financial Strenth (F Score) | Healthy | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
Examine Methode Electronics Stock
Researching Methode Electronics' stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 97.0% of the company shares are owned by institutional investors. The company has price-to-book ratio of 0.5. Typically companies with comparable Price to Book (P/B) are able to outperform the market in the long run. Methode Electronics has Price/Earnings To Growth (PEG) ratio of 1.16. The entity recorded a loss per share of 4.03. The firm last dividend was issued on the 18th of October 2024. Methode Electronics had 10000:3742 split on the 30th of April 2001.
To determine if Methode Electronics is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Methode Electronics' research are outlined below:
| Methode Electronics had very high historical volatility over the last 90 days | |
| The company reported the last year's revenue of 1.11 B. Reported Net Loss for the year was (123.3 M) with profit before taxes, overhead, and interest of 264.6 M. | |
| Over 97.0% of the company shares are owned by institutional investors | |
| On 1st of November 2024 Methode Electronics paid $ 0.14 per share dividend to its current shareholders | |
| Latest headline from gurufocus.com: Methode Electronics to Announce Second Quarter Fiscal 2025 Results on Thursday, December 5, 2024 |
Methode Electronics Quarterly Cost Of Revenue |
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Methode Electronics uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Methode Electronics. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Methode Electronics' previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 14th of March 2024 Upcoming Quarterly Report | View | |
| 27th of June 2024 Next Financial Report | View | |
| 31st of January 2024 Next Fiscal Quarter End | View | |
| 27th of June 2024 Next Fiscal Year End | View | |
| 31st of October 2023 Last Quarter Report | View | |
| 30th of April 2023 Last Financial Announcement | View |
Earnings surprises can significantly impact Methode Electronics' stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Methode Electronics' investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
2001-03-01 | 2001-01-31 | 0.18 | 0.2 | 0.02 | 11 | ||
2024-07-11 | 2024-04-30 | -0.2 | -0.23 | -0.03 | 15 | ||
2006-09-07 | 2006-07-31 | 0.09 | 0.12 | 0.03 | 33 | ||
2005-12-07 | 2005-10-31 | 0.17 | 0.14 | -0.03 | 17 | ||
2004-03-04 | 2004-01-31 | 0.12 | 0.09 | -0.03 | 25 | ||
1997-11-25 | 1997-08-31 | 0.3 | 0.27 | -0.03 | 10 | ||
2010-09-02 | 2010-07-31 | 0.15 | 0.11 | -0.04 | 26 | ||
2008-12-09 | 2008-10-31 | 0.11 | 0.07 | -0.04 | 36 |
Know Methode Electronics' Top Institutional Investors
Have you ever been surprised when a price of an equity instrument such as Methode Electronics is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Methode Electronics backward and forwards among themselves. Methode Electronics' institutional investor refers to the entity that pools money to purchase Methode Electronics' securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | Millennium Management Llc | 2024-06-30 | 648 K | Brandywine Global Investment Mgmt Llc | 2024-09-30 | 605.9 K | Charles Schwab Investment Management Inc | 2024-09-30 | 461.8 K | Ameriprise Financial Inc | 2024-06-30 | 458.3 K | American Century Companies Inc | 2024-09-30 | 408.9 K | Cubist Systematic Strategies, Llc | 2024-09-30 | 388.3 K | Jane Street Group Llc | 2024-06-30 | 381.9 K | Bank Of New York Mellon Corp | 2024-06-30 | 380.6 K | Two Sigma Investments Llc | 2024-09-30 | 347.3 K | Fmr Inc | 2024-09-30 | 5.3 M | Blackrock Inc | 2024-06-30 | 3 M |
Methode Electronics' market capitalization trends
The company currently falls under 'Small-Cap' category with a total capitalization of 369.02 M.Market Cap |
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Methode Electronics' profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | (0.13) | 0.11 | |
| Return On Capital Employed | (0.10) | 0.09 | |
| Return On Assets | (0.09) | 0.07 | |
| Return On Equity | (0.16) | 0.11 |
Determining Methode Electronics' profitability involves analyzing its financial statements and using various financial metrics to determine if Methode Electronics is a good buy. For example, gross profit margin measures Methode Electronics' profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Methode Electronics' profitability and make more informed investment decisions.
Methode Electronics' Earnings Breakdown by Geography
Evaluate Methode Electronics' management efficiency
The Methode Electronics' current Return On Tangible Assets is estimated to increase to 0.11. The Methode Electronics' current Return On Capital Employed is estimated to increase to 0.09. As of now, Methode Electronics' Fixed Asset Turnover is decreasing as compared to previous years. The Methode Electronics' current Return On Assets is estimated to increase to 0.07, while Total Assets are projected to decrease to under 305.3 M. Methode Electronics' management efficiency ratios could be used to measure how well Methode Electronics manages its routine affairs as well as how well it operates its assets and liabilities.| Last Reported | Projected for Next Year | ||
| Book Value Per Share | 21.60 | 24.54 | |
| Tangible Book Value Per Share | 9.57 | 12.71 | |
| Enterprise Value Over EBITDA | (11.93) | 9.85 | |
| Price Book Value Ratio | 0.57 | 1.82 | |
| Enterprise Value Multiple | (11.93) | 9.85 | |
| Price Fair Value | 0.57 | 1.82 | |
| Enterprise Value | 630.1 M | 1.7 B |
Methode Electronics benefits from a proactive management team that anticipates market trends. Our analysis delves into how this proactive stance influences financial metrics and stock valuation.
Dividend Yield 0.0535 | Forward Dividend Yield 0.0535 | Forward Dividend Rate 0.56 | Beta 0.756 |
Basic technical analysis of Methode Stock
As of the 25th of November, Methode Electronics secures the Risk Adjusted Performance of 0.0437, mean deviation of 2.78, and Downside Deviation of 3.27. In connection with fundamental indicators, the technical analysis model lets you check existing technical drivers of Methode Electronics, as well as the relationship between them.Methode Electronics' insider trading activities
Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific Methode Electronics insiders, such as employees or executives, is commonly permitted as long as it does not rely on Methode Electronics' material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases Methode Electronics insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.
Methode Electronics' Outstanding Corporate Bonds
Methode Electronics issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Methode Electronics uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Methode bonds can be classified according to their maturity, which is the date when Methode Electronics has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
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Understand Methode Electronics' technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing Methode Electronics' various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | 0.0437 | |||
| Market Risk Adjusted Performance | 0.057 | |||
| Mean Deviation | 2.78 | |||
| Semi Deviation | 3.2 | |||
| Downside Deviation | 3.27 | |||
| Coefficient Of Variation | 2144.98 | |||
| Standard Deviation | 3.75 | |||
| Variance | 14.08 | |||
| Information Ratio | 0.0118 | |||
| Jensen Alpha | (0.26) | |||
| Total Risk Alpha | (0.43) | |||
| Sortino Ratio | 0.0135 | |||
| Treynor Ratio | 0.047 | |||
| Maximum Drawdown | 18.54 | |||
| Value At Risk | (5.30) | |||
| Potential Upside | 7.64 | |||
| Downside Variance | 10.7 | |||
| Semi Variance | 10.21 | |||
| Expected Short fall | (3.24) | |||
| Skewness | 0.5184 | |||
| Kurtosis | 0.6695 |
| Risk Adjusted Performance | 0.0437 | |||
| Market Risk Adjusted Performance | 0.057 | |||
| Mean Deviation | 2.78 | |||
| Semi Deviation | 3.2 | |||
| Downside Deviation | 3.27 | |||
| Coefficient Of Variation | 2144.98 | |||
| Standard Deviation | 3.75 | |||
| Variance | 14.08 | |||
| Information Ratio | 0.0118 | |||
| Jensen Alpha | (0.26) | |||
| Total Risk Alpha | (0.43) | |||
| Sortino Ratio | 0.0135 | |||
| Treynor Ratio | 0.047 | |||
| Maximum Drawdown | 18.54 | |||
| Value At Risk | (5.30) | |||
| Potential Upside | 7.64 | |||
| Downside Variance | 10.7 | |||
| Semi Variance | 10.21 | |||
| Expected Short fall | (3.24) | |||
| Skewness | 0.5184 | |||
| Kurtosis | 0.6695 |
Consider Methode Electronics' intraday indicators
Methode Electronics intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Methode Electronics stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
| Accumulation Distribution | 70698.19 | |||
| Daily Balance Of Power | 0.4314 | |||
| Rate Of Daily Change | 1.02 | |||
| Day Median Price | 10.92 | |||
| Day Typical Price | 10.84 | |||
| Price Action Indicator | (0.12) | |||
| Period Momentum Indicator | 0.22 | |||
| Relative Strength Index | 55.08 |
Methode Electronics Corporate Filings
8K | 20th of November 2024 Report filed with the SEC to announce major events that shareholders should know about | ViewVerify |
13A | 12th of November 2024 An amended filing to the original Schedule 13G | ViewVerify |
F4 | 5th of November 2024 The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities | ViewVerify |
F3 | 3rd of October 2024 The report used by insiders such as officers, directors, and major shareholders (beneficial owners holding more than 10% of any class of the company's equity securities) to declare their ownership of a company's stock | ViewVerify |
Methode Stock media impact
Far too much social signal, news, headlines, and media speculation about Methode Electronics that are available to investors today. That information is available publicly through Methode media outlets and privately through word of mouth or via Methode internal channels. However, regardless of the origin, that massive amount of Methode data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of Methode Electronics news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Methode Electronics relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Methode Electronics' headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Methode Electronics alpha.
Methode Electronics Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards Methode Electronics can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.
Methode Electronics Historical Investor Sentiment
Investor biases related to Methode Electronics' public news can be used to forecast risks associated with an investment in Methode. The trend in average sentiment can be used to explain how an investor holding Methode can time the market purely based on public headlines and social activities around Methode Electronics. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
Methode Electronics' market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Methode Electronics and other traded tickers. The bigger the bubble, the more accurate the estimated score. Higher bars for a given day show more participation in the average Methode Electronics news discussions. The higher the estimate score, the more favorable the investor's outlook on Methode Electronics.
Methode Electronics Corporate Directors
| Brian Cadwallader | Independent Director | Profile | |
| Mary Lindsey | Independent Director | Profile | |
| Angelo Pantaleo | Independent Director | Profile | |
| Mark Schwabero | Independent Director | Profile |
Check out Correlation Analysis to better understand how to build diversified portfolios, which includes a position in Methode Electronics. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in income. For more detail on how to invest in Methode Stock please use our How to Invest in Methode Electronics guide.You can also try the Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Is Electronic Equipment, Instruments & Components space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Methode Electronics. If investors know Methode will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Methode Electronics listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.97) | Dividend Share 0.56 | Earnings Share (4.03) | Revenue Per Share 30.598 | Quarterly Revenue Growth (0.11) |
The market value of Methode Electronics is measured differently than its book value, which is the value of Methode that is recorded on the company's balance sheet. Investors also form their own opinion of Methode Electronics' value that differs from its market value or its book value, called intrinsic value, which is Methode Electronics' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Methode Electronics' market value can be influenced by many factors that don't directly affect Methode Electronics' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
In summary, please note that there is a difference between Methode Electronics' value and its price, as these two are different measures arrived at by various means. Investors typically determine if Methode Electronics is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Methode Electronics' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.