Methode Electronics, Inc. (MEI) Stock Analysis
Score DValue · Grade F · Bullish
$12.02
$4.13
-65.6%
3/10
F
Value
Investment Thesis
Low quantitative score: Low quality, stretched valuation, or poor risk/reward.
For New Investors
Quantitative score: weak
For Current Holders
Quantitative score: low
Buy if
- Price drops 15-20% (improves asymmetry)
- Bull scenario catalysts materialize
- Market-wide correction creates opportunity
Sell if
- Bear scenario triggers occur
- Quality metrics deteriorate (ROIC declining)
- Better alternatives emerge
Valuation
Fair Value estimate: $4.13 (-65.6%). Overvalued vs fundamentals. (Methods diverge significantly. Conservative estimate shown.)
PEG-Based EPS
$0.72
FCF DCF Model
$15.63
EV/EBITDA
$1.49
Blended Fair Value
$4.13
Confidence
Low
Methods
PEG-Based EPS (conservative), FCF 2-Stage DCF, EV/EBITDA
Quality Analysis
32/120 points
Low Quality
ROE (3Y Avg)
-5.7%
ROIC-WACC Spread
-12.2%
D/E Ratio
0.5x
Current Ratio
2.4x
Interest Coverage
-1x
FCF Positive Years
1/3
Quality Flags
- Low ROE: -5.6% (need >18%, got 0/20 pts)
- ROIC spread: -12.2pp (got 0/25 pts)
- FCF positive only 1/3 years (7/20 pts)
- Leverage: D/E 0.5x (10/15 pts)
- Interest coverage: -1.1x (0/10 pts)
- Volatile gross margins: std dev 4.3pp (need <3.0pp)
Market Sentiment
Wall Street Consensus
$8.50
-29.3% Upside
2 analysts
Range: $8.50 — $8.50
Rating: Buy
Our model is more cautious than Wall Street.
Trend & Technical
Price ($12.02) is 55.4% above SMA 200 ($7.74). Bullish trend confirmed.
Tech Score 66/100 — Neutral technical picture. Mixed signals across indicators.
Risk & Reward
Asymmetry Ratio
10.00:1
Expected Return
+120.7%
Bull Upside
+200.0%
Bear Downside
-10.0%
Excellent asymmetry: >3:1 ratio. Upside significantly outweighs downside.
Verdict: Very Favorable
Scenario Analysis
Bear
Base
Bull
Buy Zone & Action Plan
See exact entry zones, stop-loss levels, and a personalized action plan.
AI Executive Summary
Get a detailed AI-written breakdown of the investment thesis, risks, and catalysts.
Technical Analysis
RSI, MACD, moving averages, trend signals, and momentum indicators.
Ask AI about this stock
Chat with our AI analyst to ask questions about valuation, risks, or comparisons.
Frequently Asked Questions
What is the fair value of MEI?
Based on our multi-method conviction analysis, the estimated fair value of Methode Electronics, Inc. (MEI) is $4.13. This is calculated by blending PEG-Based EPS (conservative), FCF 2-Stage DCF, EV/EBITDA and applying a quality premium of 0% based on the company's fundamentals. The confidence level of this estimate is low.
Is MEI a buy, sell, or hold?
MEI currently has a AVOID rating with a conviction score of 3/10. Low quantitative score: Low quality, stretched valuation, or poor risk/reward. Quantitative score: weak.
Is MEI a high-quality stock?
Methode Electronics, Inc. has a quality grade of F (32/120 points), rated as Low Quality. Key metrics include ROE of -5.7%, ROIC-WACC spread of -12.2%, and D/E ratio of 0.5x.
What type of stock is MEI?
MEI is classified as a "value" in our framework. Low dividend (reinvesting): 1.8%, High FCF Yield: 24.6%, Mature growth: -1.9%, High beta (cyclical behavior): 1.59, Small cap: $0.4B
What do Wall Street analysts say about MEI?
2 Wall Street analysts have a consensus price target of $8.50 for MEI, representing -29.3% upside. Targets range from $8.50 to $8.50. The consensus recommendation is "Buy". Our model is more cautious than Wall Street.
What are the risks of investing in MEI?
The risk/reward asymmetry ratio for MEI is 10.00:1, rated as Very Favorable. Excellent asymmetry: >3:1 ratio. Upside significantly outweighs downside. The expected return is +120.7%, with bull case upside of +200.0% and bear case downside of -10.0%.
What is the current trend for MEI?
MEI is in a bullish trend. Price ($12.02) is 55.4% above SMA 200 ($7.74). Bullish trend confirmed. The technical score is 66/100.
Related Stock Analyses
Best Stocks to Buy
Get the complete analysis
Scenario targets, buy zones, action plan, executive summary, technical analysis, and AI chat. All free.
Last updated: June 15, 2026 · Framework version 3.7
This analysis is for informational purposes only and should not be considered financial advice. Always do your own research before making investment decisions.