Last Updated: 07 Nov 2024
Executive Summary
Methode Electronics Inc. (MEI) is a publicly traded company that designs, manufactures, and markets component devices and subsystems. The company has a market capitalization of $326.37 million and is headquartered in Chicago, Illinois. MEI's stock is currently trading at $10.22, which is below its 52-week high of $24.32. The company has a trailing price-to-earnings (PE) ratio of negative, indicating that it is currently unprofitable. However, MEI has a forward PE ratio of 57.8, which suggests that analysts expect the company to become profitable in the future.
Company Overview
Methode Electronics was founded in 1905 and is one of the leading manufacturers of electronic connectors and components. The company's products are used in a wide range of industries, including automotive, aerospace, medical, and industrial. MEI has a global presence with manufacturing facilities in the United States, Mexico, China, and Europe.
Fundamental Analysis
MEI's financial performance has been mixed in recent years. The company has reported negative earnings per share (EPS) in each of the past four quarters. However, MEI's revenue has grown in each of the past four quarters. The company's gross profit margin has also improved in recent quarters.
MEI's balance sheet is strong. The company has a low level of debt and a high level of cash and equivalents. MEI's current ratio is 1.5, which indicates that the company has enough liquidity to meet its short-term obligations.
Technical Analysis
MEI's stock price has been in a downtrend since early 2023. The stock is currently trading below its 50-day and 200-day moving averages. The relative strength index (RSI) is also below 50, which indicates that the stock is oversold.
Short Term Outlook
MEI's stock price is likely to remain under pressure in the short term. The company is currently unprofitable and analysts expect it to remain unprofitable in the next fiscal year. The stock's technical indicators are also bearish.
Long Term Outlook
MEI's long-term outlook is more positive. The company has a strong balance sheet and a solid track record of innovation. MEI is also well-positioned to benefit from the growing demand for electronic connectors and components.
Analyst Recommendations
Analysts are mixed on MEI's stock. Four analysts have a hold rating on the stock, while none have a buy or strong buy rating. The average analyst target price is $11.33, which is 10.8% above the current price.
