Methode Electronics Stock Price and Value Analysis

Should you buy Methode Electronics stock? (NYSE:MEI). Let's see how it does in our automated value investing analysis system.

MEI Free Cash Flow Trend

Free Cash Flow trendline for MEI
Free Cash Flow trendline for Methode Electronics

Based on historical returns, we believe that Methode Electronics can grow its free cash at a rate of about 2%. That's positive!

AdvantagesDisadvantages
  • This company is solid.
  • This company is making money at a modest rate.
  • This company has wild ups and downs.
  • This company has a low dividend yield.
  • This stock looks overpriced.

Inside the MEI Numbers

MEI Price
(Methode Electronics stock price per share)
$42.56
[?] MEI Fair Price
(based on intrinsic value)
$20.00
[?] MEI Safety Price (based on a variable margin of safety) $13.00
[?] PE Ratio versus Sector 24% lower than other Technology stocks
[?] PE Ratio versus Industry 2% higher than other Electronic Components stocks
[?] Cash Yield -0.33%
[?] Free Cash Flow Jitter 47%
[?] Dividend Yield 1%
Shares Shorted 437,393

This stock has short interest! This means that people have shorted it.

Why does that matter? They've made a bet that price will decrease from where they bought it. Maybe there are financial problems, or maybe there's a value play.

As of the latest analysis, there are 437,393 shares shorted. With 35,637,113 shares available for purchase and an average trading volume over the past 10 trading days of 189,028, it would take at least 2.314 days for all of the short holders to cover their shorts.

Is Methode Electronics Stock on Sale?

We believe that Methode Electronics may be worth examining further. It's making money, which is a very positive sign. Is it on sale?

Methode Electronics looks overpriced right now. If you're looking for a bargain in the stock market, you should probably look elsewhere for a great deal. This might still be a great stock to own—but it's not on sale right now.

Should You Buy MEI Stock?

Does Methode Electronics have a coherent story? Does it have a plan to continue to make money? Is it worth your time? Only you can decide where to go from here. Our investment guide helps you ask the right questions, including how to buy stocks. Use these research links for more information.