MEI — Methode Electronics

Custom engineered mechatronic products — user interfaces, LED lighting, sensors, power distribution components for automotive, industrial, data center, and aerospace markets. | AGI Score: 5/10 | P/TB: 0.74x | Analysis date: 2026-03-13

Why are we looking at this?

Trading at 0.74x book value. Makes power distribution components for data centers (AGI-adjacent). Serves automotive (EV transition), industrial, aerospace. Custom engineering = sticky customer relationships. Physical products with real assets.

$5.13
Stock Price
$182M
Market Cap
0.74x
Price / Book
$978M
Revenue (TTM)
$68M
Operating Cash Flow
$75M
Free Cash Flow
P/E (trailing)
10.8x
EV/EBITDA
5.9%
Dividend Yield
$134M
Cash
$368M
Total Debt
54%
Debt/Equity
1.05
Beta
$5.08
52-Week Low
$10.78
52-Week High
Stock Price — MEI

1. Business Overview

Custom engineered mechatronic products — user interfaces, LED lighting, sensors, power distribution components for automotive, industrial, data center, and aerospace markets.

Sector: Electronic Components | Employees: 6,500

2. AGI Impact Assessment

AGI Impact Assessment (Score: 5/10)

4
Demand Boost
6
Margin Expansion
5
Strategic Assets
4
Disruption Risk
5
Innovation Risk
medium
Confidence

Category: Minimal Impact

AGI provides modest demand boost via increased data center infrastructure build-out (power distribution, high-speed connectivity components). Margin expansion possible through AGI-driven design automation and manufacturing optimization. Strategic assets include engineering expertise and OEM relationships. Moderate disruption/innovation risk if AGI enables new interface technologies or manufacturing methods. Overall mixed—benefits from data center demand but faces automation of design work and potential product obsolescence. Neutral to slight positive.

3. Bull vs Bear Case

Bull Case

Data center power distribution is a growing market. 0.74x book = buying assets cheap. Custom engineering = high switching costs. EV transition drives new interface/sensor demand. Diversified end markets provide stability.

Bear Case

Automotive exposure is risky (OEM pricing pressure, EV transition disruption). Custom engineering means revenue depends on design wins — lumpy. Company has been struggling (stock down significantly). Small cap with limited visibility.

4. Financial History (XBRL — Backwards 10x)

MetricFY2016FY2017FY2018FY2019FY2020FY2021FY2022FY2023FY2024FY2025
Revenue$213M$220M$249M$266M$211M$301M$289M$1B$1B$1B
Net Income$85M$93M$37M$23M$30M$31M$16M$77M$-123M$-63M
Operating Income$110M$111M$118M$107M$147M$128M$112M$90M$-112M$-24M
Operating Cash Flow$111M$145M$118M$102M$141M$180M$99M$133M$48M$26M
CapEx$23M$22M$48M$50M$45M$25M$38M$42M$50M$42M
Total Assets$656M$704M$916M$1B$1B$1B$1B$2B$1B$1B
Stockholders Equity$470M$541M$459M$690M$783M$918M$914M$942M$766M$693M
Shares Outstanding38,333,48437,283,09637,281,63037,405,29837,574,67138,038,61537,234,08636,016,68635,470,47135,330,586
Free Cash Flow*$88M$123M$70M$52M$96M$155M$61M$91M$-3M$-15M
Share Count Change-2.7%-0.0%+0.3%+0.5%+1.2%-2.1%-3.3%-1.5%-0.4%

*FCF = Operating Cash Flow - CapEx

5. Balance Sheet Snapshot

Balance Sheet ItemLatest FY
Total Assets$1B
PP&E (net)$222M
Cash & Equivalents$104M
Goodwill$173M
Intangible Assets$238M
Total Liabilities$1B
Long-Term Debt$317M
Stockholders Equity$693M
Tangible Book Value$282M

Asset Quality Assessment

Goodwill: $173M — this is a real risk; if written down, equity shrinks

Intangible Assets: $238M

PP&E: $222M — physical assets that could be liquidated

Tangible Book Value: $282M ($7.97 per share)

6. Valuation & Floor Price

Valuation Metrics

MetricValueNotes
Book Value / Share$19.58Stockholders equity / shares
Tangible Book Value / Share$7.97Equity minus goodwill & intangibles
Price / Revenue0.19xMarket cap / TTM revenue
OCF Yield37.7%Operating cash flow / market cap
FCF Yield41.4%Free cash flow / market cap
Floor Price Estimate (60% TBV)$4.78Conservative: 60% of tangible book value per share

Floor Price Analysis

Tangible Book Value per share: $7.97

Conservative Floor (60% of TBV): $4.78 — At this price, you are buying hard assets at 60 cents on the dollar with margin of safety.

Current price $5.13 is below tangible book value ($7.97).

7. 10-K Filing Extracts

Item 1: Business Description (excerpt)

Item 1. Business Description of Business We are a leading global supplier of custom engineered solutions with sales, engineering and manufacturing locations in North America, Europe, Middle East and Asia. We design, engineer and produce mechatronic products for Original Equipment Manufacturers (“OEMs”) utilizing our broad range of technologies for user interface, light-emitting diode (“LED”) lighting system, power distribution and sensor applications. Our solutions are found in the end markets of transportation (including automotive, commercial vehicle, e-bike, aerospace, bus and rail), cloud computing infrastructure, construction equipment and consumer appliance. Fiscal Year Our fiscal year ends on the Saturday closest to April 30 of the following year, typically resulting in a 52-week year, but occasionally giving rise to an additional week, resulting in a 53-week year. The fiscal year ended May 3, 2025 was a 53-week fiscal year. Fiscal 2024 ended on April 27, 2024 and fiscal 2023 ended on April 29, 2023, and each represented 52 weeks of results. Operating Segments Our business is managed, and our financial results are reported, based on the following three segments: Automotive, Industrial and Interface. We reported a fourth segment, Medical, through fiscal 2024. See Note 15, “Segment Information and Geographic Area Information” to the consolidated financial statements in this Annual Report for further information. The Automotive segment supplies electronic and el

Item 7: MD&A (excerpt)

Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations Management’s Discussion and Analysis of Financial Condition and Results of Operations is based upon our consolidated financial statements, which have been prepared in accordance with GAAP. You should read the following discussion and analysis in conjunction with our consolidated financial statements and related notes included in this Annual Report. This discussion and analysis of our financial condition and results of operations also contains forward-looking statements that involve risks, uncertainties, and assumptions. Our actual results may differ materially from those anticipated in these forward-looking statements because of a variety of factors, including those set forth under Item 1A, “ Risk Factors” of this Annual Report. We undertake no duty to update any such forward-looking statements to conform to actual results or changes in our expectations. Overview Our Business We are a leading global supplier of custom engineered solutions with sales, engineering and manufacturing locations in North America, Europe, Middle East and Asia. We design, engineer and produce mechatronic products for OEMs utilizing our broad range of technologies for user interface, LED lighting system, power distribution and sensor applications. Our solutions are found in the end markets of transportation (including automotive, commercial vehicle, e-bike, aerospace, bus and rail), cloud computing in

8. Initial Assessment

Summary — MEI (Methode Electronics)

What assets exist? PP&E of $222M. Total assets of $1B Tangible book value of $282M. Goodwill of $173M is a risk.

Are buybacks real? No significant buybacks reported.

Is the business durable? Electronic Components with AGI score 5/10. Low AGI disruption risk — physical business that AGI does not easily replace.

What is the floor? At $4.78 (60% of TBV), downside is limited by hard assets. Current price $5.13 is above the floor estimate.

Data sources: SEC EDGAR XBRL, yfinance, 10-K filing extracts, AGI scoring framework. Analysis date: 2026-03-13.