Methode Electronics Stock Buy Hold or Sell Recommendation
| MEI Stock | USD 12.30 0.08 0.65% |
Considering the 90-day investment horizon and your above-average risk tolerance, our recommendation regarding Methode Electronics is 'Hold'. Macroaxis provides Methode Electronics buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding MEI positions. The advice algorithm takes into account all of Methode Electronics' available fundamental, technical, and predictive indicators you will find on this site. Key drivers impacting Methode Electronics' buy or sell advice are summarized below:
Real Value 18.76 | Target Price 39 | Hype Value 12.37 | Market Value 12.3 | Naive Value 10.53 |
A buy or sell recommendation provided by Macroaxis is an automated directive regarding whether to purchase or sell Methode Electronics given historical horizon and risk tolerance towards Methode Electronics. When Macroaxis issues a 'buy' or 'sell' recommendation for Methode Electronics, the advice is generated through an automated system that utilizes algorithms and statistical models.
Methode |
Execute Methode Electronics Buy or Sell Advice
The Methode recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Methode Electronics. Macroaxis does not own or have any residual interests in Methode Electronics or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Methode Electronics' advice using the current market data and latest reported fundamentals.
Time Horizon
Risk Tolerance
 |  |
Hold
Market Performance | Very Weak | Details | |
Volatility | Not too volatile | Details | |
Hype Condition | Under hyped | Details | |
Current Valuation | Undervalued | Details | |
Odds Of Distress | Below Average | Details | |
Economic Sensitivity | Responds to the market | Details | |
Investor Sentiment | Interested | Details | |
Analyst Consensus | Hold | Details | |
Financial Strenth (F Score) | Strong | Details | |
Financial Leverage | Inapplicable | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
Methode Electronics Trading Alerts and Improvement Suggestions
| Methode Electronics generated a negative expected return over the last 90 days | |
| Methode Electronics has high historical volatility and very poor performance | |
| Methode Electronics has a strong financial position based on the latest SEC filings | |
| Over 99.0% of the company shares are owned by institutional investors | |
| Latest headline from news.google.com: New York State Teachers Retirement System Sells 9804 Shares of Methode Electronics, Inc. - Defense World |
Methode Electronics Returns Distribution Density
The distribution of Methode Electronics' historical returns is an attempt to chart the uncertainty of Methode Electronics' future price movements. The chart of the probability distribution of Methode Electronics daily returns describes the distribution of returns around its average expected value. We use Methode Electronics price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Methode Electronics returns is essential to provide solid investment advice for Methode Electronics.
| Mean Return | -0.62 | Value At Risk | -4.87 | Potential Upside | 3.76 | Standard Deviation | 4.60 |
Return Density |
| Distribution |
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Methode Electronics historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.
Methode Stock 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 originates 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 | Charles Schwab Investment Management Inc | 2023-12-31 | 554.9 K | Bank Of New York Mellon Corp | 2023-12-31 | 461.5 K | Northern Trust Corp | 2023-12-31 | 434.1 K | Citadel Advisors Llc | 2023-09-30 | 302.3 K | Goldman Sachs Group Inc | 2023-12-31 | 291.3 K | William Blair Investment Management, Llc | 2023-12-31 | 281.7 K | Amvescap Plc. | 2023-12-31 | 273.5 K | Heartland Advisors Inc | 2023-12-31 | 256.3 K | Two Sigma Investments Llc | 2023-12-31 | 243.1 K | Blackrock Inc | 2023-12-31 | 5.9 M | Fmr Inc | 2023-12-31 | 5.1 M |
Methode Electronics Cash Flow Accounts
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 (projected) | ||
| Change To Inventory | (15.8M) | 11.3M | (39.3M) | 8.9M | 8.0M | 8.4M | |
| Change In Cash | 134.1M | 15.9M | (61.2M) | (15M) | (17.3M) | (16.4M) | |
| Free Cash Flow | 95.5M | 154.9M | 60.8M | 90.8M | 104.4M | 109.6M | |
| Depreciation | 48.3M | 51.5M | 52.6M | 49.5M | 56.9M | 59.8M | |
| Other Non Cash Items | (300K) | 100K | 2M | 2.8M | 3.2M | 5.0M | |
| Capital Expenditures | 45.1M | 24.9M | 38M | 42M | 48.3M | 25.4M | |
| Net Income | 123.4M | 122.3M | 102.2M | 77.1M | 88.7M | 93.1M | |
| End Period Cash Flow | 217.3M | 233.2M | 172M | 157M | 180.6M | 90.4M | |
| Net Borrowings | 235.4M | 58.4M | (115.7M) | (29.9M) | (26.9M) | (25.6M) | |
| Change To Netincome | 9.4M | 8.1M | (1.5M) | 13.1M | 15.1M | 15.8M | |
| Investments | (44.5M) | (24.8M) | (37.4M) | (153.1M) | (137.8M) | (144.7M) |
Methode Electronics Greeks
Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Methode Electronics or Electronic Equipment, Instruments & Components sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Methode Electronics' price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Methode stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α | Alpha over NYSE Composite | -0.71 | |
β | Beta against NYSE Composite | 1.38 | |
σ | Overall volatility | 4.68 | |
Ir | Information ratio | -0.15 |
Methode Electronics Volatility Alert
Methode Electronics exhibits very low volatility with skewness of -4.59 and kurtosis of 29.81. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Methode Electronics' stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Methode Electronics' stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.Methode Electronics Fundamentals Vs Peers
Comparing Methode Electronics' fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Methode Electronics' direct or indirect competition across all of the common fundamentals between Methode Electronics and the related equities. This way, we can detect undervalued stocks with similar characteristics as Methode Electronics or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Methode Electronics' fundamental indicators could also be used in its relative valuation, which is a method of valuing Methode Electronics by comparing valuation metrics with those of similar companies.
| Better Than Average | Worse Than Average | Compare Methode Electronics to competition |
| Fundamentals | Methode Electronics | Peer Average |
| Return On Equity | -0.0651 | -0.31 |
| Return On Asset | 0.0113 | -0.14 |
| Profit Margin | (0.05) % | (1.27) % |
| Operating Margin | (0.01) % | (5.51) % |
| Current Valuation | 674.1 M | 16.62 B |
| Shares Outstanding | 35.39 M | 571.82 M |
| Shares Owned By Insiders | 5.06 % | 10.09 % |
| Shares Owned By Institutions | 99.00 % | 39.21 % |
| Number Of Shares Shorted | 1.71 M | 4.71 M |
| Price To Earning | 13.84 X | 28.72 X |
| Price To Book | 0.53 X | 9.51 X |
| Price To Sales | 0.39 X | 11.42 X |
| Revenue | 1.18 B | 9.43 B |
| Gross Profit | 264.6 M | 27.38 B |
| EBITDA | 142.3 M | 3.9 B |
| Net Income | 77.1 M | 570.98 M |
| Cash And Equivalents | 157 M | 2.7 B |
| Cash Per Share | 4.17 X | 5.01 X |
| Total Debt | 335.4 M | 5.32 B |
| Debt To Equity | 0.25 % | 48.70 % |
| Current Ratio | 3.26 X | 2.16 X |
| Book Value Per Share | 22.68 X | 1.93 K |
| Cash Flow From Operations | 132.8 M | 971.22 M |
| Short Ratio | 1.81 X | 4.00 X |
| Earnings Per Share | (1.63) X | 3.12 X |
| Price To Earnings To Growth | 1.16 X | 4.89 X |
| Target Price | 13.33 | |
| Number Of Employees | 6.7 K | 18.84 K |
| Beta | 0.85 | -0.15 |
| Market Capitalization | 435.3 M | 19.03 B |
| Total Asset | 1.58 B | 29.47 B |
| Retained Earnings | 772.7 M | 9.33 B |
| Working Capital | 436.4 M | 1.48 B |
Note: Discretionary transaction by Ronald Tsoumas of 4550 shares of Methode Electronics subject to Rule 16b-3 [view details]
Methode Electronics Market Momentum
Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as Methode . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.
About Methode Electronics Buy or Sell Advice
When is the right time to buy or sell Methode Electronics? Buying financial instruments such as Methode Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.| 2021 | 2022 | 2023 | 2024 (projected) | Short and Long Term Debt Total | 231.3M | 335.4M | 385.7M | 405.0M | Total Assets | 1.4B | 1.6B | 1.8B | 1.9B |
Use Investing Ideas to Build Portfolios
In addition to having Methode Electronics in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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Check out Methode Electronics Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. For more detail on how to invest in Methode Stock please use our How to Invest in Methode Electronics guide.Note that the Methode Electronics information on this page should be used as a complementary analysis to other Methode Electronics' statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Bonds Directory module to find actively traded corporate debentures issued by US companies.
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When running Methode Electronics' price analysis, check to measure Methode Electronics' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Methode Electronics is operating at the current time. Most of Methode Electronics' value examination focuses on studying past and present price action to predict the probability of Methode Electronics' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Methode Electronics' price. Additionally, you may evaluate how the addition of Methode Electronics to your portfolios can decrease your overall portfolio volatility.
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Is Methode Electronics' industry 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 (1.63) | Revenue Per Share 31.999 | Quarterly Revenue Growth (0.07) |
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.
Please note, there is a significant difference between Methode Electronics' value and its price as these two are different measures arrived at by different 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.