Methode Electronics, Inc. designs, manufactures, and markets component and subsystem devices in the United States and internationally. The company operates through Automotive, Interface, Power Products, and Other segments. The company was founded in 1946 and is based in Chicago, Illinois.
MEI Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for MEI, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Methode Electronics Inc ranked in the 36th percentile in terms of potential gain offered. We should note, though, that the most conservative analysis suggests this stock will yield negative results -- and thus may be a potential short opportunity. As for the metrics that stood out in our discounted cash flow analysis of Methode Electronics Inc, consider:
The company's compound free cash flow growth rate over the past 5.5 years comes in at -0.03%; that's greater than merely 20.71% of US stocks we're applying DCF forecasting to.
Methode Electronics Inc's weighted average cost of capital (WACC) is 8%; for context, that number is higher than only 13.88% of tickers in our DCF set.
The company's cost of debt, derived from its interest coverage, tax rate, and market capitalization, is greater than only 0% of stocks in its sector (Technology).
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
Want more companies with a valuation profile/forecast similar to that of Methode Electronics Inc? See W, XPER, ALTR, EVTC, and YY.
Methode Electronics (MEI) declares $0.11/share quarterly dividend, in line with previous.Forward yield 1.58%Payable Oct. 30; for shareholders of record Oct. 16; ex-div Oct. 15.See MEI Dividend Scorecard, Yield Chart, & Dividend Growth....
Right Industry But Not Essential Markets Methode Electronics, Inc. (MEI) is a $1.06B diversified electronics producer headquartered in my hometown of Chicago. The company has offices and plants across the globe and 6,000 employees. Who doesn't have an affinity for things "hometown," especially companies that are successful? But I have...
Harold Goldmeier on Seeking Alpha | September 14, 2020