Methode Electronics Inc (NYSE:MEI) is a stock with outstanding fundamental characteristics. When we build an investment case, we need to look at the stock with a holistic perspective. In the case of MEI, it is a financially-sound company with a a strong track record superior dividend payments, trading at a discount. Below, I’ve touched on some key aspects you should know on a high level. If you’re interested in understanding beyond my high-level commentary, take a look at the report on Methode Electronics here.
Flawless balance sheet, good value and pays a dividend
MEI’s ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This implies that MEI manages its cash and cost levels well, which is an important determinant of the company’s health. MEI seems to have put its debt to good use, generating operating cash levels of 2.15x total debt in the most recent year. This is also a good indication as to whether debt is properly covered by the company’s cash flows. MEI is currently trading at a price-to-earnings ratio of 17.68x relative to the industry ratio of 22.4x and market ratio of 18x, which means it is relatively cheaper than its peers.
For those seeking income streams from their portfolio, MEI is a robust dividend payer as well. Over the past decade, the company has consistently increased its dividend payout, reaching a yield of 1.5%.
For Methode Electronics, I’ve compiled three fundamental factors you should look at:
- Future Outlook: What are well-informed industry analysts predicting for MEI’s future growth? Take a look at our free research report of analyst consensus for MEI’s outlook.
- Historical Performance: What has MEI’s returns been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of MEI? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at email@example.com.