Why is Methode Electronics, Inc. ?
1
Poor long term growth as Operating profit has grown by an annual rate -167.39% of over the last 5 years
2
The company has declared Negative results for the last 12 consecutive quarters
- NET PROFIT(HY) At USD -39.9 MM has Grown at -118.03%
- OPERATING CASH FLOW(Y) Lowest at USD 42.4 MM
- INTEREST(HY) At USD 11.7 MM has Grown at 28.57%
3
Risky - Negative Operating Profits
- The stock is trading risky as compared to its average historical valuations
- Over the past year, while the stock has generated a return of -42.94%, its profits have fallen by -590.1%
4
Consistent Underperformance against the benchmark over the last 3 years
- Along with generating -42.94% returns in the last 1 year, the stock has also underperformed S&P 500 in each of the last 3 annual periods
How much should you sell?
- All quantity irrespective of whether you are making profits or losses
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Electronics & Appliances)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is Methode Electronics, Inc. for you?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
Methode Electronics, Inc.
85.84%
-0.44
67.96%
S&P 500
15.76%
0.70
20.15%
Quality key factors
Factor
Value
Sales Growth (5y)
-0.39%
EBIT Growth (5y)
-167.95%
EBIT to Interest (avg)
17.33
Debt to EBITDA (avg)
2.06
Net Debt to Equity (avg)
0.32
Sales to Capital Employed (avg)
1.00
Tax Ratio
24.95%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
100.00%
ROCE (avg)
7.47%
ROE (avg)
6.70%
Valuation Key Factors 
Factor
Value
P/E Ratio
NA (Loss Making)
Industry P/E
Price to Book Value
0.30
EV to EBIT
-19.74
EV to EBITDA
10.72
EV to Capital Employed
0.47
EV to Sales
0.43
PEG Ratio
NA
Dividend Yield
5.38%
ROCE (Latest)
-2.39%
ROE (Latest)
-9.29%
Technical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bullish
RSI
No Signal
No Signal
Bollinger Bands
Sideways
Mildly Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Mildly Bullish
Dow Theory
Mildly Bullish
No Trend
OBV
Mildly Bullish
Mildly Bullish
Technical Movement
10What is working for the Company
NET PROFIT(HY)
Higher at USD -10.66 MM
ROCE(HY)
Highest at -5.45%
RAW MATERIAL COST(Y)
Fallen by -1.02% (YoY
-9What is not working for the Company
OPERATING CASH FLOW(Y)
Lowest at USD 5.1 MM
PRE-TAX PROFIT(Q)
At USD -7 MM has Fallen at -400%
NET PROFIT(Q)
At USD -11.1 MM has Fallen at -39.79%
DIVIDEND PER SHARE(HY)
Lowest at USD 4.34
Here's what is working for Methode Electronics, Inc.
Raw Material Cost
Fallen by -1.02% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin
Raw Material Cost as a percentage of Sales
Here's what is not working for Methode Electronics, Inc.
Pre-Tax Profit
At USD -7 MM has Fallen at -400%
over average net sales of the previous four periods of USD -1.4 MMMOJO Watch
Near term Pre-Tax Profit trend is very negative
Pre-Tax Profit (USD MM)
Operating Cash Flow
Lowest at USD 5.1 MM and Fallen
In each year in the last three yearsMOJO Watch
The company's cash revenues from business operations are falling
Operating Cash Flows (USD MM)
Net Profit
At USD -11.1 MM has Fallen at -39.79%
over average net sales of the previous four periods of USD -7.94 MMMOJO Watch
Near term Net Profit trend is very negative
Net Profit (USD MM)
Dividend per share
Lowest at USD 4.34
in the last five yearsMOJO Watch
Company is distributing lower dividend than previous years
DPS (USD)
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