Stock fact sheet · data as of
Methode Electronics, Inc. (MEI): fair value, margin of safety and Wheel Score
Ticker symbol MEI · Technology · Hardware, Equipment & Parts · United States · Speculative
Is MEI undervalued?
At 13.27 (close of 5 Nov 2026), MEI trades 140% over the GLS average fair value of 5.53, with 0 of 3 models above the price. The stock earns none of the Wheel Score's Value points at this price. That is a statement about price against trailing fundamentals, not about the company's prospects - the Wall Street View and the Growth tab on the Quote page carry the forward numbers.
The average is built from just 3 models (DCF, 10 Cap, DDM) - the rest returned nothing because an input they need (dividends, free cash flow, book value) is zero or negative - so treat it with more caution than usual.
The nightly engine files MEI under Speculative - it is losing money or its Piotroski health score is 3 or lower - which caps its Wheel Score at 45 and keeps it out of the Sunday Scan.
Nine valuation models for MEI
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | 3.99 | -70% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | - | - | The most a defensive investor pays for the earnings and book value per share; no value tonight |
| Graham Growth | - | - | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields; no value tonight |
| Lynch | - | - | EPS × the earnings growth rate (PEG of 1), growth capped at 25%; no value tonight |
| GLS Growth | - | - | EPS compounded ten years at the blended growth rate, discounted back at 15% a year; no value tonight |
| 10 Cap | 9.64 | -27% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | - | - | Eight years of compounded free cash flow: the price at which the business pays for itself; no value tonight |
| DDM | 2.94 | -78% | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend |
| EPV | - | - | Earnings power value: current EPS capitalised at 9% with no growth; no value tonight |
| Zombie (liquidation) | -0.8024 | -106% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 25.25 | +90% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
Methode Electronics, Inc. scores 5 of 9 on the Piotroski F-score: a middling result that falls one point short of the "Piotroski 6 or more" Wheel Trade Filter. Some of the nine tests on profitability, leverage and efficiency are failed, so the accounts are worth a look before selling a put on the name. A GLS Moat score of 3.4/10 is a weak reading: the accounts do not show returns and margins that competitors have been unable to wear down, so the Moat part of the Wheel Score contributes little.
Returns on capital are thin or negative - ROIC -3.5%, ROE -5.3%, ROA -2.7% - with debt at 0.52 times equity and negative free cash flow.
The dividend yield is 1.51% at a payout ratio of -20%; for a wheel trader holding assigned shares the dividend adds to the covered-call premium, and the ex-dividend date is worth knowing before a call is sold. Revenue comes mainly from Industrial 56%, Automotive 34%, Corporate And Intersegment Elimination 9% (quarter Q1 FY2027).
Institutional ownership scores 10/10, insider activity 5/10 and Congressional trading 5/10 on the GLS smart-money scales.
| Piotroski F-score | 5 / 9 | ROIC | -3.5% |
|---|---|---|---|
| GLS Moat | 3.4 / 10 | ROE | -5.3% |
| Debt / equity | 0.52 | ROA | -2.7% |
| Free-cash-flow yield | -2.8% | Payout ratio | -20% |
| Institutions | 10 / 10 | Insiders · Congress | 5 · 5 / 10 |
Wheel Score 25: Weak
With a Wheel Score of 25 Methode Electronics, Inc. sits in the Weak band. It fails filter 2, a real business, not a gamble - speculative (a loss, or a weak Piotroski score); and filter 3, below fair value - trades 140% above our fair value; and filter 4, financially healthy - Piotroski 5/9 (under 6); and filter 5, can repay its debt - 8.6 years to repay its debt (over 3); and filter 7, a premium worth selling - implied volatility 85% (over 80%); and filter 8, big enough - market cap $473M (under $1.0B); Value (weak) is its weakest part.
Implied volatility is 85%, above the 80% ceiling of the Wheel Trade Filter on premium. The premium looks generous, but moves of that size can blow through any strike. Chain open interest is 10,439 contracts across all expiries - enough for the wheel at normal size.
Volume runs at 790k shares a day on a market cap of $473M, with a beta of 1.60 - a high beta, so the stock tends to move more than the market and a strike can be gapped through; the Stability part of the Wheel Score rates that weak.
| Filter | Wheel Trade Filter | Result | Detail |
|---|---|---|---|
| 1 | Options that actually trade | Passes | Listed options with 1,000+ contracts of open interest and 100+ traded a day |
| 2 | A real business, not a gamble | Fails | speculative (a loss, or a weak Piotroski score) |
| 3 | Below fair value | Fails | trades 140% above our fair value |
| 4 | Financially healthy | Fails | Piotroski 5/9 (under 6) |
| 5 | Can repay its debt | Fails | 8.6 years to repay its debt (over 3) |
| 6 | No serious red flags | Passes | Red Flags score 60 or more out of 100 (earnings, margins, debt, analysts, filings and price checked the same way for every stock) |
| 7 | A premium worth selling | Fails | implied volatility 85% (over 80%) |
| 8 | Big enough | Fails | market cap $473M (under $1.0B) |
| 9 | Not a penny stock | Passes | Share price $5 or more |
| How it ranks | Rating | From | |
|---|---|---|---|
| Value | Weak | 140% above fair value | |
| Premium | Fair | implied volatility 85% | |
| Moat | Weak | moat 3.4/10 | |
| Health | Fair | Piotroski 5/9 | |
| Red Flags | Good | Red Flags score 82/100 | |
| Option trading | Weak | 518 contracts a day, 10,439 open interest | |
| Stability | Weak | beta 1.60, $473M company |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls: a stock must pass all 9 Wheel Trade Filters to score 70, and the score then ranks the ones that pass; the Sunday Scan is the top 10. It is updated nightly and is not a recommendation. How the Wheel Score works · the walkthrough lesson shows how it fits into a trade, start to finish.
Upcoming events
The next earnings report is due on 2 Dec 2026, 27 days away; a 30-45-day put sold today would expire after it, which is worth weighing against the premium.
No analyst upgrades or downgrades were recorded in the last 30 days.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Hardware, Equipment & Parts
The 12 companies below are the closest to Methode Electronics, Inc. by market cap within the Hardware, Equipment & Parts industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
| Stock | Close | Fair value | MoS | Wheel | Mkt cap |
|---|---|---|---|---|---|
| LPTH LightPath Technologies, Inc. | 7.10 | - | - | 19Weak | $498M |
| VPG Vishay Precision Group, Inc. | 49.37 | 19.50 | -153% | 24Weak | $607M |
| UMAC Unusual Machines, Inc. | 13.03 | 4.15 | -214% | 14Weak | $651M |
| SLNHP Soluna Holdings, Inc. | 10.81 | - | - | 10No options | $314M |
| RELL Richardson Electronics, Ltd. | 19.56 | 11.70 | -67% | 28Weak | $287M |
| MPTI M-tron Industries, Inc. | 63.92 | 73.13 | +13% | 27No options | $278M |
| DAKT Daktronics, Inc. | 20.32 | 17.43 | -17% | 37Weak | $977M |
| OPTX Syntec Optics Holdings, Inc. | 4.56 | 0.3852 | -1084% | 18Weak | $184M |
| USBC USBC, Inc. | 0.4290 | 0.1109 | -287% | 8No options | $167M |
| CTS CTS Corporation | 61.91 | 49.30 | -26% | 40Weak | $1.8B |
| ROG Rogers Corporation | 128.70 | 83.55 | -54% | 39Weak | $2.3B |
| BHE Benchmark Electronics, Inc. | 65.26 | 34.97 | -87% | 36Weak | $2.3B |
Scan the whole market the same way
A free GLS Equity account gets you nightly fair value and the Wheel Score on ~7,400 US stocks, a watchlist, the scanner preview and the Sunday Scan - the top 10 stocks that pass all 9 Wheel Trade Filters, emailed every week. Pro adds the full put and call scanners, unlimited watchlists with alerts and the trade journal.
Start free See the Sunday ScanQuestions about MEI
Is MEI undervalued right now?
No: at 13.27 the stock trades 140% above the GLS average fair value of 5.53 (data as of 5 Nov 2026), well beyond what trailing earnings, cash flow and book value support.
What is the Wheel Score of MEI and what does it mean?
MEI scores 25 out of 100 (Weak) - it fails Wheel Trade Filters 2, 3, 4, 5, 7, 8. The Wheel Score ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned - in two parts: the 9 pass/fail Wheel Trade Filters (busy options, a real business, below fair value, Piotroski 6 or more, debt it can repay, a Red Flags score of 60 or more, implied volatility of 25-80%, a $1 billion company, $5 a share) and a ranking of how strongly a stock passes on value, premium, moat, health, red flags, option trading and stability. A stock that fails any filter stays under 70; 70-84 is Good, 85 and above is Prime. The Sunday Scan is the top 10 that pass, sorted by Wheel Score.
What is the GLS fair value for MEI?
5.53 per share as of 5 Nov 2026 - the simple average of the 3 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does Methode Electronics, Inc. report earnings next?
The next earnings report is due on 2 Dec 2026, 27 days from the data date of 5 Nov 2026. The Calendars page lists every upcoming report with its time of day.
Does MEI have listed options, and how liquid are they?
Yes. The nightly snapshot found 30 listed contracts with 10,439 open interest across all expiries and implied volatility of 85% on the near-the-money contracts. The Options scanner lists the cash-secured put and covered call set-ups with premium and annualised yield worked out.