Stock fact sheet · data as of
Methode Electronics, Inc. (MEI): fair value, margin of safety and Wheel Score
Technology · Hardware, Equipment & Parts · United States · Speculative / Distressed
Is MEI undervalued?
At 14.31 (close of 16 Oct 2026), MEI trades 163% over the GLS average fair value of 5.45, 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 / Distressed - negative earnings or a Piotroski score of 3 or less - 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 | 3.76 | -74% | 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 | -33% | 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 | -79% | 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 | +76% | 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 Sunday Scan's "6 or more" rule. 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 1.4/10 is a weak reading: the ten-year history the score grades (revenue, EPS, book value, margins, cash flow, share count, ROIC) has not been steady, 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 1.40% with a payout ratio of -20% - a small yield that leaves most of the earnings in the business. 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 | 1.4 / 10 | ROE | -5.3% |
| Debt / equity | 0.52 | ROA | -2.7% |
| Free-cash-flow yield | -2.6% | Payout ratio | -20% |
| Institutions | 10 / 10 | Insiders · Congress | 5 · 5 / 10 |
Wheel Score 43: Weak
With a Wheel Score of 43 Methode Electronics, Inc. sits in the Weak band. The parts - Value 0/25, Health 11/20, Moat 2/15, Premium 19/20, Stability 11/20 - show where: Value (0/25) scores lowest.
Implied volatility is 64% on the near-the-money contracts 20-60 days out - above the 60% ceiling of the sweet spot. Premiums are large, but the Wheel Score tapers the Premium points (19 of 20) because volatility this high usually comes with a reason. Chain open interest is 22,048 contracts across all expiries - enough for the wheel at normal size.
Volume runs at 760k shares a day on a market cap of $510M, with a beta of 1.56 - 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 gives that 11 of 20.
| Part | Points | From | |
|---|---|---|---|
| Value | 0 / 25 | -163% margin of safety | |
| Health | 11 / 20 | Piotroski 5/9 | |
| Moat | 2 / 15 | moat 1.4/10 | |
| Premium | 19 / 20 | implied volatility 64% | |
| Stability | 11 / 20 | 760k shares/day, $510M cap, beta 1.56 |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls; it is updated nightly and is not a recommendation. The walkthrough lesson shows how the score fits into a trade, start to finish.
Upcoming events
The next earnings report is due on 2 Dec 2026, 47 days away - outside the window of a 30-45-day put sold today. The shares go ex-dividend on 16 Oct 2026 (0.0500 per share), so a covered call sold before then carries a small early-assignment risk around that date.
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. | 8.20 | - | - | 45Weak | $574M |
| VPG Vishay Precision Group, Inc. | 63.58 | 10.45 | -508% | 40Weak | $847M |
| SLNHP Soluna Holdings, Inc. | 10.50 | - | - | 21No options | $305M |
| RELL Richardson Electronics, Ltd. | 20.20 | 11.65 | -73% | 47Weak | $296M |
| DAKT Daktronics, Inc. | 18.27 | 17.44 | -5% | 67Good | $879M |
| UMAC Unusual Machines, Inc. | 17.73 | 4.14 | -328% | 26Weak | $886M |
| MPTI M-tron Industries, Inc. | 67.48 | 73.54 | +8% | 39No options | $293M |
| OPTX Syntec Optics Holdings, Inc. | 6.93 | 0.3589 | -1831% | 33Weak | $279M |
| USBC USBC, Inc. | 0.4510 | 0.1107 | -307% | 12No options | $175M |
| CTS CTS Corporation | 55.29 | 42.23 | -31% | 59Fair | $1.6B |
| SLNH Soluna Holdings, Inc. | 0.7181 | - | - | 27No options | $113M |
| ROG Rogers Corporation | 139.72 | 64.76 | -116% | 53Fair | $2.5B |
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Start free See the Sunday ScanQuestions about MEI
Is MEI undervalued right now?
No: at 14.31 the stock trades 163% above the GLS average fair value of 5.45 (data as of 16 Oct 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 43 out of 100 (Weak). The Wheel Score blends the margin of safety (25 points), Piotroski health (20), the GLS moat (15), the option premium on offer (20) and trading stability (20) into one number that ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned. 80 and above is Prime, 65-79 Good, 50-64 Fair, under 50 Weak.
What is the GLS fair value for MEI?
5.45 per share as of 16 Oct 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, 47 days from the data date of 16 Oct 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 112 listed contracts with 22,048 open interest across all expiries and implied volatility of 64% 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.