Methode Story

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MEI -- USA Stock  

USD 24.54  0.39  1.56%

As many of us are excited about technology space, it is fair to concentrate on Methode Electronics. We are going to cover the possibilities of making Methode Electronics into your portfolio. What is the firm valuation so far in 2020? We are going to cover Methode Electronics perspective on valuation to give investors a better transparency on taking a position in it.
Published over two weeks ago
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Is Methode Electronics outlook positive for October 2020?
Methode Electronics has 379.4 M in debt with debt to equity (D/E) ratio of 0.48, which is OK given its current industry classification. The company secures a Beta (Market Risk) of 1.2834, which conveys a somewhat significant risk relative to the market. Let's try to break down what Methode's beta means in this case. As the market goes up, the company is expected to outperform it. However, if the market returns are negative, Methode Electronics will likely underperform. Even though it is essential to pay attention to Methode Electronics price patterns, it is always good to be careful when utilizing equity historical price patterns. Our philosophy towards estimating any stock's future performance is to check both, its past performance charts as well as the business as a whole, including all available technical indicators. Methode Electronics exposes twenty-eight different technical indicators, which can help you to evaluate its performance. Methode Electronics has an expected return of -0.28%. Please be advised to verify Methode Electronics expected short fall, and the relationship between the value at risk and daily balance of power to decide if Methode Electronics stock performance from the past will be repeated at some point in the near future.
We determine the current worth of Methode Electronics using both absolute as well as relative valuation methodologies to arrive at its intrinsic value. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Methode Electronics based exclusively on its fundamental and basic technical indicators. By analyzing Methode Electronics's financials, quarterly and monthly indicators, and related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Methode Electronics's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Methode Electronics. We calculate exposure to Methode Electronics's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Methode Electronics's related companies.

Methode Electronics Investment Alerts

Methode investment alerts and warnings help investors to get more proficient at understanding not only critical technical and fundamental signals but also the significant portfolio-centered indicators. These indicators include beta, alpha, and other risk-related measures that will help you in monitoring Methode Electronics performance across your portfolios.Please check all investment alerts for Methode

Methode Electronics Valuation Ratios as Compared to Competition

Our valuation model uses many indicators to compare Methode value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Methode Electronics competition to find correlations between indicators driving the intrinsic value of Methode.

How Methode utilizes its cash?

To perform a cash flow analysis of Methode Electronics, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Methode Electronics is receiving and how much cash it distributes out in a given period. The Methode Electronics cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities. Methode Electronics Net Cash Flow from Operations is most likely to increase significantly in the upcoming years. The last year's value of Net Cash Flow from Operations was reported at 140.6 Million

Acquisition by Darren Dawson of 3000 shares of Methode Electronics subject to Rule 16b-3

Legal trades by Methode Electronics insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
Methode insider trading alert for grant of common stock by Darren Dawson, the corporate stakeholder, on 23rd of August 2020. This event was filed by Methode Electronics Inc with SEC on 2020-07-09. Statement of changes in beneficial ownership - SEC Form 4 [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

A Deeper look at Methode

The entity reported the last year's revenue of 1.02 B. Total Income to common stockholders was 123.4 M with profit before taxes, overhead, and interest of 283.5 M.
 2010 2020 (projected)
Long Term Debt to Equity0.01090.29
Interest Coverage53.5350.05

Margins Breakdown

Methode profit margins show the degree to which it makes money. Margin indicators are used not only by investors but also by creditors or Methode Electronics itself as indicators of financial health and management effectiveness. Please look more closely at the different varieties of Methode Electronics profit margins.
Operating Margin14.7
EBITDA Margin0.2
Gross Margin0.28
Profit Margin0.12

Methode Electronics Earnings Before Interest Taxes and Depreciation Amortization USD is nearly stable at the moment. Further, Methode Electronics Average Assets is nearly stable at the moment. Methode Electronics Earnings Before Interest Taxes and Depreciation Amortization USD is nearly stable at the moment. Further, Methode Electronics Average Assets is increasing over the last 4 years.

Methode Electronics implied volatility may change after the rise

Methode Electronics current maximum drawdown boosts over 13.31. Methode Electronics exhibits very low volatility with skewness of -0.53 and kurtosis of 1.16. However, we advise investors to further study Methode Electronics technical indicators to make sure all market info is available and is reliable.

The Current Takeaway on Methode Electronics Investment

While few other entities in the electronic components industry are either recovering or due for a correction, Methode Electronics may not be performing as strong as the other in terms of long-term growth potentials. All things considered, as of the 3rd of September 2020, we believe that Methode Electronics is currently undervalued with below average odds of financial distress in the next two years. Our actual 30 days advice on the company is Strong Hold.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Gabriel Shpitalnik do not own shares of Methode Electronics. Please refer to our Terms of Use for any information regarding our disclosure principles.

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