Methode Story

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MEI -- USA Stock  

USD 45.37  0.85  1.91%

Methode Electronics is scheduled to announce its earnings today. The next earnings report is expected on the 29th of June 2021. As many baby boomers are still indifferent towards technology space, it makes sense to break down Methode as a potential position. Should we be more optimistic in anticipation of a recovery?
Published over a month ago
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Should you trust Methode Electronics (NYSE:MEI) current analyst consensus?
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Methode Electronics has an asset utilization ratio of 150.66 percent. This implies that the company is making $1.51 for each dollar of assets. An increasing asset utilization means that Methode Electronics is more efficient with each dollar of assets it utilizes for everyday operations.
What is the right price you would pay to acquire a share of Methode Electronics? For most investors, it would be the price that gives them a wide margin of safety to have minimal downside risk. In other words, most investors are always looking for undervalued stocks. Even if the future performance is not entirely as expected, the loss of holding it is minimized, and the downside risk is negated.
Please read more on our stock advisor page.

What is happening with Methode Electronics this year

Annual and quarterly reports issued by Methode Electronics are formal financial statements that are published yearly and quarterly and sent to Methode stockholders. The reports show and break down the current year's ongoing operations and discuss plans for the upcoming year. Annual reports have been a requirement from the Securities and Exchange Commission (SEC) for businesses owned by the public since 1934.
Companies such as Methode Electronics often view their annual report as an effective marketing tool to disseminate their perspective on company future earnings or innovations. With this in mind, many companies devote large sums of money to making their reports attractive and informative. In such instances, the annual report becomes a forum through which a company can communicate to the general public any number of topics that may or may not be directly related to the actual data published in the reports.

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 110.7 Million

Sale by Darren Dawson of 9000 shares of Methode Electronics

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 sale of common stock by Darren Dawson, the corporate stakeholder, on 24th of March 2021. This event was filed by Methode Electronics Inc with SEC on 2021-03-24. 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.

Is Methode a risky opportunity?

Let's check the volatility. Methode is looking slightly risky at this time. Whether you invest your money or manage your clients' funds, remember that it is easy to forget that behind Methode (NYSE:MEI) stock is an actual business venture. So, do not let stock picking become an abstract concept by ignoring the elementary risk calculations. locking in a share of a Methode Electronics stock makes you a part-owner of that company.

Methode Electronics Current Consensus

Here is the current trade recommendation based on an ongoing consensus estimate among financial analysis covering Methode Electronics. The Methode consensus assessment is calculated by taking the average estimates from all of the analysts covering Methode Electronics

Strong Buy
1
Hold
1
Strong Buy150.0
Buy00.0
Hold150.0
Sell00.0
Strong Sell00.0

Possible April come-back of Methode?

Current Jensen Alpha is up to 0.08. Price may drop again. Methode Electronics has relatively low volatility with skewness of 0.44 and kurtosis of 0.83. However, we advise all investors to independently investigate Methode Electronics to ensure all accessible information is consistent with the expectations about its upside potential and future expected returns. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Methode Electronics' stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Methode Electronics' stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Our Final Takeaway

While other companies under the electronic components industry are still a bit expensive, Methode Electronics may offer a potential longer-term growth to stockholders. While some stockholders may not share our view we believe that the current risk-reward utility is not appealing enough to do any trading. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Methode Electronics.

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 Raphi 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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