Methode ElectronicsMEI +6.44%56 Gross Margin % is 24.22% as of Apr. 2026, which is 1% above its 10-year median of 23.98. GuruFocus rates MEI with a GF Score™ of 56/100 and a GF Value™ of $9.65 (Significantly Overvalued). The stock has 8 warning signs investors should review. Among 2,450 Hardware companies, Methode Electronics ranks worse than 61.14% on this metric.
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Methode Electronics had a gross margin of 24.22% for the quarter that ended in Apr. 2026 => Competition eroding margins
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Methode Electronics Gross Margin % Related Terms
Methode Electronics Gross Margin % Historical Data
* Premium members only.
The historical data trend for Methode Electronics's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
MEI vs OPTX, MPTI, RELL: Gross Margin % Comparison
For the Electronic Components subindustry, Methode Electronics's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Methode Electronics Gross Margin % vs Hardware Industry
For the Hardware industry and Technology sector, Methode Electronics's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Methode Electronics's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Methode Electronics (MEI) has a Gross Margin % of 24.22% as of Apr. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Methode Electronics and its competitors. This is near median its historical median of 23.98. Over the past decade, Methode Electronics' Gross Margin % has ranged from 15.59 to 27.63. According to the industry distribution chart, Methode Electronics ranks #1498 out of 2450 companies in the Hardware industry, placing it in the top 61.1%.
Is Methode Electronics' Gross Margin % too high?
Methode Electronics' current Gross Margin % of 24.22% is near median its 10-year median of 23.98. Over the past 10 years, this metric has ranged from a low of 15.59 to a high of 27.63. The Hardware industry median Gross Margin % is 24.53. Methode Electronics' value of 24.22% is 1.3% below this industry median. Based on the distribution chart, Methode Electronics ranks #1498 out of 2450 companies in the Hardware industry, which is below the industry midpoint. Overall, Methode Electronics has a GF Score™ of 56/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Methode Electronics' Gross Margin % compare to OPTX and MPTI?
According to the Hardware industry distribution chart, Methode Electronics ranks #1498 out of 2450 companies for Gross Margin %. This places Methode Electronics in the lower half of its industry. The industry median Gross Margin % is 24.53. Methode Electronics' value of 24.22% is 1.3% below this benchmark. Historically, Methode Electronics' own Gross Margin % has ranged from 15.59 to 27.63 over the past decade. While the company's 10-year median is 23.98 vs. the industry median of 24.53, Methode Electronics has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Hardware company?
The median Gross Margin % among Hardware companies is 24.53, based on 2,450 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Methode Electronics's current Gross Margin % of 24.22% is 1.3% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Methode Electronics and its competitors. For the Hardware industry, the median Gross Margin % is 24.53 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Methode Electronics's current Gross Margin % is 24.22%, which is near median its own 10-year median of 23.98. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Methode Electronics stock overvalued right now?
Based on GuruFocus' analysis, Methode Electronics (MEI) is currently considered Significantly Overvalued. The stock's GF Value™ is $9.65, compared to a current price of $19.16 — trading 98.5% above its estimated fair value. The current Gross Margin % is 24.22%, which is near median its 10-year median of 23.98 and 1.3% below the Hardware industry median of 24.53. Methode Electronics' overall GF Score™ is 56/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Methode Electronics (MEI), the current Gross Margin % is 24.22% as of Apr. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Methode Electronics (MEI) Overvalued in 2026?
Based on GuruFocus' analysis, Methode Electronics stock appears to be overvalued.
The current stock price of $19.16 is trading 98.5% above its estimated GF Value™ of $9.65.
GuruFocus considers Methode Electronics to be Significantly Overvalued.
Key valuation signals for MEI:
Gross Margin %: 24.22% (near median its 10-year median of 23.98)
GF Value™: $9.65 vs. price of $19.16 (98.5% above fair value)
Industry Position: 1.3% below the Hardware median (#1498 of 2450)
No single metric tells the full story. See the MEI stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Methode Electronics Inc supplier of custom-engineered solutions with sales, engineering, and manufacturing locations in North America, Europe, the Middle East, and Asia. It designs, engineers, and produces mechatronic products for Original Equipment Manufacturers (OEMs) utilizing a broad range of technologies for user interface, light-emitting diode (LED) lighting systems, power distribution, and sensor applications. The firm is organized into various business segments: Automotive, Industrial, Interface, and Medical. The Automotive segment, which generates maximum revenue, supplies electronic and electro-mechanical devices and related products to automobiles, including overhead and center consoles, hidden and ergonomic switches, insert molded components, LED-based lighting, and sensors.
56GF Score
Get the complete analysis for MEI
Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
MEI has been successfully added to your 
