MEI (Methode Electronics) Operating Margin %: -2.61% (As of Jan. 2026)


MEI Methode Electronics Inc MEI
65 GF Score
Price $16.23
GF Value $9.65
Valuation Significantly Overvalued
! 9 Warning Signs
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What is Methode Electronics Operating Margin %?

Methode Electronics MEI +23.95% 65 Operating Margin % is -2.61% as of Jan. 2026. GuruFocus rates MEI with a GF Score™ of 65/100 and a GF Value™ of $9.65 (Significantly Overvalued). The stock has 9 warning signs investors should review. Among 2,471 Hardware companies, Methode Electronics ranks worse than 73.29% on this metric.

Operating Margin % is calculated as Operating Income divided by its Revenue. Methode Electronics's Operating Income for the three months ended in Jan. 2026 was $-6.1 Mil. Methode Electronics's Revenue for the three months ended in Jan. 2026 was $233.7 Mil. Therefore, Methode Electronics's Operating Margin % for the quarter that ended in Jan. 2026 was -2.61%.

The historical rank and industry rank for Methode Electronics's Operating Margin % or its related term are showing as below:

MEI' s Operating Margin % Range Over the Past 10 Years
Min: -2.54   Med: 11.22   Max: 14.37
Current: -2.54


MEI's Operating Margin % is ranked worse than
73.29% of 2471 companies
in the Hardware industry
Industry Median: 3.8 vs MEI: -2.54

Methode Electronics's 5-Year Average Operating Margin % Growth Rate was 0.00% per year.

Methode Electronics's Operating Income for the three months ended in Jan. 2026 was $-6.1 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Jan. 2026 was $-24.8 Mil.

Warning Sign:

Methode Electronics Inc had lost money in 50% of the time over the past 12quarters.


Methode Electronics  (NYSE:MEI) Operating Margin % Explanation

Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.


Be Aware

Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia’s Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.


Methode Electronics Operating Margin % Related Terms


Methode Electronics Operating Margin % Historical Data

* Premium members only.

The historical data trend for Methode Electronics's Operating 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.

Methode Electronics Operating Margin % Chart

Methode Electronics Annual Data
Trend Apr16 Apr17 Apr18 Apr19 Apr20 Apr21 Apr22 Apr23 Apr24 Apr25
Operating Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 11.76 9.60 7.66 -0.55 -2.28

Methode Electronics Quarterly Data
Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24 Apr24 Jul24 Oct24 Jan25 Apr25 Jul25 Oct25 Jan26
Operating Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -0.92 -9.18 0.83 1.17 -2.61

MEI vs OPTX, MPTI, RELL: Operating Margin % Comparison

For the Electronic Components subindustry, Methode Electronics's Operating Margin %, along with its competitors' market caps and Operating 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 Operating Margin % vs Hardware Industry

For the Hardware industry and Technology sector, Methode Electronics's Operating Margin % distribution charts can be found below:

* The bar in red indicates where Methode Electronics's Operating Margin % falls into.


MEI
65GF Score
Methode Electronics Inc MEI
Operating Margin % is just one metric. See GF Score™, valuation, warning signs, and more.
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Methode Electronics Operating Margin % Calculation

Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.

Methode Electronics's Operating Margin % for the fiscal year that ended in Apr. 2025 is calculated as

Operating Margin %=Operating Income (A: Apr. 2025 ) / Revenue (A: Apr. 2025 )
=-23.9 / 1048.1
=-2.28 %

Methode Electronics's Operating Margin % for the quarter that ended in Jan. 2026 is calculated as

Operating Margin %=Operating Income (Q: Jan. 2026 ) / Revenue (Q: Jan. 2026 )
=-6.1 / 233.7
=-2.61 %

* 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.

Frequently Asked Questions Learn more about Operating Margin % →
What does a Operating Margin % of -2.61% mean?
Methode Electronics (MEI) has a Operating Margin % of -2.61% as of Jan. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Methode Electronics and its competitors. According to the industry distribution chart, Methode Electronics ranks #1811 out of 2471 companies in the Hardware industry, placing it in the top 73.3%.
Is Methode Electronics' Operating Margin % too high?
Methode Electronics' current Operating Margin % is -2.61%. Based on the distribution chart, Methode Electronics ranks #1811 out of 2471 companies in the Hardware industry, which is below the industry midpoint. Overall, Methode Electronics has a GF Score™ of 65/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Methode Electronics' Operating Margin % compare to OPTX and MPTI?
According to the Hardware industry distribution chart, Methode Electronics ranks #1811 out of 2471 companies for Operating Margin %. This places Methode Electronics in the lower half of its industry. The industry median Operating Margin % is 3.80. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Operating Margin % for a Hardware company?
The median Operating Margin % among Hardware companies is 3.80, based on 2,471 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on Methode Electronics and its competitors. For the Hardware industry, the median Operating Margin % is 3.80 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Methode Electronics's current Operating Margin % is -2.61%. 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 $16.23 — trading 68.1% above its estimated fair value. The current Operating Margin % is -2.61%. Methode Electronics' overall GF Score™ is 65/100 with 9 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For Methode Electronics (MEI), the current Operating Margin % is -2.61% as of Jan. 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 $16.23 is trading 68.1% above its estimated GF Value™ of $9.65. GuruFocus considers Methode Electronics to be Significantly Overvalued.

Key valuation signals for MEI:

  • Operating Margin %: -2.61%
  • GF Value™: $9.65 vs. price of $16.23 (68.1% above fair value)
  • GF Score™: 65/100 with 9 warning signs

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 Business Description

Other Exchanges ME5A:Germany
Address 8750 West Bryn Mawr Avenue, Suite 1000, Chicago, IL, USA, 60631-3518
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.
65GF Score

Get the complete analysis for MEI

Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$16.23
Price
$9.65
GF Value