Methode ElectronicsMEI +6.44%56 Pretax Margin % is 4.26% as of Apr. 2026, which is 59% below its 10-year median of 10.27. 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 2,472 Hardware companies, Methode Electronics ranks worse than 69.5% on this metric.
The pretax margin, as know as pretax profit margin, is widely used to measure the operating efficiency of a company before deducting taxes.
The pretax margin is sometimes preferred over the net margin as tax expenditures can make profitability comparisons between companies misleading.
It is a useful tool to compare companies operating in the same sector and less effective when comparing companies from other sectors as each industry generally has different operating expenses and sales patterns.
The long term trend of the pretax margin is a good indicator of the competitiveness and health of the business.
Methode Electronics Pretax Margin % Related Terms
Methode Electronics Pretax Margin % Historical Data
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The historical data trend for Methode Electronics's Pretax 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: Pretax Margin % Comparison
For the Electronic Components subindustry, Methode Electronics's Pretax Margin %, along with its competitors' market caps and Pretax 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 Pretax Margin % vs Hardware Industry
For the Hardware industry and Technology sector, Methode Electronics's Pretax Margin % distribution charts can be found below:
* The bar in red indicates where Methode Electronics's Pretax 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.
Methode Electronics (MEI) has a Pretax Margin % of 4.26% as of Apr. 2026. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Methode Electronics and its competitors. This is 59% below median its historical median of 10.27. According to the industry distribution chart, Methode Electronics ranks #1718 out of 2472 companies in the Hardware industry, placing it in the top 69.5%.
Is Methode Electronics' Pretax Margin % too high?
Methode Electronics' current Pretax Margin % of 4.26% is 59% below median its 10-year median of 10.27. The Hardware industry median Pretax Margin % is 3.58. Methode Electronics' value of 4.26% is 19.2% above this industry median. Based on the distribution chart, Methode Electronics ranks #1718 out of 2472 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' Pretax Margin % compare to OPTX and MPTI?
According to the Hardware industry distribution chart, Methode Electronics ranks #1718 out of 2472 companies for Pretax Margin %. This places Methode Electronics in the lower half of its industry. The industry median Pretax Margin % is 3.58. Methode Electronics' value of 4.26% is 19.2% above this benchmark. While the company's 10-year median is 10.27 vs. the industry median of 3.58, Methode Electronics has consistently been above 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 Pretax Margin % for a Hardware company?
The median Pretax Margin % among Hardware companies is 3.58, based on 2,472 companies in the industry. Companies in the top quartile (top 25%) have a Pretax Margin % significantly above this median, while those in the bottom quartile fall well below. However, Pretax Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Methode Electronics's current Pretax Margin % of 4.26% is 19.2% above 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 Pretax Margin % mean?
A high Pretax Margin % can signal that a stock is expensive relative to its fundamentals. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Methode Electronics and its competitors. For the Hardware industry, the median Pretax Margin % is 3.58 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Methode Electronics's current Pretax Margin % is 4.26%, which is 59% below median its own 10-year median of 10.27. 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 Pretax Margin % is 4.26%, which is 59% below median its 10-year median of 10.27 and 19.2% above the Hardware industry median of 3.58. 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 Pretax Margin % calculated?
Pretax Margin % is calculated from a company's financial statements. For Methode Electronics (MEI), the current Pretax Margin % is 4.26% 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:
Pretax Margin %: 4.26% (59% below median its 10-year median of 10.27)
GF Value™: $9.65 vs. price of $19.16 (98.5% above fair value)
Industry Position: 19.2% above the Hardware median (#1718 of 2472)
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
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