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Methode Electronics has the Financial Strength Rank of 5.
GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is rated on a scale of 1 to 10 and is based on these factors:
1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.
4. Other debt related ratios.
A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.
Methode Electronics did not have earnings to cover the interest expense.
Methode Electronics's debt to revenue ratio for the quarter that ended in Jul. 2026 was 0.31.
As of today, Methode Electronics's Altman Z-Score is 2.25.
The rank is rated on a scale of 1 to 10. A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.
Methode Electronics has the Financial Strength Rank of 5.
Methode Electronics Financial Strength Related Terms
MEI vs LPTH, LYTS, KOPN: Financial Strength Comparison
For the Electronic Components subindustry, Methode Electronics's Financial Strength, along with its competitors' market caps and Financial Strength 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 Financial Strength vs Hardware Industry
For the Hardware industry and Technology sector, Methode Electronics's Financial Strength distribution charts can be found below:
* The bar in red indicates where Methode Electronics's Financial Strength falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.
The zones of discrimination were as such:
When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.
Methode Electronics has a Z-score of 2.25, indicating it is in Grey Zones. This implies that Methode Electronics is in some kind of financial stress. If it is below 1.81, the company may faces bankrupcy risk.
Warning Sign:
Altman Z-score of 2.25 is in the grey area. This implies that the company is under some kind of financial stress. If it is below 1.8, the company may face bankruptcy risk.
* 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 Financial Strength of 5 as of Jul. 2026. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on Methode Electronics and its competitors. This is 38% below median its historical median of 8.00. Over the past decade, Methode Electronics' Financial Strength has ranged from 5.00 to 9.00.
Is Methode Electronics' Financial Strength too high?
Methode Electronics' current Financial Strength of 5 is 38% below median its 10-year median of 8.00. Over the past 10 years, this metric has ranged from a low of 5.00 to a high of 9.00. Overall, Methode Electronics has a GF Score™ of 61/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Methode Electronics' Financial Strength compare to LPTH and LYTS?
Methode Electronics' Financial Strength of 5 can be compared against companies in the Hardware industry. Historically, Methode Electronics' own Financial Strength has ranged from 5.00 to 9.00 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Financial Strength for a Hardware company?
A good Financial Strength depends on the Hardware industry context. However, Financial Strength 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 Financial Strength mean?
A high Financial Strength can signal that a stock is expensive relative to its fundamentals. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on Methode Electronics and its competitors. Methode Electronics's current Financial Strength is 5, which is 38% below median its own 10-year median of 8.00. 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 $10.08, compared to a current price of $14.81 — trading 46.9% above its estimated fair value. The current Financial Strength is 5, which is 38% below median its 10-year median of 8.00. Methode Electronics' overall GF Score™ is 61/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Financial Strength calculated?
Financial Strength is calculated from a company's financial statements. For Methode Electronics (MEI), the current Financial Strength is 5 as of Jul. 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 $14.81 is trading 46.9% above its estimated GF Value™ of $10.08.
GuruFocus considers Methode Electronics to be Significantly Overvalued.
Key valuation signals for MEI:
Financial Strength: 5 (38% below median its 10-year median of 8.00)
GF Value™: $10.08 vs. price of $14.81 (46.9% above fair value)
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.
61GF Score
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