Methode ElectronicsMEI -16.89%63 Return-on-Tangible-Equity is 0.57% as of Apr. 2026, which is 97% below its 10-year median of 18.37. GuruFocus rates MEI with a GF Score™ of 63/100 and a GF Value™ of $9.92 (Significantly Overvalued). The stock has 4 warning signs investors should review. Among 2,379 Hardware companies, Methode Electronics ranks worse than 84.45% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Methode Electronics's annualized net income for the quarter that ended in Apr. 2026 was $2 Mil. Methode Electronics's average shareholder tangible equity for the quarter that ended in Apr. 2026 was $279 Mil. Therefore, Methode Electronics's annualized Return-on-Tangible-Equity for the quarter that ended in Apr. 2026 was 0.57%.
The historical rank and industry rank for Methode Electronics's Return-on-Tangible-Equity or its related term are showing as below:
MEI'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -34.13 Med: 18.37 Max: 49.51
Current: -12.78
During the past 13 years, Methode Electronics's highest Return-on-Tangible-Equity was 49.51%. The lowest was -34.13%. And the median was 18.37%.
MEI's Return-on-Tangible-Equity is ranked worse than 84.45% of 2379
companies
in the Hardware industry
Industry Median: 5.26
vs MEI: -12.78
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Methode Electronics Return-on-Tangible-Equity Related Terms
Methode Electronics Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Methode Electronics's Return-on-Tangible-Equity 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 KOPN, LPTH, OPTX: Return-on-Tangible-Equity Comparison
For the Electronic Components subindustry, Methode Electronics's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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 Return-on-Tangible-Equity vs Hardware Industry
For the Hardware industry and Technology sector, Methode Electronics's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Methode Electronics's Return-on-Tangible-Equity 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.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Apr. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 0.57% mean?
Methode Electronics (MEI) has a Return-on-Tangible-Equity of 0.57% as of Apr. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Methode Electronics and its competitors. This is 97% below median its historical median of 18.37. According to the industry distribution chart, Methode Electronics ranks #2009 out of 2379 companies in the Hardware industry, placing it in the top 84.4%.
Is Methode Electronics' Return-on-Tangible-Equity too high?
Methode Electronics' current Return-on-Tangible-Equity of 0.57% is 97% below median its 10-year median of 18.37. The Hardware industry median Return-on-Tangible-Equity is 5.26. Methode Electronics' value of 0.57% is 89.2% below this industry median. Based on the distribution chart, Methode Electronics ranks #2009 out of 2379 companies in the Hardware industry, which is in the bottom quartile relative to peers. Overall, Methode Electronics has a GF Score™ of 63/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Methode Electronics' Return-on-Tangible-Equity compare to KOPN and LPTH?
According to the Hardware industry distribution chart, Methode Electronics ranks #2009 out of 2379 companies for Return-on-Tangible-Equity. This places Methode Electronics in the lower half of its industry. The industry median Return-on-Tangible-Equity is 5.26. Methode Electronics' value of 0.57% is 89.2% below this benchmark. While the company's 10-year median is 18.37 vs. the industry median of 5.26, 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 Return-on-Tangible-Equity for a Hardware company?
The median Return-on-Tangible-Equity among Hardware companies is 5.26, based on 2,379 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Methode Electronics's current Return-on-Tangible-Equity of 0.57% is 89.2% 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 Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Methode Electronics and its competitors. For the Hardware industry, the median Return-on-Tangible-Equity is 5.26 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Methode Electronics's current Return-on-Tangible-Equity is 0.57%, which is 97% below median its own 10-year median of 18.37. 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 $9.92, compared to a current price of $15.30 — trading 54.2% above its estimated fair value. The current Return-on-Tangible-Equity is 0.57%, which is 97% below median its 10-year median of 18.37 and 89.2% below the Hardware industry median of 5.26. Methode Electronics' overall GF Score™ is 63/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Methode Electronics (MEI), the current Return-on-Tangible-Equity is 0.57% 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 $15.30 is trading 54.2% above its estimated GF Value™ of $9.92.
GuruFocus considers Methode Electronics to be Significantly Overvalued.
Key valuation signals for MEI:
Return-on-Tangible-Equity: 0.57% (97% below median its 10-year median of 18.37)
GF Value™: $9.92 vs. price of $15.30 (54.2% above fair value)
Industry Position: 89.2% below the Hardware median (#2009 of 2379)
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.
63GF Score
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