Methode ElectronicsMEI -5.99%63 3-Year ROIIC % is 25.43 as of Apr. 2026, which is 635% above its 10-year median of 3.46. GuruFocus rates MEI with a GF Score™ of 63/100 and a GF Value™ of $9.93 (Significantly Overvalued). The stock has 4 warning signs investors should review. Among 2,371 Hardware companies, Methode Electronics ranks better than 74.53% on this metric.
3-Year Return on Invested Incremental Capital (3-Year ROIIC %) measures the change in earnings as a percentage of change in investment over 3-year.
Methode Electronics's 3-Year ROIIC % for the quarter that ended in Apr. 2026 was 25.43%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for Methode Electronics's 3-Year ROIIC % or its related term are showing as below:
MEI's 3-Year ROIIC % is ranked better than 74.53% of 2371
companies
in the Hardware industry
Industry Median: 2.33
vs MEI: 25.43
Return on Incremental Invested Capital (ROIIC) is an extension of Return on Investment Capital (ROIC). ROIC % tells investors how efficiently that profitability is earned per dollar of company capital. ROIIC narrows the focus even further and shows how profitable each additional unit of capital investment could be. ROIIC % is a more powerful metric than ROIC because it measures how much money the company can generate going forward on future capital investments.
High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
Be Aware
It's important to keep in mind that when tracking ROIIC, the metric is better suited to forecasting the trend of future returns rather than measuring current return on investment.
Methode Electronics 3-Year ROIIC % Related Terms
Methode Electronics 3-Year ROIIC % Historical Data
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The historical data trend for Methode Electronics's 3-Year ROIIC % 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: 3-Year ROIIC % Comparison
For the Electronic Components subindustry, Methode Electronics's 3-Year ROIIC %, along with its competitors' market caps and 3-Year ROIIC % 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 3-Year ROIIC % vs Hardware Industry
For the Hardware industry and Technology sector, Methode Electronics's 3-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where Methode Electronics's 3-Year ROIIC % falls into.
Methode Electronics's 3-Year ROIIC % for the quarter that ended in Apr. 2026 is calculated as:
3-Year ROIIC %
=
3-Year Incremental Net Operating Profit After Taxes (NOPAT)**
/
3-Year Incremental Invested Capital**
=
( 8.8 (Apr. 2026) - 77.35528 (Apr. 2023) )
/
( 971.2 (Apr. 2026) - 1240.8 (Apr. 2023) )
=
-68.55528
/
-269.6
=
25.43%***
* 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.
** Annual data of NOPAT and Invested Capital was used to calculate 3-Year ROIIC %.
*** Please be aware that the ROIIC (Return on Invested Capital) calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
Methode Electronics (MEI) has a 3-Year ROIIC % of 25.43 as of Apr. 2026. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on Methode Electronics and its competitors. This is 635% above median its historical median of 3.46. According to the industry distribution chart, Methode Electronics ranks #604 out of 2371 companies in the Hardware industry, placing it in the top 25.5%.
Is Methode Electronics' 3-Year ROIIC % too high?
Methode Electronics' current 3-Year ROIIC % of 25.43 is 635% above median its 10-year median of 3.46. The Hardware industry median 3-Year ROIIC % is 2.33. Methode Electronics' value of 25.43 is 991.4% above this industry median. Based on the distribution chart, Methode Electronics ranks #604 out of 2371 companies in the Hardware industry, which is above the industry midpoint. 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' 3-Year ROIIC % compare to KOPN and LPTH?
According to the Hardware industry distribution chart, Methode Electronics ranks #604 out of 2371 companies for 3-Year ROIIC %. This puts Methode Electronics in the upper half of its industry. The industry median 3-Year ROIIC % is 2.33. Methode Electronics' value of 25.43 is 991.4% above this benchmark. While the company's 10-year median is 3.46 vs. the industry median of 2.33, 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 3-Year ROIIC % for a Hardware company?
The median 3-Year ROIIC % among Hardware companies is 2.33, based on 2,371 companies in the industry. Companies in the top quartile (top 25%) have a 3-Year ROIIC % significantly above this median, while those in the bottom quartile fall well below. However, 3-Year ROIIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Methode Electronics's current 3-Year ROIIC % of 25.43 is 991.4% 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 3-Year ROIIC % mean?
A high 3-Year ROIIC % can signal that a stock is expensive relative to its fundamentals. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on Methode Electronics and its competitors. For the Hardware industry, the median 3-Year ROIIC % is 2.33 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Methode Electronics's current 3-Year ROIIC % is 25.43, which is 635% above median its own 10-year median of 3.46. 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 $9.93, compared to a current price of $14.76 — trading 48.6% above its estimated fair value. The current 3-Year ROIIC % is 25.43, which is 635% above median its 10-year median of 3.46 and 991.4% above the Hardware industry median of 2.33. 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 3-Year ROIIC % calculated?
3-Year ROIIC % is calculated from a company's financial statements. For Methode Electronics (MEI), the current 3-Year ROIIC % is 25.43 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 $14.76 is trading 48.6% above its estimated GF Value™ of $9.93.
GuruFocus considers Methode Electronics to be Significantly Overvalued.
Key valuation signals for MEI:
3-Year ROIIC %: 25.43 (635% above median its 10-year median of 3.46)
GF Value™: $9.93 vs. price of $14.76 (48.6% above fair value)
Industry Position: 991.4% above the Hardware median (#604 of 2371)
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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