Bullish thesis on Methode Electronics (MEI) highlighting low P/E ratios and potential turnaround

From Yahoo Finance: 2025-03-31 09:00:00

DeepValue Capital has a bullish thesis on Methode Electronics, Inc. (MEI), highlighting its low P/E ratios and potential for a turnaround. MEI is an industrial and automotive components manufacturer with a diversified business model, operating in multiple countries. The stock has seen a significant decline, presenting an opportunity for investors.

Methode Electronics (MEI) has historically maintained a solid ROIC and trades at a low 4x FCF multiple compared to its historical median. The company has a new CEO, John DeGaynor, with a mixed track record, but the manufacturing sector rebound could benefit MEI. Investors should evaluate management’s ability to drive improvements for potential returns.

MEI is not among the 30 most popular stocks among hedge funds, with 21 holding it in Q4. While MEI presents potential, some AI stocks may offer higher returns in a shorter timeframe. Investors seeking promising AI stocks trading at less than 5x earnings should explore other options.

Read more: Methode Electronics, Inc. (MEI): A Bull Case Theory