"We are maintaining a sharp focus on cash generation… our cash position at the end of the fourth quarter was aided by the sale of certain non-core assets, including the company aircraft." — Kevin Nystrom
— Kevin Nystrom
03Detailed Report
MEI
Methode Electronics Inc
Period
Q4 2024
CurrencyUSD
Report TypeQuarterly Earnings
GeneratedMay 14, 2026
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Executive Summary
In the fourth quarter of fiscal 2024, Methode Electronics Inc reported significant challenges leading to a net loss of $57.3 million. This stark departure from profitability was attributed largely to the roll-off of major automotive programs, operational inefficiencies, and ongoing market weakness in the e-bike and electric vehicle (EV) sectors. Despite these setbacks, the quarter marked a pivotal shift towards cash generation with $24.9 million in net cash provided by operating activities, reflecting the company’s commitment to fiscal prudence amid turbulent market conditions. Going forward, Methode is focused on restructuring and cost reduction to align with its long-term growth aims, particularly in the increasingly competitive EV landscape.
Key Performance Indicators
Revenue
Decreasing
277.30M
QoQ: 6.86% | YoY: -7.93%
Gross Profit
Decreasing
31.00M
11.18% margin
QoQ: -16.22% | YoY: -51.03%
Operating Income
Decreasing
-8.10M
QoQ: -170.00% | YoY: -195.29%
Net Income
Decreasing
-57.30M
QoQ: -393.97% | YoY: -807.41%
EPS
Decreasing
-1.62
QoQ: -390.91% | YoY: -804.35%
Revenue Trend
Margin Analysis
Financial Highlights
Financial Performance Metrics:
- Revenue: $277.3 million, down 8% YoY (Q3 2024: $259.5 million, up 6.86% QoQ)
- Gross Profit: $31 million with a gross profit margin of 11.1%, demonstrating a decline driven by increased costs and reduced sales volume.
- Operating Income: -$8.1 million; marked by a significant operating loss compared to income of $8.5 million in the previous year.
- Net Income: -$57.3 million; drastic decline from a net income of $8 million in Q4 2023.
- EPS: -$1.62, compared to $0.22 diluted EPS in Q4 2023.
These metrics reveal a concerning deterioration in profitability, with a need for immediate strategic reassessment.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
277.30M
-7.93%
6.86%
Gross Profit
31.00M
-51.03%
-16.22%
Operating Income
-8.10M
-195.29%
-170.00%
Net Income
-57.30M
-807.41%
-393.97%
EPS
-1.62
-804.35%
-390.91%
Key Financial Ratios
Gross Profit Margin
Weak
11.20%
Gross profit margin is below industry norms, profitability concerns
Operating Profit Margin
Weak
-0.03%
Operating margin is below industry norms, profitability concerns
Net Profit Margin
Weak
-0.21%
Net profit margin is below industry norms, profitability concerns
Return on Assets
Weak
-0.04%
Return on assets suggests inefficient capital allocation
Return on Equity
Weak
-0.07%
Return on equity suggests inefficient capital allocation
Current Ratio
Strong
2.76
Current ratio indicates excellent liquidity and financial flexibility
Debt to Equity
Moderate
0.47
Debt-to-equity indicates balanced capital structure with manageable debt
P/E Ratio
Negative
-1.88x
Negative earnings make P/E ratio not meaningful
Price to Book
Undervalued
0.56x
Trading below book value, potential value opportunity or distressed
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