$Methode Electronics (MEI.US)$In the analysis two years ago,...

A US company listed in 2007, mainly engaged in remote control, electronics, wireless, and sensor business.

For the past five years, revenue has continued to grow, but operating profit has declined for four years except for 2020 due to the decline in gross margin and the increase in fee proportions. Net income has been significantly declining for nearly three years due to other non-operating income. The gross margin has decreased from 26.6% to 22.4% in the past five years, and the return on net assets has dropped from a high of 16.8% in 2020 to 8.3%.

In the first three quarters of 2024, revenue shrank by 4.7%, operating profit shrank significantly by 92.7% due to the decline in gross margin and the increase in fee proportions, and net income suffered significant losses of 0.066 billion due to impairment of capital assets.

The current PE ratio is 6. Considering that there are still no signs of improvement in the business, we will wait and see for now.