CHICAGO - Methode Electronics, Inc. (NYSE: NYSE:MEI), a global provider of custom-engineered electronics solutions, announced the upcoming retirement of its Chief Financial Officer, Ronald L. G. Tsoumas. The retirement is set to take effect on July 12, 2024, after the company files its fiscal 2024 annual report. A search for Tsoumas's permanent replacement is underway, with the assistance of an executive search firm.
In the event that a new CFO has not been appointed by the time of Tsoumas's departure, Methode plans to name David Rawden, currently a director at AlixPartners, as the interim CFO. Rawden is a certified public accountant with over 25 years of experience in finance, accounting, and administration, and has served in several CFO and interim CFO roles.
During his tenure, Tsoumas oversaw the doubling of Methode's sales and the execution of strategic acquisitions aiding the company's expansion into new markets and solutions. President and CEO Avi Avula expressed gratitude for Tsoumas's contributions and is preparing for a smooth transition, emphasizing the importance of Rawden's expertise in the interim period.
Tsoumas, reflecting on his 40 years with Methode, voiced confidence in the company's future prospects as he moves into retirement.
Methode Electronics specializes in user interface, LED lighting systems, power distribution, and sensor applications across various end markets such as automotive, cloud computing infrastructure, and consumer appliances. The company operates through segments including Automotive, Industrial, and Interface (NASDAQ:TILE), with a global presence in North America, Europe, the Middle East, and Asia.
The information for this article is based on a press release statement from Methode Electronics, Inc.
InvestingPro Insights
As Methode Electronics, Inc. (NYSE: MEI) navigates the transition period following the announcement of CFO Ronald L. G. Tsoumas's retirement, the company's financial health and market performance come into focus. With the assistance of an executive search firm, Methode is actively seeking a new CFO to continue the legacy of financial growth and strategic acquisitions that have been a hallmark of Tsoumas's tenure.
InvestingPro data reveals a market capitalization of $444.86 million, reflecting the company's current valuation in the market. Despite a challenging environment, Methode has maintained a consistent dividend, boasting a dividend yield of 4.65%, a testament to its commitment to shareholder returns. This is particularly noteworthy given the company's track record of 43 consecutive years of dividend payments, a significant achievement that underscores Methode's financial discipline and stability.
However, the company's stock has experienced significant volatility, with a price that is currently only 25.85% of its 52-week high. This decline is also reflected in the one-year price total return of -70.55%. These figures suggest that investors may be concerned about the company's near-term prospects, despite its long history of dividend reliability.
InvestingPro Tips indicate that management's aggressive share buyback strategy and a low Price / Book multiple could be signs of underlying value. The Price / Book multiple, as of the last twelve months ending Q3 2024, stands at 0.54, which may appeal to value investors looking for assets trading below their book value. Moreover, the RSI suggests the stock is in oversold territory, potentially indicating a buying opportunity for contrarian investors.
For readers interested in a deeper analysis, there are additional InvestingPro Tips available at https://www.investing.com/pro/MEI. These tips provide insights into the company's financial metrics and market performance that could inform investment decisions. Use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, unlocking even more valuable insights.
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