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Richardson Electronics
(NASDAQ:RELL)
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Rating:70Outperform
Price Target:
$22.00
▲(23.73% Upside)
Action:Reiterated
Date:10/08/26
The score is driven primarily by a strong balance sheet and an improving earnings outlook supported by a positive earnings call and growing backlog. Offsetting factors are weak/volatile cash conversion in the financial statements and a relatively rich valuation (P/E ~34.9), while technicals remain supportive but somewhat extended.
Positive Factors
Consistent Revenue Growth
Repeated year-over-year sales growth indicates sustained customer demand across Richardson’s markets rather than a single-quarter benefit. Continued expansion improves operating leverage, supports investment in engineered solutions, and provides a stronger foundation for earnings growth over the next several quarters.
Negative Factors
Weak Cash Conversion
Negative trailing cash flow despite positive earnings indicates that reported profitability is not consistently translating into liquidity. Volatile conversion can increase dependence on working-capital management, constrain internally funded investment, and make the timing of cash generation less predictable over the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Consistent Revenue Growth
Repeated year-over-year sales growth indicates sustained customer demand across Richardson’s markets rather than a single-quarter benefit. Continued expansion improves operating leverage, supports investment in engineered solutions, and provides a stronger foundation for earnings growth over the next several quarters.
Read all positive factors
Richardson Electronics Key Performance Indicators (KPIs)
Any
Gross Profit by Segment
How much profit each business line keeps after direct costs, highlighting which segments deliver the healthiest margins and where the company has pricing power. Reveals whether Richardson’s manufacturing, distribution, or specialized RF products drive real profit versus low-margin volume sales, and shows sensitivity to input costs or product mix shifts.
How much profit each business line keeps after direct costs, highlighting which segments deliver the healthiest margins and where the company has pricing power. Reveals whether Richardson’s manufacturing, distribution, or specialized RF products drive real profit versus low-margin volume sales, and shows sensitivity to input costs or product mix shifts.
Data provided by:
The Fly
The FlyRichardson Electronics (RELL) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$289.21M
Dividend Yield1.22%
Average Volume (3M)273.18K
Price to Earnings (P/E)30.7
Beta (1Y)1.05
Revenue Growth13.87%
EPS Growth2471.74%
CountryUS
Employees411
SectorTechnology
Sector Strength88
IndustryHardware, Equipment & Parts
Share Statistics
EPS (TTM)0.64
Shares Outstanding12,841,072
10 Day Avg. Volume585,703
30 Day Avg. Volume273,176
Financial Highlights & Ratios
PEG Ratio-0.06
Price to Book (P/B)1.30
Price to Sales (P/S)0.93
P/FCF Ratio-58.58
Enterprise Value/Market Cap0.79
Enterprise Value/Revenue0.96
Enterprise Value/Gross Profit2.99
Enterprise Value/Ebitda17.09
Forecast
1Y Price Target
$26.00Price Target Upside46.23% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)0.79
Revenue Forecast (FY)$257.55M
Richardson Electronics Business Overview & Revenue Model
Company Description
Richardson Electronics, Ltd. provides engineered solutions, power grid and microwave tube, and related consumables in North America, the Asia Pacific, Europe, and Latin America. The company’s Power and Microwave Technologies segment manufactures e...
How the Company Makes Money
RELL primarily makes money by selling electronic components and engineered solutions to OEMs, integrators, and end users, generating revenue through product sales and, where applicable, associated services. Key revenue streams include: (1) Distrib...
Richardson Electronics Earnings Call Summary
Earnings Call Date:Oct 07, 2026
(Q1-2027)
| % Change Since: |
Next Earnings Date:Jan 06, 2027
Earnings Call Sentiment Positive
The call was strongly positive, supported by 18.9% consolidated sales growth, expanded gross margin, a more than 400% increase in operating income, improved cash generation, backlog growth, and momentum in semiconductor, wind, power-management, and battery energy-storage programs. Management also cited macroeconomic, tariff, supply-chain, regional, and project-timing uncertainties, but these challenges did not outweigh the reported financial performance and strategic progress.Positive Updates
Strong First-Quarter Financial Performance
Fiscal 2027 first-quarter net sales increased 18.9% year over year to $64.9 million from $54.6 million, marking the ninth consecutive quarterly year-over-year increase in sales. Operating income increased over 400% to $5.1 million, or 7.9% of sales, compared with $1.0 million in the prior-year quarter.
Negative Updates
Macroeconomic and Geopolitical Uncertainty
Management said trade policies, tariffs, geopolitical developments, energy markets, and global economic conditions continue to create challenges across industries.
Read all updates
Q1-2027 Updates
Positive
Negative
Strong First-Quarter Financial Performance
Fiscal 2027 first-quarter net sales increased 18.9% year over year to $64.9 million from $54.6 million, marking the ninth consecutive quarterly year-over-year increase in sales. Operating income increased over 400% to $5.1 million, or 7.9% of sales, compared with $1.0 million in the prior-year quarter.
Read all positive updates
Company Guidance
For fiscal 2027, management expects continued sales growth coupled with the growing backlog to produce double-digit growth for GES in FY '27, with multiple opportunities expected to close in FY '27; approximately 75% of PMT and GES backlog is scheduled to ship in the fiscal year, while the majority of Canvys backlog is also expected to ship within the fiscal year, although some frame contracts carry out for 2 years or even longer. Management expects continued semiconductor wafer fab growth well into definitely the rest of our fiscal year 2027, but even into further for calendar year 2027, and said the IEEPA Tariff Refund benefit is not expected to recur at the same amount received in Q1. In battery storage, management cited about 10 to 20 different projects over the next 2 years totaling about $10 million.Richardson Electronics Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
88
Very Positive
Cash Flow
34
Negative
| Breakdown | TTM | May 2026 | May 2025 | May 2024 | May 2023 | May 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 238.88M | 228.56M | 208.91M | 196.46M | 262.66M | 224.62M |
| Gross Profit | 76.91M | 71.35M | 64.80M | 55.66M | 83.69M | 71.70M |
| EBITDA | 13.44M | 11.27M | 6.63M | 4.46M | 28.70M | 19.18M |
| Net Income | 8.53M | 6.38M | -1.14M | 61.00K | 22.33M | 17.93M |
Balance Sheet | ||||||
| Total Assets | 211.69M | 202.02M | 195.84M | 192.44M | 198.05M | 179.82M |
| Cash, Cash Equivalents and Short-Term Investments | 36.91M | 31.78M | 35.90M | 24.26M | 24.98M | 40.49M |
| Total Debt | 3.52M | 1.39M | 2.28M | 2.76M | 2.46M | 3.02M |
| Total Liabilities | 42.47M | 38.32M | 39.18M | 34.49M | 38.73M | 43.97M |
| Stockholders Equity | 169.22M | 163.70M | 156.66M | 157.95M | 159.32M | 135.85M |
Cash Flow | ||||||
| Free Cash Flow | -5.70M | -3.62M | 7.74M | 2.48M | -15.58M | -1.21M |
| Operating Cash Flow | -644.00K | 762.00K | 10.55M | 6.52M | -8.20M | 1.91M |
| Investing Cash Flow | -3.75M | -3.08M | 4.02M | -4.04M | -2.18M | -8.12M |
| Financing Cash Flow | -66.00K | -2.54M | -3.25M | -2.90M | 389.00K | -352.00K |
Richardson Electronics Technical Analysis
Positive
17.78
Price Trends
18.17
Positive
18.03
Positive
15.44
Positive
Market Momentum
0.47
Positive
56.39
Neutral
35.16
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RELL, the sentiment is Positive. The current price of 17.78 is below the 20-day moving average (MA) of 19.02, below the 50-day MA of 18.17, and above the 200-day MA of 15.44, indicating a bullish trend. The MACD of 0.47 indicates Positive momentum. The RSI at 56.39 is Neutral, neither overbought nor oversold. The STOCH value of 35.16 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for RELL.
Richardson Electronics Risk Analysis
Richardson Electronics disclosed 29 risk factors in its most recent earnings report. Richardson Electronics reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Richardson Electronics Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $294.47M | 23.60 | 13.03% | ― | 11.85% | 10.33% | |
70 Outperform | $289.21M | 30.69 | 5.24% | 1.22% | 13.87% | 2471.74% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
53 Neutral | $68.84M | -56.03 | -10.92% | ― | 7.85% | 45.80% | |
51 Neutral | $518.99M | -14.02 | -5.46% | 1.37% | 1.36% | 32.69% | |
47 Neutral | $26.82M | -2.78 | -68.36% | ― | -21.81% | -225.39% | |
47 Neutral | $67.47M | 761.96 | 0.15% | ― | 25.56% | ― |
* Technology Sector Average
RELL
Richardson Electronics
19.71
9.08
85.37%
DAIO
Data I/O
2.59
-0.45
-14.80%
MEI
Methode Electronics
14.56
7.55
107.61%
CPSH
CPS Technologies
3.51
-0.25
-6.78%
LINK
Interlink Electronics
4.37
-2.28
-34.29%
MPTI
M-tron Industries Inc
69.39
14.47
26.35%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.