Richardson Electronics (RELL) AI Stock Analysis

• Market Cap: $155.17M
• Dividend Yield: 2.22%
• Average Volume (3M): 111.16K
• Price to Earnings (P/E): 501.4
• Beta (1Y): 0.51
• Revenue Growth: 6.17%
• EPS Growth: N/A
• Country: US
• Employees: 407
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 0.13
• Shares Outstanding: 12,443,851
• 10 Day Avg. Volume: 273,323
• 30 Day Avg. Volume: 111,163
• PEG Ratio: 0.04
• Price to Book (P/B): 0.70
• Price to Sales (P/S): 0.53
• P/FCF Ratio: 14.22
• Enterprise Value/Market Cap: 0.69
• Enterprise Value/Revenue: 0.51
• Enterprise Value/Gross Profit: 1.65
• Enterprise Value/Ebitda: 53.50
• 1Y Price Target: $12.00
• Price Target Upside: 10.80% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 66 Neutral
• Price Target: $13.00 ▲(20.04% Upside)

Richardson Electronics shows strong revenue growth and a solid balance sheet, which are significant strengths. However, the high P/E ratio suggests overvaluation, and profitability challenges persist. The earnings call provided a balanced view with notable growth in key segments, but also highlighted some operational challenges.

Richardson Electronics Business Overview & Revenue Model

Company Description

Richardson Electronics (RELL) is a global provider of engineered solutions and a leading supplier of specialty electronic components. The company operates primarily in sectors such as telecommunications, medical, and industrial, offering a diverse range of products including electronic components, power solutions, and high-performance RF and microwave components. With a strong emphasis on innovation, Richardson Electronics serves customers through its extensive distribution network and value-added services.

How the Company Makes Money

Richardson Electronics generates revenue through the sale of electronic components and engineered solutions. Key revenue streams include the distribution of specialty components, such as RF and microwave products, as well as power solutions tailored for various industries. The company also benefits from partnerships with manufacturers and technology providers, which allows it to offer unique products and services to its clients. Additionally, Richardson Electronics engages in providing logistics and supply chain management services, further enhancing its value proposition and contributing to its overall earnings.

Richardson Electronics Financial Statement Overview

Summary

Richardson Electronics displays a mixed financial performance. The income statement reveals operational inefficiencies and profitability issues, with declining revenue and negative margins. The balance sheet shows financial resilience with low leverage and strong equity backing. Cash flow analysis indicates improved cash generation, albeit with profitability concerns. Overall, the company demonstrates stability in its asset management but faces challenges in maintaining profitability and growth.

Income Statement

The company has experienced fluctuations in revenue growth, with a decrease in recent years. The gross profit margin stands at approximately 31.0% for the latest year, indicating decent profitability, but the net profit margin has turned negative at -0.5%, pointing to challenges in cost management or operational issues. The negative EBIT and EBITDA margins in the latest year further highlight operational inefficiencies.

Balance Sheet

The company's balance sheet is relatively strong, with a low debt-to-equity ratio of 0.015 and a healthy equity ratio of 80.0%, indicating financial stability. However, the return on equity has turned negative, reflecting recent profitability challenges. Overall, the balance sheet showcases strong equity backing with minimal leverage.

Cash Flow

The company has shown improvements in operating cash flow, increasing to $10.55 million. The free cash flow growth is positive, but given the negative net income, the free cash flow to net income ratio is concerning. The operating cash flow to net income ratio is strong, suggesting efficient cash generation relative to earnings.

Breakdown	TTM	Dec 2025	Dec 2020	Dec 2019	Dec 2018	Dec 2017
Income Statement
Total Revenue	209.79M	208.91M	155.90M	166.65M	163.21M	136.87M
Gross Profit	65.30M	64.80M	49.67M	51.73M	55.08M	43.88M
EBITDA	2.02M	5.21M	1.73M	2.75M	6.35M	-3.32M
Net Income	176.00K	-1.14M	-1.84M	-7.33M	3.82M	-6.93M
Balance Sheet
Total Assets	200.07M	195.84M	150.72M	153.02M	166.33M	157.46M
Cash, Cash Equivalents and Short-Term Investments	35.65M	35.90M	46.53M	50.02M	60.47M	61.76M
Total Debt	2.03M	2.28M	3.43M	0.00	0.00	0.00
Total Liabilities	40.70M	39.18M	32.06M	29.26M	31.15M	25.14M
Stockholders Equity	159.37M	156.66M	118.66M	123.76M	135.18M	132.33M
Cash Flow
Free Cash Flow	8.60M	7.74M	147.00K	-6.44M	-2.29M	-3.41M
Operating Cash Flow	11.51M	10.55M	1.92M	-2.56M	2.95M	1.81M
Investing Cash Flow	3.92M	4.02M	-9.78M	-11.87M	4.15M	-3.79M
Financing Cash Flow	-3.27M	-3.25M	-3.21M	-2.82M	-2.95M	-3.00M

Richardson Electronics Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 10.83
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 10.83 is above the 20-day moving average (MA) of 10.64, above the 50-day MA of 10.16, and above the 200-day MA of 10.49, indicating a bullish trend. The MACD of 0.31 indicates Positive momentum. The RSI at 52.57 is Neutral, neither overbought nor oversold. The STOCH value of 13.69 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for RELL.

Richardson Electronics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MPTI	78 Outperform	$155.58M	20.60	25.98%	―	16.52%	50.29%
RELL	66 Neutral	$155.17M	501.39	0.11%	2.22%	6.17%	―
CPSH	62 Neutral	$68.50M	-29.70	-11.74%	―	7.47%	-133.39%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
MEI	53 Neutral	$247.58M	-4.69	-7.62%	6.80%	-4.91%	61.77%
LINK	48 Neutral	$91.64M	-48.24	-15.12%	―	-7.12%	-11.00%
DAIO	44 Neutral	$28.35M	-10.76	-14.45%	―	-7.58%	-69.20%

Richardson Electronics Corporate Events

Richardson Electronics Reports Q1 Growth and Dividend

Richardson Electronics, Ltd. is a global manufacturer specializing in engineered solutions, green energy products, and power grid and microwave tubes, serving diverse markets including alternative energy, healthcare, and semiconductor industries. The company is known for its technical expertise and customized solutions, with a significant portion of its products manufactured in the United States and Germany.

Richardson Electronics’ Earnings Call Highlights Growth Amid Challenges

The recent earnings call for Richardson Electronics presented a balanced outlook, highlighting both achievements and challenges. The company reported notable sales and segment growth, particularly in PMT and Canvas, alongside improved operating income and strategic partnerships. However, the call also addressed challenges such as declining GES sales, reduced Canvas margins, and supply chain issues affecting the RF tube business.

Richardson Electronics Faces Post-Sale Challenges: Risks and Uncertainties After IMES Deal

Richardson Electronics faces significant risks following the IMES Sale to DirectMed, which could hinder the realization of anticipated benefits. The company may not achieve the expected cost savings or operational efficiencies, potentially impacting financial performance. Additionally, the complexity of integrating operations post-sale could disrupt business functions and reduce synergies. Furthermore, adverse economic conditions or market volatility could negatively affect the value of remaining assets or the strategic deployment of sale proceeds.

Richardson Electronics’ Earnings Call: Positive Growth and Future Prospects

Richardson Electronics’ recent earnings call conveyed a positive sentiment, highlighting strong sales growth across its key business units, improved financial metrics, and a robust cash position. Despite some challenges, such as a decline in Healthcare sales and a lower gross margin in Canvys, the overall tone was optimistic, with positive aspects significantly outweighing the negatives.

Richardson Electronics Reports Strong FY25 Results

Richardson Electronics, Ltd. is a global manufacturer specializing in engineered solutions, green energy products, and power grid and microwave tubes, serving diverse markets such as healthcare, aviation, and semiconductor industries. The company recently reported its fourth-quarter and fiscal year 2025 results, highlighting a year of strategic transition with a 6.3% increase in annual net sales, driven by a significant 23.6% growth in its Green Energy Solutions segment.