Richardson Electronics (RELL)
NASDAQ:RELL
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Richardson Electronics
(NASDAQ:RELL)
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Rating:64Neutral
Price Target:
$12.00
▲(7.05% Upside)
Action:ReiteratedDate:02/13/26
The score is driven by strong balance-sheet quality and constructive earnings-call trajectory, supported by bullish technicals. Offsetting these positives are very thin/volatile profitability and cash-flow consistency, plus a stretched valuation (very high P/E) that increases downside sensitivity if execution slips.
Positive Factors
Balance Sheet Strength
Extremely low leverage and a large equity base provide durable financial flexibility. This reduces refinancing risk, supports dividend payments and opportunistic investments, and cushions the company against cyclical dips in project-driven revenue, improving resilience over the next 2–6 months.
Negative Factors
Thin and Volatile Profitability
Very low net margins and near-zero ROE limit the firm's ability to convert sales into sustainable returns. This makes the company highly sensitive to cost inflation, project mix shifts, or modest revenue slowdowns, raising the risk that earnings can swing widely quarter-to-quarter.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance Sheet Strength
Extremely low leverage and a large equity base provide durable financial flexibility. This reduces refinancing risk, supports dividend payments and opportunistic investments, and cushions the company against cyclical dips in project-driven revenue, improving resilience over the next 2–6 months.
Read all positive factors
Richardson Electronics (RELL) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$160.47M
Dividend Yield2.25%
Average Volume (3M)49.25K
Price to Earnings (P/E)―
Beta (1Y)0.58
Revenue Growth6.17%
EPS GrowthN/A
CountryUS
Employees407
SectorTechnology
Sector Strength88
IndustryHardware, Equipment & Parts
Share Statistics
EPS (TTM)N/A
Shares Outstanding12,481,251
10 Day Avg. Volume50,487
30 Day Avg. Volume49,248
Financial Highlights & Ratios
PEG Ratio0.04
Price to Book (P/B)0.70
Price to Sales (P/S)0.53
P/FCF Ratio14.22
Enterprise Value/Market Cap0.81
Enterprise Value/Revenue0.61
Enterprise Value/Gross Profit1.97
Enterprise Value/Ebitda35.18
Forecast
1Y Price Target
$11.00Price Target Upside-1.87% Downside
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)0.26
Revenue Forecast (FY)$216.32M
Richardson Electronics Business Overview & Revenue Model
Company Description
Richardson Electronics, Ltd. engages in the power and microwave technologies, customized display solutions, and healthcare businesses in North America, the Asia Pacific, Europe, and Latin America. Its Power and Microwave Technologies Group segment...
How the Company Makes Money
Richardson Electronics makes money primarily by selling electronic components, engineered subsystems, and related solutions to OEMs, integrators, service organizations, and end users. Key revenue streams include: (1) Power and Microwave Technologi...
Richardson Electronics Earnings Call Summary
Earnings Call Date:Jan 07, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Jul 29, 2026
Earnings Call Sentiment Positive
The call conveyed a predominately positive trajectory: revenue growth for six consecutive quarters, very strong performance in Green Energy (39% growth) and Canvys (28.1% growth), improved operating income and EBITDA, a strong backlog at Canvys, strategic investments (design/demo centers, partnerships), and a healthy cash position. Offsetting items include PMT revenue softness and margin pressure, inventory concentration related to a supplier exit, continuing noise from the prior health-care divestiture affecting YoY comparisons, and residual volatility from project-based businesses. Overall the positive growth, margin improvement in operating expenses, return to profitability, and strategic progress outweigh the listed challenges.Positive Updates
Consecutive Quarterly Growth
Company reported its sixth consecutive quarter of year-over-year revenue growth, with consolidated net sales of $52.3 million in Q2 FY26, up 5.7% versus $49.5 million in Q2 FY25 (and +9.0% when excluding the sold health care business).
Negative Updates
PMT Sales Decline and Margin Pressure
PMT sales declined 4.0% year-over-year to $35.2 million in Q2 FY26; consolidated gross margin slipped to 30.8% from 31.0% primarily due to lower margins in PMT and GES. PMT experienced a slight slowdown in the electronic device MRO business despite growth in RF/wireless components.
Read all updates
Q2-2026 Updates
Positive
Negative
Consecutive Quarterly Growth
Company reported its sixth consecutive quarter of year-over-year revenue growth, with consolidated net sales of $52.3 million in Q2 FY26, up 5.7% versus $49.5 million in Q2 FY25 (and +9.0% when excluding the sold health care business).
Read all positive updates
Company Guidance
Guidance highlighted continued momentum into the back half of FY‑26 with the company reiterating FY‑26 as a growth year for PMT and GES and several near‑term operational milestones: Sweetwater design center fully operational in Q3 FY‑26 and a LaFox demo center in Q4 FY‑26; completion of ALTA tube production by end of Q3 FY‑26 and launch of repaired Siemens MX tubes as early as Q4 FY‑26 (profitability from the Siemens repair program expected in Q1 FY‑27, possibly Q4 FY‑26); final inventory receipts of ~EUR 1.5M in Q1 calendar 2026 (inventory coverage through 2030); and continued focus on improving inventory turns and cash generation. Key metrics cited alongside that guidance include Q2 net sales $52.3M (+5.7% YoY; +9.0% ex‑healthcare), GES $8.3M (+39% YoY, +14% sequential; ~70% North America; core book‑to‑bill 1.10 with core = 95% of GES), Canvys $8.8M (+28.1%) with backlog $38.0M, PMT $35.2M (‑4% YoY; ~flat ex‑healthcare), Q2 gross margin 30.8% (vs 31.0% prior year), operating expenses 30.5% of sales (vs 32.3%), operating income $0.13M (vs loss $0.67M), Q2 net loss $0.1M (EPS ‑$0.01 vs ‑$0.05), Q2 EBITDA $0.7M (vs breakeven), H1 sales $106.9M (up from $103.2M), H1 EBITDA $4.0M (vs $1.7M), cash $33.1M (down from $35.7M Q1), CapEx $1.6M in Q2 (vs $0.5M prior year), no balance on the revolving credit facility, ~$10M of cash invested at ~4% yield, and a board‑declared quarterly cash dividend of $0.06 per share to be paid in Q3 FY‑26.Richardson Electronics Financial Statement Overview
Summary
Income Statement
46
Neutral
Balance Sheet
83
Very Positive
Cash Flow
50
Neutral
| Breakdown | TTM | May 2025 | May 2024 | May 2023 | May 2022 | May 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 212.59M | 208.91M | 196.46M | 262.66M | 224.62M | 176.94M |
| Gross Profit | 66.05M | 64.80M | 55.66M | 83.69M | 71.70M | 58.83M |
| EBITDA | 3.71M | 6.63M | 4.46M | 28.70M | 19.18M | 5.73M |
| Net Income | 806.00K | -1.14M | 61.00K | 22.33M | 17.93M | 1.66M |
Balance Sheet | ||||||
| Total Assets | 201.77M | 195.84M | 192.44M | 198.05M | 179.82M | 156.75M |
| Cash, Cash Equivalents and Short-Term Investments | 33.14M | 35.90M | 24.26M | 24.98M | 40.49M | 43.32M |
| Total Debt | 1.74M | 2.28M | 2.76M | 2.46M | 3.02M | 2.42M |
| Total Liabilities | 43.29M | 39.18M | 34.49M | 38.73M | 43.97M | 35.19M |
| Stockholders Equity | 158.47M | 156.66M | 157.95M | 159.32M | 135.85M | 121.56M |
Cash Flow | ||||||
| Free Cash Flow | 1.94M | 7.74M | 2.48M | -15.58M | -1.21M | -1.80M |
| Operating Cash Flow | 5.94M | 10.55M | 6.52M | -8.20M | 1.91M | 832.00K |
| Investing Cash Flow | 2.83M | 4.02M | -4.04M | -2.18M | -8.12M | 13.37M |
| Financing Cash Flow | -3.29M | -3.25M | -2.90M | 389.00K | -352.00K | -3.01M |
Richardson Electronics Technical Analysis
Positive
11.21
Price Trends
11.88
Negative
11.23
Positive
10.59
Positive
Market Momentum
-0.21
Negative
48.31
Neutral
47.98
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 11.21 is above the 20-day moving average (MA) of 11.20, below the 50-day MA of 11.88, and above the 200-day MA of 10.59, indicating a neutral trend. The MACD of -0.21 indicates Negative momentum. The RSI at 48.31 is Neutral, neither overbought nor oversold. The STOCH value of 47.98 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 27 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 |
|---|---|---|---|---|---|---|---|
82 Outperform | $236.59M | 18.10 | 20.09% | ― | 12.79% | 23.79% | |
64 Neutral | $160.47M | -268.55 | 0.51% | 2.25% | 6.17% | ― | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
52 Neutral | $85.46M | 110.94 | 2.42% | ― | 38.22% | 70.68% | |
47 Neutral | $207.98M | -4.46 | -9.42% | 5.93% | -9.51% | 29.57% | |
43 Neutral | $45.20M | -25.22 | -14.57% | ― | -1.70% | 17.13% | |
42 Neutral | $20.85M | -5.93 | -30.89% | ― | -3.22% | -102.88% |
* Technology Sector Average
RELL
Richardson Electronics
11.21
2.29
25.69%
DAIO
Data I/O
2.22
0.07
3.26%
MEI
Methode Electronics
5.87
0.78
15.30%
CPSH
CPS Technologies
4.75
3.24
214.57%
LINK
Interlink Electronics
2.87
-0.98
-25.45%
MPTI
M-tron Industries Inc
66.33
25.23
61.39%
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.