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Richardson Electronics (RELL)
NASDAQ:RELL
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Richardson Electronics
(NASDAQ:RELL)
Rating:64Neutral
Price Target:
$10.00
▼(-1.67%Downside)
Richardson Electronics (RELL) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$139.08M
Dividend Yield2.45%
Average Volume (3M)41.84K
Price to Earnings (P/E)303.1
Beta (1Y)0.67
Revenue Growth-1.69%
EPS Growth-185.91%
CountryUS
Employees407
SectorTechnology
Sector Strength84
IndustryHardware, Equipment & Parts
Share Statistics
EPS (TTM)-0.15
Shares Outstanding12,361,870
10 Day Avg. Volume55,763
30 Day Avg. Volume41,844
Financial Highlights & Ratios
PEG Ratio4.83
Price to Book (P/B)1.51
Price to Sales (P/S)0.00
P/FCF Ratio-15.39
Enterprise Value/Market Cap1.56
Enterprise Value/Revenue0.27
Enterprise Value/Gross Profit3.44
Enterprise Value/Ebitda19.69
Forecast
1Y Price Target
$10.00Price Target Upside-1.67% Downside
Rating ConsensusHold
Number of Analyst Covering1
Richardson Electronics Business Overview & Revenue Model
Company DescriptionRichardson 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 provides engineered solutions, power grid and microwave tubes, and related consumables; technical services for microwave and industrial equipment; and power conversion and RF and microwave component for broadcast transmission, CO2 laser cutting, diagnostic imaging, dielectric and induction heating, high energy transfer, high voltage switching, plasma, power conversion, radar, and radiation oncology applications. The company's Canvys segment provides custom display solutions, such as touch screens, protective panels, all-in-one computers, custom enclosures, specialized cabinet finishes, application specific software packages, and certification services to corporate enterprise, financial, healthcare, industrial, and medical original equipment manufacturer markets. Its Healthcare segment manufactures and distributes diagnostic imaging replacement parts for CT and MRI systems; replacement CT and MRI tubes; MRI coils, cold heads, and RF amplifiers; hydrogen thyratrons, klystrons, and magnetrons; flat panel detector upgrades; pre-owned CT systems; and additional replacement solutions, as well as offers CT service training. It serves hospitals, medical centers, asset management companies, independent service organizations, and multi-vendor service providers. The company's products are used to control, switch, or amplify electrical power signals, as well as used as display devices in alternative energy, healthcare, aviation, communications, industrial, marine, medical, military, scientific, and semiconductor markets. The company was founded in 1947 and is headquartered in LaFox, Illinois.
How the Company Makes MoneyRichardson Electronics generates revenue through the sale of its engineered solutions and components across its various business units. The company's key revenue streams include its Power & Microwave Technologies Group, which offers products like power grid tubes and microwave devices, and the Canvys division, providing custom display solutions. Additionally, Richardson Electronics benefits from its Healthcare segment where it supplies replacement parts and diagnostic imaging equipment. The company leverages strategic partnerships with manufacturers and invests in R&D to innovate and maintain a competitive edge in its markets, contributing to its earnings. Sales and services are conducted through a combination of direct sales, distributors, and value-added resellers, ensuring wide market reach and customer access.
Richardson Electronics Earnings Call Summary
Earnings Call Date:Apr 09, 2025
(Q3-2025)
| % Change Since: 4.63%|
Next Earnings Date:Jul 23, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mix of strong growth in key segments and positive cash flow, contrasted with losses from the Healthcare asset sale and project-based sales declines. While there are notable achievements in semiconductor and green energy solutions, challenges remain in managing losses and sales variability.Q3-2025 Updates
Positive Updates
Significant Growth in Key Segments
Semiconductor wafer fab sales surged by 139%, and Canvys sales increased 39.5% in the third quarter of fiscal year 2025.
Positive Cash Flow and Strong Balance Sheet
The company achieved positive operating cash flow for the fourth consecutive quarter, ending with no debt and $36.7 million in cash and equivalents.
Improved Gross Margin
Consolidated gross margin for the third quarter was 31.0% of net sales, a 150 basis point increase from the previous year, driven by margin expansion in PMT and GES.
Growth in Green Energy Solutions
GES sales totaled $9.3 million, a 55% increase over the most recent Q2, with a year-to-date increase of 26% over the prior year.
Strong Backlog
The combined GES and PMT backlog remained strong at $95 million at the end of Q3, supporting future growth.
Negative Updates
Healthcare Asset Sale Loss
A one-time $4.9 million Healthcare charge represented a loss on the sale of assets, impacting reported earnings.
Decline in Wind Turbine Battery Modules
GES sales were down 19% year-over-year due to lower sales in wind turbine battery modules, which are project-based and can vary by quarter.
Negative EBITDA
EBITDA for the third quarter of fiscal 2025 was a negative $2.1 million, although adjusted EBITDA was positive at $2.8 million.
Operating Loss
Operating loss for the third quarter was $2.7 million, despite a non-GAAP operating income of $2.2 million.
Company Guidance
In the third quarter of fiscal year 2025, Richardson Electronics reported significant financial metrics, including a 139% increase in semiconductor wafer fab sales and a 39.5% rise in Canvys sales. The company maintained positive operating cash flow for the fourth consecutive quarter, ending with $36.7 million in cash and equivalents and no debt, despite a one-time $4.9 million charge related to the sale of Healthcare assets. The non-GAAP operating profit for the quarter increased to $2.2 million, compared to $1 million in the previous year. Consolidated net sales rose by 2.7% year-over-year to $53.8 million, with a consolidated gross margin improvement to 31.0% from 29.5% in the prior year. Operating expenses improved as a percentage of net sales, and adjusted EBITDA reached $2.8 million, up from $2.1 million the previous year. The company emphasized its strategic focus on core businesses, particularly Green Energy Solutions, and is well-positioned to leverage current manufacturing policies driving demand back to the US.Richardson Electronics Financial Statement Overview
Summary
Richardson Electronics presents a stable financial position with low leverage and healthy cash flows. However, challenges in profitability and revenue growth are evident, with negative EBIT and net income in the TTM period, indicating potential risks to future financial health.Income Statement
Richardson Electronics shows a mixed performance in its income statement. Despite a challenging environment in the TTM (Trailing-Twelve-Months) with a negative EBIT and net income, the company had a gross profit margin of 30.9%, indicating effective cost management. Revenue growth is inconsistent, with a decline from the previous year. The negative trends in EBIT and net profit margins reflect potential profitability issues.60
Neutral
Balance Sheet
The balance sheet of Richardson Electronics is relatively strong with a low debt-to-equity ratio of 0.013, which suggests low leverage and financial stability. The equity ratio is strong at 80.6%, indicating a solid financial foundation. However, a decreasing stockholders' equity over time could be a concern.75
Positive
Cash Flow
The cash flow statement highlights a positive operating cash flow with a substantial free cash flow in the TTM (Trailing-Twelve-Months), showing good cash generation capability. Nevertheless, fluctuations in free cash flow growth and operating cash flow to net income ratios suggest potential volatility in cash management.70
Positive
| Breakdown | TTM | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 | Jun 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 204.39M | 196.46M | 262.66M | 224.62M | 176.94M | 155.90M |
| Gross Profit | 63.15M | 59.97M | 83.69M | 71.70M | 58.83M | 49.67M |
| EBITDA | -1.08M | 4.72M | 28.65M | 19.40M | 7.92M | 1.73M |
| Net Income | -2.34M | 61.00K | 22.33M | 17.93M | 1.66M | -1.84M |
Balance Sheet | ||||||
| Total Assets | 189.81M | 192.44M | 198.05M | 179.82M | 156.11M | 150.72M |
| Cash, Cash Equivalents and Short-Term Investments | 36.67M | 24.26M | 24.98M | 40.49M | 43.32M | 46.53M |
| Total Debt | 2.04M | 2.76M | 2.46M | 3.02M | 2.42M | 3.43M |
| Total Liabilities | 36.91M | 34.49M | 38.73M | 43.97M | 34.55M | 32.06M |
| Stockholders Equity | 152.90M | 157.95M | 159.32M | 135.85M | 121.56M | 118.66M |
Cash Flow | ||||||
| Free Cash Flow | 14.74M | 2.48M | -15.58M | -1.21M | -1.80M | 147.00K |
| Operating Cash Flow | 17.72M | 6.52M | -8.20M | 1.91M | 832.00K | 1.92M |
| Investing Cash Flow | 4.02M | -4.04M | -2.18M | -8.12M | 13.37M | -9.78M |
| Financing Cash Flow | -3.00M | -2.90M | 389.00K | -352.00K | -3.01M | -3.21M |
Richardson Electronics Technical Analysis
Neutral
10.17
Price Trends
9.07
Positive
10.39
Negative
11.86
Negative
Market Momentum
0.13
Negative
60.89
Neutral
83.46
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RELL, the sentiment is Neutral. The current price of 10.17 is above the 20-day moving average (MA) of 9.30, above the 50-day MA of 9.07, and below the 200-day MA of 11.86, indicating a neutral trend. The MACD of 0.13 indicates Negative momentum. The RSI at 60.89 is Neutral, neither overbought nor oversold. The STOCH value of 83.46 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for RELL.
Richardson Electronics Risk Analysis
Richardson Electronics disclosed 28 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
Overall Rating
UnderperformOutperform
Sector (56)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
64 Neutral | $139.08M | 303.10 | -1.50% | 2.45% | -1.69% | -185.91% | |
58 Neutral | $78.82M | ― | -18.75% | ― | -18.62% | -112.68% | |
56 Neutral | $3.18B | 5.02 | -5.68% | 5.66% | 8.05% | -41.83% | |
54 Neutral | $250.71M | ― | -112.75% | ― | 28.16% | 74.88% | |
54 Neutral | $129.55M | ― | -24.86% | ― | 2.59% | -48.02% | |
53 Neutral | $393.90M | ― | -40.61% | ― | -18.53% | 46.30% | |
51 Neutral | $352.62M | ― | -11.90% | 5.67% | -6.16% | -59.41% |
* Technology Sector Average
Performance Comparison
RELL
Richardson Electronics
10.17
-1.22
-10.71%
KOPN
Kopin
1.54
0.60
63.83%
LPTH
Lightpath Technologies
3.04
1.69
125.19%
MEI
Methode Electronics
9.94
0.92
10.20%
NEON
Neonode
25.69
23.47
1057.21%
LINK
Interlink Electronics
7.64
3.82
100.00%
Richardson Electronics Corporate Events
M&A TransactionsBusiness Operations and Strategy
Richardson Electronics Sells Medical Unit to DirectMed
Positive
Jan 30, 2025
On January 24, 2025, Richardson Electronics announced the sale of its International Medical Equipment and Service business assets to DirectMed Imaging for $8.2 million. This strategic move aligns with Richardson’s priorities to support its growing Green Energy Solutions business and involves a 10-year supply agreement with DirectMed, simplifying Richardson’s operations and focusing on higher-growth markets.
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.