Richardson Electronics (RELL)
NASDAQ:RELL
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Richardson Electronics
(NASDAQ:RELL)
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Rating:59Neutral
Price Target:
$14.00
▲(2.56% Upside)
Action:ReiteratedDate:04/11/26
The score is held back primarily by weak cash-flow performance (negative TTM operating and free cash flow) and a demanding valuation (P/E ~42.8). Offsetting these are a very strong, low-leverage balance sheet and a constructive earnings update citing a strong backlog and improving profitability, while technicals are positive but near-term momentum appears overbought.
Positive Factors
Balance sheet strength
Very low leverage and a roughly $160M equity base give Richardson flexibility to fund working capital, absorb project timing swings, invest in design centers, and pay dividends. This conservative capital structure supports multi-quarter execution and strategic investments without reliance on revolver borrowings.
Negative Factors
Weak cash generation
Negative operating and free cash flow over the TTM points to a cash conversion shortfall: accounting profits are not reliably turning into cash. This limits internal funding for inventory reduction, capex, or dividend growth and raises the need for strict working-capital management over coming quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance sheet strength
Very low leverage and a roughly $160M equity base give Richardson flexibility to fund working capital, absorb project timing swings, invest in design centers, and pay dividends. This conservative capital structure supports multi-quarter execution and strategic investments without reliance on revolver borrowings.
Read all positive factors
Richardson Electronics (RELL) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$207.27M
Dividend Yield2.25%
Average Volume (3M)49.25K
Price to Earnings (P/E)42.8
Beta (1Y)0.78
Revenue Growth4.82%
EPS GrowthN/A
CountryUS
Employees407
SectorTechnology
Sector Strength88
IndustryHardware, Equipment & Parts
Share Statistics
EPS (TTM)0.07
Shares Outstanding12,520,251
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 Cap0.85
Enterprise Value/Revenue0.83
Enterprise Value/Gross Profit2.64
Enterprise Value/Ebitda21.32
Forecast
1Y Price Target
$14.00Price Target Upside2.56% Upside
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)0.24
Revenue Forecast (FY)$217.40M
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:Apr 08, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Jul 29, 2026
Earnings Call Sentiment Positive
The call communicated notable progress: a return to profitability, improved gross margins, a larger backlog ($151.2M) and clear momentum in PMT and GES product bookings. Management also highlighted disciplined expense and working capital focus, a strong balance sheet (no revolver borrowings), and strategic investments in BES and design centers. Challenges remain around project timing variability, a large inventory build tied to a critical supplier (~$45M Talos inventory) that used cash in the near term, modest consolidated revenue growth, supply-chain lead times, and a slipped demo center timeline. On balance, the operational and financial improvements and the pipeline/backlog momentum outweigh the near-term timing and inventory headwinds.Positive Updates
Consecutive Sales Growth Streak
Seven consecutive quarters of year-over-year sales growth; consolidated Q3 net sales of $55.5M versus $53.8M prior year (+3.1% YoY). Excluding the divested healthcare business, net sales increased by 6.0%.
Negative Updates
Modest Consolidated Revenue Growth
Consolidated sales growth was modest at +3.1% YoY in Q3 (though +6.0% excluding healthcare), reflecting uneven project timing across segments and the ongoing effect of the 2025 healthcare divestiture on year-over-year comparables.
Read all updates
Q3-2026 Updates
Positive
Negative
Consecutive Sales Growth Streak
Seven consecutive quarters of year-over-year sales growth; consolidated Q3 net sales of $55.5M versus $53.8M prior year (+3.1% YoY). Excluding the divested healthcare business, net sales increased by 6.0%.
Read all positive updates
Company Guidance
Management guided for a strong finish to fiscal Q4, citing solid order activity and a total backlog of $151.2 million (PMT backlog $75.4M, Canvas $38.2M, GES ≈$40M) and reiterated that fiscal 2026 would be a growth year for PMT and GES with GES forecasting double‑digit revenue growth into fiscal 2027; Canvas backlog and a “promising” Q4 were also highlighted. They pointed to Q3 results of $55.5M sales (up 3.1% YoY; +6.0% excl. healthcare), PMT sales ~$38.7M (+9.7% YoY; +14.5% excl. healthcare), Canvas revenue $8.0M, consolidated gross margin 31.9% (+90 bps YoY), Q3 operating income $1.5M (vs. a $2.7M loss prior year), net income $0.9M, EPS $0.07, Q3 EBITDA $2.2M, nine‑month sales $162.4M (+3.4%; +7.2% excl. healthcare), nine‑month gross margin 31.2% (+40 bps) and nine‑month EBITDA $6.2M. Balance‑sheet and capital metrics in the guidance included cash of $29.5M, no outstanding revolver debt, a declared quarterly cash dividend of $0.06/share (Q3 cash dividend paid $0.9M), Q3 capex $0.8M, Talos inventory of about $45M (expected to support through 2030 with burn‑down beginning in Q4), and plans to bring BES and key design centers more fully online in Q1 FY2027 while maintaining expense discipline and working‑capital/inventory‑turn improvements.Richardson Electronics Financial Statement Overview
Summary
Income Statement
56
Neutral
Balance Sheet
84
Very Positive
Cash Flow
35
Negative
| Breakdown | TTM | May 2025 | May 2024 | May 2023 | May 2022 | May 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 214.26M | 208.91M | 196.46M | 262.66M | 224.62M | 176.94M |
| Gross Profit | 67.06M | 64.80M | 55.66M | 83.69M | 71.70M | 58.83M |
| EBITDA | 8.31M | 6.63M | 4.46M | 28.70M | 19.18M | 5.73M |
| Net Income | 3.76M | -1.14M | 61.00K | 22.33M | 17.93M | 1.66M |
Balance Sheet | ||||||
| Total Assets | 199.80M | 195.84M | 192.44M | 198.05M | 179.82M | 156.75M |
| Cash, Cash Equivalents and Short-Term Investments | 29.49M | 35.90M | 24.26M | 24.98M | 40.49M | 43.32M |
| Total Debt | 1.57M | 2.28M | 2.76M | 2.46M | 3.02M | 2.42M |
| Total Liabilities | 39.65M | 39.18M | 34.49M | 38.73M | 43.97M | 35.19M |
| Stockholders Equity | 160.15M | 156.66M | 157.95M | 159.32M | 135.85M | 121.56M |
Cash Flow | ||||||
| Free Cash Flow | -5.52M | 7.74M | 2.48M | -15.58M | -1.21M | -1.80M |
| Operating Cash Flow | -1.31M | 10.55M | 6.52M | -8.20M | 1.91M | 832.00K |
| Investing Cash Flow | -4.37M | 4.02M | -4.04M | -2.18M | -8.12M | 13.37M |
| Financing Cash Flow | -3.06M | -3.25M | -2.90M | 389.00K | -352.00K | -3.01M |
Richardson Electronics Technical Analysis
Positive
13.65
Price Trends
12.16
Positive
11.50
Positive
10.77
Positive
Market Momentum
0.52
Negative
61.95
Neutral
63.60
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 13.65 is above the 20-day moving average (MA) of 12.06, above the 50-day MA of 12.16, and above the 200-day MA of 10.77, indicating a bullish trend. The MACD of 0.52 indicates Negative momentum. The RSI at 61.95 is Neutral, neither overbought nor oversold. The STOCH value of 63.60 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 |
|---|---|---|---|---|---|---|---|
77 Outperform | $226.14M | 18.10 | 20.09% | ― | 11.03% | 5.56% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
61 Neutral | $95.08M | 110.94 | 2.42% | ― | 54.31% | ― | |
59 Neutral | $207.27M | 42.82 | 0.51% | 2.25% | 4.82% | ― | |
51 Neutral | $297.26M | -4.46 | -9.42% | 5.93% | -8.43% | 30.33% | |
50 Neutral | $25.74M | -5.93 | -30.89% | ― | -1.24% | -57.42% | |
45 Neutral | $46.62M | -35.85 | -14.57% | ― | 1.81% | 19.17% |
* Technology Sector Average
RELL
Richardson Electronics
14.17
5.81
69.44%
DAIO
Data I/O
2.56
0.29
12.78%
MEI
Methode Electronics
7.96
1.77
28.57%
CPSH
CPS Technologies
4.80
3.26
211.69%
LINK
Interlink Electronics
3.00
-1.45
-32.58%
MPTI
M-tron Industries Inc
63.37
6.46
11.35%
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.