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Richardson Electronics
(NASDAQ:RELL)
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Rating:69Neutral
Price Target:
$24.00
▲(75.82% Upside)
Action:Reiterated
Date:07/24/26
The score reflects strong technical momentum and a very solid, low-debt balance sheet, supported by a positive earnings-call outlook (backlog growth and BES pipeline/order visibility). Offsetting these positives are weak/volatile cash flow conversion and a high valuation (P/E ~52.9), which increase downside risk if execution or margins disappoint.
Positive Factors
Balance Sheet Strength
Very low leverage and a multi‑tens of millions cash position give Richardson durable financial flexibility. This supports capital allocation for Made‑in‑America initiatives, selective BES investment, dividend payments and downside protection during cyclical swings in specialty industrial end markets.
Negative Factors
Weak Cash Conversion
Persistent inconsistency between reported earnings and cash generation raises execution risk: weak or negative free cash flow limits reinvestment, makes dividends or buybacks harder to sustain, and increases sensitivity to working capital swings in inventory or receivables.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance Sheet Strength
Very low leverage and a multi‑tens of millions cash position give Richardson durable financial flexibility. This supports capital allocation for Made‑in‑America initiatives, selective BES investment, dividend payments and downside protection during cyclical swings in specialty industrial end markets.
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
$257.77M
Dividend Yield1.34%
Average Volume (3M)49.25K
Price to Earnings (P/E)43.6
Beta (1Y)0.85
Revenue Growth9.41%
EPS GrowthN/A
CountryUS
Employees418
SectorTechnology
Sector Strength88
IndustryHardware, Equipment & Parts
Share Statistics
EPS (TTM)0.41
Shares Outstanding12,520,251
10 Day Avg. Volume50,487
30 Day Avg. Volume49,248
Financial Highlights & Ratios
PEG Ratio-0.08
Price to Book (P/B)1.30
Price to Sales (P/S)0.93
P/FCF Ratio-58.58
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$14.00Price Target Upside2.56% Upside
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)0.39
Revenue Forecast (FY)$234.99M
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 makes money primarily by selling products and solutions across its specialty electronics and power-focused businesses, recognizing revenue largely from product shipments to customers. Key revenue streams include: (1) sales of power and high-v...
Richardson Electronics Earnings Call Summary
Earnings Call Date:Jul 22, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Oct 14, 2026
Earnings Call Sentiment Positive
The call conveyed substantial progress: material revenue acceleration (Q4 +27.6%), record segment performance (Canvys), significant PMT growth and improved profitability (operating income and net income moved meaningfully positive vs prior year). Management highlighted strategic wins — BES program shipment, a deepening BES pipeline (~50 opportunities), expanded PEM/wind orders internationally, backlog growth, AI productivity initiatives, and a dividend while maintaining no outstanding revolver debt. Challenges were present but moderate: a small Q4 gross margin dip (40 bps), some FY margin pressure at Canvys, higher absolute operating expenses (including a $0.4M settlement), a YoY decline in cash, limited short‑term visibility in some end markets, and macro/supply chain risks. On balance the positive operational and financial momentum, improved profitability, backlog expansion and strategic positioning (BES and Made-in-America initiatives) outweigh the negative items.Positive Updates
Strong Quarterly and Annual Revenue Growth
Consolidated net sales increased 27.6% year-over-year to $66.2M in Q4 FY26 (eighth consecutive quarterly YoY increase). Fiscal year 2026 net sales were $228.6M, up 9.4% from $208.9M in FY25.
Negative Updates
Slight Q4 Gross Margin Pressure
Consolidated gross margin decreased to 31.2% of net sales in Q4 FY26 from 31.6% a year earlier (a 40 basis-point decline), driven by lower margins in PMT and GES due to product mix (partially offset by better freight % in Canvys).
Read all updates
Q4-2026 Updates
Positive
Negative
Strong Quarterly and Annual Revenue Growth
Consolidated net sales increased 27.6% year-over-year to $66.2M in Q4 FY26 (eighth consecutive quarterly YoY increase). Fiscal year 2026 net sales were $228.6M, up 9.4% from $208.9M in FY25.
Read all positive updates
Company Guidance
Management guided that Richardson is entering FY2027 with improved visibility and continued momentum, expecting a multimillion‑dollar BES order in Q1 FY27 and citing a BES pipeline of nearly 50 (now over 50) active opportunities and a 24.8% increase in combined PMT+GES backlog; Canvys backlog was $40.8M with a Q4 book‑to‑bill of 1.3. They said most PMT/GES backlog should convert within the fiscal year (or within five quarters), see semi‑wafer‑fab demand continuing into CY2027, and will invest selectively in battery energy storage and Made‑in‑America programs while maintaining liquidity (cash $31.8M at year‑end, no revolver debt) and returning cash via a $0.06 per‑share quarterly dividend, all while emphasizing discipline in sourcing, pricing, inventory and operating expense control after FY26 results (FY sales $228.6M, FY gross margin 31.2%, adjusted EBITDA $10.4M).Richardson Electronics Financial Statement Overview
Summary
Income Statement
60
Neutral
Balance Sheet
86
Very Positive
Cash Flow
38
Negative
| Breakdown | May 2026 | May 2025 | May 2024 | May 2023 | May 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 228.56M | 208.91M | 196.46M | 262.66M | 224.62M |
| Gross Profit | 71.35M | 64.80M | 55.66M | 83.69M | 71.70M |
| EBITDA | 10.72M | 6.63M | 4.46M | 28.70M | 19.18M |
| Net Income | 6.38M | -1.14M | 61.00K | 22.33M | 17.93M |
Balance Sheet | |||||
| Total Assets | 202.02M | 195.84M | 192.44M | 198.05M | 179.82M |
| Cash, Cash Equivalents and Short-Term Investments | 31.78M | 35.90M | 24.26M | 24.98M | 40.49M |
| Total Debt | 1.39M | 2.28M | 2.76M | 2.46M | 3.02M |
| Total Liabilities | 38.32M | 39.18M | 34.49M | 38.73M | 43.97M |
| Stockholders Equity | 163.70M | 156.66M | 157.95M | 159.32M | 135.85M |
Cash Flow | |||||
| Free Cash Flow | -3.62M | 7.74M | 2.48M | -15.58M | -1.21M |
| Operating Cash Flow | 762.00K | 10.55M | 6.52M | -8.20M | 1.91M |
| Investing Cash Flow | -3.08M | 4.02M | -4.04M | -2.18M | -8.12M |
| Financing Cash Flow | -2.54M | -3.25M | -2.90M | 389.00K | -352.00K |
Richardson Electronics Technical Analysis
Positive
13.65
Price Trends
17.36
Positive
15.01
Positive
13.04
Positive
Market Momentum
0.37
Negative
51.54
Neutral
69.27
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 below the 20-day moving average (MA) of 17.57, below the 50-day MA of 17.36, and above the 200-day MA of 13.04, indicating a bullish trend. The MACD of 0.37 indicates Negative momentum. The RSI at 51.54 is Neutral, neither overbought nor oversold. The STOCH value of 69.27 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 |
|---|---|---|---|---|---|---|---|
79 Outperform | $361.19M | 27.58 | 17.69% | ― | 11.50% | 9.24% | |
69 Neutral | $257.77M | 43.56 | 2.37% | 2.25% | 9.41% | ― | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
58 Neutral | $543.07M | -15.18 | -5.25% | 5.93% | -2.76% | 42.91% | |
53 Neutral | $29.31M | -3.72 | -55.84% | ― | -14.98% | -185.63% | |
52 Neutral | $76.55M | -51.81 | -12.20% | ― | 9.64% | 45.26% | |
45 Neutral | $85.55M | 778.95 | 0.15% | ― | 41.39% | ― |
* Technology Sector Average
RELL
Richardson Electronics
17.96
7.67
74.47%
DAIO
Data I/O
3.12
-0.21
-6.31%
MEI
Methode Electronics
15.31
8.86
137.29%
CPSH
CPS Technologies
4.44
1.91
75.49%
LINK
Interlink Electronics
4.86
0.19
4.07%
MPTI
M-tron Industries Inc
83.58
39.89
91.30%
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.