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Richardson Electronics (RELL)
NASDAQ:RELL
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Richardson Electronics
(NASDAQ:RELL)
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Rating:59Neutral
Price Target:
$10.50
▲(5.63% Upside)
Richardson Electronics' overall stock score reflects a mixed financial performance with operational inefficiencies and profitability challenges. The earnings call provided a positive outlook with sales growth and improved margins, but valuation concerns and technical indicators suggest caution. The balance sheet remains a strong point, offering financial stability.
Richardson Electronics (RELL) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$142.77M
Dividend Yield2.41%
Average Volume (3M)37.11K
Price to Earnings (P/E)303.1
Beta (1Y)0.64
Revenue Growth6.34%
EPS Growth-31.68%
CountryUS
Employees407
SectorTechnology
Sector Strength88
IndustryHardware, Equipment & Parts
Share Statistics
EPS (TTM)0.08
Shares Outstanding12,432,959
10 Day Avg. Volume29,242
30 Day Avg. Volume37,107
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 Cap0.54
Enterprise Value/Revenue0.37
Enterprise Value/Gross Profit1.19
Enterprise Value/Ebitda87.82
Forecast
1Y Price Target
$10.25Price Target Upside3.12% Upside
Rating ConsensusHold
Number of Analyst Covering2
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 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 Earnings Call Summary
Earnings Call Date:Jul 23, 2025
(Q4-2025)
| % Change Since: |
Next Earnings Date:Oct 08, 2025
Earnings Call Sentiment Positive
The earnings call revealed a positive sentiment overall, with consistent sales growth across all business units and strong cash flow and operating income improvements. However, challenges such as the decline in Healthcare sales and tariff uncertainties posed some risks. Despite these challenges, the company is optimistic about future growth opportunities in Green Energy and semiconductor businesses.Q4-2025 Updates
Positive Updates
Consistent Year-Over-Year Sales Growth
Achieved four consecutive quarters of year-over-year sales growth and five consecutive quarters of positive operating cash flow, with Q4 total sales reaching $51.9 million, up from $47.4 million in the previous year.
Strong Performance Across Business Units
PMT sales increased by 17.8%, GES sales grew by 14.1%, and Canvys sales rose by 9.1%, reflecting improved market conditions and strong demand in respective sectors.
Gross Margin Improvement
FY '25 Q4 gross margin improved by 50 basis points to 31.6%, driven by disciplined pricing strategies and operational improvements.
Positive Operating Income
Reported positive operating income of $0.6 million compared to an operating loss in the same period last year.
Strong Cash Position
Ended fiscal 2025 with a strong cash position of $35.9 million, providing flexibility for ongoing operations and strategic growth opportunities.
Expansion in Green Energy Solutions
GES grew by 23.6% for the fiscal year, driven by increased demand for wind energy products and strategic partnerships.
Increased Semiconductor Wafer Fab Business
Expectations for growth in the semiconductor wafer fab business as inventory levels normalize, with potential to return to higher revenue levels.
Negative Updates
Healthcare Segment Decline
Experienced a $2.4 million decrease in Healthcare sales due to the sale of the majority of Healthcare assets.
Challenges in Tariff and Market Conditions
Navigating higher uncertainty due to new and reciprocal tariffs and volatile market conditions, impacting strategic decisions.
Decreased Gross Margin in Canvys
Canvys gross margin as a percentage of net sales decreased due to product mix and higher freight costs.
Loss on Disposal of Healthcare Assets
Recorded a $5.1 million loss on the disposal of Healthcare assets for the fiscal year.
Company Guidance
During the Richardson Electronics earnings call for Q4 FY 2025, the company reported total sales of $51.9 million, a 9.5% increase from $47.4 million in the previous year’s fourth quarter. Key growth drivers included a 17.8% increase in Power & Microwave Technologies (PMT) sales, a 14.1% rise in Green Energy Solutions (GES), and a 9.1% boost in Canvys sales. The gross margin improved by 50 basis points to 31.6%, attributed to disciplined pricing and operational enhancements. Operating income reached $0.6 million, compared to a $0.1 million loss in the same period last year, while net income was $1.1 million, up from a $0.1 million loss in Q4 FY 2024. The company ended the fiscal year with a strong cash position of $35.9 million, and the Board declared a regular quarterly cash dividend of $0.06 per share.Richardson Electronics Financial Statement Overview
Summary
Richardson Electronics shows mixed financial performance. The income statement highlights operational inefficiencies with negative margins, while the balance sheet indicates financial stability with low leverage. Cash flow is improving, but profitability remains a concern.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.55
Neutral
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.65
Positive
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.60
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 208.91M | 208.91M | 196.46M | 262.66M | 224.62M | 176.94M |
| Gross Profit | 64.80M | 64.80M | 59.97M | 83.69M | 71.70M | 58.83M |
| EBITDA | 875.00K | 6.63M | 4.72M | 28.65M | 19.40M | 7.92M |
| Net Income | -1.14M | -1.14M | 61.00K | 22.33M | 17.93M | 1.66M |
Balance Sheet | ||||||
| Total Assets | 195.84M | 195.84M | 192.44M | 198.05M | 179.82M | 156.11M |
| Cash, Cash Equivalents and Short-Term Investments | 35.90M | 35.90M | 24.26M | 24.98M | 40.49M | 43.32M |
| Total Debt | 2.28M | 2.28M | 2.76M | 2.46M | 3.02M | 2.42M |
| Total Liabilities | 39.18M | 39.18M | 34.49M | 38.73M | 43.97M | 34.55M |
| Stockholders Equity | 156.66M | 156.66M | 157.95M | 159.32M | 135.85M | 121.56M |
Cash Flow | ||||||
| Free Cash Flow | 7.74M | 7.74M | 2.48M | -15.58M | -1.21M | -1.80M |
| Operating Cash Flow | 10.55M | 10.55M | 6.52M | -8.20M | 1.91M | 832.00K |
| Investing Cash Flow | 4.02M | 4.02M | -4.04M | -2.18M | -8.12M | 13.37M |
| Financing Cash Flow | -3.25M | -3.25M | -2.90M | 389.00K | -352.00K | -3.01M |
Richardson Electronics Technical Analysis
Neutral
9.94
Price Trends
9.88
Positive
9.58
Positive
10.80
Negative
Market Momentum
0.08
Positive
50.26
Neutral
26.23
Neutral
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 9.94 is above the 20-day moving average (MA) of 9.90, above the 50-day MA of 9.88, and below the 200-day MA of 10.80, indicating a neutral trend. The MACD of 0.08 indicates Positive momentum. The RSI at 50.26 is Neutral, neither overbought nor oversold. The STOCH value of 26.23 is Neutral, 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 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
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
61 Neutral | 338.90M | -22.07 | -95.07% | ― | 17.26% | -70.07% | |
59 Neutral | $142.77M | 303.10 | -0.73% | 2.41% | 6.34% | -31.68% | |
54 Neutral | 267.65M | -4.95 | -7.93% | 6.45% | -4.91% | 61.77% | |
52 Neutral | 371.20M | -25.50 | -0.19% | ― | 13.03% | 77.68% | |
51 Neutral | 134.35M | -65.83 | -16.35% | ― | -7.12% | -11.00% | |
47 Neutral | 60.42M | -9.53 | -39.33% | ― | -41.25% | 47.09% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
Performance Comparison
RELL
Richardson Electronics
9.94
-2.20
-18.12%
KOPN
Kopin
2.28
1.57
221.13%
LPTH
Lightpath Technologies
7.90
6.51
468.35%
MEI
Methode Electronics
7.60
-3.67
-32.56%
NEON
Neonode
3.60
-6.24
-63.41%
LINK
Interlink Electronics
13.62
10.16
293.64%
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.