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Richardson Electronics (RELL)
NASDAQ:RELL
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Richardson Electronics
(NASDAQ:RELL)
Rating:61Neutral
Price Target:
$10.50
▲(4.79% Upside)
Richardson Electronics (RELL) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$142.87M
Dividend Yield2.4%
Average Volume (3M)31.43K
Price to Earnings (P/E)303.1
Beta (1Y)0.73
Revenue Growth6.34%
EPS Growth-31.68%
CountryUS
Employees407
SectorTechnology
Sector Strength94
IndustryHardware, Equipment & Parts
Share Statistics
EPS (TTM)0.08
Shares Outstanding12,443,065
10 Day Avg. Volume31,177
30 Day Avg. Volume31,426
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)0.00
Price to Sales (P/S)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap0.54
Enterprise Value/Revenue0.37
Enterprise Value/Gross Profit1.19
Enterprise Value/Ebitda-54.00
Forecast
1Y Price Target
$10.25Price Target Upside2.30% Upside
Rating ConsensusHold
Number of Analyst Covering2
Richardson Electronics Business Overview & Revenue Model
Company DescriptionRichardson Electronics (RELL) is a global provider of engineered solutions and a leading supplier of specialty electronic components. The company operates primarily in sectors such as telecommunications, medical, and industrial, offering a diverse range of products including electronic components, power solutions, and high-performance RF and microwave components. With a strong emphasis on innovation, Richardson Electronics serves customers through its extensive distribution network and value-added services.
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: 3.09%|
Next Earnings Date:Oct 08, 2025
Earnings Call Sentiment Positive
The earnings call reflected a positive overall sentiment with strong sales growth across key business units, improved financial metrics, and a robust cash position. Despite challenges such as a decline in Healthcare sales and lower gross margin in Canvys, the positive aspects significantly outweighed the negatives.Q4-2025 Updates
Positive Updates
Consistent Sales Growth
Richardson Electronics achieved four consecutive quarters of year-over-year sales growth and five consecutive quarters of positive operating cash flow. Total sales for Q4 FY25 increased by 9.5% to $51.9 million compared to the previous year.
Strong Performance in Key Business Units
PMT sales increased by 17.8% in Q4, driven by demand from semiconductor wafer fab customers and RF and microwave applications. GES sales rose by 14.1% with strong demand for wind turbine modules. Canvys also showed a 9.1% increase in sales.
Improved Financial Metrics
Gross margin for Q4 FY25 improved by 50 basis points to 31.6% year-over-year. Operating income for Q4 was $0.6 million, compared to an operating loss in the prior year's fourth quarter.
Robust Cash Position
The company ended fiscal 2025 with a strong cash position of $35.9 million, providing flexibility to support ongoing operations and strategic growth opportunities.
Positive EBITDA Growth
EBITDA for Q4 FY25 was $2.9 million, with adjusted EBITDA at $3.1 million, up from $1.0 million in the prior year's Q4.
Negative Updates
Decline in Healthcare Sales
Sales in the Healthcare segment decreased by $2.4 million due to the sale of the majority of Healthcare assets in January 2025.
Lower Gross Margin in Canvys
Canvys' gross margin decreased to 32.1% in Q4 FY25 from 33.5% in the previous year's quarter due to product mix and higher freight costs.
Loss on Disposal of Assets
A loss on disposal of assets of $0.2 million resulted from a closing adjustment to the sale of the majority of Healthcare assets.
Company Guidance
In the fourth quarter of fiscal year 2025, Richardson Electronics reported total sales of $51.9 million, up 9.5% from $47.4 million in the same quarter of the previous year, marking four consecutive quarters of year-over-year sales growth. The Power & Microwave Technologies (PMT) segment saw a significant 17.8% increase, driven by semiconductor and RF power segments, while Green Energy Solutions (GES) and Canvys business units reported sales growth of 14.1% and 9.1%, respectively. The company's gross margin improved by 50 basis points to 31.6%, with the GES segment contributing to this rise due to an improved product mix. Operating income reached $0.6 million, and non-GAAP operating income was $0.8 million, compared to a loss in the previous year. The company maintained a strong cash position at $35.9 million, despite a $0.2 million loss on the disposal of Healthcare assets, and reported free cash flow of $7.7 million. Earnings per share were $0.08, with non-GAAP earnings per share at $0.12, against a loss of $0.01 per share in the previous year.Richardson Electronics Financial Statement Overview
Summary
Richardson Electronics displays a mixed financial performance. The income statement reveals operational inefficiencies and profitability issues, with declining revenue and negative margins. However, the balance sheet shows financial resilience with low leverage and strong equity backing. Cash flow analysis indicates improved cash generation, albeit with profitability concerns.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 | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 208.91M | 196.46M | 262.66M | 224.62M | 176.94M |
| Gross Profit | 64.80M | 59.97M | 83.69M | 71.70M | 58.83M |
| EBITDA | -2.46M | 4.72M | 28.65M | 19.40M | 7.92M |
| Net Income | -1.14M | 61.00K | 22.33M | 17.93M | 1.66M |
Balance Sheet | |||||
| Total Assets | 195.84M | 192.44M | 198.05M | 179.82M | 156.11M |
| Cash, Cash Equivalents and Short-Term Investments | 35.90M | 24.26M | 24.98M | 40.49M | 43.32M |
| Total Debt | 2.28M | 2.76M | 2.46M | 3.02M | 2.42M |
| Total Liabilities | 39.18M | 34.49M | 38.73M | 43.97M | 34.55M |
| Stockholders Equity | 156.66M | 157.95M | 159.32M | 135.85M | 121.56M |
Cash Flow | |||||
| Free Cash Flow | 7.74M | 2.48M | -15.58M | -1.21M | -1.80M |
| Operating Cash Flow | 10.55M | 6.52M | -8.20M | 1.91M | 832.00K |
| Investing Cash Flow | 4.02M | -4.04M | -2.18M | -8.12M | 13.37M |
| Financing Cash Flow | -3.25M | -2.90M | 389.00K | -352.00K | -3.01M |
Richardson Electronics Technical Analysis
Neutral
10.02
Price Trends
9.64
Positive
9.44
Positive
11.41
Negative
Market Momentum
0.03
Positive
50.62
Neutral
55.03
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 10.02 is above the 20-day moving average (MA) of 9.92, above the 50-day MA of 9.64, and below the 200-day MA of 11.41, indicating a neutral trend. The MACD of 0.03 indicates Positive momentum. The RSI at 50.62 is Neutral, neither overbought nor oversold. The STOCH value of 55.03 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 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 (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
61 Neutral | $36.26B | 7.13 | -7.26% | 1.97% | 7.76% | -8.61% | |
61 Neutral | $142.87M | 303.10 | -0.73% | 2.40% | 6.34% | -31.68% | |
54 Neutral | $57.62M | ― | -15.12% | ― | -7.12% | -11.00% | |
51 Neutral | $323.97M | ― | -173.01% | ― | 13.03% | 77.68% | |
49 Neutral | $245.39M | ― | -8.58% | 7.05% | -5.96% | 49.33% | |
47 Neutral | $159.58M | ― | -24.86% | ― | 2.59% | -48.02% | |
42 Neutral | $381.64M | ― | -48.54% | ― | -41.25% | 47.09% |
* Technology Sector Average
Performance Comparison
RELL
Richardson Electronics
9.84
-1.45
-12.84%
KOPN
Kopin
1.91
1.00
109.89%
LPTH
Lightpath Technologies
3.64
2.29
169.63%
MEI
Methode Electronics
6.81
-3.30
-32.64%
NEON
Neonode
21.56
18.92
716.67%
LINK
Interlink Electronics
7.43
3.22
76.48%
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.