Richardson Electronics (RELL) AI Stock Analysis

• Market Cap: $139.59M
• Dividend Yield: 2.46%
• Average Volume (3M): 39.26K
• Price to Earnings (P/E): 303.1
• Beta (1Y): 0.67
• Revenue Growth: 6.34%
• EPS Growth: -31.68%
• Country: US
• Employees: 407
• Sector: Technology
• Sector Strength: 84
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 0.08
• Shares Outstanding: 12,443,065
• 10 Day Avg. Volume: 48,882
• 30 Day Avg. Volume: 39,259
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.55
• Enterprise Value/Revenue: 0.37
• Enterprise Value/Gross Profit: 1.19
• Enterprise Value/Ebitda: -54.00
• 1Y Price Target: $10.25
• Price Target Upside: 4.91% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

• Rating: 59 Neutral
• Price Target: $10.50 ▲(7.47% Upside)

Richardson Electronics' overall score reflects a mixed financial performance with operational challenges, neutral technical indicators, and unattractive valuation. The positive sentiment from the earnings call, highlighting sales growth and improved margins, partially offsets these concerns.

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 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 Money

Richardson 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 Financial Statement Overview

Summary

Richardson Electronics exhibits a mixed financial performance. The income statement reveals operational inefficiencies with declining revenue and negative margins. However, the balance sheet is strong with low leverage and high equity backing. Cash flow analysis shows improved cash generation, 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.

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.

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.

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	-1.42M	-2.46M	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

• Technical Analysis Sentiment: Positive
• Last Price: 9.77
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: 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 9.77 is above the 20-day moving average (MA) of 9.74, below the 50-day MA of 9.81, and below the 200-day MA of 11.09, indicating a neutral trend. The MACD of -0.01 indicates Positive momentum. The RSI at 50.26 is Neutral, neither overbought nor oversold. The STOCH value of 42.10 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for RELL.

Richardson Electronics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$35.55B	8.88	-11.05%	1.87%	8.55%	-8.14%
RELL	59 Neutral	$139.59M	303.10	-0.73%	2.46%	6.34%	-31.68%
KOPN	52 Neutral	$345.15M	―	-173.01%	―	13.03%	77.68%
MEI	52 Neutral	$247.15M	―	-8.58%	6.89%	-5.96%	49.33%
LINK	51 Neutral	$86.02M	―	-15.12%	―	-7.12%	-11.00%
LPTH	47 Neutral	$243.24M	―	-24.86%	―	2.59%	-48.02%
NEON	47 Neutral	$85.76M	―	-48.54%	―	-41.25%	47.09%

Richardson Electronics Corporate Events

Richardson Electronics Sells Medical Unit to DirectMed

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.