RICHARDSON ELEC LTD (RELL) Stock Fundamental Analysis
NASDAQ:RELL - US7631651079 - Common Stock
9.83 USD
-0.17 (-1.7%)
9.83 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to RELL. RELL was compared to 125 industry peers in the Electronic Equipment, Instruments & Components industry. No worries on liquidiy or solvency for RELL as it has an excellent financial health rating, but there are worries on the profitability. RELL is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
RELL had positive earnings in the past year.
RELL had a positive operating cash flow in the past year.
Of the past 5 years RELL 4 years were profitable.
RELL had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
RELL has a Return On Assets of -0.58%. This is comparable to the rest of the industry: RELL outperforms 49.60% of its industry peers.
With a Return On Equity value of -0.73%, RELL perfoms like the industry average, outperforming 51.20% of the companies in the same industry.
RELL has a Return On Invested Capital (1.30%) which is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for RELL is below the industry average of 9.48%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.58% | ||
| ROE | -0.73% | ||
| ROIC | 1.3% |
ROA(3y)3.57%
ROA(5y)4.35%
ROE(3y)4.44%
ROE(5y)5.58%
ROIC(3y)4.58%
ROIC(5y)5.14%
1.3 Margins
RELL's Operating Margin of 1.26% is in line compared to the rest of the industry. RELL outperforms 50.40% of its industry peers.
RELL's Operating Margin has declined in the last couple of years.
With a Gross Margin value of 31.02%, RELL perfoms like the industry average, outperforming 48.80% of the companies in the same industry.
In the last couple of years the Gross Margin of RELL has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 1.26% | ||
| PM (TTM) | N/A | ||
| GM | 31.02% |
OM growth 3Y-43.9%
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.95%
GM growth 5Y-0.55%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so RELL is destroying value.
RELL has more shares outstanding than it did 1 year ago.
RELL has more shares outstanding than it did 5 years ago.
RELL has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
An Altman-Z score of 4.65 indicates that RELL is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.65, RELL is in the better half of the industry, outperforming 68.00% of the companies in the same industry.
There is no outstanding debt for RELL. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 4.65 |
ROIC/WACC0.14
WACC9.38%
2.3 Liquidity
RELL has a Current Ratio of 4.51. This indicates that RELL is financially healthy and has no problem in meeting its short term obligations.
RELL has a Current ratio of 4.51. This is amongst the best in the industry. RELL outperforms 80.80% of its industry peers.
RELL has a Quick Ratio of 1.72. This is a normal value and indicates that RELL is financially healthy and should not expect problems in meeting its short term obligations.
RELL has a Quick ratio of 1.72. This is comparable to the rest of the industry: RELL outperforms 52.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.51 | ||
| Quick Ratio | 1.72 |
3. Growth
3.1 Past
The earnings per share for RELL have decreased strongly by -3092.00% in the last year.
RELL shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -48.27% yearly.
Looking at the last year, RELL shows a small growth in Revenue. The Revenue has grown by 6.33% in the last year.
RELL shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.03% yearly.
EPS 1Y (TTM)-3092%
EPS 3Y-48.27%
EPS 5YN/A
EPS Q2Q%900%
Revenue 1Y (TTM)6.33%
Revenue growth 3Y-2.39%
Revenue growth 5Y6.03%
Sales Q2Q%9.53%
3.2 Future
The Earnings Per Share is expected to grow by 76.54% on average over the next years. This is a very strong growth
RELL is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.12% yearly.
EPS Next Y183.33%
EPS Next 2Y76.54%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year0.92%
Revenue Next 2Y8.12%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 54.61 indicates a quite expensive valuation of RELL.
Compared to the rest of the industry, the Price/Earnings ratio of RELL is on the same level as its industry peers.
RELL's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 27.13.
Based on the Price/Forward Earnings ratio of 19.27, the valuation of RELL can be described as rather expensive.
RELL's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. RELL is cheaper than 70.40% of the companies in the same industry.
RELL is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.76, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 54.61 | ||
| Fwd PE | 19.27 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, RELL is valued a bit cheaper than 68.80% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of RELL indicates a rather cheap valuation: RELL is cheaper than 88.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.39 | ||
| EV/EBITDA | 16.06 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as RELL's earnings are expected to grow with 76.54% in the coming years.
PEG (NY)0.3
PEG (5Y)N/A
EPS Next 2Y76.54%
EPS Next 3YN/A
5. Dividend
5.1 Amount
RELL has a Yearly Dividend Yield of 2.40%.
RELL's Dividend Yield is rather good when compared to the industry average which is at 1.48. RELL pays more dividend than 96.00% of the companies in the same industry.
RELL's Dividend Yield is comparable with the S&P500 average which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.4% |
5.2 History
The dividend of RELL has a limited annual growth rate of 0.06%.
RELL has been paying a dividend for at least 10 years, so it has a reliable track record.
RELL has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)0.06%
Div Incr Years0
Div Non Decr Years16
5.3 Sustainability
RELL has negative earnings and hence a negative payout ratio. The dividend may be in danger.
RELL's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP-298.08%
EPS Next 2Y76.54%
EPS Next 3YN/A
9.83
-0.17 (-1.7%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners70.58%
Inst Owner Change-4.49%
Ins Owners3.93%
Ins Owner Change16.12%
Market Cap142.34M
Analysts43.33
Price Target11.73 (19.33%)
Short Float %2.54%
Short Ratio8.01
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.4% |
Yearly Dividend0.24
Dividend Growth(5Y)0.06%
DP-298.08%
Div Incr Years0
Div Non Decr Years16
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-9.43%
Min EPS beat(2)-21.57%
Max EPS beat(2)2.71%
EPS beat(4)2
Avg EPS beat(4)82.05%
Min EPS beat(4)-145.1%
Max EPS beat(4)492.16%
EPS beat(8)5
Avg EPS beat(8)-78.61%
EPS beat(12)9
Avg EPS beat(12)-38.36%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-4.58%
Min Revenue beat(2)-5.54%
Max Revenue beat(2)-3.63%
Revenue beat(4)1
Avg Revenue beat(4)-2.02%
Min Revenue beat(4)-5.54%
Max Revenue beat(4)6.53%
Revenue beat(8)2
Avg Revenue beat(8)-4.45%
Revenue beat(12)4
Avg Revenue beat(12)-3.09%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)21.05%
PT rev (3m)21.05%
EPS NQ rev (1m)-38.24%
EPS NQ rev (3m)-50%
EPS NY rev (1m)-3.85%
EPS NY rev (3m)-35.9%
Revenue NQ rev (1m)3.02%
Revenue NQ rev (3m)-11.8%
Revenue NY rev (1m)-1.93%
Revenue NY rev (3m)-3.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 54.61 | ||
| Fwd PE | 19.27 | ||
| P/S | 0.68 | ||
| P/FCF | 18.39 | ||
| P/OCF | 13.49 | ||
| P/B | 0.91 | ||
| P/tB | 0.91 | ||
| EV/EBITDA | 16.06 |
EPS(TTM)0.18
EY1.83%
EPS(NY)0.51
Fwd EY5.19%
FCF(TTM)0.53
FCFY5.44%
OCF(TTM)0.73
OCFY7.41%
SpS14.43
BVpS10.82
TBVpS10.8
PEG (NY)0.3
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.58% | ||
| ROE | -0.73% | ||
| ROCE | 1.65% | ||
| ROIC | 1.3% | ||
| ROICexc | 1.69% | ||
| ROICexgc | 1.69% | ||
| OM | 1.26% | ||
| PM (TTM) | N/A | ||
| GM | 31.02% | ||
| FCFM | 3.71% |
ROA(3y)3.57%
ROA(5y)4.35%
ROE(3y)4.44%
ROE(5y)5.58%
ROIC(3y)4.58%
ROIC(5y)5.14%
ROICexc(3y)5.47%
ROICexc(5y)6.73%
ROICexgc(3y)5.54%
ROICexgc(5y)6.85%
ROCE(3y)5.8%
ROCE(5y)6.51%
ROICexcg growth 3Y-49.54%
ROICexcg growth 5YN/A
ROICexc growth 3Y-49.24%
ROICexc growth 5YN/A
OM growth 3Y-43.9%
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.95%
GM growth 5Y-0.55%
F-Score5
Asset Turnover1.07
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 70.24% | ||
| Cap/Sales | 1.35% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 159.18% | ||
| Profit Quality | N/A | ||
| Current Ratio | 4.51 | ||
| Quick Ratio | 1.72 | ||
| Altman-Z | 4.65 |
F-Score5
WACC9.38%
ROIC/WACC0.14
Cap/Depr(3y)121.72%
Cap/Depr(5y)106.66%
Cap/Sales(3y)2.07%
Cap/Sales(5y)1.82%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-3092%
EPS 3Y-48.27%
EPS 5YN/A
EPS Q2Q%900%
EPS Next Y183.33%
EPS Next 2Y76.54%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)6.33%
Revenue growth 3Y-2.39%
Revenue growth 5Y6.03%
Sales Q2Q%9.53%
Revenue Next Year0.92%
Revenue Next 2Y8.12%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y489.01%
EBIT growth 3Y-45.24%
EBIT growth 5YN/A
EBIT Next Year762.79%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y211.76%
FCF growth 3YN/A
FCF growth 5Y123.12%
OCF growth 1Y61.74%
OCF growth 3Y76.78%
OCF growth 5Y40.61%