RICHARDSON ELEC LTD (RELL)
US7631651079 - Common Stock
We assign a fundamental rating of 5 out of 10 to RELL. RELL was compared to 127 industry peers in the Electronic Equipment, Instruments & Components industry. RELL is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. RELL has a expensive valuation and it also scores bad on growth.
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.
The reported net income has been mixed in the past 5 years: RELL reported negative net income in multiple years.
The reported operating cash flow has been mixed in the past 5 years: RELL reported negative operating cash flow in multiple years.
1.2 Ratios
With a Return On Assets value of 2.20%, RELL perfoms like the industry average, outperforming 55.56% of the companies in the same industry.
RELL's Return On Equity of 2.68% is in line compared to the rest of the industry. RELL outperforms 52.38% of its industry peers.
RELL has a Return On Invested Capital (1.08%) which is in line with its industry peers.
RELL had an Average Return On Invested Capital over the past 3 years of 9.11%. This is in line with the industry average of 9.42%.
The 3 year average ROIC (9.11%) for RELL is well above the current ROIC(1.08%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.2% | ||
| ROE | 2.68% | ||
| ROIC | 1.08% |
ROA(3y)7.43%
ROA(5y)3.27%
ROE(3y)9.53%
ROE(5y)4.23%
ROIC(3y)9.11%
ROIC(5y)N/A
1.3 Margins
The Profit Margin of RELL (2.05%) is comparable to the rest of the industry.
RELL's Profit Margin has improved in the last couple of years.
RELL's Operating Margin of 0.94% is in line compared to the rest of the industry. RELL outperforms 49.21% of its industry peers.
RELL's Operating Margin has improved in the last couple of years.
RELL's Gross Margin of 29.67% is in line compared to the rest of the industry. RELL outperforms 51.59% of its industry peers.
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 | 0.94% | ||
| PM (TTM) | 2.05% | ||
| GM | 29.67% |
OM growth 3YN/A
OM growth 5Y27.55%
PM growth 3YN/A
PM growth 5Y29.53%
GM growth 3Y-0.02%
GM growth 5Y-1.15%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so RELL is destroying value.
Compared to 1 year ago, RELL has more shares outstanding
The number of shares outstanding for RELL has been increased compared to 5 years ago.
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.
2.2 Solvency
RELL has an Altman-Z score of 5.01. This indicates that RELL is financially healthy and has little risk of bankruptcy at the moment.
RELL's Altman-Z score of 5.01 is fine compared to the rest of the industry. RELL outperforms 77.78% of its industry peers.
RELL has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 5.01 |
ROIC/WACC0.12
WACC9.31%
2.3 Liquidity
A Current Ratio of 5.06 indicates that RELL has no problem at all paying its short term obligations.
RELL has a better Current ratio (5.06) than 80.95% of its industry peers.
RELL has a Quick Ratio of 1.57. 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 (1.57) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 5.06 | ||
| Quick Ratio | 1.57 |
3. Growth
3.1 Past
RELL shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -85.03%.
The Earnings Per Share has been growing by 53.82% on average over the past years. This is a very strong growth
The Revenue for RELL has decreased by -21.69% in the past year. This is quite bad
Measured over the past years, RELL shows a quite strong growth in Revenue. The Revenue has been growing by 9.99% on average per year.
EPS 1Y (TTM)-85.03%
EPS 3YN/A
EPS 5Y53.82%
EPS growth Q2Q-88.64%
Revenue 1Y (TTM)-21.69%
Revenue growth 3Y19%
Revenue growth 5Y9.99%
Revenue growth Q2Q-25.6%
3.2 Future
RELL is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -31.65% yearly.
RELL is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -3.32% yearly.
EPS Next Y-88.15%
EPS Next 2Y-31.65%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-18.89%
Revenue Next 2Y-3.32%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 37.34, which means the current valuation is very expensive for RELL.
RELL's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 24.76, RELL is valued quite expensively.
The Price/Forward Earnings ratio is 14.44, which indicates a correct valuation of RELL.
Based on the Price/Forward Earnings ratio, RELL is valued cheaper than 80.16% of the companies in the same industry.
RELL's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 21.26.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.34 | ||
| Fwd PE | 14.44 |
4.2 Price Multiples
RELL's Enterprise Value to EBITDA ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 20.42 |
4.3 Compensation for Growth
A cheap valuation may be justified as RELL's earnings are expected to decrease with -31.65% in the coming years.
PEG (NY)N/A
PEG (5Y)0.69
EPS Next 2Y-31.65%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.43%, RELL has a reasonable but not impressive dividend return.
RELL's Dividend Yield is rather good when compared to the industry average which is at 1.76. RELL pays more dividend than 96.03% of the companies in the same industry.
RELL's Dividend Yield is comparable with the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.43% |
5.2 History
The dividend of RELL has a limited annual growth rate of 0.05%.
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)0.05%
Div Incr Years0
Div Non Decr Years15
5.3 Sustainability
RELL pays out 79.29% of its income as dividend. This is not a sustainable payout ratio.
RELL's earnings are declining while the Dividend Rate has been growing. This means the dividend growth is most likely not sustainable.
DP79.29%
EPS Next 2Y-31.65%
EPS Next 3YN/A
RICHARDSON ELEC LTD
NASDAQ:RELL (4/19/2024, 7:13:10 PM)
After market: 10.455 0 (0%)10.455
+0.32 (+3.21%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap149.30M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.43% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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PT rev (1m)
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EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.34 | ||
| Fwd PE | 14.44 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)0.69
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.2% | ||
| ROE | 2.68% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 0.94% | ||
| PM (TTM) | 2.05% | ||
| GM | 29.67% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.07
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 5.06 | ||
| Quick Ratio | 1.57 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-85.03%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y-88.15%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-21.69%
Revenue growth 3Y19%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y