RICHARDSON ELEC LTD (RELL) Stock Fundamental Analysis
NASDAQ:RELL - Nasdaq - US7631651079 - Common Stock - Currency: USD
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. RELL has an excellent financial health rating, but there are some minor concerns on its profitability. RELL is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year RELL was profitable.
RELL had a positive operating cash flow in the past year.
RELL had positive earnings in 4 of the past 5 years.
RELL had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
The Return On Assets of RELL (-1.23%) is comparable to the rest of the industry.
RELL has a Return On Equity (-1.53%) which is in line with its industry peers.
The Return On Invested Capital of RELL (0.70%) 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 9.35%.
The 3 year average ROIC (5.83%) for RELL is well above the current ROIC(0.70%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.23% | ||
| ROE | -1.53% | ||
| ROIC | 0.7% |
ROA(3y)7.08%
ROA(5y)4.23%
ROE(3y)9.07%
ROE(5y)5.42%
ROIC(3y)5.83%
ROIC(5y)N/A
1.3 Margins
In the last couple of years the Profit Margin of RELL has declined.
RELL has a Operating Margin (0.83%) which is comparable to the rest of the industry.
RELL's Operating Margin has declined in the last couple of years.
The Gross Margin of RELL (30.90%) is comparable to the rest of the industry.
RELL's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 0.83% | ||
| PM (TTM) | N/A | ||
| GM | 30.9% |
OM growth 3Y-56.27%
OM growth 5YN/A
PM growth 3Y-68.15%
PM growth 5YN/A
GM growth 3Y-2.8%
GM growth 5Y-0.32%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 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
An Altman-Z score of 4.58 indicates that RELL is not in any danger for bankruptcy at the moment.
RELL has a better Altman-Z score (4.58) than 73.60% of its industry peers.
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 | 4.58 |
ROIC/WACC0.08
WACC9.05%
2.3 Liquidity
A Current Ratio of 4.71 indicates that RELL has no problem at all paying its short term obligations.
RELL's Current ratio of 4.71 is amongst the best of the industry. RELL outperforms 81.60% of its industry peers.
A Quick Ratio of 1.88 indicates that RELL should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.88, RELL is in line with its industry, outperforming 56.80% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.71 | ||
| Quick Ratio | 1.88 |
3. Growth
3.1 Past
RELL shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -67.86%.
Measured over the past years, RELL shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -67.29% on average per year.
Looking at the last year, RELL shows a decrease in Revenue. The Revenue has decreased by -1.69% in the last year.
RELL shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.34% yearly.
EPS 1Y (TTM)-67.86%
EPS 3Y-67.29%
EPS 5YN/A
EPS Q2Q%120%
Revenue 1Y (TTM)-1.69%
Revenue growth 3Y3.56%
Revenue growth 5Y3.34%
Sales Q2Q%2.73%
3.2 Future
No EPS estimates are available, so we could not analyze the future EPS growth and evolution.
RELL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.74% yearly.
EPS Next YN/A
EPS Next 2YN/A
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year6.98%
Revenue Next 2Y5.53%
Revenue Next 3Y7.74%
Revenue Next 5YN/A
3.3 Evolution
No EPS estimates are available, so we could not analyze the future EPS growth and evolution.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 98.56 indicates a quite expensive valuation of RELL.
RELL's Price/Earnings ratio is in line with the industry average.
RELL is valuated expensively when we compare the Price/Earnings ratio to 26.32, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 11.15 indicates a reasonable valuation of RELL.
92.00% of the companies in the same industry are more expensive than RELL, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 22.13. RELL is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 98.56 | ||
| Fwd PE | 11.15 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, RELL is valued a bit cheaper than the industry average as 65.60% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of RELL indicates a rather cheap valuation: RELL is cheaper than 93.60% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.67 | ||
| EV/EBITDA | 15.63 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2YN/A
EPS Next 3YN/A
5. Dividend
5.1 Amount
RELL has a Yearly Dividend Yield of 2.61%.
The stock price of RELL dropped by -28.95% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
RELL's Dividend Yield is rather good when compared to the industry average which is at 2.04. RELL pays more dividend than 96.80% 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 | 2.61% |
5.2 History
RELL has paid a dividend for at least 10 years, which is a reliable track record.
RELL has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)0%
Div Incr Years0
Div Non Decr Years16
5.3 Sustainability
The earnings of RELL are negative and hence is the payout ratio. RELL will probably not be able to sustain this dividend level.
DP-145.44%
EPS Next 2YN/A
EPS Next 3YN/A
8.87
-0.32 (-3.48%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners73.11%
Inst Owner Change1.58%
Ins Owners3.36%
Ins Owner Change-9.32%
Market Cap127.82M
Analysts43.33
Price Target9.69 (9.24%)
Short Float %3.56%
Short Ratio6.17
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.61% |
Yearly Dividend0.24
Dividend Growth(5Y)0%
DP-145.44%
Div Incr Years0
Div Non Decr Years16
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-71.2%
Min EPS beat(2)-145.1%
Max EPS beat(2)2.71%
EPS beat(4)3
Avg EPS beat(4)107%
Min EPS beat(4)-145.1%
Max EPS beat(4)492.16%
EPS beat(8)6
Avg EPS beat(8)-71%
EPS beat(12)10
Avg EPS beat(12)-31.13%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-4.53%
Min Revenue beat(2)-5.44%
Max Revenue beat(2)-3.63%
Revenue beat(4)1
Avg Revenue beat(4)-1.45%
Min Revenue beat(4)-5.44%
Max Revenue beat(4)6.53%
Revenue beat(8)2
Avg Revenue beat(8)-4.53%
Revenue beat(12)4
Avg Revenue beat(12)-2.78%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)-38.71%
EPS NQ rev (1m)-33.33%
EPS NQ rev (3m)-45.95%
EPS NY rev (1m)0%
EPS NY rev (3m)50.91%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-8.74%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-3.78%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 98.56 | ||
| Fwd PE | 11.15 | ||
| P/S | 0.63 | ||
| P/FCF | 8.67 | ||
| P/OCF | 7.21 | ||
| P/B | 0.84 | ||
| P/tB | 0.84 | ||
| EV/EBITDA | 15.63 |
EPS(TTM)0.09
EY1.01%
EPS(NY)0.8
Fwd EY8.97%
FCF(TTM)1.02
FCFY11.53%
OCF(TTM)1.23
OCFY13.86%
SpS14.18
BVpS10.61
TBVpS10.59
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.23% | ||
| ROE | -1.53% | ||
| ROCE | 1.1% | ||
| ROIC | 0.7% | ||
| ROICexc | 0.92% | ||
| ROICexgc | 0.92% | ||
| OM | 0.83% | ||
| PM (TTM) | N/A | ||
| GM | 30.9% | ||
| FCFM | 7.21% |
ROA(3y)7.08%
ROA(5y)4.23%
ROE(3y)9.07%
ROE(5y)5.42%
ROIC(3y)5.83%
ROIC(5y)N/A
ROICexc(3y)7.46%
ROICexc(5y)N/A
ROICexgc(3y)7.59%
ROICexgc(5y)N/A
ROCE(3y)9.1%
ROCE(5y)N/A
ROICexcg growth 3Y-62.07%
ROICexcg growth 5YN/A
ROICexc growth 3Y-61.86%
ROICexc growth 5YN/A
OM growth 3Y-56.27%
OM growth 5YN/A
PM growth 3Y-68.15%
PM growth 5YN/A
GM growth 3Y-2.8%
GM growth 5Y-0.32%
F-Score5
Asset Turnover1.08
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 72.13% | ||
| Cap/Sales | 1.46% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 303.91% | ||
| Profit Quality | N/A | ||
| Current Ratio | 4.71 | ||
| Quick Ratio | 1.88 | ||
| Altman-Z | 4.58 |
F-Score5
WACC9.05%
ROIC/WACC0.08
Cap/Depr(3y)128.71%
Cap/Depr(5y)103.11%
Cap/Sales(3y)2.09%
Cap/Sales(5y)1.78%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-67.86%
EPS 3Y-67.29%
EPS 5YN/A
EPS Q2Q%120%
EPS Next YN/A
EPS Next 2YN/A
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-1.69%
Revenue growth 3Y3.56%
Revenue growth 5Y3.34%
Sales Q2Q%2.73%
Revenue Next Year6.98%
Revenue Next 2Y5.53%
Revenue Next 3Y7.74%
Revenue Next 5YN/A
EBIT growth 1Y-13.06%
EBIT growth 3Y-54.71%
EBIT growth 5YN/A
EBIT Next Year374.1%
EBIT Next 3Y118.51%
EBIT Next 5YN/A
FCF growth 1Y205.53%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y320.37%
OCF growth 3Y98.83%
OCF growth 5YN/A