RICHARDSON ELEC LTD (RELL) Stock Fundamental Analysis
NASDAQ:RELL - Nasdaq - US7631651079 - Common Stock - Currency: USD
RELL gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 124 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.
Of the past 5 years RELL 4 years had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of -0.58%, RELL perfoms like the industry average, outperforming 47.58% of the companies in the same industry.
RELL has a Return On Equity (-0.73%) which is comparable to the rest of the industry.
RELL has a Return On Invested Capital (1.30%) which is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for RELL is below the industry average of 9.55%.
| 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 has a Operating Margin (1.26%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of RELL has declined.
The Gross Margin of RELL (31.02%) 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 | 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
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
RELL has an Altman-Z score of 4.60. This indicates that RELL is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 4.60, RELL is doing good in the industry, outperforming 70.16% of the companies in the same industry.
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 | 0 | ||
| Altman-Z | 4.6 |
ROIC/WACC0.14
WACC9.42%
2.3 Liquidity
A Current Ratio of 4.52 indicates that RELL has no problem at all paying its short term obligations.
With an excellent Current ratio value of 4.52, RELL belongs to the best of the industry, outperforming 80.65% of the companies in the same industry.
A Quick Ratio of 1.73 indicates that RELL should not have too much problems paying its short term obligations.
RELL has a Quick ratio of 1.73. This is comparable to the rest of the industry: RELL outperforms 50.81% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.52 | ||
| Quick Ratio | 1.73 |
3. Growth
3.1 Past
The earnings per share for RELL have decreased strongly by -3128.00% in the last year.
The earnings per share for RELL have been decreasing by -48.27% on average. This is quite bad
The Revenue has been growing slightly by 6.33% in the past 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)-3128%
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 Y194.67%
EPS Next 2Y76.54%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year2.91%
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.
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
The Price/Earnings ratio is 53.28, which means the current valuation is very expensive for 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 26.54, which is the current average of the S&P500 Index.
RELL is valuated rather expensively with a Price/Forward Earnings ratio of 18.08.
RELL's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. RELL is cheaper than 75.00% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 35.28, RELL is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 53.28 | ||
| Fwd PE | 18.08 |
4.2 Price Multiples
70.16% of the companies in the same industry are more expensive than RELL, based on the Enterprise Value to EBITDA ratio.
83.06% of the companies in the same industry are more expensive than RELL, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.85 | ||
| EV/EBITDA | 15.5 |
4.3 Compensation for Growth
RELL's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
RELL's earnings are expected to grow with 76.54% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.27
PEG (5Y)N/A
EPS Next 2Y76.54%
EPS Next 3YN/A
5. Dividend
5.1 Amount
RELL has a Yearly Dividend Yield of 2.38%.
RELL's Dividend Yield is rather good when compared to the industry average which is at 1.79. RELL pays more dividend than 95.16% 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 | 2.38% |
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.
The dividend of RELL is growing, but earnings are growing more, so the dividend growth is sustainable.
DP-298.08%
EPS Next 2Y76.54%
EPS Next 3YN/A
9.59
-0.03 (-0.31%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners73.11%
Inst Owner Change-3.45%
Ins Owners3.36%
Ins Owner Change16.22%
Market Cap138.19M
Analysts43.33
Price Target9.69 (1.04%)
Short Float %2.91%
Short Ratio8.75
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.38% |
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)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-19.05%
EPS NY rev (1m)0%
EPS NY rev (3m)-33.33%
Revenue NQ rev (1m)-7.41%
Revenue NQ rev (3m)-14.38%
Revenue NY rev (1m)-1.14%
Revenue NY rev (3m)-1.14%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 53.28 | ||
| Fwd PE | 18.08 | ||
| P/S | 0.66 | ||
| P/FCF | 17.85 | ||
| P/OCF | 13.1 | ||
| P/B | 0.88 | ||
| P/tB | 0.88 | ||
| EV/EBITDA | 15.5 |
EPS(TTM)0.18
EY1.88%
EPS(NY)0.53
Fwd EY5.53%
FCF(TTM)0.54
FCFY5.6%
OCF(TTM)0.73
OCFY7.64%
SpS14.5
BVpS10.87
TBVpS10.85
PEG (NY)0.27
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 | 4.52 | ||
| Quick Ratio | 1.73 | ||
| Altman-Z | 4.6 |
F-Score5
WACC9.42%
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)-3128%
EPS 3Y-48.27%
EPS 5YN/A
EPS Q2Q%900%
EPS Next Y194.67%
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 Year2.91%
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 Year762.34%
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%