RICHARDSON ELEC LTD (RELL) Stock Fundamental Analysis
USA - NASDAQ:RELL - US7631651079 - Common Stock
11.67 USD
+0.11 (+0.95%)
We assign a fundamental rating of 5 out of 10 to RELL. RELL was compared to 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
In the past year RELL was profitable.
In the past year RELL had a positive cash flow from operations.
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
Looking at the Return On Assets, with a value of 0.09%, RELL is in line with its industry, outperforming 49.19% of the companies in the same industry.
RELL's Return On Equity of 0.11% is in line compared to the rest of the industry. RELL outperforms 50.00% of its industry peers.
RELL has a Return On Invested Capital (1.61%) 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 9.32%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.09% | ||
| ROE | 0.11% | ||
| ROIC | 1.61% |
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 Profit Margin (0.08%) which is comparable to the rest of the industry.
RELL's Operating Margin of 1.56% is in line compared to the rest of the industry. RELL outperforms 49.19% of its industry peers.
RELL's Operating Margin has declined in the last couple of years.
The Gross Margin of RELL (31.13%) 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 | 1.56% | ||
| PM (TTM) | 0.08% | ||
| GM | 31.13% |
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
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
RELL has an Altman-Z score of 4.92. This indicates that RELL is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 4.92, RELL is doing good in the industry, outperforming 68.55% 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 | 4.92 |
ROIC/WACC0.18
WACC9.09%
2.3 Liquidity
RELL has a Current Ratio of 4.40. This indicates that RELL is financially healthy and has no problem in meeting its short term obligations.
RELL has a better Current ratio (4.40) than 79.84% of its industry peers.
RELL has a Quick Ratio of 1.70. This is a normal value and indicates that RELL is financially healthy and should not expect problems in meeting its short term obligations.
With a Quick ratio value of 1.70, RELL perfoms like the industry average, outperforming 51.61% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.4 | ||
| Quick Ratio | 1.7 |
3. Growth
3.1 Past
RELL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 640.00%, which is quite impressive.
RELL shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -48.27% yearly.
RELL shows a small growth in Revenue. In the last year, the Revenue has grown by 6.17%.
RELL shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.03% yearly.
EPS 1Y (TTM)640%
EPS 3Y-48.27%
EPS 5YN/A
EPS Q2Q%225%
Revenue 1Y (TTM)6.17%
Revenue growth 3Y-2.39%
Revenue growth 5Y6.03%
Sales Q2Q%1.64%
3.2 Future
Based on estimates for the next years, RELL will show a very strong growth in Earnings Per Share. The EPS will grow by 76.54% on average per year.
Based on estimates for the next years, RELL will show a quite strong growth in Revenue. The Revenue will grow by 8.12% on average per year.
EPS Next Y-6.5%
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
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
The Price/Earnings ratio is 43.22, which means the current valuation is very expensive for RELL.
The rest of the industry has a similar Price/Earnings ratio as RELL.
When comparing the Price/Earnings ratio of RELL to the average of the S&P500 Index (27.34), we can say RELL is valued expensively.
RELL is valuated rather expensively with a Price/Forward Earnings ratio of 20.80.
Based on the Price/Forward Earnings ratio, RELL is valued a bit cheaper than the industry average as 70.97% of the companies are valued more expensively.
RELL is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.86, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 43.22 | ||
| Fwd PE | 20.8 |
4.2 Price Multiples
63.71% of the companies in the same industry are more expensive than RELL, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, RELL is valued cheaply inside the industry as 83.06% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.67 | ||
| EV/EBITDA | 18.29 |
4.3 Compensation for Growth
RELL's earnings are expected to grow with 76.54% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y76.54%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.13%, RELL has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.11, RELL pays a better dividend. On top of this RELL pays more dividend than 95.16% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.44, RELL has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.13% |
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
1939.77% of the earnings are spent on dividend by RELL. This is not a sustainable payout ratio.
The dividend of RELL is growing, but earnings are growing more, so the dividend growth is sustainable.
DP1939.77%
EPS Next 2Y76.54%
EPS Next 3YN/A
NASDAQ:RELL (10/14/2025, 12:16:30 PM)
11.67
+0.11 (+0.95%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners69.15%
Inst Owner Change0%
Ins Owners3.91%
Ins Owner Change16.12%
Market Cap169.10M
Analysts43.33
Price Target11.73 (0.51%)
Short Float %2.42%
Short Ratio8.01
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.13% |
Yearly Dividend0.24
Dividend Growth(5Y)0.06%
DP1939.77%
Div Incr Years0
Div Non Decr Years16
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)364.05%
Min EPS beat(2)-21.57%
Max EPS beat(2)749.67%
EPS beat(4)2
Avg EPS beat(4)146.43%
Min EPS beat(4)-145.1%
Max EPS beat(4)749.67%
EPS beat(8)5
Avg EPS beat(8)-9.17%
EPS beat(12)9
Avg EPS beat(12)17.12%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)-0.8%
Min Revenue beat(2)-5.54%
Max Revenue beat(2)3.93%
Revenue beat(4)1
Avg Revenue beat(4)-2.67%
Min Revenue beat(4)-5.54%
Max Revenue beat(4)3.93%
Revenue beat(8)2
Avg Revenue beat(8)-4.06%
Revenue beat(12)4
Avg Revenue beat(12)-3.28%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)21.05%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-91.18%
EPS NY rev (1m)-67%
EPS NY rev (3m)-68.27%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-4.61%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-3.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 43.22 | ||
| Fwd PE | 20.8 | ||
| P/S | 0.81 | ||
| P/FCF | 19.67 | ||
| P/OCF | 14.7 | ||
| P/B | 1.06 | ||
| P/tB | 1.06 | ||
| EV/EBITDA | 18.29 |
EPS(TTM)0.27
EY2.31%
EPS(NY)0.56
Fwd EY4.81%
FCF(TTM)0.59
FCFY5.08%
OCF(TTM)0.79
OCFY6.8%
SpS14.48
BVpS11
TBVpS10.98
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.09% | ||
| ROE | 0.11% | ||
| ROCE | 2.03% | ||
| ROIC | 1.61% | ||
| ROICexc | 2.06% | ||
| ROICexgc | 2.07% | ||
| OM | 1.56% | ||
| PM (TTM) | 0.08% | ||
| GM | 31.13% | ||
| FCFM | 4.1% |
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-Score7
Asset Turnover1.05
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 74.06% | ||
| Cap/Sales | 1.39% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 159.6% | ||
| Profit Quality | 4884.66% | ||
| Current Ratio | 4.4 | ||
| Quick Ratio | 1.7 | ||
| Altman-Z | 4.92 |
F-Score7
WACC9.09%
ROIC/WACC0.18
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)640%
EPS 3Y-48.27%
EPS 5YN/A
EPS Q2Q%225%
EPS Next Y-6.5%
EPS Next 2Y76.54%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)6.17%
Revenue growth 3Y-2.39%
Revenue growth 5Y6.03%
Sales Q2Q%1.64%
Revenue Next Year0.92%
Revenue Next 2Y8.12%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y543.38%
EBIT growth 3Y-45.24%
EBIT growth 5YN/A
EBIT Next Year427.22%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y177.94%
FCF growth 3YN/A
FCF growth 5Y123.12%
OCF growth 1Y391.32%
OCF growth 3Y76.78%
OCF growth 5Y40.61%