RICHARDSON ELEC LTD (RELL) Stock Fundamental Analysis
USA - NASDAQ:RELL - US7631651079 - Common Stock
10.41 USD
+0.06 (+0.58%)
10.41 USD
0 (0%)
Overall RELL gets a fundamental rating of 5 out of 10. We evaluated RELL against 124 industry peers in the Electronic Equipment, Instruments & Components industry. While RELL has a great health rating, there are worries on its 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.
RELL had a positive operating cash flow in the past year.
RELL had positive earnings in 4 of the past 5 years.
Of the past 5 years RELL 4 years had a positive operating cash flow.
1.2 Ratios
RELL has a Return On Assets (-0.58%) which is in line with its industry peers.
With a Return On Equity value of -0.73%, RELL perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 1.30%, RELL is in line with its industry, outperforming 51.61% of the companies in the same 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 has a Operating Margin of 1.26%. This is comparable to the rest of the industry: RELL outperforms 50.00% of its industry peers.
RELL's Operating Margin has declined in the last couple of years.
RELL has a Gross Margin (31.02%) which 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so RELL is destroying value.
The number of shares outstanding for RELL has been increased compared to 1 year ago.
Compared to 5 years ago, RELL has more shares outstanding
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 4.78. This indicates that RELL is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.78, RELL is in the better half of the industry, outperforming 68.55% 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 | 4.78 |
ROIC/WACC0.14
WACC9.41%
2.3 Liquidity
A Current Ratio of 4.51 indicates that RELL has no problem at all paying its short term obligations.
With an excellent Current ratio value of 4.51, RELL belongs to the best of the industry, outperforming 80.65% of the companies in the same industry.
A Quick Ratio of 1.72 indicates that RELL should not have too much problems paying its short term obligations.
RELL's Quick ratio of 1.72 is in line compared to the rest of the industry. RELL outperforms 51.61% 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
RELL is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 76.54% yearly.
The Revenue is expected to grow by 8.12% on average over the next years. This is quite good.
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
The EPS growth rate is accelerating: in the next years the growth will be better 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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 57.83, RELL can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of RELL is on the same level as its industry peers.
RELL is valuated expensively when we compare the Price/Earnings ratio to 27.41, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 20.41, which indicates a rather expensive current valuation of RELL.
RELL's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. RELL is cheaper than 70.97% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of RELL to the average of the S&P500 Index (22.87), we can say RELL is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 57.83 | ||
| Fwd PE | 20.41 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, RELL is valued a bit cheaper than 68.55% of the companies in the same industry.
RELL's Price/Free Cash Flow ratio is rather cheap when compared to the industry. RELL is cheaper than 85.48% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.47 | ||
| EV/EBITDA | 17.32 |
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.
RELL's earnings are expected to grow with 76.54% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.32
PEG (5Y)N/A
EPS Next 2Y76.54%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.31%, 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 2.22. RELL pays more dividend than 95.16% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.38, RELL has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.31% |
5.2 History
The dividend of RELL has a limited annual growth rate of 0.06%.
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)0.06%
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.
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
10.41
+0.06 (+0.58%)
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 Cap150.74M
Analysts43.33
Price Target11.73 (12.68%)
Short Float %2.37%
Short Ratio8.16
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.31% |
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)21.05%
EPS NQ rev (1m)-85.71%
EPS NQ rev (3m)-91.18%
EPS NY rev (1m)0%
EPS NY rev (3m)-3.85%
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 | 57.83 | ||
| Fwd PE | 20.41 | ||
| P/S | 0.72 | ||
| P/FCF | 19.47 | ||
| P/OCF | 14.29 | ||
| P/B | 0.96 | ||
| P/tB | 0.96 | ||
| EV/EBITDA | 17.32 |
EPS(TTM)0.18
EY1.73%
EPS(NY)0.51
Fwd EY4.9%
FCF(TTM)0.53
FCFY5.14%
OCF(TTM)0.73
OCFY7%
SpS14.43
BVpS10.82
TBVpS10.8
PEG (NY)0.32
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 | 4.78 |
F-Score5
WACC9.41%
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%