Richardson Electronics, Ltd. (RELL)
Valuation Overview•Is Richardson Electronics, Ltd. Overvalued or Undervalued?
Commands a premium valuation multiple over its peers, likely pricing in superior execution.
Moderate quality score of 50/100, reflecting stable operating margins and manageable leverage.
Analysts remain cautious, with consensus price targets indicating limited room for upside expansion.
Verdict: Average quality business weighed down by significant profitability concerns.
Wall Street is cautious, forecasting potential downside alongside robust expected earnings growth. However, capital return yields remain modest, anchored by a strong, well-covered dividend yield.
RELL struggles with subpar profitability and pressured margins. This is backed by a fortress balance sheet, holding significant net cash ($34M) and minimal debt risk.
The company is facing top-line contraction (-2.4% 3Y CAGR) paired with stable bottom-line earnings. However, profitability remains a major concern with severely compressed operating margins (1.8%).
| Financial Metric | Trend (12Q) | Latest Qtr | 1Y Growth | 3Y CAGR | 5Y CAGR | 10Y CAGR |
|---|---|---|---|---|---|---|
| Revenue | $52.3M | +6.3% | -2.4% | +6.0% | +4.3% | |
| EBITDA | $1.1M | — | -57.0% | — | — | |
| Net Income | -$121K | -1973.8% | — | — | +14.6% | |
| EPS (Diluted) | $-0.01 | — | — | — | +13.6% | |
| Free Cash Flow | -$1.7M | +211.8% | — | +121.0% | — |
| Metric | TTM | 3Y Avg | 5Y Avg | 10Y Avg |
|---|---|---|---|---|
| Gross Margin | 31.1% | 30.4% | 31.3% | 31.7% |
| Operating Margin | 1.8% | 2.8% | 3.5% | 0.9% |
| Net Margin | 0.4% | 2.7% | 3.4% | 0.4% |
| FCF Margin | 0.9% | -0.3% | -0.5% | -2.3% |
| Quarter | EPS Est. | EPS Act. | Surprise | EPS | Rev |
|---|---|---|---|---|---|
| Q2'26Latest | $0.05 | $0.07 | +40.0% | ||
| Q1'26 | $-0.01 | $-0.01 | +0.0% | ||
| Q4'25 | $0.02 | $0.13 | +550.0% | ||
| Q3'25 | $0.05 | $0.12 | +140.0% | ||
| Q2'25 | $0.08 | $0.11 | +37.5% | ||
| Q1'25 | $-0.02 | $-0.05 | -150.0% | ||
| Q4'24 | $0.01 | $0.04 | +499.7% | ||
| Q3'24 | $-0.05 | $0.02 | +140.0% |
Total return is +109.6% (1Y), outperforming the benchmark by +84.6%
| Period | Total Return | vs S&P 500 (Alpha) | Dividend Contribution |
|---|---|---|---|
| YTD | +74.0% | +64.7% | — |
| 1Y | +109.6% | +84.6% | +2.7% |
| 3YCAGR | +1.8% | -19.8% | +3.9% |
| 5YCAGR | +19.9% | +5.8% | +15.0% |
| 10YCAGR | +14.7% | +0.4% | — |
The S&P 500 is at 31.3x trailing P/E — Expensive relative to historical averages.
Quick answers to common questions about Richardson Electronics, Ltd. (RELL) valuation, health, and returns.
Based on peer relative multiples, Richardson Electronics, Ltd. appears Expensive versus peers compared to industry peers.
Richardson Electronics, Ltd. has multiple valuation anchors: Peer Relative Fair Value: $10.14 | Wall Street Analyst Target: $14.00 (implying -24.7% upside). A convergence of these signals offers higher conviction.
Richardson Electronics, Ltd. displays fair financial health with a composite quality score of 50/100, supported by a Altman Z-Score of 5.9 (safe zone), Piotroski F-Score of 6/9, Return on Invested Capital (ROIC) of -1.4%.
Richardson Electronics, Ltd. pays a 1.5% dividend yield, covered by a 0% payout ratio with 0 years of growth, supplemented by a 0.0% buyback yield.
Richardson Electronics, Ltd.'s current growth trajectory is Accelerating. The company achieved +6.3% 1Y revenue growth and N/A 1Y EPS growth, compared to its 3Y revenue CAGR of -2.4%.
Wall Street consensus is Hold based on 1 analysts, beating EPS expectations in 67% of recent quarters with a 1-quarter streak. The consensus price target represents a -24.7% change from current levels.
Investment risks for Richardson Electronics, Ltd. include: -25.5% 1-year max drawdown, high beta (2.28x market volatility). Volatility risk is characterized by a beta of 2.28x.
No. These computations are purely quantitative model outputs for informational purposes. They do not account for qualitative management shifts or macro events. Always consult a licensed RIA before buying or selling shares.
Disclaimer: This page is for informational purposes only and does not constitute financial advice. All valuation models, scores, and target estimates are automated computations under stated assumptions and should not be relied upon as the sole basis for any investment decision.