One-glance verdict
Within fair range
$17.82 our estimate vs market $16.54
Wall Street consensus: $25.50 (43.1% higher than our fair-value estimate)
7% below our estimate
Fundamentals snapshot
Richardson Electronics, Ltd.
RELL · NMS · Technology · Electronic Components
Current price
$16.54
52-week range
$9.37 - $23.15
Market cap
$246.06M
Balance sheet
Healthy
10.35x Adequate
Net cash $33.40M. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
1 Risk
3 rewards · 1 risks
- Reward Revenue grew 4.5% last year.
- Reward Returns 5.2% on equity, ahead of 16% of its peers.
- Reward Free cash flow was positive in 3/10 years.
- Risk Operating margin compressed from 9.5% to 7.9% over 3 years.
What this company does
Richardson Electronics, Ltd.
Richardson Electronics, Ltd. sells specialized parts and engineered solutions for things like making computer chips, green energy, and medical equipment, with most of their money coming from selling these power and microwave components. This matters because they are a key supplier for industries that need specific, high-tech parts to keep their operations running smoothly. They also offer custom displays for various professional uses.
How the company got here
Richardson Electronics, Ltd. was founded in 1947 and has evolved over the decades to become a specialized provider of engineered solutions. Initially, the company focused on distributing electronic components. A key turning point was its strategic shift towards providing more complex, engineered solutions and focusing on niche markets like power and microwave technologies, moving beyond simple distribution. This evolution allowed them to serve a wider range of demanding industries, including energy, healthcare, and defense.
What it actually does
Richardson Electronics designs, manufactures, and distributes specialized electronic components and engineered systems. Think of them as a high-tech problem-solver for industries that need very specific and reliable electronic parts. They provide everything from the tubes that power big industrial equipment to custom screens for specialized machines. Their products are crucial for the smooth operation of complex machinery in sectors like energy, medical imaging, and communications.
Power and Microwave Technologies
This is Richardson Electronics' largest business segment, focusing on components for high-power applications. They make things like electron tubes and radio frequency (RF) components, which are essential for equipment used in semiconductor manufacturing, wireless communication, and industrial power systems. These parts are also found in diverse applications such as broadcast transmission, medical imaging, and radar systems. This segment is a significant contributor to the company's overall revenue, forming the backbone of its operations.
Green Energy Solutions
This segment positions Richardson Electronics as a partner in the growing green technology sector. They design, manufacture, and distribute products for renewable energy applications like wind, solar, and electric vehicles, as well as hydrogen technology. They also support other power management applications that enable green solutions, including synthetic diamond manufacturing. While a smaller slice of the company's business compared to power and microwave, it represents a strategic focus on future growth areas.
Canvys
The Canvys segment specializes in providing custom display solutions. This includes integrating touch screens, protective panels, and specialized software into complete computer systems tailored for specific industrial or commercial needs. They create everything from all-in-one computers to custom-built display cabinets. This business line caters to clients who require highly specific visual interfaces for their equipment, adding a specialized service offering to Richardson Electronics' portfolio.
What management is betting on now
Management is focused on leveraging their expertise in engineered solutions to capitalize on growth in specialized markets. A key priority is expanding their offerings in green energy technologies, recognizing the global shift towards sustainability. They are also investing in their core Power and Microwave Technologies segment to maintain leadership in demanding applications. By focusing on these areas, Richardson Electronics aims to drive innovation and secure long-term growth in niche, high-value markets.
Price history
How the share price has moved
—
Loading price history…
Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2025 Q2
$4.95M
FY2025 Q4
$4.05M
FY2026 Q1
$342.00K
FY2026 Q2
$-1.71M
FY2026 Q3
$-3.41M
FY2026 Q4
$1.15M
FY2027 Q1
$4.18M
Revenue
$64.92M
Net income
$4.06M
Diluted EPS
—
Operating cash flow
$5.87M
Free cash flow
$4.18M
Fetching…
Sources
Revenue
$66.20M
Net income
$3.70M
Diluted EPS
—
Operating cash flow
$2.14M
Free cash flow
$1.15M
Fetching…
Sources
Revenue
$55.47M
Net income
$893.00K
Diluted EPS
—
Operating cash flow
$-2.65M
Free cash flow
$-3.41M
Fetching…
Sources
Revenue
$52.29M
Net income
$-121.00K
Diluted EPS
—
Operating cash flow
$-99.00K
Free cash flow
$-1.71M
Fetching…
Sources
Revenue
$54.61M
Net income
$1.91M
Diluted EPS
—
Operating cash flow
$1.37M
Free cash flow
$342.00K
Fetching…
Sources
Revenue
$53.80M
Net income
$-2.06M
Diluted EPS
—
Operating cash flow
$4.60M
Free cash flow
$4.05M
Fetching…
Sources
Revenue
$49.49M
Net income
$-751.00K
Diluted EPS
—
Operating cash flow
$5.46M
Free cash flow
$4.95M
Fetching…
Sources
Is it cheap or expensive?
Fair value $17.82 vs current price $16.54
Wall Street consensus is the average analyst price target: $25.50 (43.1% higher than our fair-value estimate).
Our most-likely fair value is $17.82 a share — about 7.7% away from today's price of $16.54, so the stock currently looks fairly priced.
Is it drowning in debt?
Healthy
Net cash $33.4M - more cash than debt. Interest coverage 10.3x.
Net debt
$-33.40M
Interest coverage
10.35x
Richardson Electronics, Ltd.'s profit covers its interest bill about 10.3 times over. which is stronger than most peers shown here and 1 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Healthy
Worse cushion
Baseline
Better cushion
RELL
BASELINE
Richardson Electronics, Ltd.
Total debt $3.52M Interest coverage 10.35x This is the baseline the peer rows are being compared against.
Total debt $334.50M Interest coverage 0.38x -96% vs RELL Carries about 27.4x less debt cushion than RELL.
Total debt $88.77M Interest coverage 19.50x +88% vs RELL Carries about 1.9x more debt cushion than RELL.
Total debt $32.26M Interest coverage 7.30x -29% vs RELL Carries about 1.4x less debt cushion than RELL.
Total debt $1.79B Interest coverage 5.90x -43% vs RELL Carries about 1.8x less debt cushion than RELL.
Total debt $291.99M Interest coverage 17.84x +72% vs RELL Carries about 1.7x more debt cushion than RELL.
What you should know
The case for and against RELL
3 Rewards
1 Risk
Rewards
-
Revenue grew 4.5% last year.
-
Returns 5.2% on equity, ahead of 16% of its peers.
-
Free cash flow was positive in 3/10 years.
Risks
-
Operating margin compressed from 9.5% to 7.9% over 3 years.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
28.52x
Forward P/E
17.60x
P/B
1.45x
P/S
1.03x
EV/EBITDA
15.75x
PEG ratio
1.15x
Profitability
How much profit each dollar creates
Gross margin
32.2%
Operating margin
7.9%
Net margin
3.6%
ROE
5.2%
ROA
3.0%
Health
Liquidity and balance-sheet strength
Debt / equity
0.02x
Current ratio
4.65x
Quick ratio
1.86x
Total debt
$3.52M
Total cash
$36.91M
Growth
How the business has been compounding
Revenue TTM
$238.88M
Revenue 5Y CAGR
36.5%
EPS TTM
0.58
EPS 5Y CAGR
-30.5%
Cash flow
How much cash the business throws off
Operating CF TTM
$5.27M
Free CF TTM
$-3.62M
FCF margin
-1.5%
Dividend
Shareholder payout
Yield
1.5%
Payout ratio
41.4%
Last ex-div date
2026-11-06