Richardson Electronics, Ltd.
$16.49
-7.3%Richardson Electronics, Ltd. engages in the power and microwave technologies, customized display solutions, and healthcare businesses in North America, the Asia Pacific, Europe, and Latin America. Its Power and Microwave Technologies Group segment provides engineered solutions, power grid and microwave tubes, and related consumables; technical services for microwave and industrial equipment; and power conversion and RF and microwave component for broadcast transmission, CO2 laser cutting, diagnostic imaging, dielectric and induction heating, high energy transfer, high voltage switching, plasma, power conversion, radar, and radiation oncology applications. The company's Canvys segment provides custom display solutions, such as touch screens, protective panels, all-in-one computers, custom enclosures, specialized cabinet finishes, application specific software packages, and certification services to corporate enterprise, financial, healthcare, industrial, and medical original equipment manufacturer markets. Its Healthcare segment manufactures and distributes diagnostic imaging replacement parts for CT and MRI systems; replacement CT and MRI tubes; MRI coils, cold heads, and RF amplifiers; hydrogen thyratrons, klystrons, and magnetrons; flat panel detector upgrades; pre-owned CT systems; and additional replacement solutions, as well as offers CT service training. It serves hospitals, medical centers, asset management companies, independent service organizations, and multi-vendor service providers. The company's products are used to control, switch, or amplify electrical power signals, as well as used as display devices in alternative energy, healthcare, aviation, communications, industrial, marine, medical, military, scientific, and semiconductor markets. The company was founded in 1947 and is headquartered in LaFox, Illinois.
At a Glance
Live SnapshotIntrinsic Alpha Methodology
Thesis Lenses
Signal
Medium confidenceValuation multiple is compressed (P/E -177.5).
Valuation inputs: P/E -177.5, earnings yield N/A, momentum -7.3%.
If multiples stay elevated while momentum fades, downside repricing risk rises.
Driver
High confidenceReturn profile is soft (ROE -0.7%, ROIC -1.1%).
Profitability stack: net margin -0.5%, ROE -0.7%, ROIC -1.1%.
Quality deterioration often appears in margins before it shows up in headline EPS.
Risk
High confidenceRisk profile is balanced but has notable pressure points to monitor.
Risk factors: liabilities/assets +20.0%, momentum -7.3%, net margin -0.5%.
Higher leverage with weak momentum and thin margins can amplify drawdown severity.
Richardson Electronics, Ltd. Market vs Earnings Trajectory
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Richardson Electronics, Ltd. Fair Value Envelope
Richardson Electronics, Ltd. Profit Bridge
Profitability Analysis
Gross Margin
Moderate margins typical of competitive industries. Monitor for pricing pressure or rising costs.
Operating Margin
Operating losses indicate the core business is unprofitable. Requires restructuring or revenue growth.
Net Profit Margin
Net losses indicate the company is burning cash. Sustainability depends on path to profitability.
Profitability Insight
Margin squeeze alert: Healthy gross margins but weak operating margins suggest excessive operating expenses. Cost optimization could unlock significant value.
Richardson Electronics, Ltd. Cash Conversion Engine
Cash Flow Quality Analysis
FCF Conversion Rate
Negative free cash flow despite positive earnings raises concerns about cash generation ability or heavy capital requirements.
CapEx Intensity
Moderate capital requirements typical of many stable businesses. Healthy balance between reinvestment and cash generation.
FCF Growth Trend
Strong FCF growth demonstrates improving cash generation and business momentum. Positive signal for sustainability.
Working Capital Impact
Working capital inflow boosted cash flow. Efficient management of receivables, inventory, and payables contributing positively.
Richardson Electronics, Ltd. Funding & Solvency Profile
Financial Health Analysis
Current Ratio
Excellent liquidity position. The company can easily cover its short-term obligations with substantial cushion.
Debt-to-Equity Ratio
Conservative capital structure. The company relies primarily on equity financing, indicating low financial risk.
Working Capital
Strong working capital position provides significant operational flexibility and financial cushion.
Asset Composition
Asset-light business model with high liquidity. Majority of assets are easily convertible to cash.
Financial Health Insight
Strong financial foundation: Excellent liquidity combined with conservative leverage suggests the company is well-positioned to weather economic uncertainties and fund growth opportunities.
Richardson Electronics, Ltd. Street Expectations Map
Wall Street analysts project that RELL stock may decline over the coming 12 months. The consensus 1-year price target stands at 14.00, with estimates ranging from a low of 14.00 to a high of 14.00.
The consensus 1-year price target stands at 14.00, with estimates ranging from a low of 14.00 to a high of 14.00.
Analyst Consensus Analysis
Upside Potential
Significant downside risk. Stock trading well above analyst consensus suggests elevated valuation concerns and potential correction.
Analyst Agreement
High analyst agreement. Narrow target range indicates strong consensus on valuation, suggesting clear investment thesis and predictable outlook.
Risk-Reward Profile
Balanced risk-reward. Upside and downside potential relatively symmetric. Suitable for moderate risk tolerance with conviction in thesis.
Analyst Conviction
Bearish or uncertain outlook. Limited upside or poor consensus suggests challenges ahead or fundamental concerns.
Market Sentiment Insight
Consensus overvaluation: Analysts agree the stock is richly valued with limited upside. Consider booking profits or defensive positioning unless you have contrarian conviction in unrecognized catalysts.
Richardson Electronics, Ltd. Insider Positioning
During the last 12 months, insiders have purchased $754K and sold $775K worth of RELL shares, resulting in $21K of net selling activity.
3 Months
0
0.00
16.6K
258.77K
-259K
-$259K
3-6 Months
0
0.00
27.0K
339.42K
-339K
-$339K
6-9 Months
0
0.00
6.2K
58.82K
-59K
-$59K
9-12 Months
77.5K
754.08K
13.8K
118.48K
+636K
+$636K
Top Buyers
Diddell Wendy
Director, Officer: Coo
$195K
Richardson Edward J
Director, 10 Percent Owner, Officer: Chairman & Ceo
$195K
Ben Robert J
Officer: Cfo, Cao, Corporate Secretary
$97K
Peloquin Gregory J
Officer: Evp Pmt
$97K
Ruppert Jens Frank
Officer: Evp Canvys
$97K
Top Sellers
Halverson Kenneth
Director
$325K
Mcnally Kathleen
Officer: Evp Global Supply Chain
$145K
Ben Robert J
Officer: Cfo, Cao, Corporate Secretary
$132K
Ruppert Jens Frank
Officer: Evp Canvys
$97K
Diddell Wendy
Director, Officer: Coo
$76K
Insider Activity Analysis
Net Insider Sentiment
Slightly bearish with $21K net selling. Selling modestly exceeds buying, which could be routine diversification rather than concern.
Buy/Sell Ratio
Moderately negative ratio. Selling is roughly double the buying, which may be routine or signal caution.
Recent Trend (3 Months)
Heavy recent selling activity. Recent insider sales notably exceed purchases—may warrant investigation into company developments.
Insider Participation
5 insider buyers and 5 sellers. Equal participation suggests mixed or neutral insider views.
Insider Activity Insight
Balanced insider activity: Roughly equal buying and selling suggests normal portfolio management rather than strong directional signals. Look to other metrics for clearer investment insights.
rell Dividend History
Learning Layer
Related Guides
Build conviction on RELL by pairing this stock hub with focused valuation guides.
Research Paths
Snapshot
Start with context, operating signals, and key market metrics.
Value Model
Stress test fair value across bear, base, and bull assumptions.
Statements
Validate revenue quality, margins, and balance sheet durability.
Earnings Call
Read management commentary and compare it with reported outcomes.
Dividends
Check payout sustainability and long-term distribution behavior.
Analyst Expectations
Review consensus spread and where estimate risk is concentrated.