RELLRichardson Electronics (RELL) shows mixed signals. Fundamentally, it has a strong balance sheet and consistent, albeit modest, revenue. However, profitability is volatile and recent earnings have been negative. Thematics are present but not dominant, and technicals are mixed. It's a hold for existing investors, but caution is advised for new positions.
Richardson Electronics operates in diverse sectors including semiconductor manufacturing, green energy, healthcare, and displays. While these sectors offer growth potential, RELL's direct exposure and leadership within these themes appear moderate.
RELL has a strong balance sheet with substantial cash reserves and manageable debt. Revenue has shown resilience, but profitability has been inconsistent, with recent quarters showing negative EPS. The company pays a dividend, although the yield is low.
The stock is trading below its 50-day and 200-day moving averages, indicating a bearish to neutral short-to-medium term trend. Momentum indicators are mixed, with some suggesting a potential rebound, while others indicate weakness.
| Factor | Score |
|---|---|
| Semiconductor Equipment & Components | 70 |
| Green Energy Solutions | 65 |
| Healthcare Technology | 60 |
| Display Technology | 50 |
| Market Trends Alignment | 55 |
| Factor | Score |
|---|---|
| Valuation | 75 |
| Profitability | 20 |
| Growth | 30 |
| Balance Sheet Health | 95 |
| Cash Flow | 65 |
| Dividend | 0 |
| Factor | Score |
|---|---|
| Trend Analysis | 40 |
| Trend Analysis | 60 |
| Momentum | 60 |
| Momentum | 65 |
| Support & Resistance | 65 |
Positive Earnings Surprises
The company has a history of beating EPS estimates, with recent quarters showing significant positive surprises (e.g., +150.0% in 2024 Q2, +500.0% in 2024 Q4).
Potentially Undervalued
Trailing P/E ratio is negative (-68.4 TTM), which can be a sign of undervaluation if the company is expected to return to profitability. The Price/Sales (P/S) ratio of 1.0 (TTM) is relatively low.
Recent Negative EPS and Missed Estimates
EPS for 2024 Q2 was -0.03, missing the estimate of 0.02. EPS for 2025 Q1 was -0.05, missing the estimate of -0.02. The company has experienced periods of negative EPS (e.g., -0.08 EPS TTM).
Volatile and High P/E Ratios
While the TTM P/E is negative, historical annual P/E ratios have been high (e.g., 78.6 in 2021, 2221.0 in 2024), indicating potential overvaluation in periods of stronger performance or speculative trading.
May 2025
28
Next Dividend Date
August 2025
8
Ex-Dividend Date
October 2025
9
Next Earnings Date
H: $-0.01
A: $-0.01
L: $-0.01
H: 54.00M
A: 54.00M
L: 54.00M
Richardson Electronics, Ltd. engages in the provision of engineered solutions, power grid and microwave tube, and related consumables worldwide. The Power and Microwave Technologies segment manufactures electron tubes and radio frequency (RF), microwave and power components used in semiconductor manufacturing equipment, RF, and wireless and industrial power applications, as well as various applications including broadcast transmission, CO2 laser cutting, diagnostic imaging, dielectric and induction heating, energy transfer, high voltage switching, plasma, power conversion, radar, and radiation oncology. This segment also provides thyratrons and rectifiers, power tubes, ignitrons, magnetrons, phototubes, microwave generators, ultracapacitor modules, and liquid crystal display monitors under the Amperex, Cetron, and National brands. The Green Energy Solutions segment offers design-in support, systems integration, prototype design and manufacturing, testing, logistics and aftermarket, and technical service and repair services for various applications, such as wind, solar, hydrogen, and electric vehicles; and other power management applications that support green solutions including synthetic diamond manufacturing. The Canvys segment provides custom display solutions, which includes touch screens, protective panels, custom enclosures, All-In-One computers, specialized cabinet finishes and application specific software packages, and certification services. The Healthcare segment provides diagnostic imaging replacement parts for CT and MRI systems, replacement CT and MRI tubes, CT service training, MRI and RF amplifiers, hydrogen thyratrons, klystrons, magnetrons, flat panel detector upgrades, pre-owned CT systems, and additional replacement solutions. It serves energy, healthcare, aviation, broadcast, communications, industrial, marine, medical, military, scientific, and semiconductor markets. The company was founded in 1947 and is headquartered in LaFox, Illinois.
9.50 USD
The 39 analysts offering 1 year price forecasts for RELL have a max estimate of 10.00 and a min estimate of 9.00.