Richardson Electronics, Ltd.
Richardson Electronics, Ltd. Fundamental Analysis
Richardson Electronics, Ltd. (RELL) shows weak financial fundamentals with a PE ratio of 209.44, profit margin of 0.38%, and ROE of 0.51%. The company generates $0.2B in annual revenue with moderate year-over-year growth of 6.34%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 37.3/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze RELL's fundamental strength across five key dimensions:
Efficiency Score
WeakRELL struggles to generate sufficient returns from assets.
Valuation Score
ModerateRELL shows balanced valuation metrics.
Growth Score
ModerateRELL shows steady but slowing expansion.
Financial Health Score
ExcellentRELL maintains a strong and stable balance sheet.
Profitability Score
ModerateRELL maintains healthy but balanced margins.
Key Financial Metrics
Is RELL Expensive or Cheap?
P/E Ratio
RELL trades at 209.44 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, RELL's PEG of 1.04 indicates fair valuation.
Price to Book
The market values Richardson Electronics, Ltd. at 1.07 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 61.37 times EBITDA. This signals the market has high growth expectations.
How Well Does RELL Make Money?
Net Profit Margin
For every $100 in sales, Richardson Electronics, Ltd. keeps $0.38 as profit after all expenses.
Operating Margin
Core operations generate 1.84 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $0.51 in profit for every $100 of shareholder equity.
ROA
Richardson Electronics, Ltd. generates $0.40 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Richardson Electronics, Ltd. generates limited operating cash flow of $6.90M, signaling weaker underlying cash strength.
Free Cash Flow
Richardson Electronics, Ltd. generates weak or negative free cash flow of $2.26M, restricting financial flexibility.
FCF Per Share
Each share generates $0.16 in free cash annually.
FCF Yield
RELL converts 0.98% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
209.44
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
1.04
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.07
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.92
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.01
vs 25 benchmark
Current Ratio
Current assets to current liabilities
4.14
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.005
vs 25 benchmark
ROA
Return on assets percentage
0.004
vs 25 benchmark
ROCE
Return on capital employed
0.02
vs 25 benchmark
How RELL Stacks Against Its Sector Peers
| Metric | RELL Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 209.44 | 35.19 | Worse (Expensive) |
| ROE | 0.51% | 1155.00% | Weak |
| Net Margin | 0.38% | -127067.00% (disorted) | Weak |
| Debt/Equity | 0.01 | 0.41 | Strong (Low Leverage) |
| Current Ratio | 4.14 | 4.71 | Strong Liquidity |
| ROA | 0.40% | -314918.00% (disorted) | Weak |
RELL outperforms its industry in 2 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Richardson Electronics, Ltd.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
40.71%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
34.70%
Industry Style: Growth, Innovation, High Beta
High GrowthFCF CAGR
476.18%
Industry Style: Growth, Innovation, High Beta
High Growth