Richardson Electronics Ltd logo

Richardson Electronics Ltd(RELL)

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ADVISORIES YOU CAN VERIFY
QUALITY SIGNAL
1-STAR RATING
PASS
LAST CLOSE
$16.68
09/17/2026
(24-hour delay)

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Upturn Advisory & Investor View for RELL

09/17/2026: RELL (1-star) is currently NOT-A-BUY. Pass it for now.

Richardson Electronics Ltd is a specialized firm that provides engineered electronic solutions, including power grid tubes, microwave components, and custom displays for healthcare and industrial sectors. The company is known for its strong aftermarket position and successful pivot toward high-growth areas like renewable energy storage via its ultracapacitor products. While the firm benefits from deep relationships with professional OEMs, it remains exposed to cyclical fluctuations in the semiconductor and wind energy markets. Risks include technological obsolescence in core tube products and the execution challenges of scaling new technologies. The stock may suit value-oriented investors seeking dividend income who are comfortable with the inherent volatility of cyclical industrial technology markets.

How to Read the Upturn Advisory

The Upturn Star Rating and the current BUY, SELL, or PASS advisory are generated by Upturn’s AI advisory engine based on proprietary signal analysis, price behavior, advisory history, and historical signal performance.

Company fundamentals, valuation, risks, and news provide supporting context about the business.

Investor Fit

Investor styleFitWhy
Growth investorMixed fitGrowth is contingent on the adoption of specific technologies like ultracapacitors rather than broad market trends.
Momentum investorWeak fitStock performance often fluctuates based on cyclical industrial cycles rather than consistent, rapid price momentum.
Value investorStrong fitThe company often trades at valuations that reflect its tangible asset base and niche market stability.
Dividend investorStrong fitRegular dividend payments provide income stability for investors comfortable with cyclical industrial exposure.
Low-risk investorMixed fitWhile the balance sheet is strong, cyclical demand can lead to significant share price volatility.

Risk Profile

Risk factorLevelWhy it matters
Price volatilityMedium / highThe stock can experience rapid price swings driven by cyclical industrial demand and investor sentiment.
Valuation riskMediumWhile generally reasonable, valuations are sensitive to the company's ability to maintain margins in its proprietary segments.
Competition risk (niche technology)MediumSmaller competitors or technological shifts could erode the company's advantage in specialized power components.
Business qualityMediumThe transition to higher-margin products is ongoing and success depends on execution in specialized markets.
Dividend incomeMediumDividend sustainability depends on the company's ability to generate steady free cash flow during cyclical downturns.
Execution riskMedium / highSuccess relies heavily on the effective R&D and commercialization of new power and storage technologies.

Price Behavior

Strong Uptrend
PRICE PATH

Strong Uptrend

The stock has maintained a strong upward price trend across the last three quarters.

Highly Choppy
PRICE STABILITY

Highly Choppy

The stock has experienced frequent, large price swings that make its near-term movement less predictable.

Analysis of Past Performance

Type Stock
Historic Profit 9.49%
Avg. Invested days 36
Today’s Advisory PASS
Upturn Advisory Rating upturn star rating icon
Upturn Advisory Performance Upturn Advisory Performance icon 3.0
Stock Returns Performance Upturn Returns Performance icon 2.0
Upturn Profits based on simulation icon Profits based on simulation
Upturn last close icon Last Close 09/17/2026

Upturn Scorecard

Upturn Star Rating

RELL receives a 3-star rating, supported by solid company fundamentals. The rating is constrained by weak unit economics, and weak price momentum.

Company Fundamentals

RELL has solid overall fundamentals (4 stars), with moderate financial health, moderate growth momentum, and solid ownership. In FY2026 versus FY2025, strong earnings growth (+658.4%) is partially offset by soft cash generation (FCF margin -1.6%), moderate revenue growth (+9.4%), soft profitability (net margin 2.8%).

Financial Health Rating

RELL's financial health is supported by solid liquidity, including working-capital and asset support (WC/assets 67.5%). Profitability is soft (2 stars), which helps explain the 3-star overall score.

Growth Momentum Score

Earnings growth is RELL's strongest growth driver at +658.4% FY2026 versus FY2025 (strong, 5 stars). By comparison, while revenue growth (+9.4%, moderate) and free-cash-flow growth (-146.8%, negative) hold the profile back, so recent growth is not broad-based across the business.

Ownership

Institutional ownership is 78.2% and approximately 93.6% of outstanding shares are publicly tradable, supporting liquidity and institutional participation. Insider ownership of 3.40% provides only moderate management-shareholder alignment.

Top 5 Institutional Investors

Royce & Associates, LP 9.73%
DDD Partners, LLC 7.59%
BlackRock Inc 6.00%
Dimensional Fund Advisors, Inc. 4.84%
First Wilshire Securities Mgmt Inc (CA) 4.39%

Unit Economics (Per $1K Revenue)

RELL generates approximately $312 of gross profit, $28 of operating income, and $-16 of free cash flow for every $1,000 of revenue. Based on FY2026 results. Strong cash conversion and healthy margins support the rating, although capital efficiency remains below the highest tier.

Economic Dimensions

Effective Tax Rate: 14.64%

Quantitative Style Profile

RELL has a liquid profile. Weak momentum is the primary drawback, while valuation that is moderately attractive rather than deeply discounted.

Style Classification

Quality Focused

High VolatilitySmall / Mid Cap RiskShort Squeeze RiskHighly Liquid / Institution-Friendly

Key Highlights

Company Size Small-Cap Stock
Market Capitalization 247.94M USD
Price to earnings Ratio 37.07
1Y Target Price 20.5
Price to earnings Ratio 37.07
1Y Target Price 20.5
Volume (30-day avg) 170.6K shares
Beta 1.24
52 Weeks Range 9.25 - 23.08
Updated Date 09/17/2026
52 Weeks Range 9.25 - 23.08
Updated Date 09/17/2026
Dividends yield (FY) 1.46%
Basic EPS (TTM) 0.45

How Company Makes Money

Business areaWhat it includesRetail investor read
Power and Microwave Technologies (PMT)Power grid tubes, microwave components, and RF power conversion modules.This is the company's core manufacturing engine, serving stable but mature industrial and medical markets.
Green Energy Solutions (GES)Ultracapacitor modules primarily for wind turbines.This represents the growth-oriented segment tied to renewable energy infrastructure and industrial energy storage.
CanvysSpecialized medical and industrial monitors.A stable business providing customized hardware for professional high-requirement environments.

Analyzing Revenue: Products, Geography and Growth

Revenue by Products

Product revenue - Year on Year

Revenue by Geography

Geography revenue - Year on Year

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Valuation

Trailing PE 37.07
Forward PE 42.19
Enterprise Value 214.72M
Price to Sales(TTM) 1.08
Enterprise Value 214.72M
Price to Sales(TTM) 1.08
Enterprise Value to Revenue 0.94
Enterprise Value to EBITDA 22.8
Shares Outstanding 12.83M
Shares Floating 12.01M
Shares Outstanding 12.83M
Shares Floating 12.01M
Percent Insiders 3.4
Percent Institutions 78.24

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Financial Metrics

🧭 Investment Snapshot

Total Revenue (Scale)

Information icon Total money earned from selling products or services before any costs. It is needed to understand the scale of the business and its ability to generate income.

Net Income (Profit)

Information icon Final profit after all expenses, interest, and taxes are deducted. It is needed to determine the overall profitability available to shareholders.

Free Cash Flow (Cash Strength)

Information icon Cash remaining after operating activities and capital expenditures, showing cash available for growth. It is needed to evaluate the company’s ability to invest, pay dividends, or reduce debt.

📈 Growth & Strength

Operating Income (Core Profit)

Information icon Profit from core operations after deducting all operating expenses. It is needed to measure how efficiently the company runs its primary business activities.

EBITDA (Cash Earnings)

Information icon Earnings before interest, taxes, depreciation, and amortization, indicating operating cash potential. It is needed to compare operating performance across companies without accounting or financing differences.

Gross Profit (Unit Profitability)

Information icon Revenue minus cost of revenue, showing profit after direct production costs. It is needed to evaluate core business profitability before overhead expenses.

🛡️ Financial Safety

Cash (Liquidity Buffer)

Information icon Total cash and cash equivalents on hand. It is needed to evaluate immediate liquidity and financial flexibility.

Total Debt (Leverage Risk)

Information icon Total debt including both short-term and long-term components. It is needed to assess the company’s leverage and financial risk.

Net Working Capital (Short-Term Health)

Information icon Current assets minus current liabilities, indicating short-term liquidity strength. It is needed to assess whether the company can meet its short-term obligations.

🧱 Balance Sheet Strength

Stockholder Equity (Net Worth)

Information icon Total equity value held by shareholders. It is needed to understand the net worth of the company from the owners’ perspective.

Total Assets (Asset Base)

Information icon The full value of everything the company owns, including cash, inventory, equipment, and investments. It is needed to understand the resource base used to generate revenue.

Income Before Tax (Pre-Tax Earnings)

Information icon Income before provision for income taxes. It is needed to analyze profitability independent of tax structures.

⚙️ Cost & Drag Factors

Cost of Revenue (Production Cost)

Information icon Direct costs required to produce and deliver the products or services sold. It is needed to assess efficiency in production and service delivery.

Total Operating Expenses (Operating Cost)

Information icon Indirect costs of running the business such as salaries, marketing, and administration. It is needed to understand how much it costs to sustain ongoing business operations.

Income Tax Expense (Tax Drag)

Information icon Amount of taxes paid or payable to the government. It is needed to evaluate the impact of taxation on overall profitability.

About Richardson Electronics Ltd

Exchange NASDAQ
Headquarters LaFox, IL, United States
IPO Launch date 1990-03-26
Chairman, CEO & President Mr. Edward J. Richardson
Sector Technology
Industry Electronic Components
Full time employees 392
Full time employees 392

Richardson Electronics, Ltd. provides engineered solutions, power grid and microwave tube, and related consumables in North America, the Asia Pacific, Europe, and Latin America. Its 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 operates as a designer, manufacturer, technology partner, and distributor of products for green energy applications, such as wind, solar, hydrogen, and electric vehicles; and other power management applications that support green solutions comprising synthetic diamond manufacturing. Its Canvys segment provides custom display solutions consisting of touch screens, protective panels, custom enclosures, all-in-one computers, specialized cabinet finishes and application-specific software packages, and certification. The company 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.