Richardson Electronics Ltd logo

Richardson Electronics Ltd(RELL)

upturn advisory logo
ADVISORIES YOU CAN VERIFY
QUALITY SIGNAL
1-STAR RATING
PASS
LAST CLOSE
$18.56
10/01/2026
(24-hour delay)

Advisory History & Simulated Performance *

*as per simulation (see disclosures)
  • ALL
  • 1Y
  • 1M
  • 1W
  • BUY Advisory
  • SELL Advisory (Profit)
  • SELL Advisory (Loss)
  • Profit
  • Loss
  • PASS (Skip)
Upturn Stock price based on last close iconStock price based on last close

Advisory Performance History (Simulated)Advisory Performance History info

Upturn Advisory & Investor View for RELL

10/01/2026: RELL (1-star) is currently NOT-A-BUY. Pass it for now.

Richardson Electronics Ltd is a niche provider of engineered electronic components and specialized display systems for industrial, medical, and green energy applications. The company’s core strengths include deep technical expertise in legacy power technologies and an evolving focus on high-growth energy storage. Its primary investment story revolves around scaling ultracapacitor manufacturing for renewable energy projects, balanced against the cyclicality of its industrial and medical segments. Key risks include intense competition from low-cost manufacturers and potential technological obsolescence of legacy products. The stock may best suit value-oriented investors who can look past cyclical performance, with investors encouraged to monitor the successful commercialization of new green energy initiatives.

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 depends on the successful mass adoption of its green energy storage products.
Momentum investorWeak fitThe stock often experiences low liquidity and extended periods of price consolidation.
Value investorStrong fitThe company often trades at reasonable multiples relative to its niche asset base.
Dividend investorMixed fitDividends are paid, but capital appreciation is the primary intended driver of returns.
Low-risk investorWeak fitCyclicality in end markets and volatility in niche product demand introduce significant risk.

Risk Profile

Risk factorLevelWhy it matters
Price volatilityMedium / highThe stock's relatively small market cap and niche focus can lead to sharp price swings.
Valuation riskMediumValuation is often tied to speculative growth expectations for new green energy products.
Competition risk (niche electronic component peers)MediumNew entrants or substitute technologies could erode the company's specialized market share.
Business qualityMediumThe business model is transitioning from distribution to higher-margin manufacturing, which involves execution risks.
Dividend incomeLowDividend payouts are conservative and not the primary focus of the investment thesis.
Execution riskMedium / highScaling new green energy solutions requires successful manufacturing and market adoption.

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 2.88%
Avg. Invested days 36
Today’s Advisory PASS
Upturn Advisory Rating upturn star rating icon
Upturn Advisory Performance Upturn Advisory Performance icon 2.0
Stock Returns Performance Upturn Returns Performance icon 1.0
Upturn Profits based on simulation icon Profits based on simulation
Upturn last close icon Last Close 10/01/2026

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 weak 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 6.79%
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. Negative free cash flow explains the 1-star rating, with weak cash conversion and weak capital efficiency.

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 263.54M USD
Price to earnings Ratio 41.23
1Y Target Price 20.5
Price to earnings Ratio 41.23
1Y Target Price 20.5
Volume (30-day avg) 128.3K shares
Beta 1.24
52 Weeks Range 9.25 - 23.08
Updated Date 10/01/2026
52 Weeks Range 9.25 - 23.08
Updated Date 10/01/2026
Dividends yield (FY) 1.39%
Basic EPS (TTM) 0.43

How Company Makes Money

Business areaWhat it includesRetail investor read
Power and Microwave TechnologiesVacuum tubes, microwave components, and specialized power systems for radar and broadcast.This is the steady, traditional core of the business that relies on replacing older industrial hardware.
Green Energy SolutionsUltracapacitor-based energy storage systems for wind turbines and industrial power applications.This is the high-growth potential segment focused on renewable energy integration.
CanvysCustom display and visualization hardware for medical and corporate environments.This provides stable, project-based revenue by catering to specialized needs in medical facilities.
GeographyGlobal distribution and sales presence, with significant operations in North America, Europe, and Asia.The company relies on international supply chains and diverse customer bases to drive revenue.

Analyzing Revenue: Products, Geography and Growth

Revenue by Products

Product revenue - Year on Year

Revenue by Geography

Geography revenue - Year on Year

Advertisement

Earnings Date

Report Date 2026-10-05
When After Market
Estimate 0.09
Actual -

Profitability

Profit Margin 2.79%
Operating Margin (TTM) 4.57%

Management Effectiveness

Return on Assets (TTM) 1.77%
Return on Equity (TTM) 3.99%

Valuation

Trailing PE 41.23
Forward PE 44.44
Enterprise Value 226.76M
Price to Sales(TTM) 1.15
Enterprise Value 226.76M
Price to Sales(TTM) 1.15
Enterprise Value to Revenue 0.99
Enterprise Value to EBITDA 24.07
Shares Outstanding 12.83M
Shares Floating 12.01M
Shares Outstanding 12.83M
Shares Floating 12.01M
Percent Insiders 3.4
Percent Institutions 78.25

Icon representing Upturn AI-generated SWOT analysis summary Upturn AI Summary

Information icon for Upturn AI Summarization accuracy disclaimer AI Summarization is directionally correct and might not be accurate.

Information icon for Upturn AI Summarization data freshness disclaimer Summarized information shown could be a few years old and not current.

Information icon warning about Upturn AI Fundamental Rating based on potentially old data Fundamental Rating based on AI could be based on old data.

Information icon warning about potential inaccuracies or hallucinations in Upturn AI-generated summaries AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.

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.