Richardson Electronics Ltd logo

Richardson Electronics Ltd(RELL)

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EXPLORE ADVISORIES AND THEIR HISTORY
QUALITY SIGNAL RECENCY
1-STAR RATING
Consider higher Upturn Star rating
BUY for 17 days
PROFIT SINCE LAST BUY
+4.65% ▲
LAST CLOSE
$20.93
10/29/2026
(24-hour delay)

Advisory History & Simulated Performance *

*as per simulation (see disclosures)
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Upturn Stock price based on last close iconStock price based on last close
Simulated performance—not actual client returns. Excludes advisory subscription fees, trading commissions, and taxes, which would reduce returns. Results depend on calculation assumptions and do not guarantee future outcomes. See Disclosures for full methodology, assumptions, and limitations.

Advisory Performance History (Simulated)Advisory Performance History info

Simulated performance—not actual client returns. Excludes advisory subscription fees, trading commissions, and taxes, which would reduce returns. Results depend on calculation assumptions and do not guarantee future outcomes. See Disclosures for full methodology, assumptions, and limitations.

Upturn Advisory & Investor View for RELL

10/29/2026: RELL (1-star) has a low Upturn Star Rating. Not recommended to BUY.

Richardson Electronics Ltd is an established industrial electronics firm known for providing specialized power grid, microwave tubes, and customized display solutions. The company’s primary strength lies in its deep engineering expertise and role as a high-touch technical partner in niche industrial and healthcare markets. Its main growth narrative centers on expanding its green energy storage systems, particularly the ULTRAPACK for wind turbines. However, the firm faces risks related to market cyclicality, technological displacement of legacy products, and the challenges of scaling new segments. It may best suit value-oriented investors seeking steady income through dividends while monitoring the progress of its renewable energy expansion efforts.

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 tied to niche markets like wind energy and display technology rather than broad-market expansion.
Momentum investorWeak fitThe stock often lacks the high-velocity price action favored by momentum traders.
Value investorStrong fitThe company often trades at reasonable valuations relative to its long-term asset base and cash position.
Dividend investorStrong fitRegular dividend payments provide steady income for shareholders.
Low-risk investorMixed fitWhile established, the business is sensitive to industrial and energy cycles.

Risk Profile

Risk factorLevelWhy it matters
Price volatilityMediumThe stock can experience swings based on quarterly contract wins or supply chain news.
Valuation riskLowValuations are generally tied to book value and cash flows, limiting speculative downside.
Competition risk (specialized components)MediumNiche competitors may disrupt pricing in specialized microwave and power segments.
Business qualityMediumThe company has a long operating history but operates in cyclical industrial segments.
Dividend incomeMediumDividends are generally stable but tied to fluctuating operating profits.
Execution riskMediumSuccess relies on scaling the GES green energy segment effectively.

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 14.58%
Avg. Invested days 34
Today’s Advisory Consider higher Upturn Star rating
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 10/29/2026

Upturn Scorecard

Upturn Star Rating

★★★★★
RELL receives a 3-star rating, supported by solid company fundamentals, and solid analyst coverage. 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 77.9% and approximately 95.0% 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 9.56%
DDD Partners, LLC 7.47%
BlackRock Inc 6.67%
Dimensional Fund Advisors, Inc. 4.76%
First Wilshire Securities Mgmt Inc (CA) 4.32%

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 311.37M USD
Price to earnings Ratio 36.09
1Y Target Price 25.5
Price to earnings Ratio 36.09
1Y Target Price 25.5
Volume (30-day avg) 302.7K shares
Beta 1.31
52 Weeks Range 9.25 - 23.08
Updated Date 10/29/2026
52 Weeks Range 9.25 - 23.08
Updated Date 10/29/2026
Dividends yield (FY) 1.14%
Basic EPS (TTM) 0.58

How Company Makes Money

Business areaWhat it includesRetail investor read
Power and Microwave Technologies (PMT)Power grid tubes, microwave components, and industrial supplies.The reliable cash cow providing core components for industrial machinery and healthcare.
Green Energy Solutions (GES)ULTRAPACK ultracapacitor energy storage systems.The growth segment focused on efficiency in the wind energy and industrial power market.
Display Systems Group (DSG)Customized ruggedized and medical-grade displays.A specialized segment providing high-margin technical display hardware.

Analyzing Revenue: Products, Geography and Growth

Revenue by Products

Product revenue - Year on Year

Revenue by Geography

Geography revenue - Year on Year

Earnings Date

Report Date 2026-10-07
When After Market
Estimate 0.09
Actual 0.27

Profitability

Profit Margin 3.57%
Operating Margin (TTM) 7.88%

Management Effectiveness

Return on Assets (TTM) 2.97%
Return on Equity (TTM) 5.19%

Valuation

Trailing PE 36.09
Forward PE 31.06
Enterprise Value 280.50M
Price to Sales(TTM) 1.3
Enterprise Value 280.50M
Price to Sales(TTM) 1.3
Enterprise Value to Revenue 1.17
Enterprise Value to EBITDA 20.77
Shares Outstanding 12.84M
Shares Floating 12.19M
Shares Outstanding 12.84M
Shares Floating 12.19M
Percent Insiders 3.4
Percent Institutions 77.93

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.

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