📊 RELL Key Takeaways
Is Richardson Electronics, Ltd.. (RELL) a Good Investment?
Richardson Electronics exhibits severe operational deficiencies despite strong liquidity, with negative free cash flow (-$1.4M), razor-thin margins (1.0% operating), and abysmal returns on equity (1.1%) indicating the business model is not generating shareholder value. Flat net income growth (0.0% YoY) despite 6.3% revenue expansion demonstrates poor operational scaling and capital inefficiency in a low-margin wholesale electronics market.
Debt-free with strong liquidity and a solid cash position provides resilience, and revenue is growing modestly. However, profitability is very thin with flat net income, very low returns on capital, and negative free cash flow, signaling weak earnings quality. Maintain a neutral stance until margins and cash conversion improve.
Why Buy Richardson Electronics, Ltd.. Stock? RELL Key Strengths
- Exceptional liquidity position with 4.14x current ratio and 1.60x quick ratio
- Zero debt with strong capitalization (0.00x Debt/Equity) and $158.5M equity base
- Modest revenue growth of 6.3% YoY in competitive wholesale sector
- Debt-free with $33.1M cash and 4.14x current ratio
- Modest revenue growth (+6.3% YoY) with 30.9% gross margin
- Strong financial flexibility (0.00x D/E, 1100x interest coverage)
RELL Stock Risks: Richardson Electronics, Ltd.. Investment Risks
- Negative free cash flow of -$1.4M indicates cash burn despite positive operations; capex exceeds operating cash flow
- Critically thin operating margin (1.0%) and net margin (1.7%) with $1.8M profit on $106.9M revenue
- Abysmal returns on equity (1.1%) and assets (0.9%) demonstrate severe capital deployment inefficiency
- Flat net income growth (0.0% YoY) despite 6.3% revenue growth indicates inability to scale profitability
- Low-margin wholesale electronics industry with declining operational efficiency
- Very low profitability (1.0% operating margin; 1.7% net margin)
- Weak cash generation (negative FCF; low OCF) and potential working-capital drag
- Low ROE (1.1%) and ROA (0.9%) indicate poor capital efficiency
Key Metrics to Watch
- Free cash flow trajectory and path to positive FCF generation
- Operating margin expansion and gross margin sustainability
- Return on equity improvement and capital efficiency gains
- Operating margin
- Free cash flow margin
Richardson Electronics, Ltd.. (RELL) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Strong liquidity with a 4.14x current ratio provides a solid financial cushion.
RELL Profit Margin, ROE & Profitability Analysis
RELL vs Technology Sector: How Richardson Electronics, Ltd.. Compares
How Richardson Electronics, Ltd.. compares to Technology sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Richardson Electronics, Ltd.. Stock Overvalued? RELL Valuation Analysis 2026
Based on fundamental analysis, Richardson Electronics, Ltd.. has mixed fundamental signals relative to the Technology sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Richardson Electronics, Ltd.. Balance Sheet: RELL Debt, Cash & Liquidity
RELL Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Richardson Electronics, Ltd..'s revenue has grown significantly by 48% over the 5-year period, indicating strong business expansion.
RELL Revenue Growth, EPS Growth & YoY Performance
RELL Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2026 | $53.8M | $893.0K | N/A |
| Q2 2026 | $49.5M | -$121.0K | N/A |
| Q1 2026 | $53.7M | $590.0K | N/A |
| Q3 2025 | $52.4M | $180.0K | N/A |
| Q2 2025 | $44.1M | -$161.0K | N/A |
| Q1 2025 | $52.6M | $590.0K | N/A |
| Q3 2024 | $52.4M | $180.0K | N/A |
| Q2 2024 | $44.1M | -$570.0K | N/A |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Richardson Electronics, Ltd.. Dividends, Buybacks & Capital Allocation
RELL SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Richardson Electronics, Ltd.. (CIK: 0000355948)
📋 Recent SEC Filings
❓ Frequently Asked Questions about RELL
What is the AI rating for RELL?
Richardson Electronics, Ltd.. (RELL) has a Combined AI Rating of SELL from Claude (SELL) and ChatGPT (HOLD) with 71% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are RELL's key strengths?
Claude: Exceptional liquidity position with 4.14x current ratio and 1.60x quick ratio. Zero debt with strong capitalization (0.00x Debt/Equity) and $158.5M equity base. ChatGPT: Debt-free with $33.1M cash and 4.14x current ratio. Modest revenue growth (+6.3% YoY) with 30.9% gross margin.
What are the risks of investing in RELL?
Claude: Negative free cash flow of -$1.4M indicates cash burn despite positive operations; capex exceeds operating cash flow. Critically thin operating margin (1.0%) and net margin (1.7%) with $1.8M profit on $106.9M revenue. ChatGPT: Very low profitability (1.0% operating margin; 1.7% net margin). Weak cash generation (negative FCF; low OCF) and potential working-capital drag.
What is RELL's revenue and growth?
Richardson Electronics, Ltd.. reported revenue of $106.9M.
Does RELL pay dividends?
Richardson Electronics, Ltd.. pays dividends, with $1.7M distributed to shareholders in the trailing twelve months.
Where can I find RELL SEC filings?
Official SEC filings for Richardson Electronics, Ltd.. (CIK: 0000355948) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is RELL's EPS?
Richardson Electronics, Ltd.. has a diluted EPS of $0.00.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is RELL a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Richardson Electronics, Ltd.. has a SELL rating with 71% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is RELL stock overvalued or undervalued?
Valuation metrics for RELL: ROE of 1.1% (sector avg: 22%), net margin of 1.7% (sector avg: 18%). Compare these metrics with sector averages to assess valuation.
Should I buy RELL stock in 2026?
Our dual AI analysis gives Richardson Electronics, Ltd.. a combined SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is RELL's free cash flow?
Richardson Electronics, Ltd..'s operating cash flow is $1.3M, with capital expenditures of $2.6M. FCF margin is -1.3%.
How does RELL compare to other Technology stocks?
Vs Technology sector averages: Net margin 1.7% (avg: 18%), ROE 1.1% (avg: 22%), current ratio 4.14 (avg: 2.5).