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Verdict
Quantitative factor alignment verified for current market regime.
Quant Score
Rank
#2791
Positioning
Market Dominance
Wholesale Trade
Wholesale
$152M
Edward J. Richardson
Richardson Electronics, Ltd. engages in power and microwave technologies, customized display solutions, and healthcare businesses. Its products are used to control, switch, or amplify electrical power signals, as well as are used as display devices in alternative energy, healthcare, aviation, communications, industrial, marine, medical, military, scientific, and semiconductor markets.
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Dates updated upon official exchange announcement.
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X-AXIS: EV/EBITDA (LOWER = CHEAPER) | Y-AXIS: ROE (HIGHER = ELITE) | RED CIRCLE = RELL ANALYSIS TARGET
| Stock | Rating | Score▼ | Quality | Value | Momentum | P/E | EV/EBITDA | ROE | ROA | Gross Mgn | Op Mgn | Net Mgn | Rev Growth | Div Yield | D/E | Mkt Cap | AUDIT |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
$ITRN Ituran Location & Control Ltd. | 74 | 95 | 97 | 62 | - | - | 30.4% | 17.5% | 47.8% | 21.2% | 16.8% | 5.1% | 5.1% | 0.0x | $612M | VS | |
$COR Cencora, Inc. | 70 | 84 | 77 | 70 | 21.1x | 11.8x | 123.8% | 2.2% | 3.6% | 0.8% | 0.5% | 9.3% | 0.7% | 508.0x | $60.5B | VS | |
$CENT CENTRAL GARDEN & PET CO | 70 | 84 | 95 | 48 | 5.9x | 3.5x | 10.4% | 4.6% | 31.9% | 8.0% | 5.2% | -2.2% | 0.0% | 75.0x | $2.1B | VS | |
$SNX TD SYNNEX CORP | 67 | 80 | 93 | 57 | 13.5x | 6.2x | 10.0% | 2.6% | 7.0% | 2.3% | 1.3% | 6.9% | 1.2% | 55.0x | $12.4B | VS | |
$HLF HERBALIFE LTD. | 65 | 60 | 75 | 96 | 5.0x | 1.4x | -32.4% | 6.3% | 77.7% | 9.9% | 3.4% | 2.7% | 0.0% | - | $870M | VS | |
$GIC GLOBAL INDUSTRIAL Co | 65 | 82 | 60 | 62 | 18.7x | 12.5x | 24.0% | 12.5% | 35.6% | 7.4% | 5.3% | 3.3% | 2.8% | 0.0x | $1.4B | VS | |
$JXG JX Luxventure Group Inc. | 63 | 84 | 75 | 88 | - | - | 20.4% | 11.9% | 16.8% | 7.8% | 6.2% | 56.5% | 0.0% | 22.0x | $6M | VS | |
$FERG Ferguson Enterprises Inc. /DE/ | 63 | 74 | 48 | 67 | 21.4x | 14.3x | 39.4% | 12.6% | 30.7% | 9.4% | 7.0% | 5.1% | 1.3% | 68.0x | $48.9B | VS | |
$SYY SYSCO CORP | 60 | 68 | 49 | 65 | 22.7x | 9.2x | 89.9% | 5.9% | 18.3% | 3.3% | 1.9% | 3.0% | 2.9% | 595.0x | $35.3B | VS | |
$DXPE DXP ENTERPRISES INC | 60 | 58 | 55 | 79 | 21.6x | 8.5x | 25.1% | 6.2% | 31.4% | 8.5% | 4.2% | 8.6% | 0.0% | 128.0x | $1.9B | VS | |
$RELL RICHARDSON ELECTRONICS, LTD. | 45 | 38 | 35 | 55 | - | 376.1x | -0.6% | -0.5% | 30.9% | -1.1% | -0.5% | -2.7% | 2.3% | 27.0x | $152M | ||
| SECTOR BENCH | - | - | - | - | - | 19.1x | 8.2x | 8.6% | 2.7% | 22.5% | 3.3% | 1.4% | 3.3% | 0.3% | 0.5x | - | REF |
RICHARDSON ELECTRONICS, LTD. (RELL) receives a "Reduce" rating with a composite score of 45.1/100. It ranks #2791 out of 7,333 stocks in our coverage universe and carries a 2-star rating. Ratings are driven by a 6-factor quantitative model measuring quality, value, momentum, investment, stability, and short interest.
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YOY expansion rate
Core pricing power
Operating efficiency
Bottom-line conversion
Equity capital efficiency
Asset base utilization
Financial leverage load
Direct cash return
Edward J. Richardson
Chief Executive Officer
Labor Force
450
38
27
31
Audit Verdict: Lower quality and stability scores may indicate governance concerns.
No recent insider transactions available for RELL
In-line with peers — no strong momentum signal
Expensive relative to fundamentals — limited margin of safety
Average quality profile
High volatility — wider range of outcomes increases timing risk
Aggressive spending — empire-building risk, dilutive growth
Mid-range overall rating
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Relative valuation derived from Wholesale Trade sector benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Re-calculated daily.
No analyst ratings for RELL.
View All RatingsMaterial decline in asset turnover efficiency detected
| Factor | Global | Sector | Tilt |
|---|---|---|---|
| PROFITABILITY | 38 | 34 | +4NEUTRAL |
| MOMENTUM | 55 | 60 | -5NEUTRAL |
| VALUATION | 35 | 26 | +9ALPHA |
| INVESTMENT | 27 | 18 | +9ALPHA |
| STABILITY | 31 | 23 | +8ALPHA |
| SHORT INT | 30 | 15 | +15ALPHA |
Global = full universe. Sector = relative to industry peers. Positive tilt indicates idiosyncratic strength.
ROE proxy -0.6% (sector 8.6%)
GM 31% vs sector 22%, OM -1% vs sector 3%
Capital turnover N/A
Rev growth -3%, 11yr history
Interest coverage N/A
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation and elite competitive moats.
Profit generated per dollar of shareholder equity
Efficiency of asset utilization
Pricing power and cost efficiency
Core business profitability
Bottom-line profitability
The Quality factor evaluates the persistence and magnitude of realized cash flows. Companies with scores >70 exhibit superior pricing power and structural financial resilience through diverse economic regimes.
Our uncertainty rating tracks the predictability of future cash flows and potential for permanent capital loss. Moderate visibility with standard industry cyclicality.
RICHARDSON ELECTRONICS, LTD. receives a Reduce rating from our analysis, with a composite score of 45.1/100 and 2 out of 5 stars, ranking #2791 out of 7,333 stocks. RELL's factor profile shows weakness across multiple dimensions, suggesting the stock may underperform going forward. Existing holders may want to consider trimming positions or tightening stop-losses.
RELL's quality score of 38/100 is below average, suggesting challenges with profitability or capital efficiency. The company reports a return on equity of -0.6% (sector avg: 8.6%), gross margins of 30.9% (sector avg: 22.5%), net margins of -0.5% (sector avg: 1.4%). Investors should examine whether management is actively addressing these weaknesses or if they reflect structural industry headwinds.
With a value score of 35/100, RELL appears somewhat expensive relative to its fundamentals. Key valuation metrics include an EV/EBITDA of 376.15x, a P/B ratio of 1.25x. Investors paying a premium here are likely betting on above-average growth or margin expansion to justify current prices.
RICHARDSON ELECTRONICS, LTD.'s investment score of 27/100 suggests limited reinvestment activity. Key growth metrics include revenue growth of -2.7% vs. a sector average of 3.3% and a return on assets of -0.5% (sector: 2.7%). While this can be positive for mature, cash-generative businesses returning capital to shareholders, it may also signal a lack of growth opportunities or management conservatism.
RELL demonstrates moderate momentum with a score of 55/100, suggesting a neutral price trend without strong directional conviction. Revenue growth stands at -2.7% year-over-year, while a beta of 1.34 reflects its sensitivity to broader market moves. Moderate momentum may indicate the stock is consolidating or transitioning between trends, warranting close monitoring of upcoming catalysts.
RELL's stability score of 31/100 signals elevated volatility and/or leverage concerns. Key stability metrics include a beta of 1.34 and a debt-to-equity ratio of 27.00x (sector avg: 0.5x). Investors should be prepared for wider-than-average price swings and consider position sizing accordingly to manage portfolio risk.
RICHARDSON ELECTRONICS, LTD.'s short interest score of 30/100 reveals significant bearish positioning, suggesting institutional investors are actively betting against the stock. Specific risk factors include above-average market sensitivity (beta: 1.34), elevated leverage (D/E: 27.00x), micro-cap liquidity risk. At $152M (micro-cap), RELL carries meaningful risk and is best suited for investors with high risk tolerance who have thoroughly evaluated the bear thesis.
RELL pays a solid dividend yield of 2.3%, contributing an income component to total returns. This compares to a sector average dividend yield of 0.3%. This moderate yield suggests a balance between returning capital to shareholders and retaining earnings for reinvestment — a common profile among quality compounders.
RICHARDSON ELECTRONICS, LTD. is a micro-cap company in the Wholesale Trade sector, ranked #0 of 50 in its sector (100th percentile) and #2791 of 7,333 overall (62nd percentile). Key comparisons include ROE of -0.6% trailing the 8.6% sector median and operating margins of -1.1% below the 3.3% sector average. This top-quartile standing reflects exceptional competitive strength relative to Wholesale Trade peers.
While RELL currently exhibits a REDUCE profile, superior opportunities exist within the WHOLESALE TRADE sector. Our model identifies several "Strong Buy" candidates with higher quality scores and more attractive valuations among direct industry competitors.
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Improvement in Investment (27) would have the largest impact on the composite score.
EV/EBITDA 4498% ABOVE SECTOR MEDIAN
ROE 107% BELOW SECTOR MEDIAN
Gross Margin 38% ABOVE SECTOR MEDIAN (FAVORABLE)
AUDIT DATA AS OF NOV 29, 2025 (Q3 FY2025)
We rate RICHARDSON ELECTRONICS, LTD. (RELL) as a Reduce with a composite score of 45.1/100 at a current price of $13.12. The quantitative profile shows weakness across multiple dimensions, suggesting limited upside potential and elevated risk of underperformance relative to peers over the next 12 months.
The rating is primarily driven by strength in momentum (55th percentile) and quality (38th percentile), which together account for the majority of the composite score. Offsetting weakness in investment (27th percentile) and stability (31th percentile) tempers our overall conviction. We assign a No Moat rating (33/100), High uncertainty, and Poor capital allocation.
Key items to watch: the path to profitability. Any material change in these dynamics could warrant a reassessment of our rating. The moat trend is stable, which suggests the competitive landscape is stable for now.
RICHARDSON ELECTRONICS, LTD. holds a top-quartile position (#0 of 50) within the Wholesale Trade sector, based on our composite quantitative scoring across quality, value, momentum, and stability factors. The composite score of 45.1/100 places it at rank #2791 in our full 7,333-stock universe. At $152M in market capitalization, RICHARDSON ELECTRONICS, LTD. is a small-cap player in the Wholesale Trade space, which limits certain scale advantages but may allow for more agile strategic execution.
Revenue contraction of -3% combined with momentum at the 55th percentile paints a cautious picture of the near-term business outlook. The market appears to be pricing in continued challenges, and a catalyst for reversal is not clearly visible from current data.
The margin cascade tells an important story: gross margins of 31% (+8.5pp vs sector) narrow to operating margins of -1% (-4.4pp vs sector) and net margins of -0.5%, yielding a gross-to-net conversion rate of -2%. The significant margin erosion from gross to net suggests elevated operating expenses, high interest costs, or other structural drags that warrant monitoring.
At a current price of $13.12, RICHARDSON ELECTRONICS, LTD. is trading at a premium to fundamental value. Our value factor score of 35/100 reflects a composite assessment across multiple valuation metrics including price-to-earnings, price-to-book, EV/EBITDA, and price-to-sales ratios relative to both sector peers and the broader market. The premium valuation implies the market is pricing in significant future growth or quality improvements that are not yet fully reflected in current fundamentals.
The stock currently trades at EV/EBITDA of 376.1x (at a premium), P/B of 1.3x, P/S of 0.9x. We evaluate these multiples in the context of both absolute levels and sector-relative positioning to form our valuation view.
A conservative balance sheet (27% D/E) provides financial flexibility for acquisitions, buybacks, or weathering economic downturns without dilution.
A 2.29% dividend yield provides income while you wait, and dividends historically account for a significant portion of total equity returns.
The Reduce rating (composite 45.1/100) reflects multi-factor weakness, and historically, stocks in this scoring range have underperformed the market by a meaningful margin.
Revenue decline of -3% signals business deterioration — declining revenues make it difficult to grow into the current valuation and often precede further negative revisions.
Thin net margins of -0.5% provide limited cushion against cost pressures, competitive pricing, or macroeconomic headwinds — even small changes in costs could swing the company to a loss.
We assign a High uncertainty rating to RICHARDSON ELECTRONICS, LTD.. Key risk factors include elevated market sensitivity (beta of 1.34), current negative profitability (net margin -0.5%), below-average price stability (31th percentile). The wide range of potential outcomes widens our fair value estimate and increases the possibility of permanent capital impairment. Investors considering this name should size positions accordingly and demand a meaningful margin of safety before initiating.
Specific risk factors that inform our assessment include: elevated market sensitivity (beta of 1.34); current negative profitability (net margin -0.5%); below-average price stability (31th percentile). Each of these factors independently widens the distribution of potential outcomes, and in combination they create a risk profile that demands careful position sizing. The stability factor at the 31th percentile and quality factor at the 38th percentile provide a quantitative summary of the overall risk landscape.
Key risk mitigants include: conservative leverage (27% D/E) limits balance sheet risk; a 2.29% dividend yield anchors total return. These factors partially offset the identified risks and provide downside protection in adverse scenarios. On balance, the risk-reward profile warrants caution and disciplined position management.
We rate RICHARDSON ELECTRONICS, LTD.'s capital allocation as Poor. Key concerns include low returns on equity (-0.6%), negative profitability, weak asset returns (ROA -0.5%). Exemplary capital allocators generate ROE above 20% and maintain conservative leverage — RICHARDSON ELECTRONICS, LTD. significantly underperforms these benchmarks, raising questions about management's ability to create shareholder value.
Investors should scrutinize management's reinvestment decisions and balance sheet trajectory before committing capital. Poor capital allocation often compounds over time: overlevered balance sheets limit strategic flexibility, while low returns on capital destroy shareholder value. We would need to see sustained improvement in profitability metrics and balance sheet discipline before considering an upgrade.
In summary, RICHARDSON ELECTRONICS, LTD. receives a Reduce rating with a composite score of 45.1/100 (rank #2791 of 7,333). Our quantitative framework assigns a No Moat (33/100, trend: stable), High uncertainty, and Poor capital allocation. The average factor score across quality, value, momentum, stability, and investment is 37/100.
Our analysis does not support a constructive view on RICHARDSON ELECTRONICS, LTD. at this time. The combination of limited competitive advantages, high uncertainty, and poor capital allocation suggests unfavorable risk-reward at current levels. We recommend investors avoid new positions and existing holders consider reducing exposure.
Analysis derived from Blank Capital Research quantitative terminal. For informational purposes only. No trade solicitation. Past performance not indicative of future results. Consult a qualified advisor.
We do not assign RICHARDSON ELECTRONICS, LTD. a meaningful economic moat, scoring 33/100 on our composite assessment. Current fundamentals do not demonstrate the kind of durable competitive advantages — such as superior returns on invested capital, margin superiority, or reinvestment efficiency — that would protect the company from competitive erosion over the long term. The highest-scoring pillar, margin superiority, reached only 12.9/20.
The strongest moat sources are margin superiority (12.9/20) and growth durability (11.9/20). GM 31% vs sector 22%, OM -1% vs sector 3%. Rev growth -3%, 11yr history. These pillars form the core of RICHARDSON ELECTRONICS, LTD.'s competitive identity and are the primary drivers of excess returns in our framework.
Areas of relative weakness include reinvestment efficiency (0/20) and economic value creation (1.2/20). Capital turnover N/A. Improvement in these areas could meaningfully widen the moat over time, while deterioration would be an early warning of competitive erosion.
Our moat trend assessment is Stable. Multi-year ROIC and operating margin trajectories show neither meaningful improvement nor deterioration, suggesting the competitive position is steady. We expect RICHARDSON ELECTRONICS, LTD.'s moat profile to remain largely unchanged absent a material shift in return on capital or industry dynamics.
Key profit drivers include declining revenues (-3%) that pressure the earnings outlook. The margin cascade from 31% gross to -1% operating to -0.5% net reveals the company's cost structure and reinvestment intensity. Our analysis indicates that profit quality raises some durability concerns, with the quality factor at the 38th percentile.
The margin profile shows gross margins of 31%, operating margins of -1%, net margins of -0.5%. Return metrics include ROE of -0.6% and ROA of -0.5%. Relative to the Wholesale Trade sector, gross margins are 8.5 percentage points above the sector median of 22%, and ROE of -0.6% compares to a sector median of 8.6%.
The balance sheet reflects a conservatively managed balance sheet with D/E of 27%, a dividend yield of 2.29%, revenue growth of -3%. The sector median D/E is 1%, putting RICHARDSON ELECTRONICS, LTD. at higher leverage than the typical peer. Overall balance sheet health is adequate for the current business environment.
Richardson Electronics' stock has depreciated 3.5% over the last three months, prompting an analysis of its financials. Despite a high reinvestment rate, the company's Return on Equity (ROE) is a low 0.5%, significantly below the industry average of 11%, leading to a 19% decline in net income over five years. While analysts predict future earnings growth, the current mixed financial performance raises questions about the efficiency of its capital reinvestment and potential impact on its stock price.
Short interest in Richardson Electronics (NASDAQ:RELL) surged by 66.2% in January to 568,720 shares, representing 5.9% of the stock. This increase coincides with analysts turning more bearish, giving the stock a "Reduce" consensus rating and an average price target of $11.00. Company insiders have also been trimming their holdings, while institutional investors show mixed activity.
Richardson Electronics (NASDAQ: RELL) has partnered with Nxbeam, a millimeter-wave semiconductor company, to supply high-power microwave MMICs ranging from 12.5 to 76 GHz. This collaboration combines Nxbeam's innovative designs with Richardson Electronics' engineering expertise and global supply chain to provide high-quality and reliable solutions for various industries including medical, defense, and energy. The partnership aims to enhance customer support, ensure supply continuity, and foster innovation in advanced RF and microwave technologies.
Shares of Richardson Electronics (NASDAQ:RELL) have climbed above average, with increased volume indicating strengthening interest in the stock. The company, operating in the technology sector and specializing in vacuum electron devices and high-voltage power solutions, recently reported near break-even per-share results aligned with expectations and revenue exceeding forecasts. This movement above a long-term moving average suggests a positive technical signal for investors.
Richardson Electronics has appointed Rainer Bornwasser as Vice President of Global Sales for its Canvys division, effective February 1, 2026, aiming to accelerate global growth and strengthen partnerships in medical and industrial display markets. Bornwasser brings over 30 years of international sales experience, and his role will focus on leading sales strategy, fostering customer partnerships, and identifying new market opportunities. This strategic move is expected to drive revenue growth and enhance Canvys's competitive position by focusing on high-margin, customized display solutions for global OEM customers.
Above 50MA
37.18%
Net New Highs
+51081