RICHARDSON ELEC LTD (RELL) Stock Fundamental Analysis
NASDAQ:RELL - Nasdaq - US7631651079 - Common Stock - Currency: USD
Overall RELL gets a fundamental rating of 5 out of 10. We evaluated RELL against 124 industry peers in the Electronic Equipment, Instruments & Components industry. While RELL has a great health rating, its profitability is only average at the moment. RELL is valued expensive and it does not seem to be growing.
1. Profitability
1.1 Basic Checks
RELL had positive earnings in the past year.
RELL had a positive operating cash flow in the past year.
RELL had positive earnings in 4 of the past 5 years.
RELL had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
RELL has a Return On Assets (0.24%) which is comparable to the rest of the industry.
RELL has a Return On Equity (0.30%) which is in line with its industry peers.
RELL has a Return On Invested Capital (0.22%) which is in line with its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for RELL is below the industry average of 8.95%.
The last Return On Invested Capital (0.22%) for RELL is well below the 3 year average (5.83%), which needs to be investigated, but indicates that RELL had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.24% | ||
| ROE | 0.3% | ||
| ROIC | 0.22% |
ROA(3y)7.08%
ROA(5y)4.23%
ROE(3y)9.07%
ROE(5y)5.42%
ROIC(3y)5.83%
ROIC(5y)N/A
1.3 Margins
RELL's Profit Margin of 0.23% is in line compared to the rest of the industry. RELL outperforms 50.00% of its industry peers.
RELL's Profit Margin has declined in the last couple of years.
RELL's Operating Margin of 0.26% is in line compared to the rest of the industry. RELL outperforms 46.67% of its industry peers.
RELL's Operating Margin has declined in the last couple of years.
RELL has a Gross Margin of 30.50%. This is comparable to the rest of the industry: RELL outperforms 50.00% of its industry peers.
In the last couple of years the Gross Margin of RELL has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 0.26% | ||
| PM (TTM) | 0.23% | ||
| GM | 30.5% |
OM growth 3Y-56.27%
OM growth 5YN/A
PM growth 3Y-68.15%
PM growth 5YN/A
GM growth 3Y-2.8%
GM growth 5Y-0.32%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), RELL is destroying value.
The number of shares outstanding for RELL has been increased compared to 1 year ago.
The number of shares outstanding for RELL has been increased compared to 5 years ago.
RELL has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
RELL has an Altman-Z score of 5.38. This indicates that RELL is financially healthy and has little risk of bankruptcy at the moment.
RELL has a Altman-Z score of 5.38. This is in the better half of the industry: RELL outperforms 76.67% of its industry peers.
There is no outstanding debt for RELL. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 5.38 |
ROIC/WACC0.02
WACC9.06%
2.3 Liquidity
RELL has a Current Ratio of 4.51. This indicates that RELL is financially healthy and has no problem in meeting its short term obligations.
With a decent Current ratio value of 4.51, RELL is doing good in the industry, outperforming 75.83% of the companies in the same industry.
RELL has a Quick Ratio of 1.49. This is a normal value and indicates that RELL is financially healthy and should not expect problems in meeting its short term obligations.
RELL has a Quick ratio of 1.49. This is in the lower half of the industry: RELL underperforms 60.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.51 | ||
| Quick Ratio | 1.49 |
3. Growth
3.1 Past
The earnings per share for RELL have decreased strongly by -95.52% in the last year.
Measured over the past years, RELL shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -67.29% on average per year.
Looking at the last year, RELL shows a very negative growth in Revenue. The Revenue has decreased by -10.16% in the last year.
Measured over the past years, RELL shows a small growth in Revenue. The Revenue has been growing by 3.34% on average per year.
EPS 1Y (TTM)-95.52%
EPS 3Y-67.29%
EPS 5YN/A
EPS Q2Q%61.54%
Revenue 1Y (TTM)-10.16%
Revenue growth 3Y3.56%
Revenue growth 5Y3.34%
Sales Q2Q%12.15%
3.2 Future
No EPS estimates are available, so we could not analyze the future EPS growth and evolution.
RELL is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 12.08% yearly.
EPS Next YN/A
EPS Next 2YN/A
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year12.88%
Revenue Next 2Y12.08%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
No EPS estimates are available, so we could not analyze the future EPS growth and evolution.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 434.00 indicates a quite expensive valuation of RELL.
RELL's Price/Earnings is on the same level as the industry average.
RELL is valuated expensively when we compare the Price/Earnings ratio to 29.63, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 15.57 indicates a correct valuation of RELL.
RELL's Price/Forward Earnings ratio is rather cheap when compared to the industry. RELL is cheaper than 83.33% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of RELL to the average of the S&P500 Index (22.68), we can say RELL is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 434 | ||
| Fwd PE | 15.57 |
4.2 Price Multiples
RELL's Enterprise Value to EBITDA is on the same level as the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of RELL indicates a somewhat cheap valuation: RELL is cheaper than 70.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.18 | ||
| EV/EBITDA | 34.58 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2YN/A
EPS Next 3YN/A
5. Dividend
5.1 Amount
RELL has a Yearly Dividend Yield of 1.80%.
RELL's Dividend Yield is rather good when compared to the industry average which is at 1.92. RELL pays more dividend than 93.33% of the companies in the same industry.
Compared to the average S&P500 Dividend Yield of 2.27, RELL is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.8% |
5.2 History
RELL has paid a dividend for at least 10 years, which is a reliable track record.
RELL has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)0%
Div Incr Years0
Div Non Decr Years16
5.3 Sustainability
RELL pays out 721.49% of its income as dividend. This is not a sustainable payout ratio.
DP721.49%
EPS Next 2YN/A
EPS Next 3YN/A
13.02
-0.32 (-2.4%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners72.4%
Inst Owner Change3.31%
Ins Owners3.36%
Ins Owner Change-4.84%
Market Cap187.62M
Analysts43.33
Price Target15.81 (21.43%)
Short Float %3.82%
Short Ratio7.07
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.8% |
Yearly Dividend0.24
Dividend Growth(5Y)0%
DP721.49%
Div Incr Years0
Div Non Decr Years16
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)173.53%
Min EPS beat(2)-145.1%
Max EPS beat(2)492.16%
EPS beat(4)3
Avg EPS beat(4)142.59%
Min EPS beat(4)-145.1%
Max EPS beat(4)492.16%
EPS beat(8)6
Avg EPS beat(8)-69.65%
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)0.54%
Min Revenue beat(2)-5.44%
Max Revenue beat(2)6.53%
Revenue beat(4)1
Avg Revenue beat(4)-2.62%
Min Revenue beat(4)-8.31%
Max Revenue beat(4)6.53%
Revenue beat(8)2
Avg Revenue beat(8)-4.29%
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)10.71%
EPS NQ rev (1m)-16%
EPS NQ rev (3m)-25%
EPS NY rev (1m)-16.67%
EPS NY rev (3m)-16.67%
Revenue NQ rev (1m)-1.87%
Revenue NQ rev (3m)0.17%
Revenue NY rev (1m)-0.36%
Revenue NY rev (3m)-0.36%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 434 | ||
| Fwd PE | 15.57 | ||
| P/S | 0.92 | ||
| P/FCF | 24.18 | ||
| P/OCF | 17.72 | ||
| P/B | 1.2 | ||
| P/tB | 1.21 | ||
| EV/EBITDA | 34.58 |
EPS(TTM)0.03
EY0.23%
EPS(NY)0.84
Fwd EY6.42%
FCF(TTM)0.54
FCFY4.13%
OCF(TTM)0.73
OCFY5.64%
SpS14.09
BVpS10.84
TBVpS10.73
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.24% | ||
| ROE | 0.3% | ||
| ROCE | 0.34% | ||
| ROIC | 0.22% | ||
| ROICexc | 0.26% | ||
| ROICexgc | 0.26% | ||
| OM | 0.26% | ||
| PM (TTM) | 0.23% | ||
| GM | 30.5% | ||
| FCFM | 3.82% |
ROA(3y)7.08%
ROA(5y)4.23%
ROE(3y)9.07%
ROE(5y)5.42%
ROIC(3y)5.83%
ROIC(5y)N/A
ROICexc(3y)7.46%
ROICexc(5y)N/A
ROICexgc(3y)7.59%
ROICexgc(5y)N/A
ROCE(3y)9.1%
ROCE(5y)N/A
ROICexcg growth 3Y-62.07%
ROICexcg growth 5YN/A
ROICexc growth 3Y-61.86%
ROICexc growth 5YN/A
OM growth 3Y-56.27%
OM growth 5YN/A
PM growth 3Y-68.15%
PM growth 5YN/A
GM growth 3Y-2.8%
GM growth 5Y-0.32%
F-Score5
Asset Turnover1.04
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 66.51% | ||
| Cap/Sales | 1.39% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 221.05% | ||
| Profit Quality | 1650.64% | ||
| Current Ratio | 4.51 | ||
| Quick Ratio | 1.49 | ||
| Altman-Z | 5.38 |
F-Score5
WACC9.06%
ROIC/WACC0.02
Cap/Depr(3y)128.71%
Cap/Depr(5y)103.11%
Cap/Sales(3y)2.09%
Cap/Sales(5y)1.78%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-95.52%
EPS 3Y-67.29%
EPS 5YN/A
EPS Q2Q%61.54%
EPS Next YN/A
EPS Next 2YN/A
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-10.16%
Revenue growth 3Y3.56%
Revenue growth 5Y3.34%
Sales Q2Q%12.15%
Revenue Next Year12.88%
Revenue Next 2Y12.08%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-93.72%
EBIT growth 3Y-54.71%
EBIT growth 5YN/A
EBIT Next Year644%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y183.87%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y311.72%
OCF growth 3Y98.83%
OCF growth 5YN/A