Richardson Electronics Ltd. Common Stock (RELL)

FairStock Score: 37/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for businesses that earn high returns on capital and can be bought below intrinsic value. Richardson is a 392-employee supplier of engineered power, microwave tube, and RF components. In fiscal 2026 ended 2026-05-30, revenue was $228.6M and net income $6.4M, a thin 2.8% net margin. That followed a fiscal 2025 loss of $1.1M, so FairStock rightly labels it a TURNAROUND. The latest filed quarter, fiscal Q1 2027 ended 2026-08-29, showed revenue of $64.9M and net income of $4.1M, versus revenue of $54.6M and net income of $1.9M in fiscal Q1 2026. That is real progress. The balance sheet is conservative: debt/equity of 0.01 and an Altman Z-Score of 6.10. But the quality metrics are weak: ROE 3.98%, ROCE 1.77%, Piotroski 6/9, and trailing free cash flow of -$3.6M. At the 2026-10-13 close of $21.28, FairStock shows a P/E of 48.36, P/B of 1.90, EV/EBITDA of 26.20, and a Graham Number of $10.53, implying a -102.09% margin of safety. The PEG ratio of 0.20 is only attractive if the growth is durable, and I am not convinced. FairStock Score is 37/100. This is not a cheap, high-return compounder today; it is a low-debt turnaround that must keep improving margins and turn free cash flow positive before the price looks justified to a Graham-style investor.

In plain English: Richardson Electronics makes specialized electronic parts and tubes for power, microwave, and industrial equipment. The business has moved from a loss back to a small profit, and the most recent filed quarter showed more sales and profit than a year earlier. However, at $21.28, the stock looks expensive compared with its current earnings, accounting value, and a conservative value estimate, and the company is burning cash.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q1 2027 10-Q (period ended 2026-08-29) · fiscal Q3 2026 10-Q (period ended 2026-02-28) · fiscal Q2 2026 10-Q (period ended 2025-11-29) · fiscal Q1 2026 10-Q (period ended 2025-08-30) · FY2026 10-K (period ended 2026-05-30) · FY2025 10-K (period ended 2025-05-31) · FY2024 10-K (period ended 2024-06-01)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer