Richardson Electronics Ltd (RELL) Stock Analysis — PE Ratio, PS Ratio, Intrinsic Value & 2030 Price Target
Richardson Electronics Ltd stock (RELL) is currently trading at $11.57. Richardson Electronics Ltd PE ratio is 231.40. Richardson Electronics Ltd PS ratio (Price-to-Sales) is 0.79. Analyst consensus price target for RELL is $12.00. WallStSmart rates RELL as Hold.
- RELL PE ratio analysis and historical PE chart
- RELL PS ratio (Price-to-Sales) history and trend
- RELL intrinsic value — DCF, Graham Number, EPV models
- RELL stock price prediction 2025 2026 2027 2028 2029 2030
- RELL fair value vs current price
- RELL insider transactions and insider buying
- Is RELL undervalued or overvalued?
- Richardson Electronics Ltd financial analysis — revenue, earnings, cash flow
- RELL Piotroski F-Score and Altman Z-Score
- RELL analyst price target and Smart Rating
Richardson Electronics
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RELL Intrinsic Value Analysis for Value Investors
Benjamin Graham Formula · Richardson Electronics Ltd (RELL)
RELL trades 515% above its Graham fair value of $2.34, indicating the stock may be overvalued at current levels.
Based on Benjamin Graham Formula. Growth rate capped at 25%. For informational purposes only. Not financial advice.
Smart Analysis
Richardson Electronics Ltd (RELL) · 10 metrics scored
Smart Score
Category Performance
WallStSmart pulls financial metrics like revenue growth, profit margins, and valuation ratios and scores each one from 0 to 10 based on how strong or weak it is. Those 10 scores are grouped into 4 categories: Growth, Profitability, Valuation, and Quality — which form the 4 axes of the spider chart you see. The categories are then combined into a final score out of 100, but not equally. Growth and Profitability together count for 60% of the total, because a fast-growing profitable business matters more than just a cheap one. That final number maps to a rating (Strong Buy, Buy, Hold, Avoid) and a letter grade, giving you one clear Stock Rating.
Investment Thesis
Strong fundamentals in peg ratio, price/sales, price/book. Concerns around market cap and return on equity. Fundamentals are solid but monitor weak areas for improvement.
Richardson Electronics Ltd (RELL) Key Strengths (5)
Growing significantly faster than its price suggests
Paying less than $1 for every $1 of annual revenue
Earnings per share surging 221.10% year-over-year
Trading at 1.06x book value, attractively priced
67.18% held by institutions, strong professional interest
Supporting Valuation Data
Richardson Electronics Ltd (RELL) Areas to Watch (5)
Very low returns on shareholder equity
Near-zero operating margins, business under pressure
Very thin margins, barely profitable
Micro-cap company with very limited liquidity and high volatility
Modest revenue growth at 5.70%
Supporting Valuation Data
Richardson Electronics Ltd (RELL) Detailed Analysis Report
Overall Assessment
This company scores 59/100 in our Smart Analysis, earning a C grade. Out of 10 metrics analyzed, 5 register as strengths (avg 9.2/10) while 5 fall into concern territory (avg 2.2/10). The category breakdown reveals uneven performance, with some areas requiring attention.
The Bull Case
The strongest argument centers on PEG Ratio, Price/Sales, EPS Growth. Valuation metrics including PEG Ratio (0.84), Price/Sales (0.79), Price/Book (1.06) suggest the stock is attractively priced. Growth metrics are encouraging with EPS Growth at 221.10%.
The Bear Case
The primary concerns are Return on Equity, Operating Margin, Profit Margin. Growth concerns include Revenue Growth at 5.70%, which may limit upside. Profitability pressure is visible in Return on Equity at 0.51%, Operating Margin at 0.26%, Profit Margin at 0.38%.
Key Dynamics to Monitor
Three factors to monitor going forward. First, whether Return on Equity improves, as this is the primary drag on the overall score. Second, margin trajectory, with Return on Equity at 0.51% needing improvement to support the investment thesis. Third, growth sustainability, with Revenue Growth at 5.70% needing to reaccelerate.
Risk Considerations
Based on the metric profile, this is a moderate-to-high risk investment. Strengths and concerns are roughly balanced. Investors should size positions according to their risk tolerance and maintain diversification.
Bottom Line
Mixed fundamentals with both positives (PEG Ratio, Price/Sales) and negatives (Return on Equity, Operating Margin). A cautious approach is warranted. Monitor for improvement in weak areas before increasing conviction.
Disclaimer: Smart Analysis is a scoring system developed by WallStSmart Team. Scores update daily using multi-model valuation framework. Always conduct your own research and consult with financial advisors before making investment decisions.
RELL Price-to-Sales(PS) Ratio Chart
Historical valuation based on market cap ÷ trailing 12-month revenue
RELL's Price-to-Sales ratio of 0.79x trades at a 44% premium to its historical average of 0.55x (67th percentile). The current valuation is 32% below its historical high of 1.17x set in Jul 2011, and 1029% above its historical low of 0.07x in Feb 2009.
WallStSmart Analysis Synopsis
Data-driven financial summary for Richardson Electronics Ltd (RELL) · TECHNOLOGY › ELECTRONIC COMPONENTS
The Big Picture
Richardson Electronics Ltd is a mature, profitable business with steady cash generation. Revenue reached 213M with 6% growth year-over-year. Profit margins are strong at 38.0%, reflecting pricing power and operational efficiency.
Key Findings
ROE of 51.0% means the company generates strong returns on shareholder equity. Above 20% is considered top-tier.
Profit margin of 38.0% and operating margin of 26.0% demonstrate strong pricing power and operational efficiency.
Free cash flow is -2M, meaning the company is burning cash. This may be acceptable for high-growth companies investing heavily.
What to Watch Next
Valuation compression risk at a P/E of 231.4x. Any growth miss could trigger a sharp correction.
Sector dynamics: monitor ELECTRONIC COMPONENTS industry trends, competitive moves, and regulatory changes that could impact Richardson Electronics Ltd.
Bottom Line
Richardson Electronics Ltd is a well-established business delivering consistent profitability with 38.0% margins. The growth phase may be slowing, but strong cash generation and operational efficiency make it suitable for investors seeking reliability over excitement.
This synopsis is generated from publicly available financial data. It is not financial advice. Always conduct your own research and consult a qualified financial advisor before making investment decisions.
Insider Transactions
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About Richardson Electronics Ltd(RELL)
NASDAQ
TECHNOLOGY
ELECTRONIC COMPONENTS
USA
Richardson Electronics, Ltd. is engaged in microwave and power technologies, custom display solutions, and healthcare equipment businesses in North America, Asia Pacific, Europe, and Latin America. The company is headquartered in LaFox, Illinois.