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1. Company Snapshot

1.a. Company Description

Richardson Electronics, Ltd.engages in the power and microwave technologies, customized display solutions, and healthcare businesses in North America, the Asia Pacific, Europe, and Latin America.Its Power and Microwave Technologies Group segment provides engineered solutions, power grid and microwave tubes, and related consumables; technical services for microwave and industrial equipment; and power conversion and RF and microwave component for broadcast transmission, CO2 laser cutting, diagnostic imaging, dielectric and induction heating, high energy transfer, high voltage switching, plasma, power conversion, radar, and radiation oncology applications.


The company's Canvys segment provides custom display solutions, such as touch screens, protective panels, all-in-one computers, custom enclosures, specialized cabinet finishes, application specific software packages, and certification services to corporate enterprise, financial, healthcare, industrial, and medical original equipment manufacturer markets.Its Healthcare segment manufactures and distributes diagnostic imaging replacement parts for CT and MRI systems; replacement CT and MRI tubes; MRI coils, cold heads, and RF amplifiers; hydrogen thyratrons, klystrons, and magnetrons; flat panel detector upgrades; pre-owned CT systems; and additional replacement solutions, as well as offers CT service training.It serves hospitals, medical centers, asset management companies, independent service organizations, and multi-vendor service providers.


The company's products are used to control, switch, or amplify electrical power signals, as well as used as display devices in alternative energy, healthcare, aviation, communications, industrial, marine, medical, military, scientific, and semiconductor markets.The company was founded in 1947 and is headquartered in LaFox, Illinois.

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1.b. Last Insights on RELL

Richardson Electronics' recent performance was driven by strong Q1 earnings, beating estimates with $0.13 per share, a significant increase from $0.04 per share a year ago. The company's semiconductor wafer equipment business is experiencing a robust recovery, driving higher margins. Its Green Energy Solutions segment is expanding globally, with growth in wind turbine components and new product launches. With no debt and consistent positive cash flow, the company benefits from favorable government programs. RELL was added to the Zacks Rank #1 (Strong Buy) List, citing its strong earnings outlook.

1.c. Company Highlights

2. Richardson Electronics' Q1 2026 Earnings: A Resilient Performance

Richardson Electronics reported a revenue growth of 1.6% to $54.6 million in Q1 2026, driven primarily by the Power and Microwave Technologies (PMT) segment, which saw a 2.8% increase in sales. The company's earnings per share (EPS) came in at $0.13, significantly beating analyst estimates of $0.02. The company's gross margin was not explicitly stated, but the increase in sales and positive operating cash flow indicate a stable financial performance. With a cash position of $35.7 million, the company is well-positioned for future growth.

Publication Date: Nov -23

📋 Highlights
  • Total Sales Growth: Consolidated net sales rose to $54.6 million in Q1 2026, a 1.6% increase from $53.7 million in Q1 2025.
  • PMT Sales Surge: PMT sales hit $37.8 million, reflecting a 10.5% year-over-year growth driven by semiconductor and RF power segments.
  • Wind Turbine Core Growth: Core wind turbine business under PMT surged 86.1% year-over-year to $7.3 million in Q1 2026.
  • Positive Cash Flow: The company maintained six consecutive quarters of positive operating cash flow with $35.7 million in cash reserves.
  • CapEx Allocation: FY 2026 capital expenditures are projected at $5 million to support infrastructure and R&D investments.

Segmental Performance

The PMT segment delivered a notable performance, with sales increasing by 10.5% year-over-year to $37.8 million. This growth was driven by the semiconductor and RF power segments. The GES segment, however, saw a decline in sales due to a one-time order in Q1 2025. Excluding this order, GES sales would have been up quarter-over-quarter. The Canvas segment also reported an increase in revenue to $8.3 million.

Growth Prospects

The company is optimistic about its growth prospects, driven by its focus on power management applications, energy storage, and wind turbine repowering projects. The company is expanding its design and field engineering teams and investing in infrastructure to support its growing project-based business. With a strong backlog of $38.4 million, the company is well-positioned for future growth. As Gregory Peloquin noted, the company is seeing a pickup in the semis to have equipment manufacturing business and is growing substantially in that area.

Valuation

Richardson Electronics' current valuation metrics indicate a relatively high P/E ratio of 793.79, suggesting that the company's stock price may be driven by expectations of future growth. The P/S ratio of 0.67 and EV/EBITDA of 26.02 also indicate a premium valuation. However, the company's ROE of 0.11% and ROIC of 2.35% suggest that the company is not generating significant returns on its equity and invested capital. Analysts estimate next year's revenue growth at 1.7%, which may not be sufficient to justify the current valuation.

3. NewsRoom

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Richardson Electronics, Ltd. to Attend Benchmark 14th Annual Discovery One-on-One Investor Conference

Nov -26

Source: globenewswire.com

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Richardson Electronics Is Back On Track

Oct -13

Source: seekingalpha.com

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Best Income Stocks to Buy for Oct. 13th

Oct -13

Source: zacks.com

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Best Momentum Stock to Buy for Oct. 13th

Oct -13

Source: zacks.com

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New Strong Buy Stocks for Oct. 13: RELL, W, and More

Oct -13

Source: zacks.com

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Richardson Electronics, Ltd. (RELL) Q1 2026 Earnings Call Transcript

Oct -09

Source: seekingalpha.com

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Richardson Electronics (RELL) Beats Q1 Earnings and Revenue Estimates

Oct -08

Source: zacks.com

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Richardson Electronics Reports First Quarter Results; Declares Quarterly Cash Dividend

Oct -08

Source: globenewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (9.32%)

6. Segments

Power and Microwave Technologies

Expected Growth: 9.33%

Richardson Electronics' Power and Microwave Technologies segment growth of 9.33% is driven by increasing demand for high-power microwave devices in 5G infrastructure, rising adoption of electric vehicles, and growing need for advanced semiconductor manufacturing equipment. Additionally, the company's strategic acquisitions and expanded product offerings have contributed to its growth momentum.

Green Energy Solutions

Expected Growth: 10.27%

Richardson Electronics' Green Energy Solutions segment growth of 10.27% is driven by increasing demand for renewable energy sources, government incentives for sustainable projects, and the company's strategic expansion into emerging markets. Additionally, the segment benefits from the rising adoption of energy-efficient technologies and the growing need for reducing carbon footprint.

Canvys

Expected Growth: 8.5%

Canvys' 8.5% growth driven by increasing demand for customized display solutions in industrial, medical, and aerospace markets. Strong partnerships with OEMs, expanding product portfolio, and Richardson Electronics' global distribution network contribute to growth. Additionally, investments in technology and manufacturing capabilities enhance operational efficiency, further fueling growth.

Healthcare

Expected Growth: 7.9%

Richardson Electronics' 7.9% growth in Healthcare is driven by increasing demand for medical imaging and patient monitoring systems, expansion in emerging markets, and strategic partnerships with medical device manufacturers. Additionally, the company's focus on providing value-added services and solutions has contributed to its growth in this segment.

7. Detailed Products

Electron Tubes

Richardson Electronics offers a wide range of electron tubes for various applications, including broadcast, industrial, and medical uses.

Power Grid Tubes

Richardson Electronics provides power grid tubes for high-power applications, including broadcast, industrial, and medical uses.

Magnetrons

Richardson Electronics offers magnetrons for various applications, including industrial, medical, and scientific uses.

Klystrons

Richardson Electronics provides klystrons for high-power applications, including broadcast, industrial, and medical uses.

Thyratrons

Richardson Electronics offers thyratrons for high-power switching applications, including industrial and medical uses.

Solid-State RF Energy

Richardson Electronics provides solid-state RF energy solutions for various applications, including industrial, medical, and scientific uses.

RF and Microwave Components

Richardson Electronics offers a range of RF and microwave components, including amplifiers, antennas, and switches.

Display Solutions

Richardson Electronics provides display solutions, including LCD displays, touchscreens, and display controllers.

Custom Displays

Richardson Electronics offers custom display solutions for various applications, including industrial, medical, and consumer electronics.

8. Richardson Electronics, Ltd.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Richardson Electronics, Ltd. is medium due to the availability of alternative products and services in the market.

Bargaining Power Of Customers

The bargaining power of customers for Richardson Electronics, Ltd. is high due to the concentration of customers in the market and their ability to negotiate prices.

Bargaining Power Of Suppliers

The bargaining power of suppliers for Richardson Electronics, Ltd. is low due to the availability of multiple suppliers in the market and the company's ability to negotiate prices.

Threat Of New Entrants

The threat of new entrants for Richardson Electronics, Ltd. is medium due to the moderate barriers to entry in the market and the company's established brand reputation.

Intensity Of Rivalry

The intensity of rivalry for Richardson Electronics, Ltd. is high due to the high competition in the market and the company's need to differentiate itself from competitors.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 1.52%
Debt Cost 3.95%
Equity Weight 98.48%
Equity Cost 8.84%
WACC 8.77%
Leverage 1.54%

11. Quality Control: Richardson Electronics, Ltd. passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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FARO Technologies

A-Score: 4.8/10

Value: 3.9

Growth: 4.8

Quality: 5.1

Yield: 0.0

Momentum: 10.0

Volatility: 5.0

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Ouster

A-Score: 4.5/10

Value: 6.2

Growth: 5.3

Quality: 4.5

Yield: 0.0

Momentum: 10.0

Volatility: 0.7

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Allient

A-Score: 4.2/10

Value: 2.7

Growth: 4.0

Quality: 4.3

Yield: 0.0

Momentum: 10.0

Volatility: 4.0

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Richardson Electronics

A-Score: 4.0/10

Value: 3.9

Growth: 5.9

Quality: 4.8

Yield: 4.0

Momentum: 1.5

Volatility: 4.0

1-Year Total Return ->

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Methode Electronics

A-Score: 3.6/10

Value: 7.5

Growth: 1.6

Quality: 2.7

Yield: 7.0

Momentum: 1.0

Volatility: 2.0

1-Year Total Return ->

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Research Frontiers

A-Score: 2.9/10

Value: 6.0

Growth: 4.6

Quality: 3.8

Yield: 0.0

Momentum: 1.0

Volatility: 2.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

10.56$

Current Price

10.56$

Potential

-0.00%

Expected Cash-Flows