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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

Recent developments at Richardson Electronics, Ltd. have been favorable, with the company announcing its Q2 2026 earnings and declaring a quarterly cash dividend of $0.06 per share. Additionally, institutional investor AMH Equity Ltd purchased 80,000 shares, valued at approximately $783,000, according to its SEC filing. This investment, as reported on January 18, 2026, underscores the company's appeal to investors. Furthermore, the company's participation in the Benchmark 14th Annual Discovery One-on-One Investor Conference demonstrates its efforts to engage with investors and promote its growth prospects.

1.c. Company Highlights

2. Richardson Electronics Posts 6th Consecutive Quarter of Year-Over-Year Growth

Richardson Electronics achieved a total sales figure of $52.3 million in Q2 FY '26, representing a 5.7% increase from $49.5 million in the same quarter last year. The company's operating income improved significantly to $132,000, compared to a loss of $667,000 in the prior year. Earnings per share (EPS) came in at -$0.01, in line with analyst estimates. The company's cash position remains robust at $33.1 million. The growth was driven by the Green Energy and Canvys businesses, with sales increases of 39% and 28.1%, respectively.

Publication Date: Jan -09

📋 Highlights
  • 6-Quarter Growth Streak:: Q2 FY'26 sales reached $52.3M, up 5.7% YoY, driven by Green Energy (39% to $8.3M) and Canvys (28.1% to $8.8M).
  • Operating Profit Recovery:: Operating income turned positive at $132K, reversing a $667K loss in Q2 FY'25.
  • Strong Cash Position:: $33.1M in cash, with 70% held outside the U.S., supporting growth initiatives and dividend of $0.06/share.
  • GES Momentum:: Green Energy's book-to-bill ratio hit 1.10 in core business (95% of GES), aided by new customers and European/Asian expansion.
  • Inventory & AI Strategic Shift:: Near completion of EUR 1.5M inventory receipts from a critical supplier and launched an AI steering committee for efficiency gains.

Segment Performance

The Green Energy and Power Management segment (GES) reported sales of $8.3 million, a 39% increase over the prior year. The Power & Microwave Technologies Group (PMT) reported sales of $35.2 million, a 4% decrease over the prior year. Canvys reported revenues of $8.8 million, up 28.1% from the same quarter last year. The GES segment saw a book-to-bill ratio of 1.10 in its core business, driven by new customers and expansion into Europe and Asia.

Growth Initiatives and Outlook

The company is investing in infrastructure, expanding design and field engineering teams, and enhancing in-house design and manufacturing capabilities. It expects FY '26 to be another growth year for both PMT and GES. Richardson Electronics is optimistic about its growing project-based business and is well-positioned to benefit from growth in memory-related applications and the semi fab equipment market through 2026. Analysts estimate next year's revenue growth at 14.3%.

Valuation and Financial Metrics

With a P/S Ratio of 0.7 and an EV/EBITDA of 24.07, the company's valuation appears reasonable considering its growth prospects. The Dividend Yield is 2.33%, providing a relatively stable return for investors. The company's ROIC is 2.01%, and ROE is 0.51%, indicating room for improvement in capital efficiency. The Net Debt / EBITDA ratio is -6.46, reflecting the company's strong cash position.

Operational Highlights

The company is shifting towards more run-rate businesses, such as EDG and green energy, which will provide a steady annual flow through in top and bottom line. It has shipped batteries for electric trains and is now shipping starter modules on a regular run-rate basis. The electric locomotive product line is seeing a hybrid approach, and the company's starter modules are used in any train, whether it's diesel, electric or hybrid.

3. NewsRoom

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Richardson Electronics' Canvys Division Appoints Rainer Bornwasser as VP of Global Sales

Feb -03

Source: globenewswire.com

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80,000 Shares in Richardson Electronics, Ltd. $RELL Purchased by AMH Equity Ltd

Jan -18

Source: defenseworld.net

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Richardson Electronics: Right Strategy, Slow Payoff (Downgrade)

Jan -08

Source: seekingalpha.com

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Richardson Electronics, Ltd. (RELL) Q2 2026 Earnings Call Transcript

Jan -08

Source: seekingalpha.com

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Richardson Electronics Reports Second Quarter Results; Declares Quarterly Cash Dividend

Jan -07

Source: globenewswire.com

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Richardson Electronics (NASDAQ:RELL) Share Price Crosses Above 200 Day Moving Average – Here’s Why

Jan -07

Source: defenseworld.net

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Richardson Electronics Announces Date of Second Quarter Fiscal Year 2026 Conference Call

Dec -30

Source: globenewswire.com

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

Nov -26

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: 4.7/10

Value: 4.0

Growth: 4.8

Quality: 5.1

Yield: 0.0

Momentum: 9.5

Volatility: 5.0

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Ouster

A-Score: 4.4/10

Value: 6.4

Growth: 5.2

Quality: 4.7

Yield: 0.0

Momentum: 9.5

Volatility: 0.7

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Allient

A-Score: 4.2/10

Value: 2.9

Growth: 4.0

Quality: 4.5

Yield: 0.0

Momentum: 9.5

Volatility: 4.0

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Richardson Electronics

A-Score: 4.2/10

Value: 4.3

Growth: 5.9

Quality: 4.8

Yield: 4.0

Momentum: 2.0

Volatility: 4.0

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Methode Electronics

A-Score: 3.9/10

Value: 8.2

Growth: 1.6

Quality: 2.9

Yield: 7.0

Momentum: 1.5

Volatility: 2.0

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Research Frontiers

A-Score: 3.4/10

Value: 6.0

Growth: 4.6

Quality: 4.1

Yield: 0.0

Momentum: 3.5

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

11.57$

Current Price

11.57$

Potential

-0.00%

Expected Cash-Flows