Richardson Electronics, Ltd. (RELL) AI Stock Analysis

Richardson Electronics, Ltd. operates across North America, the Asia Pacific, Europe, and Latin America through three primary segments. Its Power and Microwave Technologies Group delivers engineered solutions including power grid and microwave tubes, technical services, and RF and microwave components for applications like broadcast transmission, radar, CO2 laser cutting, diagnostic imaging, plasma, and radiation oncology. The Canvys segment supplies customized display systems such as touch screens, protective panels, all-in-one computers, specialized enclosures, and application-specific software to corporate, financial, healthcare, and industrial OEMs. The Healthcare segment manufactures and distributes diagnostic imaging replacement parts for CT and MRI systems, including replacement tubes, coils, cold heads, and flat panel detector upgrades.

Over a five-year period from FY2021 to FY2026, Richardson Electronics generated a revenue compound annual growth rate of 5.3%. After reaching $262.7M in FY2023, revenue fell 25.2% to $196.5M in FY2024, before recovering to $208.9M in FY2025 and $228.6M in FY2026. Gross margin stood at 31.2% in FY2026, compared to 31.0% in FY2025 and 28.3% in FY2024. Operating margin recovered from -1.2% in FY2025 to 2.8% in FY2026, yielding net income of $6.4M and diluted earnings per share of $0.40. Momentum continued into the latest quarter ended August 31, 2026, where quarterly revenue growth reached 18.9% year-over-year and quarterly earnings growth reached 106.0%.

As of August 31, 2026, Richardson Electronics held $36.9M in cash and short-term investments against total debt of $3.5M, resulting in a net cash position of $33.4M. The balance sheet shows a debt-to-equity ratio of 0.02 and a current ratio of 4.65, with shareholders' equity of $169.2M across $211.7M in total assets. In FY2026, operating cash flow was $762,000, while capital expenditures reached $4.4M, resulting in free cash flow of -$3.6M. Cash distributions included $3.4M paid in dividends, alongside a 5.6% reduction in share count over five years.

At a share price of $18.33, Richardson Electronics trades at a trailing price-to-earnings ratio of 31.6x and a forward P/E of 44.4x, compared to medians of 28.1x and 18.8x for its US-listed Technology peers. Its enterprise value-to-EBITDA multiple is 24.1x versus the peer median of 16.6x, while its price-to-sales ratio of 1.1x is below the peer median of 2.8x. Over the past year, the stock returned 64.3%, outperforming the S&P 500 return of 16.8%. Over a five-year period, the stock gained 65.6% compared to 83.0% for the S&P 500.

Richardson Electronics pays a quarterly dividend with an annualized forward rate of $0.24 per share, offering a dividend yield of 1.31%. The company has maintained consecutive dividend payments for 39 years, with a five-year annualized dividend growth rate of 0.0%. The trailing payout ratio stands at 44.4%, with the most recent ex-dividend date on November 6, 2026.

Wall Street coverage tracked includes 1 Strong Buy rating, 0 Buy ratings, 0 Hold ratings, and 0 Sell ratings. The mean price target is $25.50, representing an upside of 39.1% relative to the closing price of $18.33. For the fiscal year ending May 31, 2027, consensus estimates forecast EPS of $0.78, indicating 95.0% growth, on revenue of $257.6M. Richardson Electronics has beaten EPS estimates in each of the last 4 quarters.

This page is an AI-written research summary of Richardson Electronics, Ltd. (RELL). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

Related: RELL income statement, RELL balance sheet, RELL key metrics, RELL analyst forecast, RELL chart. See the RELL stock overview for the latest quote and news.