Richardson Electronics, Ltd. (RELL) Market Cap
Richardson Electronics, Ltd. has a market capitalization of $204.9M.
Financials based on reported quarter end 2026-02-28
Price: $14.16
▲ 0.51 (3.74%)
Market Cap: 204.92M
NASDAQ · time unavailable
CEO: Edward J. Richardson
Sector: Technology
Industry: Hardware, Equipment & Parts
IPO Date: 1983-10-28
Website: https://www.rell.com
Richardson Electronics, Ltd. (RELL) - Company Information
Market Cap: 204.92M · Sector: Technology
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.
Analyst Sentiment
Based on 1 ratings
Analyst 1Y Forecast: $12.50
Average target (based on 1 sources)
Consensus Price Target
Low
$14
Median
$14
High
$14
Average
$14
Downside: -1.1%
Price & Moving Averages
Fundamentals Overview
📊 AI Financial Analysis
Powered by StockMarketInfo"Headline (most recent quarter, 2026-02-28): Revenue $55.47M and Net Income $0.89M (EPS $0.0623). QoQ (vs 2025-11-29) Revenue rose +6.1%, and Net Income improved from a loss (-$0.12M) to profit (+$0.89M). YoY growth for Revenue and Net Income was not computable from the provided dataset because the same fiscal quarter from the prior year is not included. Across the last four reported quarters, profitability has been volatile: Net Income moved from +$1.08M (2025-05-31) to +$1.91M (2025-08-30), then swung to a small loss (-$0.12M, 2025-11-29) before rebounding to +$0.89M (2026-02-28). The latest net margin is ~1.6% (0.89/55.47), up versus the prior quarter’s ~-0.2% margin, indicating margin expansion sequentially but not a smooth multi-quarter trend. Cash flow quality is mixed: Free Cash Flow (FCF) was negative in three of four quarters (latest FCF -$3.41M) despite a one-off positive quarter in 2025-08-30 (+$0.34M). Dividends remain steady at $0.06/share each quarter, and the payout ratio is very high (~96%) in the latest period—suggesting dividend coverage is currently tight if earnings/FCF softness persists. Total shareholder returns appear strong, driven primarily by price momentum (+60% over 1 year) with a modest yield (~0.56%). The consensus price target ($14) implies ~5% upside vs $13.28."
Revenue Growth
QoQ Revenue increased +6.1% in the latest quarter (55.47M vs 52.29M). YoY growth for the same quarter last year cannot be determined from the provided history.
Profitability
Sequential margin expanded: net income improved from -$0.12M to +$0.89M (net margin ~-0.2% to ~1.6%). Over four quarters, profitability was volatile (from +$1.91M to a loss back to profit).
Cash Flow Quality
FCF is negative in 3 of 4 quarters; latest FCF -$3.41M. Dividends are paid consistently, but latest payout ratio (~96%) indicates coverage risk if FCF remains weak.
Leverage & Balance Sheet
Balance sheet looks resilient with net cash (netDebt negative) and high equity: total assets ~200M and equity ~160M. Assets and equity were broadly stable QoQ (assets slightly down; equity slightly up).
Shareholder Returns
Strong capital appreciation: 1-year price change +60% (well above 20% threshold). Dividend yield is low (~0.56%), so total return appears primarily price-driven.
Analyst Sentiment & Valuation
Consensus target $14 vs current ~$13.28 suggests limited upside (~5%). Valuation multiples appear elevated in profitable quarters (P/E ~19–43), though P/E is distorted in the loss quarter.
Disclaimer:This analysis is AI-generated for informational purposes only. Accuracy is not guaranteed and this does not constitute financial advice.
RELL delivered Q3 2026 upside across revenue growth and profitability, led by PMT. Sales rose to $55.5M (+3.1% YoY) with consolidated gross margin expanding 90 bps to 31.9%. Operating income swung to $1.5M from a prior-year operating loss, aided by gross margin discipline and operating expense control despite higher staffing/incentives. PMT grew 9.7% YoY (14.5% excluding the legacy healthcare comparison), driven by semiconductor wafer fab and RF/microwave components tied to satcom/radar/microwave end markets. GES showed solid backlog momentum despite Q3 sales softness from project timing (-5.4% YoY), with backlog described as ~$40M and shipments pulling ~$8M from current orders. Key commercial traction includes PEM module adoption with the top four GE Wind owner-operators (RWE, Invenergy, Enel, NextEra) and a first BES program booked in Q3 shipping in Q4. Management flagged risks from precious-metals component lead times and quarter-to-quarter project timing, while noting tariffs/Iran have not yet materially impacted demand. Backlog increased to $151.2M, supporting confidence into Q4 and fiscal 2027.
Growth Catalysts
- PMT momentum: semiconductor fab equipment market and RF/wireless components (satcom, radar, microwave communications)
- Enterprise focus on design-to-production cycle acceleration (LaFox design/manufacturing/testing; more products moved from concept into production)
- GRES/Green Energy Solutions: stronger adoption of PEM modules across wind platforms; first BES program booked in Q3 shipping in Q4
- BES strategy building pipeline for fiscal 2027 (LaFox BES design center launching in fiscal 2027; commercial/industrial storage demand for resiliency and power quality)
- Laser Slot Saver solution (March launch): customer requests for data/info; show/booth feature planned this quarter (infant stage adoption)
Business Development
- Exclusive partnerships with top four GE Wind turbine owner-operators: RWE, Invenergy, Enel, NextEra
- New multi-brand PEM platform expansion into Europe/Asia with turbine platforms: Suzlon, Senvion, Nordex, SSB
- Orders/rollout indications across countries: Brazil, Australia, India, France, Italy (in addition to North America)
- BES: first BES program booked in Q3, beginning to ship in Q4
- BES technology partnership (named only as partners): one supporting Americas and one supporting globally (used for quotes and implementation)
- Canvas: orders from repeat and new medical OEM customers (robotic-assisted surgery, navigation, human-machine interface solutions)
Financial Highlights
- Total sales: $55.5M vs $53.8M prior-year Q3 (+3.1% YoY)
- Excluding healthcare (mostly sold Jan 2025): net sales +6.0% YoY; healthcare results consolidated into PMT in fiscal 2026
- PMT net sales: $38.7M (+$3.4M YoY; +9.7%); excluding healthcare PMT +14.5%
- GES sales: $0.5M below 2025 due to project timing
- Canvas revenues: $8.0M vs $9.2M prior-year Q3; year-to-date $25.0M vs $23.7M (+) with quarter softness driven by project timing in North America
- Consolidated gross margin: 31.9% vs 31.0% prior-year Q3 (+90 bps)
- Operating income: $1.5M vs operating loss of $2.7M prior-year Q3; non-GAAP operating income: $2.2M in prior-year quarter
- Operating expenses: $16.2M vs $14.5M prior-year Q3 (higher salaries/incentives, medical benefits, travel; prior year described as historically low)
- Net income: $0.9M vs net loss of $2.1M prior-year; diluted EPS: $0.07 vs -$0.15 prior-year
- EBITDA: $2.2M vs -$2.1M prior-year quarter
- First nine months FY26: gross margin 31.2% (+40 bps vs FY25); operating expenses as % of sales improved to 29.6% from 29.7%
- First nine months FY26: net income $2.7M ($0.19 diluted EPS) vs net loss $2.2M ($0.16 diluted EPS) prior year; EBITDA $6.2M vs -$0.5M
- No meaningful Iran/tariff impact to business/markets at time of call (still monitored); supply lead times for components due to precious metals constraints cited as a factor for GES timing
Capital Funding
- Cash and cash equivalents: $29.5M at end of Q3 2026 (vs $33.1M at prior fiscal year end per CFO remarks; decrease due to higher inventory tied to final buys from a critical supplier)
- Capital expenditures: $0.8M in FY26 (vs $0.5M in FY25)
- Cash dividends: $0.9M paid in Q3; board declared regular quarterly dividend of $0.06 per common share to be paid in FY26 (as stated)
- Debt: no outstanding debt on revolving line of credit with PNC Bank
Strategy & Ops
- Inventory investment around a single critical supplier is complete; inventory trending down without that supplier; alternative suppliers identified with enough lead time to protect continuity/quality
- Cost-control / AI initiative: enterprise-wide AI steering committee with working groups; planned 90-day period to exit with early wins and a roadmap focused on high-ROI use cases (milestone-driven; minimal incremental cost expected)
- Design/engineering capacity expansion: adding experienced industry talent; expanding design capabilities in LaFox
- Illinois-based design center intended to showcase BES solutions expected to come online later than planned: now more likely in Q1 fiscal 2027 (was expected to be operating in Q4 fiscal 2026)
- Healthcare program execution (now under PMT): production wrapped up for Alta tubes; now focused on repairing Siemens tubes; limited Straton Z repairs shipped; life testing completed for MX series; building beta tubes requiring at least 60 days field test before broader launch
Market Outlook
- Backlog increased to $151.2M at quarter end (confidence into final quarter of fiscal year)
- GES backlog: ~$40M close to end of Q3 (described as strong; built over past four years on products not existing then); CFO/management indicated confidence for Q4 with Q2-type growth aspiration in Q4 and double-digit growth into fiscal 2027
- PMT: management citing continued optimism from semi fab customers for growth into fiscal 2027
- Canvas: backlog $38.2M at end of period (up from $38.0M end of Q2); Q4 forecast described as “very promising” and belief in strong fiscal year finish
- No explicit numerical EPS/revenue guidance provided in transcript
Risks & Headwinds
- Project timing volatility: GES and Canvas described as project-based and difficult to forecast quarter-to-quarter (GES Q3 down 5.4% YoY; Canvas lower quarter revenue due to program timing)
- Lead time extension for certain components due to precious metals supply constraints (affecting GES component business timing/mix)
- Backlog pull dynamics: annual contracts allow customers to pull quantities unevenly across the year based on weather/wind speeds; makes revenue timing uncertain even if backlog stays flat
- Trade environment uncertainty: Iran developments and evolving tariff environment monitored; management stated no significant impact yet
Sentiment: POSITIVE
Note: This summary was synthesized by AI from the RELL Q3 2026 earnings transcript. Financial data is complex; please verify all metrics against official SEC filings before making investment decisions.