Richardson Electronics Ltd. (RELL) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Richardson Electronics Ltd.

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Why is Richardson Electronics Ltd. ?

The company is Net-Debt Free

With a growth in Operating Profit of 194.74%, the company declared Outstanding results in Feb 26

The company has declared positive results for the last 4 consecutive quarters
PRE-TAX PROFIT(Q) At USD 1.2 MM has Grown at 373.27%
NET PROFIT(Q) At USD 0.89 MM has Grown at 343.18%
ROCE(HY) Highest at 2.4%

With ROE of 0.51%, it has a fair valuation with a 1.00 Price to Book Value

Over the past year, while the stock has generated a return of 91.61%, its profits have risen by 34% ; the PEG ratio of the company is 2.2

High Institutional Holdings at 75.95%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.

Market Beating Performance

The stock has generated a return of 91.61% in the last 1 year, much higher than market (S&P 500) returns of 22.24%

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to Richardson Electronics Ltd. should be less than 10%
Overall Portfolio exposure to Electronics & Appliances should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Electronics & Appliances)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Richardson Electronics Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Richardson Electronics Ltd.

91.61%

0.94

60.44%

S&P 500

22.24%

1.67

13.28%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

6.27%

EBIT Growth (5y)

42.77%

EBIT to Interest (avg)

8.96

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.23

Sales to Capital Employed (avg)

1.33

Tax Ratio

35.69%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

75.95%

ROCE (avg)

7.83%

ROE (avg)

5.53%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

158

Industry P/E

Price to Book Value

1.00

EV to EBIT

30.83

EV to EBITDA

15.87

EV to Capital Employed

1.00

EV to Sales

0.59

PEG Ratio

2.23

Dividend Yield

216.20%

ROCE (Latest)

3.23%

ROE (Latest)

0.51%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Mildly Bullish

Dow Theory

No Trend

Mildly Bearish

OBV

No Trend

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

22What is working for the Company

PRE-TAX PROFIT(Q)

At USD 1.2 MM has Grown at 373.27%

NET PROFIT(Q)

At USD 0.89 MM has Grown at 343.18%

ROCE(HY)

Highest at 2.4%

RAW MATERIAL COST(Y)

Fallen by -2.93% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 1.43 times

DEBTORS TURNOVER RATIO(HY)

Highest at 8.24 times

NET SALES(Q)

Highest at USD 55.47 MM

-2What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at USD -1.31 MM

Here's what is working for Richardson Electronics Ltd.

Pre-Tax Profit

At USD 1.2 MM has Grown at 373.27%

over average net sales of the previous four periods of USD 0.25 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (USD MM)

Net Profit

At USD 0.89 MM has Grown at 343.18%

over average net sales of the previous four periods of USD 0.2 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (USD MM)

Net Sales

Highest at USD 55.47 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (USD MM)

Inventory Turnover Ratio

Highest at 1.43 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Debtors Turnover Ratio

Highest at 8.24 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -2.93% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for Richardson Electronics Ltd.

Operating Cash Flow

Lowest at USD -1.31 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (USD MM)