Why is Richardson Electronics Ltd. ?
1
Company has a low Debt to Equity ratio (avg) at times
2
With a growth in Net Sales of 1.55%, the company declared Very Positive results in May 25
- OPERATING CASH FLOW(Y) Highest at USD 10.54 MM
- DIVIDEND PAYOUT RATIO(Y) Highest at 68.89%
- RAW MATERIAL COST(Y) Fallen by -1.6% (YoY)
3
With ROE of -1.53%, it has a risky valuation with a 0.87 Price to Book Value
- Over the past year, while the stock has generated a return of -27.79%, its profits have fallen by -189.3%
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, Low Return
Absolute
Risk Adjusted
Volatility
Richardson Electronics Ltd.
-26.02%
-0.21
46.74%
S&P 500
13.22%
0.61
20.17%
Quality key factors
Factor
Value
Sales Growth (5y)
6.03%
EBIT Growth (5y)
29.16%
EBIT to Interest (avg)
8.96
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.23
Sales to Capital Employed (avg)
1.40
Tax Ratio
35.69%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
85.72%
ROCE (avg)
7.83%
ROE (avg)
5.53%
Valuation Key Factors 
Factor
Value
P/E Ratio
NA (Loss Making)
Industry P/E
Price to Book Value
0.86
EV to EBIT
56.67
EV to EBITDA
16.56
EV to Capital Employed
0.82
EV to Sales
0.47
PEG Ratio
NA
Dividend Yield
258.34%
ROCE (Latest)
1.45%
ROE (Latest)
-1.53%
Technical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Bearish
RSI
Bearish
No Signal
Bollinger Bands
Bullish
Bearish
Moving Averages
Mildly Bullish (Daily)
KST
Bullish
Bearish
Dow Theory
No Trend
Mildly Bearish
OBV
No Trend
No Trend
Technical Movement
15What is working for the Company
OPERATING CASH FLOW(Y)
Highest at USD 10.54 MM
DIVIDEND PAYOUT RATIO(Y)
Highest at 68.89%
RAW MATERIAL COST(Y)
Fallen by -1.6% (YoY
DEBT-EQUITY RATIO
(HY)
Lowest at -21.46 %
PRE-TAX PROFIT(Q)
Highest at USD 1.96 MM
NET PROFIT(Q)
Highest at USD 1.07 MM
EPS(Q)
Highest at USD 0.09
-6What is not working for the Company
NET PROFIT(HY)
At USD -0.98 MM has Grown at -255.63%
ROCE(HY)
Lowest at -0.73%
Here's what is working for Richardson Electronics Ltd.
Pre-Tax Profit
At USD 1.96 MM has Grown at 316.18%
over average net sales of the previous four periods of USD -0.91 MMMOJO Watch
Near term Pre-Tax Profit trend is very positive
Pre-Tax Profit (USD MM)
Net Profit
At USD 1.07 MM has Grown at 284%
over average net sales of the previous four periods of USD -0.58 MMMOJO Watch
Near term Net Profit trend is very positive
Net Profit (USD MM)
Operating Cash Flow
Highest at USD 10.54 MM and Grown
In each year in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (USD MM)
Pre-Tax Profit
Highest at USD 1.96 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (USD MM)
Net Profit
Highest at USD 1.07 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is positive
Net Profit (USD MM)
EPS
Highest at USD 0.09
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (USD)
Debt-Equity Ratio
Lowest at -21.46 %
in the last five Semi-Annual periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Dividend Payout Ratio
Highest at 68.89%
in the last five yearsMOJO Watch
Company is distributing higher proportion of profits generated as dividend
DPR (%)
Raw Material Cost
Fallen by -1.6% (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






