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Richardson Electronics

RELL
35
Hardware, Equipment & Parts · Technology
Price
$17.21
-0.30 (-1.71%)
Market Cap
$251.7M
Exchange
NASDAQ
Winston Score
35
Winston is serious
Below-average fundamentals — multiple weak pillars.
Data as of Aug 23, 2026 · filings through May 30, 2026
How the score breaks down
Quality
Weak
Growth
Good
Cash Flow
Weak
Stability
Good
Valuation
Weak
Dividends
Weak

Share count falling — buybacks

7.4% over 4y

The company has reduced its share count over this period, returning value to shareholders through buybacks.

Diluted shares outstanding: 13.7M (2022) → 12.7M (2026)

Winston Score History

The full picture

Richardson Electronics sells specialized electronic components and power systems to industrial and medical customers around the world. The company focuses on hard-to-find parts — like power tubes, displays, and energy storage systems — that most large distributors do not carry. It serves industries including healthcare, defense, transportation, and industrial manufacturing.

Richardson makes money by buying and reselling niche electronic components, and it also designs and sells its own products, including battery energy storage systems under its Green Solutions segment. The company operates globally, with customers across North America, Europe, and Asia, and generates roughly $200 million in annual revenue. Its competitive edge comes from deep expertise in obsolete and specialty components that larger competitors ignore, but thin operating margins and dependence on a small number of product lines mean any slowdown in industrial or medical spending could quickly pressure profitability.

Growth Profile

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+27.6% YoY

YoY Growth Rate

Revenue accelerating

EPS Growth

+210.0% YoY

YoY Growth Rate

EPS growth accelerating

R&D Spend

$0/ year

0.0% of revenue

Below sector average (15%)

Research and development spending

Insider Activity

17.6%ownership

Rising

Insiders increasing their stake — aligned with shareholders

Cash Runway

~20 months

$32M cash & investments

Quarterly Free Cash Flow

↓ Burn rate worsening

Adequate runway but may need to raise capital within 2 years

Revenue accelerating

Richardson Electronics grew revenue 28% year-over-year and the growth rate is speeding up. That's the kind of momentum growth investors look for — the question is whether margins can follow.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

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Quality

Profit per sale
Gross Margin
31.2%
Modest — 31.2% gross margin
Profit after running costs
Operating Margin
5.8%
Thin — 5.8% operating margin
Return on the money invested
ROCE
3.9%
Weak — 3.9% return on capital

ROIC between 0% and 5%. They earn a few cents back per dollar invested in the business.

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Growth

Sales growth
Sales YoY
+9.4%
Steady sales growth (+9.4% YoY)
Profit growth
EPS YoY
N/A
Data not available
How steady the profit is
EPS Consistency
6/8 quarters
Earnings grew in most of the last 8 quarters

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Cash Flow

Profit that turns into cash
Cash Conversion
-81%
Weak — only -81% of profit becomes cash
Spare cash per sale
FCF Margin
-4.2%
Burning cash (-4.2%)

Free cash flow is negative. They are burning cash, not generating it.

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Stability

What it owes vs what it owns
Debt / Equity
N/A
Data not available
Covers its interest
Interest Cover
100.00x
Comfortably covers interest (100.0x)

Interest coverage above 8. Profits cover interest many times over.

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Valuation

Price vs profit
P/E Ratio (TTM)
38.0x
Pricey — P/E 38.0

P/E over 35. The market is pricing in heavy, sustained growth.

Cheaper or dearer next year
P/E vs Forward
-1.8
SLOWING
Earnings expected to fall — forward P/E higher than today

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Dividends

Dividend
Dividend Yield
1.35%
Small dividend — 1.35% yield

Modest yield. The bulk of any return needs to come from price appreciation.

Dividend record
Dividend Growth
+0.0%
Dividend flat

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