RELL:NASDAQRichardson Electronics, Ltd. Analysis
Data as of 2026-05-22 - not real-time
$19.28
Latest Price
8/10Risk
Risk Level: High
Executive Summary
Richardson Electronics is riding a strong technical wave – the stock sits above its 20‑, 50‑ and 200‑day moving averages, MACD is bullish and volume is rising, pushing the price to $19.28 near the 52‑week high of $19.86. However, the RSI of 72 signals overbought conditions and the price is flirting with a key resistance level, suggesting a near‑term pull‑back risk.
Fundamentally the company looks stretched: a PE of 71 versus an industry average of 40, negative operating and free cash flow, a modest 3% revenue growth, and a dividend payout ratio of 89% raise doubts about dividend sustainability. Recent strategic partnerships in silicon‑carbide technology could spark future growth, but the current valuation, high beta (≈2.3) and 30‑day volatility of 63% make the stock a high‑risk play.
Fundamentally the company looks stretched: a PE of 71 versus an industry average of 40, negative operating and free cash flow, a modest 3% revenue growth, and a dividend payout ratio of 89% raise doubts about dividend sustainability. Recent strategic partnerships in silicon‑carbide technology could spark future growth, but the current valuation, high beta (≈2.3) and 30‑day volatility of 63% make the stock a high‑risk play.
Market Outlook
Short Term
< 1 yearCautious
Model confidence: 6/10
Key Factors
- RSI in overbought territory
- Price at resistance near 52‑week high
- High beta and volatility
Medium Term
1–3 yearsNeutral
Model confidence: 5/10
Key Factors
- Strategic silicon‑carbide partnership
- Weak cash flow and high valuation
- Elevated dividend payout ratio
Long Term
> 3 yearsCautious
Model confidence: 7/10
Key Factors
- Persistent overvaluation relative to peers
- Negative cash generation and low profitability
- Unsustainable dividend policy
Key Metrics & Analysis
Financial Health
Revenue Growth3.10%
Profit Margin1.75%
P/E Ratio71.4
ROE2.40%
ROA0.64%
Debt/Equity0.98
P/B Ratio1.8
Op. Cash Flow$-1308000
Free Cash Flow$-8003500
Industry P/E39.7
Technical Analysis
TrendBullish
RSI72.4
Support$13.59
Resistance$19.86
MA 20$15.64
MA 50$13.60
MA 200$11.51
MACDBullish
VolumeIncreasing
Fear & Greed Index91.79
Valuation
Target Price$14.50
Upside/Downside-24.79%
GradeOvervalued
TypeBlend
Dividend Yield1.30%
Risk Assessment
Beta2.28
Volatility63.31%
Sector RiskHigh
Reg. RiskMedium
Geo RiskMedium
Currency RiskMedium
Liquidity RiskMedium
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This analysis may contain inaccuracies and is provided for informational and research purposes only. It is not personal investment advice, a recommendation, or an instruction to buy, sell, or hold any asset.