DB:RE3

Stock Analysis Report

Richardson Electronics

Executive Summary

Richardson Electronics, Ltd. engages in the power and microwave technologies, customized display solutions, and healthcare equipment businesses in North America, the Asia Pacific, Europe, and Latin America.

Rewards

Pays a reliable dividend of 4.72%

Risk Analysis

Currently unprofitable and not forecast to become profitable over the next 3 years

Dividend of 4.72% is not well covered by earnings

Does not have a meaningful market cap (€67M)



Snowflake Analysis

Average dividend payer with adequate balance sheet.


Similar Companies

Share Price & News

How has Richardson Electronics's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: RE3 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

2.2%

RE3

2.6%

DE Electronic

2.0%

DE Market


1 Year Return

-27.1%

RE3

13.4%

DE Electronic

15.1%

DE Market

Return vs Industry: RE3 underperformed the German Electronic industry which returned 13.9% over the past year.

Return vs Market: RE3 underperformed the German Market which returned 15% over the past year.


Shareholder returns

RE3IndustryMarket
7 Day2.2%2.6%2.0%
30 Day-8.9%9.1%1.0%
90 Day-6.9%8.0%3.8%
1 Year-23.9%-27.1%15.9%13.4%18.6%15.1%
3 Year-10.4%-19.8%54.4%49.2%16.8%6.6%
5 Year-31.2%-43.1%121.9%105.8%23.7%6.7%

Price Volatility Vs. Market

How volatile is Richardson Electronics's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Richardson Electronics undervalued compared to its fair value and its price relative to the market?

0.55x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: RE3 (€4.6) is trading above our estimate of fair value (€2.49)

Significantly Below Fair Value: RE3 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: RE3 is unprofitable, so we can't compare its PE Ratio to the Electronic industry average.

PE vs Market: RE3 is unprofitable, so we can't compare its PE Ratio to the German market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate RE3's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: RE3 is good value based on its PB Ratio (0.5x) compared to the DE Electronic industry average (1.8x).


Next Steps

Future Growth

How is Richardson Electronics forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

16.8%

Forecasted Tech industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Richardson Electronics has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Richardson Electronics performed over the past 5 years?

18.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RE3 is currently unprofitable.

Growing Profit Margin: RE3 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: RE3 is unprofitable, but has reduced losses over the past 5 years at a rate of 18.1% per year.

Accelerating Growth: Unable to compare RE3's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: RE3 is unprofitable, making it difficult to compare its past year earnings growth to the Electronic industry (-3.9%).


Return on Equity

High ROE: RE3 has a negative Return on Equity (-6.51%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Richardson Electronics's financial position?


Financial Position Analysis

Short Term Liabilities: RE3's short term assets ($127.4M) exceed its short term liabilities ($27.9M).

Long Term Liabilities: RE3's short term assets ($127.4M) exceed its long term liabilities ($3.4M).


Debt to Equity History and Analysis

Debt Level: RE3 is debt free.

Reducing Debt: RE3 has not had any debt for past 5 years.


Balance Sheet

Inventory Level: RE3 has a high level of physical assets or inventory.

Debt Coverage by Assets: RE3's debt is covered by short term assets (assets are 1.4345315893063E+17x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Insufficient data to determine if RE3 has enough cash runway based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if RE3 has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

What is Richardson Electronics's current dividend yield, its reliability and sustainability?

4.72%

Current Dividend Yield


Dividend Yield vs Market

company4.7%marketbottom25%1.3%markettop25%3.6%industryaverage1.2%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: RE3's dividend (4.72%) is higher than the bottom 25% of dividend payers in the German market (1.31%).

High Dividend: RE3's dividend (4.72%) is in the top 25% of dividend payers in the German market (3.59%)


Stability and Growth of Payments

Stable Dividend: RE3's dividends per share have been stable in the past 10 years.

Growing Dividend: RE3's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: RE3 is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

7.8yrs

Average management tenure


CEO

Edward Richardson (77yo)

30.4yrs

Tenure

US$1,263,300

Compensation

Mr. Edward J. Richardson serves as CEO, COO & Chairman at Richardson Electronics Ltd. Mr. Richardson has been the President of Richardson Electronics Ltd. since September 1989 and served as its Chief Opera ...


CEO Compensation Analysis

Compensation vs Market: Edward's total compensation ($USD1.26M) is above average for companies of similar size in the German market ($USD412.37K).

Compensation vs Earnings: Edward's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Edward Richardson
CEO, COO30.4yrsUS$1.26m15.9% $9.8m
Robert Ben
Executive VP4.5yrsUS$422.59k0.038% $23.4k
Wendy Diddell
COO & Executive VP of Corporate Development4.2yrsUS$615.99k0.38% $231.8k
Gregory Peloquin
Executive Vice President of Power & Microwave Technologies Group18.1yrsUS$475.84k0.015% $9.5k
Jens Ruppert
Executive VP & GM of Canvys4.3yrsUS$377.50kno data
Christopher Marshall
CTO & VP of Marketing0yrsno datano data
Kathleen McNally
Senior Vice President of Global Supply Chain11.1yrsUS$350.93k0.15% $91.7k

7.8yrs

Average Tenure

54.5yo

Average Age

Experienced Management: RE3's management team is seasoned and experienced (7.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Edward Richardson
CEO, COO30.4yrsUS$1.26m15.9% $9.8m
Robert Kluge
Independent Director2.3yrsUS$34.90kno data
Paul Plante
Lead Director4.3yrsUS$44.90kno data
James Benham
Independent Director6.3yrsUS$38.90kno data
Jacques Belin
Independent Director6.3yrsUS$38.90kno data
Kenneth Halverson
Independent Director6.3yrsUS$38.90kno data

6.3yrs

Average Tenure

70.5yo

Average Age

Experienced Board: RE3's board of directors are considered experienced (6.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Richardson Electronics, Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Richardson Electronics, Ltd.
  • Ticker: RE3
  • Exchange: DB
  • Founded: 1947
  • Industry: Technology Distributors
  • Sector: Tech
  • Market Cap: US$66.727m
  • Listing Market Cap: US$61.589m
  • Shares outstanding: 13.14m
  • Website: https://www.rell.com

Number of Employees


Location

  • Richardson Electronics, Ltd.
  • 40W267 Keslinger Road
  • PO Box 393
  • LaFox
  • Illinois
  • 60147
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
RELLNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDOct 1983
RE3DB (Deutsche Boerse AG)YesCommon StockDEEUROct 1983

Biography

Richardson Electronics, Ltd. engages in the power and microwave technologies, customized display solutions, and healthcare equipment businesses in North America, the Asia Pacific, Europe, and Latin America. The company’s Power and Microwave Technologies Group segment provides engineered solutions, power grid and microwave tubes, and related consumables; flat panel detector solutions, replacement parts, tubes and service training for diagnostic imaging equipment; and customized display solutions, as well as power conversion and RF and microwave components 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. Its products are used to control, switch, or amplify electrical power signals, as well as are used as display devices in alternative energy, healthcare, aviation, broadcast, communications, industrial, marine, medical, military, scientific, and semiconductor markets. This segment also offers technical services for microwave and industrial equipment. The company’s Canvys segment provides custom display solutions, such as touch screens, protective panels, 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, refurbishes, and distributes diagnostic imaging replacement parts for CT and MRI systems; replacement CT and MRI tubes; hydrogen thyratrons, klystrons, and magnetrons; flat panel detector upgrades; and additional replacement solutions, as well as offers CT service training. This segment serves hospitals, medical centers, asset management companies, independent service organizations, and multi-vendor service providers. The company was founded in 1947 and is headquartered in LaFox, Illinois. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/17 21:54
End of Day Share Price2020/02/17 00:00
Earnings2019/11/30
Annual Earnings2019/06/01


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.