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what it is
Richardson sells engineered parts, tubes, and display gear to industrial, medical, broadcast, and military customers.
how it gets paid
Last year Richardson Elec made $209M in revenue.
why it's growing
Revenue grew 302.6% last year. EDGAR shows revenue up 104% vs. prior year.
what just happened
Quarterly revenue hit $107M and gross margin was 30.9%.
At a glance
B balance sheet — gets the job done, barely
25/100 earnings predictability — expect surprises
33.1x trailing p/e — you're paying up for this one
2.2% dividend yield — cash in your pocket every quarter
1.8% return on capital — nothing to write home about
xvary composite: 60/100 — average
What they do
Richardson sells engineered parts, tubes, and display gear to industrial, medical, broadcast, and military customers.
Nearly 50% of its products are made in LaFox, Marlborough, Donaueschingen, or by partners. That is 1 supply chain spread across 3 company sites and outside factories, so your replacement part is not trapped in one place. It serves 6 end markets: alternative energy, healthcare, broadcast, industrial, medical, and military. Six markets vs. one customer is the difference between a wobble and a wipeout. It also has 431 employees. For a $209M business, that is lean enough to keep costs down and small enough to stay awkward to copy.
How they make money
$209M
annual revenue · their business grew +302.6% last year
total revenue
$209M
+302.6%
The products that matter
engineered power solutions
Green Energy Solutions (GES)
$~84M · ~40% of revenue
This is the growth engine right now. Sales rose 39.0% from last year in Q2 FY26, which is why investors are still willing to look past a near-breakeven quarter.
39.0% growth
power grid and microwave tubes
Power & Microwave Technologies (PMT)
$~84M · ~40% of revenue
This segment was flat in Q2 FY26. When a business this size gets 40% of revenue from a segment that stops growing, you feel it immediately.
flat sales
display and custom visual systems
Canvys
$~41M · ~20% of revenue
Canvys is the smallest piece here, but not irrelevant. A new VP of Global Sales was appointed in February 2026, which tells you management still sees room to fix the commercial side.
sales reset
Key numbers
33.1x
trailing p/e
You are paying 33.1 times earnings for a company with 3.2% operating margin. That is a rich price for a thin business.
2.2%
dividend yield
You get paid 2.2% to wait. That is some padding, not a full defense.
1.8%
return on capital
Each dollar invested earns 1.8 cents of operating profit. That is low for an industrial company.
$1M
long-term debt
Debt is basically absent at $1M. The balance sheet is not the problem.
Financial health
B
strength
- balance sheet grade B — adequate — nothing special
- risk rank 2 — safer than 80% of stocks
- price stability 25 / 100
- long-term debt $1M (0% of capital)
B — functional but not a standout on the balance sheet.
Total return vs. market
Return history isn't available for RELL right now.
source: institutional data · return history unavailable
What just happened
beat estimates
Quarterly revenue hit $107M and gross margin was 30.9%.
EDGAR shows revenue up 104% vs. prior year. That is a huge jump off a small base, not a new normal by itself.
$107M
revenue
?
eps
30.9%
gross margin
the number that mattered
$107M mattered most. It was the latest quarterly revenue base, and every future growth rate now stacks on top of it.
source: company earnings report, 2026
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What could go wrong
the #1 risk is supplier concentration in power grid and microwave components.
med
Vendor concentration
Richardson relies on a limited number of suppliers for critical products. In a niche components business, losing one matters more than it would at a diversified distributor.
The company itself frames this as exposure tied to products that drive more than $100M of revenue. For a ~$209M revenue base on this page, that is not a side issue.
med
Backlog conversion risk
A $134.7M backlog sounds great. It only matters if it turns into profitable shipments. Last quarter showed the problem: sales grew 5.7%, gross margin improved, and EPS still landed at -$0.01.
If backlog turns into low-margin or delayed revenue, the stock loses the main argument for paying 33.1x trailing earnings.
med
Product obsolescence
Power grid tubes and microwave products can age badly if end markets migrate faster than Richardson does. That risk is real when PMT is still about 40% of revenue and was flat in Q2 FY26.
Between PMT and GES, roughly 80% of revenue sits in segments where technology relevance and project timing can swing a quarter from modest profit to modest loss.
The combined risk picture is not abstract: it reaches most of the company's roughly $209M revenue base and directly pressures a business already earning just 1.8% on capital.
source: institutional data · regulatory filings · risk analysis
Pay attention to
earnings
q3 FY26 earnings
Expected on or around April 8, 2026. After a -$0.01 EPS quarter, you need to see whether GES growth is finally flowing through to the bottom line.
segment mix
GES versus PMT growth gap
One segment grew 39.0%. One was flat. If that gap narrows the wrong way, the growth story gets thinner fast.
profitability
gross margin versus EPS
32.6% gross margin looked fine. EPS still missed. Watch whether better product economics start surviving SG&A and overhead.
execution risk
$134.7M backlog conversion
The backlog is the bull case in numeric form. Delays, cancellations, or low-margin fulfillment would make the premium multiple harder to defend.
Analyst rankings
earnings predictability
25 / 100
in human-speak, analysts do not see a smooth earnings pattern here. expect bumps.
risk rank
2
That ranks safer than about 80% of stocks on the sheet. Low debt helps. Low profitability keeps it from feeling easy.
price stability
25 / 100
The balance sheet is steadier than the chart. If you own it, expect the stock to act like a small cap, not a utility.
source: institutional data
Institutional activity
institutional ownership data for RELL is being compiled.
source: institutional data
Price targets
3-5 year target range
n/a
n/a
$13
current price
n/a
target midpoint · n/a from current
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