Forensic Analysis · General / Diversified · as of Jun 28, 2026
RICHARDSON ELECTRONICS, LTD. (RELL)
A forensic read on RICHARDSON ELECTRONICS, LTD. built from its complete SEC filings — financial-health screens, earnings quality, red flags and a price-aware rating. Reproducible math, not opinion.
D · Weak — demands caution
Forensic grade
Safe
Financial health
9.8
Altman Z-score
Clean
Earnings quality
5
Forensic signals
67.4
P / E (ttm)
2.4%
ROE
$257M
Market cap
1.33%
Dividend yield
RICHARDSON ELECTRONICS, LTD. earns a D (Weak — demands caution) forensic quality grade, and its Altman Z-score is 9.8, placing it in the Safe zone. 5 forensic signals were flagged in its latest SEC filings, led by cash conversion.
What the filings flag
0.42×Cash conversion.Over FY2023–FY2025, operating cash flow was 0.42× cumulative net income. Reported profit is not turning into cash — a classic earnings-quality warning.
-2%Return on invested capital.Return on invested capital is -2% and slipping from 15% — well below its ~9% cost of capital, so reinvested dollars may be destroying value, not building it.
+1.3%/yrShare-count dilution.Diluted share count changed +4% over the last 3 years to FY2025 (+1.3%/yr). A reversal: the count shrank earlier (net -0.5%/yr since FY2017) but the company has SWUNG to issuing stock — recent holders are now being diluted, not rewarded. That's ~1.3% shaved off per-share growth every year — total profit has to grow that much just to keep earnings-per-share flat, and a stake held since FY2022 has been diluted ~4%.
$6MGoodwill impairments.Took $6M of goodwill writedowns across 1 year(s) (FY2019 ($6M)) — about 20% of net income over the span. A large writedown means an acquisition turned out worth far less than was paid — a real mark against M&A discipline.
1% of revStock-based comp load.Stock-based compensation ran 1% of revenue and 20% of free cash flow in FY2025 — about $0.13 per diluted share. Meaningful — reported free cash flow flatters the economics, since SBC is a real cost paid in shares.
Key fundamentals
Net Margin-0.5%
Free Cash Flow$7.7M
Latest Revenue$208.9M
Return on Equity-0.7%
Revenue Growth YoY+6.3%
Go deeper — free with an account
The forensic grade and screens above are free — no account needed. An account adds the full interactive deep-dive on RICHARDSON ELECTRONICS, LTD.:
🔒The written investment read — what the numbers mean, in plain English
🔒Ask anything about RELL's filings — AI Q&A across the 10-K, 10-Qs & 8-Ks
🔒Interactive valuation — reverse-DCF sliders, Monte Carlo & scenario stress
🔒Calibrated 12-month price forecast, with the math shown