Stock fact sheet · data as of
Richardson Electronics, Ltd. (RELL): fair value, margin of safety and Wheel Score
Ticker symbol RELL · Technology · Hardware, Equipment & Parts · United States · Blend
Is RELL undervalued?
RELL closed at 19.56 on 5 Nov 2026, more than 30% above the GLS average fair value of 11.70. Only 1 of the 7 models that produced a value sit above the price. By our models the shares are priced well beyond what the filed earnings, cash flow and book value support; the "below fair value" Wheel Trade Filter keeps names like this under 70.
There is a wide gap between GLS Growth (2.10) and Graham Growth (32.64). When the models are this far apart the "fair value" is really a range, and the margin of safety above should be read with that range in mind.
Ranked against every other company we cover, neither cheapness nor growth clearly wins for RELL, so the nightly engine files it under Blend (value score 31, growth score 43, out of 100).
Nine valuation models for RELL
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | 8.09 | -59% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 14.23 | -27% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 32.64 | +67% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 13.83 | -29% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 2.10 | -89% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | - | - | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10%; no value tonight |
| Payback Time | - | - | Eight years of compounded free cash flow: the price at which the business pays for itself; no value tonight |
| DDM | 3.53 | -82% | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend |
| EPV | 7.49 | -62% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | 9.16 | -53% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 26.00 | +33% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
Richardson Electronics, Ltd. scores 6 of 9 on the Piotroski F-score: a middling result that passes the "Piotroski 6 or more" Wheel Trade Filter. Some of the nine tests on profitability, leverage and efficiency are failed, so the accounts are worth a look before selling a put on the name. A GLS Moat score of 4.3/10 is a weak reading: the accounts do not show returns and margins that competitors have been unable to wear down, so the Moat part of the Wheel Score contributes little.
Returns on capital are thin or negative - ROIC 3.9%, ROE 3.9%, ROA 3.2% - with debt at 0.01 times equity and negative free cash flow.
The dividend yield is 1.23% with a payout ratio of 41% - a small yield that leaves most of the earnings in the business. Revenue comes mainly from Power And Microwave Technologies Group 84%, Canvys 16% (quarter Q1 FY2027).
Institutional ownership scores 10/10, insider activity 2/10 and Congressional trading 5/10 on the GLS smart-money scales.
| Piotroski F-score | 6 / 9 | ROIC | 3.9% |
|---|---|---|---|
| GLS Moat | 4.3 / 10 | ROE | 3.9% |
| Debt / equity | 0.01 | ROA | 3.2% |
| Free-cash-flow yield | -2.0% | Payout ratio | 41% |
| Institutions | 10 / 10 | Insiders · Congress | 2 · 5 / 10 |
Wheel Score 28: Weak
With a Wheel Score of 28 Richardson Electronics, Ltd. sits in the Weak band. It fails filter 3, below fair value - trades 67% above our fair value; and filter 7, a premium worth selling - implied volatility 91% (over 80%); and filter 8, big enough - market cap $287M (under $1.0B); Value (weak) is its weakest part.
Implied volatility is 91%, above the 80% ceiling of the Wheel Trade Filter on premium. The premium looks generous, but moves of that size can blow through any strike. Chain open interest is 4,236 contracts across all expiries - enough for the wheel at normal size.
Volume runs at 245k shares a day on a market cap of $287M, with a beta of 1.28 - a high beta, so the stock tends to move more than the market and a strike can be gapped through; the Stability part of the Wheel Score rates that fair.
| Filter | Wheel Trade Filter | Result | Detail |
|---|---|---|---|
| 1 | Options that actually trade | Passes | Listed options with 1,000+ contracts of open interest and 100+ traded a day |
| 2 | A real business, not a gamble | Passes | Profitable over the last twelve months - not a speculative stock, fund or note |
| 3 | Below fair value | Fails | trades 67% above our fair value |
| 4 | Financially healthy | Passes | Piotroski F-score 6 or more out of 9 (a company with no score on file passes) |
| 5 | Can repay its debt | Passes | Long-term debt repaid from 3 years of operating cash flow or less (6 for real estate and utilities; banks and insurers are not judged on it) |
| 6 | No serious red flags | Passes | Red Flags score 60 or more out of 100 (earnings, margins, debt, analysts, filings and price checked the same way for every stock) |
| 7 | A premium worth selling | Fails | implied volatility 91% (over 80%) |
| 8 | Big enough | Fails | market cap $287M (under $1.0B) |
| 9 | Not a penny stock | Passes | Share price $5 or more |
| How it ranks | Rating | From | |
|---|---|---|---|
| Value | Weak | 67% above fair value | |
| Premium | Fair | implied volatility 91% | |
| Moat | Fair | moat 4.3/10 | |
| Health | Good | Piotroski 6/9 | |
| Red Flags | Strong | Red Flags score 100/100 | |
| Option trading | Weak | 169 contracts a day, 4,236 open interest | |
| Stability | Fair | beta 1.28, $287M company |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls: a stock must pass all 9 Wheel Trade Filters to score 70, and the score then ranks the ones that pass; the Sunday Scan is the top 10. It is updated nightly and is not a recommendation. How the Wheel Score works · the walkthrough lesson shows how it fits into a trade, start to finish.
Upcoming events
The next earnings report is due on 6 Jan 2027, 62 days away - outside the window of a 30-45-day put sold today. The shares go ex-dividend on 6 Nov 2026 (0.0600 per share), so a covered call sold before then carries a small early-assignment risk around that date.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Hardware, Equipment & Parts
The 12 companies below are the closest to Richardson Electronics, Ltd. by market cap within the Hardware, Equipment & Parts industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
| Stock | Close | Fair value | MoS | Wheel | Mkt cap |
|---|---|---|---|---|---|
| MPTI M-tron Industries, Inc. | 63.92 | 73.13 | +13% | 27No options | $278M |
| SLNHP Soluna Holdings, Inc. | 10.81 | - | - | 10No options | $314M |
| OPTX Syntec Optics Holdings, Inc. | 4.56 | 0.3852 | -1084% | 18Weak | $184M |
| MEI Methode Electronics, Inc. | 13.27 | 5.53 | -140% | 25Weak | $473M |
| USBC USBC, Inc. | 0.4290 | 0.1109 | -287% | 8No options | $167M |
| LPTH LightPath Technologies, Inc. | 7.10 | - | - | 19Weak | $498M |
| VPG Vishay Precision Group, Inc. | 49.37 | 19.50 | -153% | 24Weak | $607M |
| UMAC Unusual Machines, Inc. | 13.03 | 4.15 | -214% | 14Weak | $651M |
| SLNH Soluna Holdings, Inc. | 0.5588 | - | - | 9No options | $88M |
| DAKT Daktronics, Inc. | 20.32 | 17.43 | -17% | 37Weak | $977M |
| CPSH CPS Technologies Corporation | 3.85 | 0.3997 | -863% | 15Weak | $74M |
| IEHC IEH Corporation | 29.22 | 5,741.57 | +99% | 25No options | $73M |
Scan the whole market the same way
A free GLS Equity account gets you nightly fair value and the Wheel Score on ~7,400 US stocks, a watchlist, the scanner preview and the Sunday Scan - the top 10 stocks that pass all 9 Wheel Trade Filters, emailed every week. Pro adds the full put and call scanners, unlimited watchlists with alerts and the trade journal.
Start free See the Sunday ScanQuestions about RELL
Is RELL undervalued right now?
No: at 19.56 the stock trades 67% above the GLS average fair value of 11.70 (data as of 5 Nov 2026), well beyond what trailing earnings, cash flow and book value support.
What is the Wheel Score of RELL and what does it mean?
RELL scores 28 out of 100 (Weak) - it fails Wheel Trade Filters 3, 7, 8. The Wheel Score ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned - in two parts: the 9 pass/fail Wheel Trade Filters (busy options, a real business, below fair value, Piotroski 6 or more, debt it can repay, a Red Flags score of 60 or more, implied volatility of 25-80%, a $1 billion company, $5 a share) and a ranking of how strongly a stock passes on value, premium, moat, health, red flags, option trading and stability. A stock that fails any filter stays under 70; 70-84 is Good, 85 and above is Prime. The Sunday Scan is the top 10 that pass, sorted by Wheel Score.
What is the GLS fair value for RELL?
11.70 per share as of 5 Nov 2026 - the simple average of the 7 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does Richardson Electronics, Ltd. report earnings next?
The next earnings report is due on 6 Jan 2027, 62 days from the data date of 5 Nov 2026. The Calendars page lists every upcoming report with its time of day.
Does RELL have listed options, and how liquid are they?
Yes. The nightly snapshot found 24 listed contracts with 4,236 open interest across all expiries and implied volatility of 91% on the near-the-money contracts. The Options scanner lists the cash-secured put and covered call set-ups with premium and annualised yield worked out.