Stock fact sheet · data as of
Richardson Electronics, Ltd. (RELL): fair value, margin of safety and Wheel Score
Technology · Hardware, Equipment & Parts · United States · Blend
Is RELL undervalued?
RELL closed at 20.20 on 16 Oct 2026, more than 30% above the GLS average fair value of 11.65. 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 Sunday Scan drops names like this at the "below fair value" rule.
There is a wide gap between GLS Growth (2.09) 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.
The nightly engine files RELL under Blend.
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 | 7.75 | -62% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 14.23 | -30% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 32.64 | +62% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 13.83 | -32% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 2.09 | -90% | 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 | -83% | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend |
| EPV | 7.49 | -63% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | 9.16 | -55% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 26.00 | +29% | 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 Sunday Scan's "6 or more" rule. 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 3.8/10 is a weak reading: the ten-year history the score grades (revenue, EPS, book value, margins, cash flow, share count, ROIC) has not been steady, 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 1.19% 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 80%, Canvys 21% (quarter Q4 FY2026).
Institutional ownership scores 9/10, 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 | 3.8 / 10 | ROE | 3.9% |
| Debt / equity | 0.01 | ROA | 3.2% |
| Free-cash-flow yield | -1.9% | Payout ratio | 41% |
| Institutions | 9 / 10 | Insiders · Congress | 2 · 5 / 10 |
Wheel Score 47: Weak
With a Wheel Score of 47 Richardson Electronics, Ltd. sits in the Weak band. The parts - Value 0/25, Health 13/20, Moat 6/15, Premium 18/20, Stability 10/20 - show where: Value (0/25) scores lowest.
Implied volatility is 68% on the near-the-money contracts 20-60 days out - above the 60% ceiling of the sweet spot. Premiums are large, but the Wheel Score tapers the Premium points (18 of 20) because volatility this high usually comes with a reason. Chain open interest is 11,248 contracts across all expiries - enough for the wheel at normal size.
Volume runs at 497k shares a day on a market cap of $296M, with a beta of 1.31 - 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 gives that 10 of 20.
| Part | Points | From | |
|---|---|---|---|
| Value | 0 / 25 | -73% margin of safety | |
| Health | 13 / 20 | Piotroski 6/9 | |
| Moat | 6 / 15 | moat 3.8/10 | |
| Premium | 18 / 20 | implied volatility 68% | |
| Stability | 10 / 20 | 497k shares/day, $296M cap, beta 1.31 |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls; it is updated nightly and is not a recommendation. The walkthrough lesson shows how the score fits into a trade, start to finish.
Upcoming events
The next earnings report is due on 6 Jan 2027, 82 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. | 67.48 | 73.54 | +8% | 39No options | $293M |
| SLNHP Soluna Holdings, Inc. | 10.50 | - | - | 21No options | $305M |
| OPTX Syntec Optics Holdings, Inc. | 6.93 | 0.3589 | -1831% | 33Weak | $279M |
| USBC USBC, Inc. | 0.4510 | 0.1107 | -307% | 12No options | $175M |
| MEI Methode Electronics, Inc. | 14.31 | 5.45 | -163% | 43Weak | $510M |
| LPTH LightPath Technologies, Inc. | 8.20 | - | - | 45Weak | $574M |
| SLNH Soluna Holdings, Inc. | 0.7181 | - | - | 27No options | $113M |
| VPG Vishay Precision Group, Inc. | 63.58 | 10.45 | -508% | 40Weak | $847M |
| DAKT Daktronics, Inc. | 18.27 | 17.44 | -5% | 67Good | $879M |
| UMAC Unusual Machines, Inc. | 17.73 | 4.14 | -328% | 26Weak | $886M |
| WRAP Wrap Technologies, Inc. | 1.28 | - | - | 38Weak | $79M |
| IEHC IEH Corporation | 28.74 | 5,742.98 | +99% | 35No options | $71M |
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Start free See the Sunday ScanQuestions about RELL
Is RELL undervalued right now?
No: at 20.20 the stock trades 73% above the GLS average fair value of 11.65 (data as of 16 Oct 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 47 out of 100 (Weak). The Wheel Score blends the margin of safety (25 points), Piotroski health (20), the GLS moat (15), the option premium on offer (20) and trading stability (20) into one number that ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned. 80 and above is Prime, 65-79 Good, 50-64 Fair, under 50 Weak.
What is the GLS fair value for RELL?
11.65 per share as of 16 Oct 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, 82 days from the data date of 16 Oct 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 102 listed contracts with 11,248 open interest across all expiries and implied volatility of 68% 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.