MeritValue

RICHARDSON ELECTRONICS, LTD.

RELLdata completeness 88%16 fiscal years on file

Data notes: no data for concept 'totalDebt'; no data for concept 'epsDiluted'

The thesis, from the filings

RICHARDSON ELECTRONICS, LTD. earns about 7% on invested capital, below its ~9% cost of capital, but has diluted owners by 10% over 5 years — no moat visible in the numbers. The estimate methods put fair value between $1.39 and $6.81 a share.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2021FY 2022FY 2023FY 2024FY 2025
Revenue$176.9M1$224.6M2$262.7M3$196.5M3$208.9M3
Net income$1.66M4$17.9M5$22.3M6$61,0006−$1.14M6
Operating cash flow$832,0007$1.91M8−$8.2M9$6.52M9$10.6M9
Capital expenditure$2.63M10$3.12M11$7.38M12$4.04M12$2.81M12
Free cash flow (derived)−$1.8M7−$1.21M8−$15.6M9$2.48M9$7.74M9
Total debt—————
Cash & equivalents$43.3M13$35.5M14$25M15$24.3M16$35.9M16
Diluted shares11.2M11.8M12.5M12.5M12.3M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$127.39
your share of equity
Profit it earned you last year
−$0.93
Free cash flow it threw off
$6.29
Debt you’d be carrying
—

10 shares is a claim on $127.39 of net worth that earned you −$0.93 and generated $6.29 of cash last year.

iii. Is this a good business?
Moat signal · return on invested capital
7% avg · 5y
FY21 2%FY22 16%FY23 17%FY24 0%FY25 -1%

It earned about 7% on invested capital against a ~9% cost of capital — below the cost of funding. The numbers show no moat.

seeing a moat in the numbers →
Management signal · capital allocation
+10% shares · 5y

Share count is up 10% over 5 years — owners have been diluted. Worth asking what they got for it.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0

The 3 estimate methods that apply put fair value between $1.39 and $6.81 a share. They rest on different assumptions, so where they diverge is the story.

DCF · Growth Exit 10Y
$6.81
assumptions (10)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears10
  • fcfGrowth5.0%
  • fcfBase$2.48M
DCF · Growth Exit 5Y
$6.5
assumptions (10)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears5
  • fcfGrowth5.0%
  • fcfBase$2.48M
Earnings Power Value
$1.39
assumptions (8)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • normalizedEarnings$1.66M
  • growthAssumed0.0%
Graham Number
not applicable
diluted EPS missing or non-positive — Graham Number undefined

Different models answer different questions — which to trust when →

v. The price question — last, on purpose
Is today’s price fair?
See live price ↗
Type a price. The ledger answers.
Or set your own belief
FCF growth, next 5 years5.0%
Discount rate (WACC)8.93%
Terminal growth2.5%
At your growth, a share is worth $6.5
The three cases
Bear0.0%$5.8
Base5.0%$6.5
Bull10.0%$7.34

Bear/base/bull growth = 0% / filed history / history + 5pp. Type a price to see the return each case implies.

Default growth 5.0%= this company’s own filed history (median-to-median FCF CAGR, clamped 0–20%). Your adjustments are recorded anonymously. They become the “what do owners actually believe” dataset.

Sources — the receipts
  1. 10-K · period ending 2021-05-29 · accession 0000950170-23-035840 (RevenueFromContractWithCustomerExcludingAssessedTax)
  2. 10-K · period ending 2022-05-28 · accession 0000950170-24-090651 (RevenueFromContractWithCustomerExcludingAssessedTax)
  3. 10-K · period ending 2023-05-27 · accession 0000950170-25-101785 (RevenueFromContractWithCustomerExcludingAssessedTax)
  4. 10-K · period ending 2021-05-29 · accession 0000950170-23-035840 (NetIncomeLoss)
  5. 10-K · period ending 2022-05-28 · accession 0000950170-24-090651 (NetIncomeLoss)
  6. 10-K · period ending 2023-05-27 · accession 0000950170-25-101785 (NetIncomeLoss)
  7. 10-K · period ending 2021-05-29 · accession 0000950170-23-035840 (NetCashProvidedByUsedInOperatingActivities)
  8. 10-K · period ending 2022-05-28 · accession 0000950170-24-090651 (NetCashProvidedByUsedInOperatingActivities)
  9. 10-K · period ending 2023-05-27 · accession 0000950170-25-101785 (NetCashProvidedByUsedInOperatingActivities)
  10. 10-K · period ending 2021-05-29 · accession 0000950170-23-035840 (PaymentsToAcquireProductiveAssets)
  11. 10-K · period ending 2022-05-28 · accession 0000950170-24-090651 (PaymentsToAcquireProductiveAssets)
  12. 10-K · period ending 2023-05-27 · accession 0000950170-25-101785 (PaymentsToAcquireProductiveAssets)
  13. 10-K · period ending 2021-05-29 · accession 0001564590-22-027238 (CashAndCashEquivalentsAtCarryingValue)
  14. 10-K · period ending 2022-05-28 · accession 0000950170-23-035840 (CashAndCashEquivalentsAtCarryingValue)
  15. 10-K · period ending 2023-05-27 · accession 0000950170-24-090651 (CashAndCashEquivalentsAtCarryingValue)
  16. 10-K · period ending 2024-06-01 · accession 0000950170-25-101785 (CashAndCashEquivalentsAtCarryingValue)