MeritValue

RICHARDSON ELECTRONICS, LTD.

RELLdata completeness 88%17 fiscal years on file

Data notes: no data for concept 'totalDebt'; no data for concept 'investmentsAtFairValue'; no data for concept 'netInvestmentIncome'; no data for concept 'gainsOnRealEstateSales'; 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 7% over 5 years — no moat visible in the numbers. The estimate methods put fair value between $5.14 and $6.2 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 2022FY 2023FY 2024FY 2025FY 2026
Revenue$224.6M1$262.7M2$196.5M3$208.9M3$228.6M3
Net income$17.9M4$22.3M5$61,0006−$1.14M6$6.38M6
Operating cash flow$1.91M7−$8.2M8$6.52M9$10.6M9$762,0009
Capital expenditure$3.12M10$7.38M11$4.04M12$2.81M12$4.38M12
Free cash flow (derived)−$1.21M7−$15.6M8$2.48M9$7.74M9−$3.62M9
Total debt—————
Cash & equivalents$35.5M13$25M14$24.3M15$35.9M16$31.8M16
Diluted shares11.8M12.5M12.5M12.3M12.7M

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
$129
your share of equity
Profit it earned you last year
$5.03
Free cash flow it threw off
−$2.85
Debt you’d be carrying
—

10 shares is a claim on $129 of net worth that earned you $5.03 and generated −$2.85 of cash last year.

iii. Is this a good business?
Moat signal · return on invested capital
7% avg · 5y
FY22 16%FY23 17%FY24 0%FY25 -1%FY26 5%

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
+7% shares · 5y

Share count is up 7% 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 v0.5.0

The 3 estimate methods that apply put fair value between $5.14 and $6.2 a share. They rest on different assumptions, so where they diverge is the story.

DCF · Growth Exit 10Y
$6.2
assumptions (10)
  • riskFreeRate4.8%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears10
  • fcfGrowth5.0%
  • fcfBase$2.48M
DCF · Growth Exit 5Y
$5.91
assumptions (10)
  • riskFreeRate4.8%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears5
  • fcfGrowth5.0%
  • fcfBase$2.48M
Earnings Power Value
$5.14
assumptions (8)
  • riskFreeRate4.8%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • normalizedEarnings$6.38M
  • 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)9.06%
Terminal growth2.5%
At your growth, a share is worth $5.91
The three cases
Bear0.0%$5.25
Base5.0%$5.91
Bull10.0%$6.7

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 2022-05-28 · accession 0000950170-24-090651 (RevenueFromContractWithCustomerExcludingAssessedTax)
  2. 10-K · period ending 2023-05-27 · accession 0000950170-25-101785 (RevenueFromContractWithCustomerExcludingAssessedTax)
  3. 10-K · period ending 2024-06-01 · accession 0000355948-26-000002 (RevenueFromContractWithCustomerExcludingAssessedTax)
  4. 10-K · period ending 2022-05-28 · accession 0000950170-24-090651 (NetIncomeLoss)
  5. 10-K · period ending 2023-05-27 · accession 0000950170-25-101785 (NetIncomeLoss)
  6. 10-K · period ending 2024-06-01 · accession 0000355948-26-000002 (NetIncomeLoss)
  7. 10-K · period ending 2022-05-28 · accession 0000950170-24-090651 (NetCashProvidedByUsedInOperatingActivities)
  8. 10-K · period ending 2023-05-27 · accession 0000950170-25-101785 (NetCashProvidedByUsedInOperatingActivities)
  9. 10-K · period ending 2024-06-01 · accession 0000355948-26-000002 (NetCashProvidedByUsedInOperatingActivities)
  10. 10-K · period ending 2022-05-28 · accession 0000950170-24-090651 (PaymentsToAcquireProductiveAssets)
  11. 10-K · period ending 2023-05-27 · accession 0000950170-25-101785 (PaymentsToAcquireProductiveAssets)
  12. 10-K · period ending 2024-06-01 · accession 0000355948-26-000002 (PaymentsToAcquireProductiveAssets)
  13. 10-K · period ending 2022-05-28 · accession 0000950170-23-035840 (CashAndCashEquivalentsAtCarryingValue)
  14. 10-K · period ending 2023-05-27 · accession 0000950170-24-090651 (CashAndCashEquivalentsAtCarryingValue)
  15. 10-K · period ending 2024-06-01 · accession 0000950170-25-101785 (CashAndCashEquivalentsAtCarryingValue)
  16. 10-K · period ending 2025-05-31 · accession 0000355948-26-000002 (CashAndCashEquivalentsAtCarryingValue)