Richardson Electronics Stock Downgraded (RELL)
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- RELL has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Along with this, the company maintains a quick ratio of 8.39, which clearly demonstrates the ability to cover short-term cash needs.
- Net operating cash flow has significantly increased by 92.99% to -$3.33 million when compared to the same quarter last year. In addition, RICHARDSON ELECTRONICS LTD has also vastly surpassed the industry average cash flow growth rate of -7.41%.
- RELL, with its decline in revenue, slightly underperformed the industry average of 8.7%. Since the same quarter one year prior, revenues fell by 14.1%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
- Reflecting the weaknesses we have cited, including the decline in the company's earnings per share, RELL has underperformed the S&P 500 Index, declining 13.31% from its price level of one year ago. Looking ahead, we do not see anything in this company's numbers that would change the one-year trend. It was down over the last twelve months; and it could be down again in the next twelve. Naturally, a bull or bear market could sway the movement of this stock.
- The gross profit margin for RICHARDSON ELECTRONICS LTD is currently lower than what is desirable, coming in at 30.70%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 1.80% trails that of the industry average.
-- Written by a member of TheStreet Ratings Staff
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