Richardson Electronics Shares Owned By Insiders vs. Profit Margin

RELL Stock  USD 14.60  0.19  1.32%   
Based on Richardson Electronics' profitability indicators, Richardson Electronics may not be well positioned to generate adequate gross income at this time. It has a very high probability of underperforming in January. Profitability indicators assess Richardson Electronics' ability to earn profits and add value for shareholders. At this time, Richardson Electronics' Price To Sales Ratio is quite stable compared to the past year. Days Sales Outstanding is expected to rise to 56.20 this year, although the value of EV To Sales will most likely fall to 0.30. At this time, Richardson Electronics' Accumulated Other Comprehensive Income is quite stable compared to the past year. Net Income Applicable To Common Shares is expected to rise to about 21.1 M this year, although the value of Income Before Tax will most likely fall to about 149.2 K.
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.30.3052
Fairly Down
Pretty Stable
For Richardson Electronics profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Richardson Electronics to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Richardson Electronics utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Richardson Electronics's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Richardson Electronics over time as well as its relative position and ranking within its peers.
  

Richardson Electronics' Revenue Breakdown by Earning Segment

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For more information on how to buy Richardson Stock please use our How to buy in Richardson Stock guide.
Is Electronic Equipment, Instruments & Components space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Richardson Electronics. If investors know Richardson will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Richardson Electronics listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
(0.52)
Dividend Share
0.24
Earnings Share
(0.05)
Revenue Per Share
13.846
Quarterly Revenue Growth
0.022
The market value of Richardson Electronics is measured differently than its book value, which is the value of Richardson that is recorded on the company's balance sheet. Investors also form their own opinion of Richardson Electronics' value that differs from its market value or its book value, called intrinsic value, which is Richardson Electronics' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Richardson Electronics' market value can be influenced by many factors that don't directly affect Richardson Electronics' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Richardson Electronics' value and its price as these two are different measures arrived at by different means. Investors typically determine if Richardson Electronics is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Richardson Electronics' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Richardson Electronics Profit Margin vs. Shares Owned By Insiders Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Richardson Electronics's current stock value. Our valuation model uses many indicators to compare Richardson Electronics value to that of its competitors to determine the firm's financial worth.
Richardson Electronics is rated third in shares owned by insiders category among its peers. It is rated below average in profit margin category among its peers . At this time, Richardson Electronics' Net Loss is quite stable compared to the past year. Comparative valuation analysis is a catch-all technique that is used if you cannot value Richardson Electronics by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.

Richardson Profit Margin vs. Shares Owned By Insiders

Shares Owned by Insiders show the percentage of outstanding shares owned by insiders (such as principal officers or members of the board of directors) or private individuals and entities with over 5% of the total shares outstanding. Company executives or private individuals with access to insider information share information about a firm's operations that is not available to the general public.

Richardson Electronics

Insiders Shares

 = 

Executives Shares

+

Employees

 = 
3.63 %
Although the research on effects of insider trading on prices and volatility is still relatively inconclusive, and investors are advised to pay close attention to the distribution of equities among company's stakeholders to avoid many problems associated with the disclosure of price-sensitive information.
Profit Margin measures overall efficiency of a company and shows its ability to withstand competition as well as defend against adverse conditions such as rising costs, falling prices, decline in sales or management distress. Profit margin tells investors how well the company executes on its overall pricing strategies as well as how effective the company in controlling its costs.

Richardson Electronics

Profit Margin

 = 

Net Income

Revenue

X

100

 = 
(0) %
In a nutshell, Profit Margin indicator shows the amount of money the company makes from total sales or revenue. It can provide a good insight into companies in the same sector, as well as help to identify trends of a company from year to year.

Richardson Profit Margin Comparison

Richardson Electronics is currently under evaluation in profit margin category among its peers.

Richardson Electronics Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Richardson Electronics, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Richardson Electronics will eventually generate negative long term returns. The profitability progress is the general direction of Richardson Electronics' change in net profit over the period of time. It can combine multiple indicators of Richardson Electronics, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income764 K802.2 K
Operating Income348 K330.6 K
Income Before Tax157 K149.2 K
Total Other Income Expense Net-191 K-200.6 K
Net Income61 K58 K
Income Tax Expense96 K91.2 K
Net Income Applicable To Common Shares20.1 M21.1 M
Net Income From Continuing Ops61 K58 K
Non Operating Income Net Other-227.7 K-239.1 K
Net Interest Income265.5 K259.6 K
Interest Income265.5 K259.6 K
Change To Netincome1.1 M1.1 M
Net Loss 0.00 (0.04)
Income Quality 106.95 (8.96)
Net Income Per E B T 0.39  0.79 

Richardson Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Richardson Electronics. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Richardson Electronics position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Richardson Electronics' important profitability drivers and their relationship over time.

Use Richardson Electronics in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Richardson Electronics position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Richardson Electronics will appreciate offsetting losses from the drop in the long position's value.

Richardson Electronics Pair Trading

Richardson Electronics Pair Trading Analysis

The ability to find closely correlated positions to Richardson Electronics could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Richardson Electronics when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Richardson Electronics - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Richardson Electronics to buy it.
The correlation of Richardson Electronics is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Richardson Electronics moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Richardson Electronics moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Richardson Electronics can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Richardson Electronics position

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When determining whether Richardson Electronics is a strong investment it is important to analyze Richardson Electronics' competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Richardson Electronics' future performance. For an informed investment choice regarding Richardson Stock, refer to the following important reports:
Check out Your Equity Center.
For more information on how to buy Richardson Stock please use our How to buy in Richardson Stock guide.
You can also try the Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
To fully project Richardson Electronics' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Richardson Electronics at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Richardson Electronics' income statement, its balance sheet, and the statement of cash flows.
Potential Richardson Electronics investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Richardson Electronics investors may work on each financial statement separately, they are all related. The changes in Richardson Electronics's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Richardson Electronics's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.