Richardson Electronics, with its current last price at
$9.35, appears to be a more volatile investment than Electromed, given its Total Risk Alpha of
-0.57 and a Treynor Ratio of
-0.46. The company's negative cash flow from operating activities, reported at a loss of
$8.2M, further underscores the potential risk. However, with an EPS estimate of
$0.71 for the next year, there may be potential for growth if the company can effectively manage its financials.
Main Takeaways
By comparing key indicators for Richardson Electronics and Electromed, we can assess the impact of market volatility on both companies' prices and determine if combining them in a portfolio can diversify market risk. Pair trading strategies can also be employed, such as matching a long position in Electromed with a short position in Richardson Electronics. For more details, refer to our pair correlation module.
Let's examine the assets. The asset utilization indicator measures the revenue generated for every dollar of assets reported by a company. Richardson Electronics has an asset utilization ratio of 132.62 percent, indicating that the company generates $1.33 for each dollar of assets. An increasing asset utilization ratio suggests that Richardson Electronics is becoming more efficient in using its assets for daily operations.
Out of tens of thousands of stocks, funds, and ETFs that trade on global exchanges each represent an individual company which you can analyze using comparative analysis. To determine which one of the two entities, such as Richardson or DZS is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.
understanding Richardson Electronics dividends
A dividend is the distribution of a portion of Richardson Electronics earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. Richardson Electronics dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. Richardson one year expected dividend income is about USD0.16 per share.
Dividend Paid And Capex Coverage Ratio is expected to rise to 11.51 this year, although the value of
Dividends Paid will most likely fall to about 2.7
M.
Investing in dividend-paying stocks, such as Richardson Electronics is one of the few strategies that are good for long-term investment. Ex-dividend dates are significant because investors in Richardson Electronics must own a stock before its ex-dividend date to receive its next dividend.
This type of analysis is very useful when you want to generate a past dividend schedule and payout information for Richardson Electronics. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.
How important is Richardson Electronics's Liquidity
Richardson Electronics
financial leverage refers to using borrowed capital as a funding source to finance Richardson Electronics ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Richardson Electronics financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Richardson Electronics' owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Richardson Electronics' financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the
breakdown between Richardson Electronics's total debt and its cash.
Correlation Between Richardson and DZS Inc
In general, Stock analysis is a method for investors and traders to make individual buying and selling decisions. Stock correlation analysis is also essential because it can help investors realize that they may not be as diversified as they think. Risk management strategies are usually required to make sure all portfolios are properly aligned against their risk tolerance level. You can consider holding Richardson Electronics together with similar or unrelated positions with a negative correlation. For example, you can also add DZS to your portfolio. If DZS is not perfectly correlated to Richardson Electronics it will diversify some of the market risks out of the positively correlated stocks in your portfolio. However, the disadvantage of this sort of hedging is that it can potentially affect your investment returns throughout market cycles. When Richardson Electronics, for example, performs excellent and delivers stable returns, the negatively correlated position you locked in as a hedge may drag your returns down.
Are you currently holding both Richardson Electronics and DZS in your portfolio? Please note if you are using this as a pair-trade strategy between Richardson Electronics and DZS, watch out for correlation discrepancy over time. Relying on the historical price correlations and assuming that it will not change may lead to short-term losses. Please check
pair correlation details between RELL and DZSI for more information.
An Additional Perspective On Richardson Electronics
Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include products or services discounts, promotions, as well as early payments on invoices or services rendered in advance.
Revenue Breakdown
Lets now check Richardson Electronics revenue. Based on the latest financial disclosure, Richardson Electronics reported 262.66
M of revenue. This is 93.56% lower than that of the Electronic Equipment, Instruments & Components sector and 82.93% lower than that of the
Information Technology industry.
The revenue for all United States stocks is 97.22% higher than that of Richardson Electronics. As for Electromed we see revenue of 48.07
M, which is 96.88% lower than that of the Information Technology
| RELL | 262.66 Million | 14.2 |
| Sector | 1.54 Billion | 83.2 |
| ELMD | 48.07 Million | 2.6 |
As Warren Buffet once wisely noted, risk comes from not knowing what you're doing. In the case of Richardson Electronics, a company in the Electronic Components industry, there are several factors to consider when assessing its volatility compared to Electromed. With a beta of 1, Richardson Electronics moves in line with the market, indicating a moderate level of risk. However, its negative operating margin of 0.04 and a quarterly revenue growth of -0.33 suggest potential financial instability. Furthermore, the company's risk-adjusted performance of -0.07 and a total risk alpha of -0.57 indicate that the stock has underperformed when considering the risk taken. Therefore, Richardson Electronics may indeed be a more volatile investment than Electromed. .
Richardson showing proof of lower volatility
Richardson Electronics' Jensen Alpha is currently -0.44, which could suggest lower volatility rather than poor performance. A negative Jensen's Alpha can indicate the stock is less risky compared to the market, aligning with Richardson Electronics' recent trend of lower volatility. This could appeal to investors seeking stability, as it implies the stock's returns are less prone to significant market swings. With a skewness of -3.87 and kurtosis of 24.07, Richardson Electronics shows very low volatility. Understanding these
market volatility trends can help investors time the market. Utilizing volatility indicators correctly allows traders to assess Richardson Electronics' stock risk against market volatility in both bullish and bearish trends. The increased volatility of bear markets can affect
Richardson Electronics' stock price, causing investor stress as share values drop, often leading to portfolio rebalancing with diverse financial instruments.
The Current Takeaway on Richardson Electronics Investment
Whereas some companies under the electronic components industry are still a bit expensive, Richardson Electronics may offer a potential longer-term growth to institutional investors. While some institutional investors may not share our view we believe that the current risk-reward utility is not appealing enough to do any trading. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Richardson Electronics.
Building efficient market-beating portfolios requires time, education, and a lot of computing power!
The Portfolio Architect is an AI-driven system that provides multiple benefits to our users by leveraging cutting-edge machine learning algorithms, statistical analysis, and predictive modeling to automate the process of asset selection and portfolio construction, saving time and reducing human error for individual and institutional investors.
Try AI Portfolio ArchitectEditorial Staff
Gabriel Shpitalnik is a Member of Macroaxis Editorial Board. Gabriel is a young entrepreneur and writes predominantly on the business, technology, and finance sector. He likes to analyze different equity instruments across a wide range of industries focusing primarily on consumer products and evolving technologies.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Gabriel Shpitalnik do not own shares of Richardson Electronics. Please refer to our
Terms of Use for any information regarding our disclosure principles.
Would you like to provide feedback on the content of this article?
You can get in touch with us directly or send us a quick note via email to
editors@macroaxis.com