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In calculating the Net-Net Working Capital (NNWC), Benjamin Graham assumed that a company's accounts receivable is only worth 75% its value, its inventory is only worth 50% of its value, but its liabilities have to be paid in full. In addition, Graham believed that preferred stock belongs on the liability side of the balance sheet, not as part of capital and surplus. This is a conservative way of estimating the company's value.
Richardson Electronics's Net-Net Working Capital for the quarter that ended in May. 2026 was $4.78.
The industry rank for Richardson Electronics's Net-Net Working Capital or its related term are showing as below:
RELL's Price-to-Net-Net-Working-Capital is ranked better than 72.73% of 1181
companies
in the Hardware industry
Industry Median: 8.93
vs RELL: 3.77
Richardson Electronics (NAS:RELL) Net-Net Working Capital Explanation
One research study, covering the years 1970 through 1983 showed that portfolios picked at the beginning of each year, and held for one year, returned 29.4 percent, on average, over the 13-year period, compared to 11.5 percent for the S&P 500 Index. Other studies of Graham's strategy produced similar results.
Benjamin Graham looked for companies whose market values were less than two-thirds of their net-net value. They are collected under our Net-Net screener.
Richardson Electronics Net-Net Working Capital Related Terms
Richardson Electronics Net-Net Working Capital Historical Data
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The historical data trend for Richardson Electronics's Net-Net Working Capital can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Richardson Electronics Net-Net Working Capital Chart
RELL vs OPTX, MPTI, KULR: Net-Net Working Capital Comparison
For the Electronic Components subindustry, Richardson Electronics's Price-to-Net-Net-Working-Capital, along with its competitors' market caps and Price-to-Net-Net-Working-Capital data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Richardson Electronics Price-to-Net-Net-Working-Capital vs Hardware Industry
For the Hardware industry and Technology sector, Richardson Electronics's Price-to-Net-Net-Working-Capital distribution charts can be found below:
* The bar in red indicates where Richardson Electronics's Price-to-Net-Net-Working-Capital falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In calculating the Net-Net Working Capital (NNWC), Benjamin Graham assumed that a company's accounts receivable is only worth 75% its value, its inventory is only worth 50% of its value, but its liabilities have to be paid in full.
In addition, Graham believed that preferred stock belongs on the liability side of the balance sheet, not as part of capital and surplus. In "Security Analysis", preferred stock is dubbed "an imperfect creditorship position" that is best placed on the balance sheet alongside funded debt.
This is a conservative way of estimating the company's value.
What does a Net-Net Working Capital of $4.78 mean?
Richardson Electronics (RELL) has a Net-Net Working Capital of $4.78 as of May. 2026. Ben Graham defined net-net working capital as the per-share sum of cash, 75% of receivables and 50% of inventory less total liabilities. View historical data on Richardson Electronics According to the industry distribution chart, Richardson Electronics ranks #322 out of 1181 companies in the Hardware industry, placing it in the top 27.3%.
Is Richardson Electronics' Net-Net Working Capital too high?
Richardson Electronics' current Net-Net Working Capital is $4.78. The Hardware industry median Net-Net Working Capital is 8.93. Richardson Electronics' value of $4.78 is 46.5% below this industry median. Based on the distribution chart, Richardson Electronics ranks #322 out of 1181 companies in the Hardware industry, which is above the industry midpoint. Overall, Richardson Electronics has a GF Score™ of 62/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Richardson Electronics' Net-Net Working Capital compare to OPTX and MPTI?
According to the Hardware industry distribution chart, Richardson Electronics ranks #322 out of 1181 companies for Net-Net Working Capital. This puts Richardson Electronics in the upper half of its industry. The industry median Net-Net Working Capital is 8.93. Richardson Electronics' value of $4.78 is 46.5% below this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Net-Net Working Capital for a Hardware company?
The median Net-Net Working Capital among Hardware companies is 8.93, based on 1,181 companies in the industry. Companies in the top quartile (top 25%) have a Net-Net Working Capital significantly above this median, while those in the bottom quartile fall well below. However, Net-Net Working Capital should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Richardson Electronics's current Net-Net Working Capital of $4.78 is 46.5% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Net-Net Working Capital mean?
A high Net-Net Working Capital can signal that a stock is expensive relative to its fundamentals. Ben Graham defined net-net working capital as the per-share sum of cash, 75% of receivables and 50% of inventory less total liabilities. View historical data on Richardson Electronics For the Hardware industry, the median Net-Net Working Capital is 8.93 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Richardson Electronics's current Net-Net Working Capital is $4.78. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Richardson Electronics stock overvalued right now?
Based on GuruFocus' analysis, Richardson Electronics (RELL) is currently considered Significantly Overvalued. The stock's GF Value™ is $11.80, compared to a current price of $18.00 — trading 52.5% above its estimated fair value. The current Net-Net Working Capital is $4.78 and 46.5% below the Hardware industry median of 8.93. Richardson Electronics' overall GF Score™ is 62/100 with 9 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Net-Net Working Capital calculated?
Net-Net Working Capital is calculated from a company's financial statements. For Richardson Electronics (RELL), the current Net-Net Working Capital is $4.78 as of May. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Richardson Electronics (RELL) Overvalued in 2026?
Based on GuruFocus' analysis, Richardson Electronics stock appears to be overvalued.
The current stock price of $18.00 is trading 52.5% above its estimated GF Value™ of $11.80.
GuruFocus considers Richardson Electronics to be Significantly Overvalued.
Key valuation signals for RELL:
Net-Net Working Capital: $4.78
GF Value™: $11.80 vs. price of $18.00 (52.5% above fair value)
Industry Position: 46.5% below the Hardware median (#322 of 1181)
No single metric tells the full story. See the RELL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Richardson Electronics Ltd provides engineered solutions, power grid, and microwave tubes and related consumables, power conversion, RF and microwave components, high-value flat panel detector solutions, replacement parts, tubes, and service training for diagnostic imaging equipment and customized display solutions. The company's segment includes Power and Microwave Technologies, Green Energy Solutions, Canvys, and Healthcare. The company generates the majority of its revenue from the Power and Microwave Technologies segment, which includes the power grid and microwave tube business and RF, Wireless and Power technologies.
62GF Score
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Net-Net Working Capital is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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