Richardson Electronics (FRA:RE3) ROCE %: 7.43% (As of May. 2026)

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FRA:RE3 Richardson Electronics Ltd FRA:RE3
62 GF Score
Price €16.86
GF Value €10.49
! 9 Warning Signs
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What is Richardson Electronics ROCE %?

Richardson Electronics FRA:RE3 -1.06% 62 ROCE % is 7.43% as of May. 2026. GuruFocus rates FRA:RE3 with a GF Score™ of 62/100 and a GF Value™ of €10.49. The stock has 9 warning signs investors should review.

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. Richardson Electronics's annualized ROCE % for the quarter that ended in May. 2026 was 7.43%.

Richardson Electronics  (FRA:RE3) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

Richardson Electronics ROCE % Related Terms

Richardson Electronics ROCE % Historical Data

* Premium members only.

The historical data trend for Richardson Electronics's ROCE % 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 ROCE % Chart

Richardson Electronics Annual Data
Trend May17 May18 May19 May20 May21 May22 May23 May24 May25 May26
ROCE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 12.94 16.43 0.26 1.61 3.41

Richardson Electronics Quarterly Data
Aug21 Nov21 Feb22 May22 Aug22 Nov22 Feb23 May23 Aug23 Nov23 Feb24 May24 Aug24 Nov24 Feb25 May25 Aug25 Nov25 Feb26 May26
ROCE % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1.98 2.38 0.34 3.69 7.43
FRA:RE3
62GF Score
Richardson Electronics Ltd FRA:RE3
ROCE % is just one metric. See GF Score™, valuation, warning signs, and more.
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Richardson Electronics ROCE % Calculation

Richardson Electronics's annualized ROCE % for the fiscal year that ended in May. 2026 is calculated as:

ROCE %=EBIT/( (Capital Employed+Capital Employed)/ count )
(A: May. 2026 )  (A: May. 2025 )(A: May. 2026 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(A: May. 2026 )  (A: May. 2025 )(A: May. 2026 )
=4.819/( ( (173.706 - 32.629) + (172.927 - 31.132) )/ 2 )
=4.819/( (141.077+141.795)/ 2 )
=4.819/141.436
=3.41 %

Richardson Electronics's ROCE % of for the quarter that ended in May. 2026 is calculated as:

ROCE %=EBIT (1)/( (Capital Employed+Capital Employed)/ count )
(Q: May. 2026 )  (Q: Feb. 2026 )(Q: May. 2026 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(Q: May. 2026 )  (Q: Feb. 2026 )(Q: May. 2026 )
=10.352/( ( (169.03 - 31.996) + (172.927 - 31.132) )/ 2 )
=10.352/( ( 137.034 + 141.795 )/ 2 )
=10.352/139.4145
=7.43 %

(1) Note: The EBIT data used here is four times the quarterly (May. 2026) EBIT data.

* 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.

Frequently Asked Questions Learn more about ROCE % →
What does a ROCE % of 7.43% mean?
Richardson Electronics (FRA:RE3) has a ROCE % of 7.43% as of May. 2026.
Is Richardson Electronics' ROCE % too high?
Richardson Electronics' current ROCE % is 7.43%. The Hardware industry median ROCE % is 6.09. Richardson Electronics' value of 7.43% is 22.1% above this industry median. Overall, Richardson Electronics has a GF Score™ of 62/100, reflecting its overall financial health beyond just this single metric.
How does Richardson Electronics' ROCE % compare to OPTX and MPTI?
Richardson Electronics' ROCE % of 7.43% can be compared against companies in the Hardware industry. The industry median ROCE % is 6.09. Richardson Electronics' value of 7.43% is 22.1% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROCE % for a Hardware company?
The median ROCE % among Hardware companies is 6.09, based on 2,454 companies in the industry. Companies in the top quartile (top 25%) have a ROCE % significantly above this median, while those in the bottom quartile fall well below. However, ROCE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Richardson Electronics's current ROCE % of 7.43% is 22.1% above 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 ROCE % mean?
A high ROCE % can signal that a stock is expensive relative to its fundamentals. For the Hardware industry, the median ROCE % is 6.09 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Richardson Electronics's current ROCE % is 7.43%. 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?
Richardson Electronics (FRA:RE3) has a current ROCE % of 7.43%. The stock's GF Value™ is €10.49, compared to a current price of €16.86 — trading 60.7% above its estimated fair value. The current ROCE % is 7.43% and 22.1% above the Hardware industry median of 6.09. 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 ROCE % calculated?
ROCE % is calculated from a company's financial statements. For Richardson Electronics (FRA:RE3), the current ROCE % is 7.43% 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 (FRA:RE3) Overvalued in 2026?

Based on GuruFocus' analysis, Richardson Electronics stock appears to be overvalued. The current stock price of €16.86 is trading 60.7% above its estimated GF Value™ of €10.49.

Key valuation signals for FRA:RE3:

  • ROCE %: 7.43%
  • GF Value™: €10.49 vs. price of €16.86 (60.7% above fair value)
  • GF Score™: 62/100 with 9 warning signs
  • Industry Position: 22.1% above the Hardware median

No single metric tells the full story. See the FRA:RE3 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Richardson Electronics Business Description

Other Exchanges RELL:USA
Address 40W267 Keslinger Road, P.O. Box 393, LaFox, IL, USA, 60147-0393
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

Get the complete analysis for FRA:RE3

ROCE % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

€16.86
Price
€10.49
GF Value