Is RICHARDSON ELECTRONICS, LTD. (RELL) Halal?

NASDAQ Technology United States $160M
✓ HALAL
Confidence: 95/100
RICHARDSON ELECTRONICS, LTD. (RELL) is Halal under all 5 major Shariah screening standards. With a debt ratio of just 1.4% against the AAOIFI threshold of 30%, RICHARDSON ELECTRONICS, LTD. comfortably passes the key financial ratio tests. The company operates in the Technology sector (Electronic Components), which is not a prohibited industry under Islamic finance principles.

Shariah Screening — 5 Standards

Based on financial data from May 2025

Standard Debt Ratio Cash Ratio Receivables Income Status
AAOIFI 1.4%
/ 30%
22.1%
/ 30%
14.9%
/ 30%
0.19%
/ 5%
✓ HALAL
DJIM 1.4%
/ 33%
22.1%
/ 33%
14.9%
/ 33%
0.19%
/ 5%
✓ HALAL
MSCI 1.2%
/ 33%
18.3%
/ 33%
12.3%
/ 33%
0.19%
/ 5%
✓ HALAL
S&P 1.4%
/ 33%
22.1%
/ 33%
14.9%
/ 33%
0.19%
/ 5%
✓ HALAL
FTSE 1.2%
/ 33%
18.3%
/ 33%
12.3%
/ 50%
0.19%
/ 5%
✓ HALAL

Financial Highlights

P/E Ratio
220.8
Forward: 20.1
EPS
$0.05
Dividend Yield
218.0%
Payout: 480.0%
P/B Ratio
1.0
EV/EBITDA
19.8
EV: $129M
Revenue
$209M
Growth: 5.7%
Beta
1.1
Average volatility
Current Ratio
4.1

Profitability

Gross Margin 30.4%
Operating Margin 0.3%
Net Margin 0.4%
Return on Equity (ROE) 0.5%
Return on Assets (ROA) 0.8%

Cash Flow & Balance Sheet

Operating Cash Flow$11M
Free Cash Flow$8M
Total Debt$2M
Debt-to-Equity1.1
Current Ratio4.1
Total Assets$196M

Price & Trading

Last Close$11.40
50-Day MA$11.87
200-Day MA$10.63
Avg Volume137K
Beta1.1
52-Week Range
$7.57
$15.34

About RICHARDSON ELECTRONICS, LTD. (RELL)

CEO
Mr. Edward J. Richardson
Employees
396
Sector
Technology
Industry
Electronic Components
Country
United States
Exchange
NASDAQ
Market Cap
$160M
Currency
USD

Richardson Electronics, Ltd. provides engineered solutions, power grid and microwave tube, and related consumables in North America, the Asia Pacific, Europe, and Latin America. The company's Power and Microwave Technologies segment manufactures electron tubes and radio frequency (RF), microwave and power components used in semiconductor manufacturing equipment, RF, and wireless and industrial power applications, as well as various applications, including broadcast transmission, CO2 laser cutting, diagnostic imaging, dielectric and induction heating, energy transfer, high voltage switching, plasma, power conversion, radar, and radiation oncology. This segment also provides thyratrons and rectifiers, power tubes, ignitrons, magnetrons, phototubes, microwave generators, ultracapacitor modules, and liquid crystal display monitors under the Amperex, Cetron, and National brands. Its Green Energy Solutions segment operates as a designer, manufacturer, technology partner, and distributor of products for green energy applications, such as wind, solar, hydrogen, and electric vehicles; and other power management applications that support green solutions comprising synthetic diamond manufacturing. The company's Canvys segment provides custom display solutions consisting of touch screens, protective panels, custom enclosures, all-in-one computers, specialized cabinet finishes and application-specific software packages, and certification. Its Healthcare segment offers diagnostic imaging replacement parts for CT and MRI systems, replacement CT and MRI tubes, CT service training, MRI and RF amplifiers, hydrogen thyratrons, klystrons, flat panel detector upgrades, pre-owned CT systems, and replacement solutions for the healthcare market. The company serves energy, healthcare, aviation, broadcast, communications, industrial, marine, medical, military, scientific, and semiconductor markets. The company was founded in 1947 and is headquartered in LaFox, Illinois.

Purification Calculator

As a halal stock with 0.19% impermissible income, you need to purify your dividends.

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Frequently Asked Questions

Is RICHARDSON ELECTRONICS, LTD. (RELL) halal to invest in?

Based on our screening using AAOIFI Standard 21 (the strictest methodology), RICHARDSON ELECTRONICS, LTD. is Halal. The company passes all financial ratio thresholds for debt, cash, receivables, and impermissible income. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.

What is RICHARDSON ELECTRONICS, LTD.'s debt ratio?

RICHARDSON ELECTRONICS, LTD.'s debt ratio is 1.4% under the AAOIFI standard (which uses market capitalization as the denominator). The AAOIFI threshold is 30%. Under MSCI and FTSE (which use total assets as the denominator), the debt ratio is 1.2%.

Does RICHARDSON ELECTRONICS, LTD. require dividend purification?

Yes, RICHARDSON ELECTRONICS, LTD. has an impermissible income ratio of 0.19%, which means 0.19% of any dividends received should be donated to charity as purification. This is because a small portion of the company's revenue comes from non-Shariah-compliant sources.

What are RICHARDSON ELECTRONICS, LTD.'s key financial metrics?

RICHARDSON ELECTRONICS, LTD. has a market capitalization of $160M, trailing P/E ratio of 220.8, and revenue of $209M. The company maintains a gross margin of 30.4% and a net margin of 0.4%. Return on equity stands at 0.5%.

How often is the screening data updated?

Our screening data is updated regularly using the latest available financial statements and market data. Stock prices and market caps are refreshed frequently, while financial statements are updated quarterly when companies report earnings.

Disclaimer: HalalStockGuide.com provides Shariah compliance screening for educational and informational purposes only. This is not a fatwa, financial advice, or a recommendation to buy or sell any security. Screening results are based on publicly available financial data and established methodologies. Always consult a qualified Islamic scholar and a licensed financial advisor before making investment decisions.