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RELL vs TCX

RELL
Richardson Electronics, Ltd.
BEARISH
Price
$13.65
Market Cap
$198.7M
Sector
Technology
AI Confidence
85%
TCX
Tucows Inc.
BEARISH
Price
$17.53
Market Cap
$195.1M
Sector
Technology
AI Confidence
90%

Valuation

P/E Ratio
RELL
50.56
TCX
--
Forward P/E
RELL
35.0
TCX
9.04
P/B Ratio
RELL
1.24
TCX
-1.19
P/S Ratio
RELL
0.93
TCX
0.5
EV/EBITDA
RELL
29.15
TCX
29.86

Profitability

Gross Margin
RELL
30.64%
TCX
35.23%
Operating Margin
RELL
2.71%
TCX
-8.43%
Profit Margin
RELL
1.75%
TCX
-19.43%
ROE
RELL
2.4%
TCX
--
ROA
RELL
0.64%
TCX
-1.5%

Growth

Revenue Growth
RELL
3.1%
TCX
6.0%
Earnings Growth
RELL
--
TCX
--

Financial Health

Debt/Equity
RELL
0.01
TCX
--
Current Ratio
RELL
4.49
TCX
0.61
Quick Ratio
RELL
1.5
TCX
0.22

Dividends

Dividend Yield
RELL
1.76%
TCX
--
Payout Ratio
RELL
88.89%
TCX
0.0%

AI Verdict

RELL BEARISH

RELL presents a dichotomy of a pristine balance sheet and severe valuation misalignment. While the Piotroski F-Score of 6/9 indicates stable financial health and the Debt/Equity ratio of 0.01 is exceptional, the stock is trading at a massive premium to its Graham Number ($8.18) and Intrinsic Value ($1.89). Profitability is dangerously thin with a profit margin of only 1.75%, and the dividend payout ratio of 88.89% is unsustainable. Combined with bearish insider selling from the CFO and Directors, the recent price surge appears fundamentally unsupported.

Strengths
Near-zero leverage with a Debt/Equity ratio of 0.01
Excellent short-term liquidity (Current Ratio 4.49)
Stable financial health as indicated by a Piotroski F-Score of 6/9
Risks
Extreme overvaluation relative to Graham Number and Intrinsic Value
Razor-thin net profit margins (1.75%) leaving no room for error
Unsustainable dividend payout ratio (88.89%)
TCX BEARISH

Tucows Inc. (TCX) exhibits severe financial distress, highlighted by a critical Piotroski F-Score of 1/9 and a negative Price-to-Book ratio of -1.19, indicating negative shareholders' equity. While the stock trades at a low Price-to-Sales multiple (0.50) and shows a modest 1-year price recovery, the underlying balance sheet is precarious with a Quick Ratio of 0.22, suggesting an inability to meet short-term obligations. The long-term trend is overwhelmingly negative, with a 5-year price decline of 78.7%. Despite a hopeful Forward P/E of 9.04, the current lack of profitability and liquidity makes this a high-risk speculative play.

Strengths
Very low Price-to-Sales ratio (0.50) suggesting potential undervaluation if solvency is achieved
Positive Gross Margin of 35.22%
Modest positive Revenue Growth (6.00% YoY)
Risks
Critical financial health (Piotroski F-Score 1/9)
Negative shareholders' equity (Price/Book -1.19)
Severe liquidity crisis (Quick Ratio 0.22, Current Ratio 0.61)

Compare Another Pair

RELL vs TCX: Head-to-Head Comparison

This page compares Richardson Electronics, Ltd. (RELL) and Tucows Inc. (TCX) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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