Research Frontiers (REFR) AI Stock Analysis

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Research Frontiers

(NASDAQ:REFR)

33Underperform

Research Frontiers' overall stock score is driven by significant financial challenges, including ongoing net losses and negative cash flow, which weigh heavily on the assessment. Technical indicators suggest bearish trends, further impacting the score. While the earnings call highlights potential future growth and a solid patent strategy, current operational challenges and valuation concerns keep the stock's attractiveness low.

Research Frontiers (REFR) vs. S&P 500 (SPY)

Market Cap

$34.18M

Dividend YieldN/A

Average Volume (3M)35.05K

Price to Earnings (P/E)―

Beta (1Y)0.09

Revenue Growth46.83%

EPS Growth31.40%

CountryUS

Employees6

SectorTechnology

Sector Strength45

IndustryHardware, Equipment & Parts

Share Statistics

EPS (TTM)-0.04

Shares Outstanding33,509,290

10 Day Avg. Volume41,235

30 Day Avg. Volume35,053

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)30.49

Price to Cash Flow (P/CF)216.20

P/FCF Ratio220.30

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price TargetN/A

Price Target UpsideN/A

Rating ConsensusN/A

Number of Analyst Covering0

Research Frontiers Business Overview & Revenue Model

Company DescriptionResearch Frontiers Incorporated (REFR) is a technology company that specializes in the development and commercialization of smart glass technology. The company's core product, SPD-SmartGlass, is used to control light and heat passing through glass or plastic. This technology is applied across various sectors, including automotive, architectural, and aerospace, providing dynamic light-control solutions that enhance energy efficiency and user comfort.

How the Company Makes MoneyResearch Frontiers generates revenue primarily through licensing its patented SPD-SmartGlass technology to various manufacturers and suppliers. The company earns royalties from these licensees, who integrate the smart glass technology into their own products. Significant partnerships with companies in the automotive, architectural, and aerospace sectors contribute to its earnings, as these industries require innovative solutions for managing light and heat. Additionally, Research Frontiers may receive income from research and development contracts, as well as consulting fees related to the implementation of its technology.

Research Frontiers Financial Statement Overview

Summary

Research Frontiers shows positive trends like improved EBIT and revenue growth. However, challenges such as persistent net losses, negative free cash flow, and declining equity need addressing. Balancing revenue growth with cost management is key for future financial stability.

Income Statement

Negative

Research Frontiers has shown a decrease in losses over the last year, with a notable improvement in EBIT and EBITDA. However, the company still faces challenges with negative net income and low revenue levels compared to historical performance. The recent revenue growth is a positive sign but needs to be sustained to improve the financial health of the company.

Balance Sheet

Negative

The balance sheet shows a moderate debt-to-equity ratio, indicating manageable leverage. However, the decrease in stockholders’ equity over the years is a concern. The equity ratio remains stable, suggesting that the company retains a reasonable level of equity relative to its assets, which provides a cushion against liabilities.

Cash Flow

Negative

The company has shown some improvement in free cash flow, but it remains negative, indicating ongoing operational challenges. The operating cash flow to net income ratio is not favorable, and free cash flow growth is still needed. Cash management remains a critical area for improvement.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
1.34M	909.60K	539.69K	1.26M	828.45K
	Gross Profit
1.34M	-1.45M	364.53K	-1.26M	-1.95M
	EBIT
-1.44M	-2.03M	-2.63M	-1.84M	-2.58M
	EBITDA
-1.18M	-1.86M	-2.49M	-1.82M	-2.51M
	Net Income Common Stockholders
-1.31M	-1.91M	-2.71M	-1.85M	-2.10M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.99M	2.48M	4.23M	3.03M	4.77M
	Total Assets
4.04M	3.85M	5.37M	4.55M	6.20M
	Total Debt
1.30M	267.72K	464.13K	646.22K	812.60K
	Net Debt
-698.03K	-2.21M	-3.77M	376.25K	-3.96M
	Total Liabilities
1.44M	332.79K	569.59K	762.06K	872.28K
	Stockholders Equity
2.60M	3.52M	4.80M	3.78M	5.33M
Cash Flow		Free Cash Flow
-790.44K	-2.30M	-2.18M	-1.81M	-2.31M
	Operating Cash Flow
-788.82K	-2.30M	-2.18M	-1.80M	-2.25M
	Investing Cash Flow
-1.62K	55.59K	2.69M	-2.78M	-52.82K
	Financing Cash Flow
308.67K	484.50K	3.45M	86.26K	486.26K

Research Frontiers Technical Analysis

Technical Analysis Sentiment

Negative

Last Price1.02

Price Trends

50DMA

1.24

Negative

100DMA

1.48

Negative

200DMA

1.78

Negative

Market Momentum

MACD

-0.08

Negative

RSI

32.95

Neutral

STOCH

40.66

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For REFR, the sentiment is Negative. The current price of 1.02 is below the 20-day moving average (MA) of 1.08, below the 50-day MA of 1.24, and below the 200-day MA of 1.78, indicating a bearish trend. The MACD of -0.08 indicates Negative momentum. The RSI at 32.95 is Neutral, neither overbought nor oversold. The STOCH value of 40.66 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for REFR.

Research Frontiers Risk Analysis

Research Frontiers disclosed 14 risk factors in its most recent earnings report. Research Frontiers reported the most risks in the “Finance & Corporate” category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

Research Frontiers Peers Comparison

Overall Rating

UnderperformOutperform

Sector (58)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MIND	72 Outperform	$40.01M	11.04	19.54%	―	16.74%	―
LGL	61 Neutral	$35.58M	83.39	1.11%	―	28.82%	60.24%
Sector *	58 Neutral	$10.03B	10.00	-6.85%	3.09%	7.49%	-11.58%
CPSH	52 Neutral	$21.50M	―	-19.70%	―	-23.33%	-328.22%
DAIO	43 Neutral	$18.34M	―	-16.30%	―	-22.43%	-720.55%
NSYS	38 Underperform	$21.18M	6.41	-3.73%	―	-8.04%	-118.60%
REFR	33 Underperform	$34.18M	―	-42.84%	―	46.83%	31.40%

* Technology Sector Average

Performance Comparison

REFR

Research Frontiers

1.02

-0.50

-32.89%

DAIO

Data I/O

1.98

-1.52

-43.43%

LGL

LGL Group

6.62

1.02

18.21%

MIND

MIND Technology

5.02

0.85

20.38%

NSYS

Nortech Systems

7.67

-9.27

-54.72%

CPSH

CPS Technologies

1.48

-0.30

-16.85%

Research Frontiers Earnings Call Summary

Earnings Call Date: Mar 6, 2025 | % Change Since: -23.31% | Next Earnings Date: May 1, 2025

Earnings Call Sentiment Neutral

The call highlighted positive momentum in multiple markets and a strong patent strategy, but also acknowledged challenges such as automotive production cuts, delayed product releases, and concerns over revenue growth. While there is potential for significant future sales, current challenges weigh heavily on investor sentiment.

Highlights

Momentum Across Multiple Markets

Joe Harary highlighted the company's momentum in various markets, indicating a 47% increase in performance for the year and potential profitability in the upcoming quarters.

Low Loss Per Share

The company reported a loss per share of $0.04 for the year, the lowest since going public.

Exciting Future Prospects

Joe Harary expressed confidence in significant sales expected in 2025 and 2026, indicating potential record-breaking achievements.

Strong Patent and IP Strategy

The company maintains a robust patent portfolio with 250 patents and an equal number of patent applications, highlighting a strong focus on intellectual property protection.

Lowlights

Automotive Production Cuts

The fourth-quarter revenue was about half of the third quarter due to carmakers cutting production.

Lack of Analyst Coverage and Public Awareness

The company faces challenges with public awareness and analyst coverage, impacting investor perception.

Delayed Product Releases

Some expected car models were delayed past 2024, impacting anticipated revenue streams.

Concerns Over Revenue and Stock Price

Investors expressed concerns about the lack of significant contracts and revenue growth, affecting stock price performance.

Company Guidance

In the call, Joe Harary provided guidance indicating that Research Frontiers is seeing momentum across multiple markets, with a significant focus on the automotive sector. The company achieved a 47% revenue increase for the year and is aiming for a profitable quarter in the near future, thanks to expected introductions of new vehicles featuring their technology in 2025. Harary highlighted a potential transformative event in 2026, which could significantly boost revenues, particularly in the automotive market. He noted that the company's loss per share was $0.04 for the year, marking the lowest since going public. Additionally, Harary expressed confidence in their intellectual property strategy, with over 250 patents and an equal number of patent applications in place, and he emphasized the importance of protecting their technology as they explore opportunities to expand into architectural markets and other industries.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.