Research Frontiers (REFR) AI Stock Analysis

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Research Frontiers

(NASDAQ:REFR)

Rating:51Neutral

Price Target:

$2.00

▲(6.95%Upside)

Research Frontiers' overall stock score is primarily influenced by its financial challenges, including persistent net losses and negative free cash flow. However, the strong technical indicators show bullish momentum, and the positive outlook from the earnings call suggests potential growth, especially in the automotive market. Valuation remains a concern due to the negative P/E ratio.

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

Market Cap

$63.67M

Dividend YieldN/A

Average Volume (3M)47.70K

Price to Earnings (P/E)―

Beta (1Y)0.19

Revenue Growth62.28%

EPS Growth44.68%

CountryUS

Employees6

SectorTechnology

Sector Strength78

IndustryHardware, Equipment & Parts

Share Statistics

EPS (TTM)>-0.01

Shares Outstanding33,509,290

10 Day Avg. Volume41,220

30 Day Avg. Volume47,698

Financial Highlights & Ratios

PEG Ratio-0.51

Price to Book (P/B)12.77

Price to Sales (P/S)0.00

P/FCF Ratio-28.05

Enterprise Value/Market Cap0.90

Enterprise Value/Revenue10.15

Enterprise Value/Gross Profit44.90

Enterprise Value/Ebitda-12.64

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 develops and markets technology and devices to control the flow of light worldwide. The company develops and licenses suspended particle device (SPD-Smart) light-control technology to companies that manufacture and market the SPD-Smart chemical emulsion, light-control film made from the chemical emulsion, the light-control panels made by laminating the film, and electronics to power end-products incorporating the film, as well as lamination services for and the end-products, such as windows, skylights, and sunroofs. Its SPD-Smart light-control technology is used in various product applications, including windows, sunshades, skylights, and interior partitions for homes and buildings; automotive windows, sunroofs, sun-visors, sunshades, rear-view mirrors, instrument panels, and navigation systems; aircraft windows; museum display panels, and eyewear products; and flat panel displays for electronic products. The company serves architectural, automotive, marine, and aerospace and appliance applications. Research Frontiers Incorporated was incorporated in 1965 and is headquartered in Woodbury, New York.

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 Earnings Call Summary

Earnings Call Date:May 08, 2025

(Q1-2025)

% Change Since: 57.14%|

Next Earnings Date:Jul 31, 2025

Earnings Call Sentiment Positive

The earnings call highlighted significant growth in royalty revenues, particularly in the automotive market, and the company's strong financial position with no debt. Strategic partnerships and advancements in both automotive and architectural markets signal positive future prospects. However, the net loss and industry challenges remain concerns. Overall, the positive aspects appear to outweigh the negatives.

Q1-2025 Updates

Positive Updates

Royalty Revenue Surge

Royalty revenues in Q1 2025 were up over 79% to $560,000, an increase of more than $246,000 over Q1 2024. Sequentially, royalty income was up 214% from Q4 2024.

Automotive Market Growth

Higher royalties from the automotive market were up 128% compared to Q1 2024 and increased by 267% compared to Q4 2024. New car models using SPD-SmartGlass technology are expected to be introduced in 2025.

Financial Stability

The company remains debt-free with cash and cash equivalents of approximately $1.4 million and working capital of $2.3 million. Operations are projected to be funded for more than the next five years.

Strategic Partnerships and Industry Position

Research Frontiers has built strong partnerships with companies like Gauzy, Asahi, and Isoclima, reinforcing its market position as the premier smart glass technology.

Architectural Market Potential

The architectural market shows potential growth with the upcoming launch of a retrofit application and regulatory support from tax credits offered by the Dynamic Glass Act.

Negative Updates

Net Loss

The net loss for the three months ended March 31, 2025, was $177,687, or $0.01 per common share, although this was 60% lower than the first quarter of last year.

Industry Challenges

Two companies in the smart glass industry filed for bankruptcy this past year, View and Helio, highlighting ongoing industry challenges.

Delayed Product Announcements

Some products, like the electrochromatic roof on the new 2026 Corvette and the introduction of Sun Visors, are still pending announcements and availability.

Company Guidance

In the first quarter of 2025, Research Frontiers reported robust financial growth, with royalty revenues up 79% to $560,000, marking a $246,000 increase from Q1 2024. This growth was driven by a significant 128% increase in automotive market royalties compared to the previous year, with a 267% rise from the previous quarter, Q4 2024. The aircraft market also saw sequential growth. Despite a net loss of $177,687, or $0.01 per share, this was a 60% improvement from the previous year. The company's cash reserves stood at $1.4 million, with a working capital of $2.3 million, and they remain debt-free. Research Frontiers anticipates further revenue growth across all segments with the introduction of new car models and products, bolstered by strategic partnerships and technological advancements like the SPD-SmartGlass technology.

Research Frontiers Financial Statement Overview

Summary

Research Frontiers is experiencing some positive trends, such as improved EBIT and revenue growth. However, persistent net losses, negative free cash flow, and declining equity are challenges that need addressing. Balancing revenue growth with cost management will be 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.

TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
1.58M	1.34M	909.60K	539.69K	1.26M	828.45K
	Gross Profit
1.28M	1.07M	-1.45M	364.53K	-1.26M	-1.95M
	EBIT
-1.21M	-1.44M	-2.03M	-2.63M	-1.84M	-2.58M
	EBITDA
-905.55K	-1.18M	-1.86M	-2.49M	-1.82M	-2.51M
	Net Income Common Stockholders
-1.05M	-1.31M	-1.91M	-2.71M	-1.85M	-2.10M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.35M	1.99M	2.48M	4.23M	3.03M	4.77M
	Total Assets
3.77M	4.04M	3.85M	5.37M	4.55M	6.20M
	Total Debt
1.26M	1.30M	267.72K	464.13K	646.22K	812.60K
	Net Debt
-88.26K	-698.03K	-2.21M	-3.77M	376.25K	-3.96M
	Total Liabilities
1.34M	1.44M	332.79K	569.59K	762.06K	872.28K
	Stockholders Equity
2.43M	2.60M	3.52M	4.80M	3.78M	5.33M
Cash Flow		Free Cash Flow
-1.04M	-790.44K	-2.30M	-2.18M	-1.81M	-2.31M
	Operating Cash Flow
-1.04M	-788.82K	-2.30M	-2.18M	-1.80M	-2.25M
	Investing Cash Flow
-1.68K	-1.62K	55.59K	2.69M	-2.78M	-52.82K
	Financing Cash Flow
300.00K	308.67K	484.50K	3.45M	86.26K	486.26K

Research Frontiers Technical Analysis

Technical Analysis Sentiment

Positive

Last Price1.87

Price Trends

50DMA

1.43

Positive

100DMA

1.40

Positive

200DMA

1.68

Positive

Market Momentum

MACD

0.14

Positive

RSI

60.29

Neutral

STOCH

38.89

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For REFR, the sentiment is Positive. The current price of 1.87 is above the 20-day moving average (MA) of 1.84, above the 50-day MA of 1.43, and above the 200-day MA of 1.68, indicating a bullish trend. The MACD of 0.14 indicates Positive momentum. The RSI at 60.29 is Neutral, neither overbought nor oversold. The STOCH value of 38.89 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 (62)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LGL	64 Neutral	$36.65M	91.28	1.04%	―	28.82%	60.24%
CPSH	63 Neutral	$37.77M	―	-18.07%	―	-13.83%	-476.23%
MIND	62 Neutral	$48.14M	31.43	12.53%	―	22.59%	―
Sector *	62 Neutral	$11.80B	10.08	-7.46%	2.99%	7.37%	-8.21%
DAIO	55 Neutral	$26.24M	―	-14.35%	―	-18.88%	-534.79%
REFR	51 Neutral	$63.67M	―	-37.98%	―	62.28%	44.68%
NSYS	47 Neutral	$25.26M	6.41	-9.81%	―	-12.87%	-148.14%

* Technology Sector Average

Performance Comparison

REFR

Research Frontiers

1.87

0.04

2.19%

DAIO

Data I/O

2.80

0.05

1.82%

LGL

LGL Group

6.80

1.73

34.12%

MIND

MIND Technology

6.18

1.81

41.42%

NSYS

Nortech Systems

9.15

-3.73

-28.96%

CPSH

CPS Technologies

2.60

0.89

52.05%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.