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Research Frontiers Inc. (REFR)
NASDAQ:REFR
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Research Frontiers
(NASDAQ:REFR)
Rating:47Neutral
Price Target:
$1.50
▼(-0.66%Downside)
Research Frontiers (REFR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$49.93M
Dividend YieldN/A
Average Volume (3M)37.91K
Price to Earnings (P/E)―
Beta (1Y)0.30
Revenue Growth62.28%
EPS Growth44.68%
CountryUS
Employees6
SectorTechnology
Sector Strength89
IndustryHardware, Equipment & Parts
Share Statistics
EPS (TTM)>-0.01
Shares Outstanding33,509,290
10 Day Avg. Volume24,805
30 Day Avg. Volume37,915
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 Cap1.15
Enterprise Value/Revenue10.15
Enterprise Value/Gross Profit44.90
Enterprise Value/Ebitda-12.64
Forecast
1Y Price Target
$2.00Price Target Upside32.45% Upside
Rating ConsensusHold
Number of Analyst Covering1
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 across different industries. The company earns money from the sales of products incorporating their technology, receiving royalties based on the sales volume of SPD-SmartGlass-enabled products. Additionally, Research Frontiers may engage in research and development contracts, as well as partnerships with major companies in sectors like automotive and aerospace, contributing to its income stream. These strategic alliances and licensing agreements are crucial factors in the company's revenue generation model, allowing it to leverage its intellectual property while expanding the market adoption of its smart glass solutions.
Research Frontiers Earnings Call Summary
Earnings Call Date:May 08, 2025
(Q1-2025)
| % Change Since: 26.89%|
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
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.35
Negative
Balance Sheet
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.40
Negative
Cash Flow
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.30
Negative
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
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 |
| EBITDA | -905.55K | -1.18M | -1.86M | -2.49M | -1.82M | -2.51M |
| Net Income | -1.05M | -1.31M | -1.91M | -2.71M | -1.85M | -2.10M |
Balance Sheet | ||||||
| Total Assets | 3.77M | 4.04M | 3.85M | 5.37M | 4.55M | 6.20M |
| Cash, Cash Equivalents and Short-Term Investments | 1.35M | 1.99M | 2.48M | 4.23M | 3.03M | 4.77M |
| Total Debt | 1.26M | 1.30M | 267.72K | 464.13K | 646.22K | 812.60K |
| 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
Negative
1.51
Price Trends
1.63
Negative
1.42
Positive
1.65
Negative
Market Momentum
-0.05
Positive
38.30
Neutral
9.07
Positive
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 1.51 is below the 20-day moving average (MA) of 1.71, below the 50-day MA of 1.63, and below the 200-day MA of 1.65, indicating a bearish trend. The MACD of -0.05 indicates Positive momentum. The RSI at 38.30 is Neutral, neither overbought nor oversold. The STOCH value of 9.07 is Positive, 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 (50)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | $66.46M | 41.51 | 12.53% | ― | 22.59% | ― | |
64 Neutral | $39.83M | 96.91 | 1.04% | ― | 28.82% | 60.24% | |
64 Neutral | $39.95M | ― | -18.07% | ― | -13.83% | -476.23% | |
59 Neutral | $29.29M | ― | -14.35% | ― | -18.88% | -534.79% | |
50 Neutral | C$2.92B | 1.79 | -63.12% | 2.58% | 11.24% | -12.42% | |
48 Neutral | $24.88M | 6.41 | -9.81% | ― | -12.87% | -148.14% | |
47 Neutral | $49.93M | ― | -37.98% | ― | 62.28% | 44.68% |
* Technology Sector Average
Performance Comparison
REFR
Research Frontiers
1.51
-0.38
-20.11%
DAIO
Data I/O
3.09
0.32
11.55%
LGL
LGL Group
7.42
2.11
39.74%
MIND
MIND Technology
8.16
4.15
103.49%
NSYS
Nortech Systems
9.01
-4.34
-32.51%
CPSH
CPS Technologies
2.42
0.74
44.05%
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.