RF Industries (RFIL) AI Stock Analysis

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RF Industries

(NASDAQ:RFIL)

57Neutral

RF Industries' overall score reflects a challenging financial position with profitability and solvency concerns, despite positive revenue trends and strategic diversification. Technical indicators offer some optimism with upward momentum, but valuation concerns due to negative earnings are significant. The earnings call suggests potential growth, but risks related to debt and tariffs remain.

RF Industries (RFIL) vs. S&P 500 (SPY)

Market Cap

$40.55M

Dividend YieldN/A

Average Volume (3M)36.83K

Price to Earnings (P/E)―

Beta (1Y)0.73

Revenue Growth4.93%

EPS Growth-64.91%

CountryUS

Employees302

SectorIndustrials

Sector Strength61

IndustryElectrical Equipment & Parts

Share Statistics

EPS (TTM)-0.52

Shares Outstanding10,669,877

10 Day Avg. Volume30,512

30 Day Avg. Volume36,829

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)0.75

Price to Cash Flow (P/CF)22.10

P/FCF Ratio22.10

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

RF Industries Business Overview & Revenue Model

Company DescriptionRF Industries (RFIL) is a leading provider of interconnect products and systems for various industries, including telecommunications, medical, industrial, and aerospace. The company specializes in designing and manufacturing a wide range of connectivity solutions such as coaxial connectors, cables, fiber optic products, and custom cable assemblies. RF Industries serves a diverse customer base, offering both standard and custom-engineered solutions to meet specific needs.

How the Company Makes MoneyRF Industries generates revenue primarily through the sale of its interconnect products and systems. The company's key revenue streams include the production and distribution of coaxial connectors, custom cable assemblies, and fiber optic products. RF Industries capitalizes on its ability to provide both standard and customized solutions, catering to the unique requirements of its clients across various sectors. Significant partnerships with distributors and direct sales to industries such as telecommunications, medical, and aerospace also contribute to its earnings. By maintaining a diverse product portfolio and leveraging its expertise in connectivity solutions, RF Industries sustains a stable revenue model.

RF Industries Financial Statement Overview

Summary

RF Industries shows a mixed financial performance. While revenue is growing, profitability remains a concern with consistent net losses. The balance sheet displays instability, particularly with the recent elimination of equity and liabilities. Positive cash flows are a strength, yet the company faces challenges in sustaining financial health and growth without resolving profitability and equity issues.

Income Statement

Neutral

Despite showing revenue growth from 2024 to TTM (Trailing-Twelve-Months), the company has been struggling with profitability. The gross profit margin improved slightly, but negative EBIT and net profit margins indicate operational challenges. Historically, EBIT and EBITDA margins have been inconsistent, impacting overall profitability.

Balance Sheet

Negative

The company's balance sheet shows high volatility, with significant fluctuations in total assets and equity over the years. The debt-to-equity ratio has improved in the TTM due to zero debt, but stockholders' equity has diminished to zero, indicating potential solvency issues. Historically, the equity ratio has been declining, highlighting increased financial risk.

Cash Flow

Neutral

Cash flow from operations remains positive, and free cash flow has been relatively stable in the TTM. However, the company experienced significant cash outflows in financing activities, and free cash flow growth has been inconsistent over the years. The operating cash flow to net income ratio is favorable, indicating efficient cash generation relative to net income.

TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
70.60M	64.86M	72.17M	85.25M	57.42M	43.04M
	Gross Profit
20.65M	18.87M	19.54M	24.55M	17.77M	11.57M
	EBIT
-582.00K	-2.82M	-3.80M	498.00K	4.42M	-403.00K
	EBITDA
1.22M	-2.82M	-1.82M	3.88M	5.18M	611.00K
	Net Income Common Stockholders
-5.48M	-6.60M	-3.08M	1.45M	6.18M	-81.00K
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
9.31M	839.00K	4.90M	4.53M	13.05M	15.80M
	Total Assets
19.11M	71.05M	82.28M	89.57M	49.65M	40.82M
	Total Debt
0.00	28.73M	34.74M	32.47M	675.00K	3.42M
	Net Debt
-9.31M	27.89M	29.85M	27.94M	-12.38M	-12.37M
	Total Liabilities
2.20M	36.98M	42.52M	47.70M	10.04M	8.76M
	Stockholders Equity
16.91M	34.07M	39.76M	41.87M	39.60M	32.06M
Cash Flow		Free Cash Flow
1.78M	2.43M	1.70M	217.00K	-3.35M	4.31M
	Operating Cash Flow
2.41M	3.17M	4.18M	2.89M	-3.12M	4.55M
	Investing Cash Flow
-622.00K	-738.00K	-2.48M	-27.12M	-227.00K	-4.14M
	Financing Cash Flow
-5.00M	-6.49M	-1.34M	15.70M	605.00K	2.85M

RF Industries Technical Analysis

Technical Analysis Sentiment

Negative

Last Price3.99

Price Trends

50DMA

4.67

Negative

100DMA

4.36

Negative

200DMA

4.13

Negative

Market Momentum

MACD

0.05

Negative

RSI

53.79

Neutral

STOCH

45.36

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RFIL, the sentiment is Negative. The current price of 3.99 is below the 20-day moving average (MA) of 4.40, below the 50-day MA of 4.67, and below the 200-day MA of 4.13, indicating a bearish trend. The MACD of 0.05 indicates Negative momentum. The RSI at 53.79 is Neutral, neither overbought nor oversold. The STOCH value of 45.36 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for RFIL.

RF Industries Risk Analysis

RF Industries disclosed 29 risk factors in its most recent earnings report. RF Industries 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

RF Industries Peers Comparison

Overall Rating

UnderperformOutperform

Sector (62)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SANM	74 Outperform	$4.23B	18.25	10.55%	―	-8.92%	-12.11%
PLXS	73 Outperform	$3.37B	27.63	9.27%	―	-3.53%	-3.90%
CTS	69 Neutral	$1.15B	20.29	10.99%	0.42%	-6.36%	-0.89%
Sector *	62 Neutral	$7.68B	13.06	3.21%	3.34%	3.62%	-14.40%
TTMI	61 Neutral	$2.02B	34.76	3.66%	―	9.41%	―
MRCY	61 Neutral	$2.66B	―	-6.10%	―	-1.21%	-4.63%
RFIL	57 Neutral	$40.55M	―	-15.05%	―	4.93%	-64.91%

* Industrials Sector Average

Performance Comparison

RFIL

RF Industries

4.00

0.96

31.58%

CTS

37.15

-8.67

-18.92%

MRCY

Mercury Systems

44.75

15.98

55.54%

PLXS

Plexus

119.39

23.80

24.90%

SANM

Sanmina-Sci

75.95

17.77

30.54%

TTMI

TTM Technologies

18.82

4.48

31.24%

RF Industries Earnings Call Summary

Earnings Call Date: Mar 17, 2025 | % Change Since: -1.48% | Next Earnings Date: Jun 11, 2025

Earnings Call Sentiment Positive

The earnings call presented a generally positive outlook with significant increases in sales and gross profit margin, improved operating profit, and strategic diversification into new markets. However, challenges remain with a reported net loss and ongoing concerns about tariffs.

Highlights

Significant Increase in Net Sales

Net sales for Q1 2025 were $19.2 million, representing a 42.7% increase from $13.5 million in Q1 2024, and a 4% sequential increase.

Improved Gross Profit Margin

Gross profit margin for Q1 2025 increased to 29.8% from 24.5% in the same quarter of the previous year.

Operating Profit and EBITDA Improvement

Delivered an operating profit for the second consecutive quarter with adjusted EBITDA of $867,000, a $2 million positive swing compared to Q1 2024.

Diversification and New Market Opportunities

Won a large interconnect opportunity from a leading aerospace company, expanding presence beyond Tier 1 wireless carriers.

Successful Transition to Solutions Provider

Shift towards higher value offerings, such as DAC thermal cooling systems and integrated small cell solutions, contributing to financial performance.

Lowlights

Net Loss Reported

Despite improvements, the company reported a net loss of $245,000 or $0.02 per diluted share, compared to a loss of $1.4 million or $0.13 per diluted share a year ago.

Debt and Cash Position

The company had borrowed $8.1 million from a revolving credit facility with total cash and cash equivalents of $1.3 million.

Challenges with Tariffs

Potential impacts of tariffs on procurement, supply chain, and export sales remain uncertain.

Company Guidance

In the first quarter of fiscal year 2025, RF Industries reported net sales of $19.2 million, marking a 42.7% increase from the $13.5 million reported in the same period last year. The gross profit margin for the quarter was 29.8%, closely aligning with the company's target of 30%. Despite challenging market conditions, RF Industries achieved an operating profit for the second consecutive quarter, with a non-GAAP earnings per share of $0.04 and an adjusted EBITDA of $867,000. The quarter ended with a backlog of $15.2 million, reflecting a strong performance and strategic transformation from a product company to a solutions provider. The company's efforts to diversify its customer base and expand into new markets, such as aerospace, have bolstered its financial performance and positioned it for further growth.

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.