RF Industries (RFIL) AI Stock Analysis

• Market Cap: $127.82M
• Dividend Yield: N/A
• Average Volume (3M): 194.72K
• Price to Earnings (P/E): 1110.2
• Beta (1Y): 0.69
• Revenue Growth: 24.25%
• EPS Growth: N/A
• Country: US
• Employees: 302
• Sector: Industrials
• Sector Strength: 72
• Industry: Electrical Equipment & Parts
• EPS (TTM): 0.10
• Shares Outstanding: 10,713,801
• 10 Day Avg. Volume: 232,297
• 30 Day Avg. Volume: 194,718
• PEG Ratio: -10.98
• Price to Book (P/B): 2.37
• Price to Sales (P/S): 1.03
• P/FCF Ratio: 19.17
• Enterprise Value/Market Cap: 1.17
• Enterprise Value/Revenue: 1.85
• Enterprise Value/Gross Profit: 6.07
• Enterprise Value/Ebitda: 45.58
• 1Y Price Target: $10.25
• Price Target Upside: -14.08% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): 0.35
• Revenue Forecast (FY): $81.08M

• Rating: 60 Neutral
• Price Target: $10.50 ▼(-11.99% Downside)
• Action: Reiterated Date: 01/22/26
• Date: Action: Reiterated 01/22/26

The score is driven primarily by improving fundamentals and solid cash generation, reinforced by a constructive earnings call (growth, margin expansion, and profitability progress). These positives are tempered by very stretched valuation (extremely high P/E) and technically overbought conditions that increase near-term risk, while the loan amendment adds incremental balance-sheet flexibility.

Positive Factors

Cash generation

Consistent positive operating and free cash flow in 2025 demonstrates durable cash generation capacity. This improves the company's ability to fund working capital, reinvest in manufacturing and custom assemblies, and withstand cyclical revenue swings without immediate external financing.

Margin & operating turnaround

A sustained gross margin improvement to ~34% and a return to operating profit reflect better pricing, product mix, and cost control. Higher structural margins increase operating leverage, making future revenue growth more likely to flow to cash and earnings if the company sustains execution.

Diversified end markets & backlog

Broadening end-market exposure into aerospace, transportation and data centers reduces single-market reliance and supports more stable demand. A nearly $20M backlog signals multi-period revenue visibility and supports production planning and margin consistency over coming quarters.

Negative Factors

Thin net profitability

Net margins near zero leave minimal buffer against cost, pricing or volume shocks. Even with recent improvement, historically volatile earnings mean small adverse events could quickly swing results negative and impair investment capacity and credibility with customers and lenders.

Meaningful leverage

Debt levels, while improved, remain substantial relative to equity. With uneven earnings history, leverage constrains financial flexibility, increases refinancing and interest-rate sensitivity, and reduces the firm's ability to invest through downturns or pursue opportunistic growth without external funding.

Supply-chain & tariff exposure

Dependence on offshore components and persistent supply-chain disruptions create structural margin and delivery risks. Tariff shifts or supplier disruptions can inflate input costs, delay custom assembly deliveries, and erode the recent margin gains absent durable alternative sourcing strategies.

RF Industries Business Overview & Revenue Model

Company Description

RF Industries, Ltd., together with its subsidiaries, designs, manufactures, and markets interconnect products and systems in the United States, Canada, Mexico, and internationally. The company operates through two segments, RF Connector and Cable Assembly and Custom Cabling Manufacturing and Assembly. The company's RF Connector and Cable Assembly segment designs, manufactures, and distributes various coaxial connectors and cable assemblies that are integrated with coaxial connectors. The Custom Cabling Manufacturing and Assembly segment designs, manufactures, markets, and distributes custom copper and fiber cable assemblies, complex hybrid fiber optic and power solution cables, energy-efficient cooling systems for wireless base stations and remote equipment shelters, and custom designed pole-ready 5G small cell integrated enclosures. It also manufactures and sells custom and standard cable assemblies, hybrid fiber optic power solution cables, adapters, and electromechanical wiring harnesses for communication, computer, LAN, automotive, and medical equipment. In addition, the company designs and manufactures cable assemblies and wiring harnesses for blue chip industrial, oilfield, instrumentation, and military customers. It also designs and manufactures quality connectivity solutions to telecommunications and data communications distributors. The company sells its products through warehousing distributors and in-house marketing and sales team. It serves telecommunications carriers and equipment manufacturers, wireless and network infrastructure carriers, and original equipment manufacturers. The company was formerly known as Celltronics, Inc. and changed its name to RF Industries, Ltd. in November 1990. RF Industries, Ltd. was incorporated in 1979 and is headquartered in San Diego, California.

How the Company Makes Money

RF Industries generates revenue primarily through the sale of its extensive range of connectivity products and solutions. The company has established key revenue streams through its various product lines, including RF connectors, custom cable assemblies, and fiber optic products. Additionally, RFIL benefits from strategic partnerships with major telecommunications firms and suppliers, which contribute to consistent order volumes and long-term contracts. The company also participates in the growing demand for wireless communication technologies, enhancing its revenue potential through innovative product offerings and expanding market presence.

RF Industries Financial Statement Overview

Summary

Turnaround signs in 2025 with improved revenue and gross margin and a return to roughly break-even net income, supported by strong 2025 operating/free cash flow. Offsetting this, net profitability remains extremely thin and results have been volatile across recent years, while leverage is still meaningful for a business with uneven earnings.

Income Statement

Profitability has rebounded sharply in the latest annual period (2025) versus the prior two years: revenue grew ~5.5% and gross margin improved to ~33% (from ~29% in 2024), moving from sizable losses (2023–2024) to roughly break-even net income. However, bottom-line profitability remains very thin (net margin ~0.1% in 2025), and results have been volatile over the cycle (strong 2021 profitability, losses in 2023–2024), which keeps the score mid-range.

Balance Sheet

Leverage is moderate: total debt of ~$26.6M against equity of ~$35.2M implies debt-to-equity around ~0.76 in 2025, slightly better than 2023–2024 (~0.84–0.87). Equity remains positive and fairly stable, supporting the capital structure. The key weakness is that leverage is still meaningful for a business with recently volatile earnings, reducing balance-sheet flexibility if margins weaken again.

Cash Flow

Cash generation is a relative strength: operating cash flow was ~$4.6M and free cash flow ~$4.3M in 2025, with a very large free-cash-flow growth rate versus 2024. Cash flow also held up through the down years (positive operating and free cash flow in 2022–2025), which is constructive. The main concern is quality/consistency versus accounting earnings: net income is near zero in 2025, and historically cash flow has been uneven (including negative operating and free cash flow in 2021).

Breakdown	Oct 2025	Oct 2024	Oct 2023	Oct 2022	Oct 2021
Income Statement
Total Revenue	80.59M	64.86M	72.17M	85.25M	57.42M
Gross Profit	24.80M	16.09M	16.39M	21.64M	16.29M
EBITDA	3.28M	-1.27M	-1.82M	3.28M	7.99M
Net Income	75.00K	-6.60M	-3.08M	1.45M	6.18M
Balance Sheet
Total Assets	77.10M	71.05M	87.23M	93.07M	50.60M
Cash, Cash Equivalents and Short-Term Investments	5.08M	839.00K	4.90M	4.53M	13.05M
Total Debt	26.59M	28.73M	34.74M	32.47M	1.51M
Total Liabilities	41.90M	36.98M	47.47M	51.20M	11.00M
Stockholders Equity	35.20M	34.07M	39.76M	41.87M	39.60M
Cash Flow
Free Cash Flow	4.34M	2.43M	1.70M	217.00K	-3.35M
Operating Cash Flow	4.58M	3.17M	4.18M	2.89M	-3.12M
Investing Cash Flow	-223.00K	-738.00K	-2.48M	-27.12M	-227.00K
Financing Cash Flow	-116.00K	-6.49M	-1.34M	15.70M	605.00K

RF Industries Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 11.93
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RFIL, the sentiment is Positive. The current price of 11.93 is above the 20-day moving average (MA) of 10.94, above the 50-day MA of 9.17, and above the 200-day MA of 7.33, indicating a bullish trend. The MACD of 0.69 indicates Negative momentum. The RSI at 63.78 is Neutral, neither overbought nor oversold. The STOCH value of 88.36 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for RFIL.

RF Industries Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ESP	82 Outperform	$159.81M	11.56	19.61%	3.00%	4.90%	31.13%
ULBI	64 Neutral	$87.74M	-23.26	1.26%	―	12.94%	-81.09%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
RFIL	60 Neutral	$127.82M	1,110.19	0.22%	―	24.25%	―
CBAT	48 Neutral	$89.53M	7.57	-5.16%	―	-22.02%	-156.65%
FLUX	46 Neutral	$30.94M	10.40	-211.67%	―	2.14%	5.01%
DFLI	44 Neutral	$33.70M	-0.75	―	―	18.24%	24.49%