Rf Industries, Ltd. (RFIL)
NASDAQ:RFIL
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RF Industries
(NASDAQ:RFIL)
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Rating:62Neutral
Price Target:
$18.00
▲(29.31% Upside)
Action:Reiterated
Date:05/12/26
The score is driven primarily by improving fundamentals (stronger cash generation and moderating leverage) and a constructive earnings outlook with rising backlog and better margins. These positives are tempered by a sharp TTM revenue decline and very thin net profitability, while technicals are strong but overbought and valuation is hindered by a negative P/E and no dividend support.
Positive Factors
Strong free cash flow generation
Consistent positive FCF materially exceeding reported earnings provides durable internal funding for working capital, deleveraging, and selective reinvestment. Over 2–6 months this reduces refinancing risk and gives management flexibility to pursue backlog-led growth without immediate external capital.
Negative Factors
Sharp revenue contraction
A near-30% TTM revenue decline materially reduces scale benefits and makes fixed-cost absorption harder. Over 2–6 months this constrains reinvestment, magnifies margin sensitivity to small sales swings, and increases reliance on backlog timing for revenue recovery rather than organic volume growth.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong free cash flow generation
Consistent positive FCF materially exceeding reported earnings provides durable internal funding for working capital, deleveraging, and selective reinvestment. Over 2–6 months this reduces refinancing risk and gives management flexibility to pursue backlog-led growth without immediate external capital.
Read all positive factors
RF Industries (RFIL) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$183.95M
Dividend YieldN/A
Average Volume (3M)225.42K
Price to Earnings (P/E)―
Beta (1Y)0.81
Revenue Growth13.82%
EPS GrowthN/A
CountryUS
Employees302
SectorIndustrials
Sector Strength72
IndustryElectrical Equipment & Parts
Share Statistics
EPS (TTM)0.03
Shares Outstanding10,814,267
10 Day Avg. Volume261,042
30 Day Avg. Volume225,422
Financial Highlights & Ratios
PEG Ratio-10.98
Price to Book (P/B)2.37
Price to Sales (P/S)1.03
P/FCF Ratio19.17
Enterprise Value/Market Cap1.14
Enterprise Value/Revenue2.62
Enterprise Value/Gross Profit8.18
Enterprise Value/Ebitda57.37
Forecast
1Y Price Target
$11.25Price Target Upside-19.18% Downside
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)0.43
Revenue Forecast (FY)$84.59M
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 ...
How the Company Makes Money
RF Industries makes money primarily by selling interconnect hardware and connectivity solutions to business customers. Key revenue streams include: (1) product sales of connectors and adapters (e.g., RF/coax and other connector families) and assoc...
RF Industries Earnings Call Summary
Earnings Call Date:Mar 16, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jun 11, 2026
Earnings Call Sentiment Positive
The call presented meaningful progress on profitability, margin expansion, backlog growth, and operational resilience while revenue was roughly flat YoY and seasonally down sequentially. Key positives include a 250 bp gross margin improvement to 32.3%, a roughly 3x increase in operating income, ~27% growth in adjusted EBITDA to ~$1.1M, a substantial backlog increase to $18.6M, and reduced net debt. Remaining challenges are Q1 seasonality and flat YoY sales, backlog timing volatility, adjusted EBITDA still below the company’s 10% target, and some delayed integrated systems orders. Taken together, the strong margin and backlog momentum and diversified market traction outweigh the near-term top-line and timing risks.Positive Updates
Stable Net Sales with Seasonal Context
Q1 net sales of $19.0M were essentially flat year-over-year ($19.2M) and reflect normal seasonality (down 16% sequentially from $22.7M). Management noted this quarter's sales mix was more diversified versus prior-year Q1 anomaly.
Negative Updates
Flat Year-over-Year Revenue and Seasonal Softness
Revenue was essentially flat YoY ($19.0M vs $19.2M) and declined 16% sequentially due to typical Q1 seasonality; last year's Q1 benefited from a one-off large project that did not recur.
Read all updates
Q1-2026 Updates
Positive
Negative
Stable Net Sales with Seasonal Context
Q1 net sales of $19.0M were essentially flat year-over-year ($19.2M) and reflect normal seasonality (down 16% sequentially from $22.7M). Management noted this quarter's sales mix was more diversified versus prior-year Q1 anomaly.
Read all positive updates
Company Guidance
Management guided that fiscal 2026 should accelerate versus the seasonally soft Q1—pointing to a strengthened backlog (current $18.6M, up from $12.4M mid‑January and $14.4M as of 1/31 on bookings of $17.9M) and diversified demand across small cell, DAC and custom cabling—and said they expect revenue growth to pick up in Q2 and accelerate into the back half of the year; they signaled gross margin durability above ~30% (Q1 gross margin 32.3%, +250 bps YoY), continued operating‑leverage improvements (Q1 operating income $177k vs $56k), and improving profitability (Q1 adjusted EBITDA ~$1.1M, 5.6% of sales, up 22% YoY; non‑GAAP net income $659k, $0.06/share; consolidated net loss $50k), with a target to reach adjusted EBITDA of 10%+ of sales, ongoing free‑cash‑flow improvement, further net‑debt reduction (net debt down $4.8M YoY; down $744k QoQ), and maintained balance‑sheet flexibility (cash $5.1M, working capital $14.6M, current ratio ~1.8, current assets $33M vs liabilities $18.4M, inventory ~$13.8M, $7.1M drawn on the revolver); they also highlighted DAC performance (up to 75% energy savings) as a meaningful growth driver.RF Industries Financial Statement Overview
Summary
Income Statement
47
Neutral
Balance Sheet
58
Neutral
Cash Flow
70
Positive
| Breakdown | TTM | Oct 2025 | Oct 2024 | Oct 2023 | Oct 2022 | Oct 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 80.36M | 80.59M | 64.86M | 72.17M | 85.25M | 57.42M |
| Gross Profit | 25.70M | 24.80M | 16.09M | 16.39M | 21.64M | 16.29M |
| EBITDA | 3.66M | 3.28M | -1.27M | -1.82M | 3.28M | 7.99M |
| Net Income | 270.00K | 75.00K | -6.60M | -3.08M | 1.45M | 6.18M |
Balance Sheet | ||||||
| Total Assets | 70.33M | 77.10M | 71.05M | 87.23M | 93.07M | 50.60M |
| Cash, Cash Equivalents and Short-Term Investments | 5.11M | 5.08M | 839.00K | 4.90M | 4.53M | 13.05M |
| Total Debt | 25.36M | 26.59M | 28.73M | 34.74M | 32.47M | 1.51M |
| Total Liabilities | 34.79M | 41.90M | 36.98M | 47.47M | 51.20M | 11.00M |
| Stockholders Equity | 35.55M | 35.20M | 34.07M | 39.76M | 41.87M | 39.60M |
Cash Flow | ||||||
| Free Cash Flow | 4.42M | 4.34M | 2.43M | 1.70M | 217.00K | -3.35M |
| Operating Cash Flow | 4.84M | 4.58M | 3.17M | 4.18M | 2.89M | -3.12M |
| Investing Cash Flow | -414.00K | -223.00K | -738.00K | -2.48M | -27.12M | -227.00K |
| Financing Cash Flow | -596.00K | -116.00K | -6.49M | -1.34M | 15.70M | 605.00K |
RF Industries Technical Analysis
Positive
13.92
Price Trends
13.14
Positive
11.30
Positive
9.23
Positive
Market Momentum
1.22
Negative
58.24
Neutral
57.80
Neutral
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 13.92 is below the 20-day moving average (MA) of 15.47, above the 50-day MA of 13.14, and above the 200-day MA of 9.23, indicating a bullish trend. The MACD of 1.22 indicates Negative momentum. The RSI at 58.24 is Neutral, neither overbought nor oversold. The STOCH value of 57.80 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $180.32M | 13.48 | 20.38% | 3.00% | -8.09% | 42.56% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
62 Neutral | $183.95M | -523.92 | 0.77% | ― | 13.82% | ― | |
61 Neutral | $101.61M | -60.20 | -6.14% | ― | 8.42% | -254.85% | |
48 Neutral | $65.25M | -1.99 | -0.06% | ― | 50.51% | -4669.05% | |
44 Neutral | $23.32M | -793.40 | 1227.16% | ― | 6.76% | 56.18% | |
42 Neutral | $21.36M | -1.80 | -737.52% | ― | -19.55% | 31.32% |
* Industrials Sector Average
RFIL
RF Industries
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280.47%
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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.