Rf Industries, Ltd. (RFIL)
NASDAQ:RFIL
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RF Industries
(NASDAQ:RFIL)
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Rating:56Neutral
Price Target:
$17.00
▲(22.13% Upside)
Action:Reiterated
Date:06/17/26
RFIL scores as a moderate setup: financials show a real turnaround and improving margins, but still-thin profitability and a sharp free-cash-flow pullback limit confidence in durability. The earnings call adds support via strong bookings/backlog and positive guidance, while valuation is the largest headwind due to the very high P/E. Technicals are neutral-to-mixed, with longer-term trend support but weaker short-term price action.
Positive Factors
Revenue Recovery & Backlog
A large TTM revenue rebound and multi-year high bookings with a ~$20M backlog provide durable near-term revenue visibility. Strong order intake reduces uncertainty around demand, helps smooth production planning and supports utilization, making revenue outcomes more predictable over the coming quarters.
Negative Factors
Thin Net Margins & Low ROE
Despite revenue recovery and improving gross margins, bottom-line profitability remains very thin and ROE is minimal. Low net margins and weak returns constrain reinvestment, dividend capacity and buffer against cost shocks, leaving limited internal capital to fund growth or repay leverage in adverse scenarios.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Recovery & Backlog
A large TTM revenue rebound and multi-year high bookings with a ~$20M backlog provide durable near-term revenue visibility. Strong order intake reduces uncertainty around demand, helps smooth production planning and supports utilization, making revenue outcomes more predictable over the coming quarters.
Read all positive factors
RF Industries (RFIL) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$193.26M
Dividend YieldN/A
Average Volume (3M)288.69K
Price to Earnings (P/E)137.8
Beta (1Y)0.86
Revenue Growth11.90%
EPS GrowthN/A
CountryUS
Employees302
SectorIndustrials
Sector Strength72
IndustryElectrical Equipment & Parts
Share Statistics
EPS (TTM)0.13
Shares Outstanding10,851,265
10 Day Avg. Volume345,485
30 Day Avg. Volume288,686
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 Cap1.05
Enterprise Value/Revenue2.48
Enterprise Value/Gross Profit7.35
Enterprise Value/Ebitda43.54
Forecast
1Y Price Target
$18.00Price Target Upside29.31% Upside
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)0.58
Revenue Forecast (FY)$86.63M
RF Industries Business Overview & Revenue Model
Company Description
Headquartered in San Diego, California, RF Industries, Ltd., established in 1979 and formerly known as Celltronics, Inc. until 1990, is a global enterprise that develops, produces, and markets interconnect products and systems across the United St...
How the Company Makes Money
RF Industries primarily makes money by selling manufactured connectivity and interconnect products and related assemblies to commercial customers. Its revenue model is largely product-sales driven: (1) Connectors, cable assemblies, and related int...
RF Industries Earnings Call Summary
Earnings Call Date:Jun 15, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Sep 10, 2026
Earnings Call Sentiment Positive
The call conveyed strong operational and financial progress: double-digit improvements in key profit metrics, robust bookings ($26.3M) and backlog ($20.0M), margin expansion (35.1%, +360 bps) and clear execution on product and cost initiatives. Management acknowledged near‑term timing pressures in integrated systems/small cells, a rise in inventory due to shipment timing, tariff uncertainty and some customer concentration. Overall, the positives (revenue growth, profitability turnaround, record bookings/backlog, product momentum and operational discipline) notably outweigh the manageable near-term headwinds.Positive Updates
Revenue Growth and Sequential Momentum
Q2 sales of $20.7M, up 9% year-over-year and up 9% sequentially (prior-year Q2: $18.8M; prior quarter: $19.1M). Management expects Q3 sales to increase sequentially over Q2, reflecting continued revenue momentum.
Negative Updates
Integrated Systems / Small Cell Timing Pressure
Integrated systems underperformed in Q2 due to timing delays tied to customer restructurings and M&A in the small cell market; several expected shipments were pushed into later quarters, creating near-term timing risk to that revenue stream.
Read all updates
Q2-2026 Updates
Positive
Negative
Revenue Growth and Sequential Momentum
Q2 sales of $20.7M, up 9% year-over-year and up 9% sequentially (prior-year Q2: $18.8M; prior quarter: $19.1M). Management expects Q3 sales to increase sequentially over Q2, reflecting continued revenue momentum.
Read all positive updates
Company Guidance
Management guided that Q3 sales should rise sequentially off Q2 revenue of $20.7M (up 9% YoY and sequentially), with continued margin expansion driven by operating leverage above the ~$20M quarterly revenue level; Q2 metrics included a 35.1% gross margin (up 360 bps YoY from 31.5%), operating income of $1.1M (vs $106K prior year), adjusted EBITDA of $2.0M (nearly double FY25’s $1.1M), GAAP net income of $879K ($0.08/diluted) and non‑GAAP net income of $1.6M ($0.14/diluted). Bookings were $26.3M (a multi‑year high), backlog rose to $20.0M at quarter end (now $20.1M), cash was $3.4M, working capital $16.5M, current ratio ~1.9x (current assets $35.1M; current liabilities $18.6M), revolver borrowings $6.1M, and inventory $14.4M (from $12.6M a year ago). Management reaffirmed that integrated systems activity should accelerate in H2, they expect to reduce net debt as cash flow improves, highlighted DAC cost benefits (up to ~75% more cost‑effective than traditional HVAC in target use cases), and noted RFI’s inclusion in the Russell 3000 effective June 26.RF Industries Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
57
Neutral
Cash Flow
49
Neutral
| Breakdown | TTM | Oct 2025 | Oct 2024 | Oct 2023 | Oct 2022 | Oct 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 82.14M | 80.59M | 64.86M | 72.17M | 85.25M | 57.42M |
| Gross Profit | 27.70M | 24.80M | 16.09M | 16.39M | 21.64M | 16.29M |
| EBITDA | 4.67M | 3.28M | -1.27M | -1.82M | 3.28M | 7.99M |
| Net Income | 1.39M | 75.00K | -6.60M | -3.08M | 1.45M | 6.18M |
Balance Sheet | ||||||
| Total Assets | 71.53M | 77.10M | 71.05M | 87.23M | 93.07M | 50.60M |
| Cash, Cash Equivalents and Short-Term Investments | 3.39M | 5.08M | 839.00K | 4.90M | 4.53M | 13.05M |
| Total Debt | 24.00M | 26.59M | 28.73M | 34.74M | 32.47M | 1.51M |
| Total Liabilities | 34.65M | 41.90M | 36.98M | 47.47M | 51.20M | 11.00M |
| Stockholders Equity | 36.88M | 35.20M | 34.07M | 39.76M | 41.87M | 39.60M |
Cash Flow | ||||||
| Free Cash Flow | 1.32M | 4.34M | 2.43M | 1.70M | 217.00K | -3.35M |
| Operating Cash Flow | 1.74M | 4.58M | 3.17M | 4.18M | 2.89M | -3.12M |
| Investing Cash Flow | -424.00K | -223.00K | -738.00K | -2.48M | -27.12M | -227.00K |
| Financing Cash Flow | -1.51M | -116.00K | -6.49M | -1.34M | 15.70M | 605.00K |
RF Industries Technical Analysis
Positive
13.92
Price Trends
16.00
Positive
13.45
Positive
10.37
Positive
Market Momentum
0.34
Positive
53.51
Neutral
48.73
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 17.81, below the 50-day MA of 16.00, and above the 200-day MA of 10.37, indicating a bullish trend. The MACD of 0.34 indicates Positive momentum. The RSI at 53.51 is Neutral, neither overbought nor oversold. The STOCH value of 48.73 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 | $182.66M | 15.78 | 20.38% | 3.00% | -8.09% | 42.56% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
63 Neutral | $107.60M | -13.10 | -6.14% | ― | 8.42% | -254.85% | |
56 Neutral | $193.26M | 137.77 | 3.92% | ― | 11.90% | ― | |
47 Neutral | $60.59M | -3.57 | -0.06% | ― | 50.51% | -4669.05% | |
45 Neutral | $25.37M | -0.34 | 1227.16% | ― | 6.76% | 56.18% | |
42 Neutral | $18.37M | ― | -737.52% | ― | -19.55% | 31.32% |
* Industrials Sector Average
RFIL
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266.46%
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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.