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RF Industries (RFIL)
NASDAQ:RFIL
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RF Industries
(NASDAQ:RFIL)
Rating:52Neutral
Price Target:
$6.50
▼(-2.99% Downside)
RF Industries (RFIL) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$73.23M
Dividend YieldN/A
Average Volume (3M)204.99K
Price to Earnings (P/E)―
Beta (1Y)0.72
Revenue Growth20.14%
EPS Growth82.63%
CountryUS
Employees302
SectorIndustrials
Sector Strength83
IndustryElectrical Equipment & Parts
Share Statistics
EPS (TTM)0.07
Shares Outstanding10,674,865
10 Day Avg. Volume118,319
30 Day Avg. Volume204,993
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)0.00
Price to Sales (P/S)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap0.89
Enterprise Value/Revenue0.88
Enterprise Value/Gross Profit2.90
Enterprise Value/Ebitda27.74
Forecast
1Y Price Target
$6.50Price Target Upside-2.99% Downside
Rating ConsensusHold
Number of Analyst Covering1
RF Industries Business Overview & Revenue Model
Company DescriptionRF Industries, Ltd. (RFIL) is a diversified manufacturer and supplier of a wide range of communication and connectivity solutions, primarily serving the telecommunications, data, and industrial markets. The company operates through several segments, including RF Connector and Cable Assembly, which provides high-quality RF connectors, cable assemblies, and other related products. Additionally, RF Industries offers custom engineering and manufacturing services, focusing on meeting the specific needs of its customers in various sectors, including wireless communications, data centers, and medical equipment.
How the Company Makes MoneyRF Industries generates revenue through the sale of its products and services across its various business segments. The primary revenue streams include the manufacturing and distribution of RF connectors and cable assemblies, which are essential components in telecommunications and data transmission systems. The company also derives income from providing custom engineering solutions and manufacturing services to clients who require specialized connectivity products. Strategic partnerships with major telecommunications and technology companies enhance RF Industries' market presence and drive sales. Additionally, the growing demand for 5G infrastructure and increased data transmission needs in various industries contribute significantly to the company's earnings.
RF Industries Earnings Call Summary
Earnings Call Date:Jun 16, 2025
(Q2-2025)
| % Change Since: 49.89%|
Next Earnings Date:Sep 11, 2025
Earnings Call Sentiment Positive
The earnings call reflected a generally positive outlook, with significant revenue growth, improved profit margins, increased backlog, and expanded customer base. However, there were some challenges related to a slight sequential sales decline, a recorded net loss, and potential impacts from tariffs on the supply chain.Q2-2025 Updates
Positive Updates
Strong Revenue Growth
Fiscal second quarter net sales grew 17% to $18,900,000 year over year.
Improved Gross Profit Margin
Gross profit margin increased to 31.5% from 29.9% year over year.
Operating Profit Achievement
Delivered an operating profit of $106,000 versus an operating loss of $415,000 in the second quarter of 2024.
Significant Backlog Increase
Backlog increased to $18,400,000 from $15,000,000 six weeks ago.
Expanded Customer Base and Product Diversity
Diverse growth in wireless, aerospace, public safety, and industrial OEM customers, with repeat and new customer wins.
Innovative Product Developments
Launch of a next-gen DAC system with advanced control capabilities and a NEMA four certification.
Reduced Inventory Levels
Inventory decreased from $14,700,000 to $12,600,000 due to improvements in procurement and supply chain processes.
Non-GAAP Net Income Improvement
Non-GAAP net income was $701,000 or $0.07 per diluted share versus a net loss of $4,300,000 or $0.41 per diluted share in the previous year.
Negative Updates
Sequential Sales Decline
Sales slightly decreased 1.6% on a sequential basis.
Net Loss Recorded
Consolidated net loss was $245,000 or $0.02 per diluted share.
Tariff-Related Challenges
Concerns over potential impacts of tariffs on the supply chain and associated cost pressures.
Company Guidance
During the second quarter of fiscal 2025, RF Industries reported a 17% year-over-year increase in net sales, amounting to $18.9 million, and a gross profit margin of 31.5%, surpassing its target of 30%. The company achieved an operating profit of $106,000 compared to a loss of $415,000 in Q2 2024, with an adjusted EBITDA of over $1.1 million, reflecting a 6% margin. RF Industries ended the quarter with a backlog of $15 million, which rose to $18.4 million six weeks later. The company anticipates its third-quarter sales to remain consistent with the second quarter, significantly higher than the $16.8 million recorded in the previous year's third quarter. The call highlighted the firm's strategic shift towards becoming an integrated solutions provider, driving growth across various markets such as wireless, aerospace, and public safety, with a focus on innovative solutions like small cell systems and direct air cooling systems. The guidance underscored RF Industries' improved financial position and its capacity to manage tariffs and supply chain challenges effectively.RF Industries Financial Statement Overview
Summary
RF Industries is facing financial challenges with declining profitability and operational inefficiencies. The income statement shows a negative net profit margin, and despite revenue growth, the company struggles to convert sales into profits. The balance sheet indicates moderate leverage, but negative returns reflect underlying issues. Free cash flow is positive, indicating effective cash management, but reliance on cash flow to offset losses is concerning.Income Statement
The income statement shows a challenging period with declining revenues and profitability. The gross profit margin for TTM (Trailing-Twelve-Months) is approximately 30.54%, indicating a reasonable level of profitability in production. However, the net profit margin is negative, at -1.95%, due to operational losses. The revenue growth rate from the previous year is 13.18%, which is a positive sign, but the EBIT and EBITDA margins are both negative, showing operational inefficiencies. This mixed performance suggests financial strain with some potential for recovery in revenue.45
Neutral
Balance Sheet
The balance sheet reflects a moderate financial position with a debt-to-equity ratio of 0.81, indicating manageable leverage. Return on equity is negative due to net losses, but the equity ratio of 47.01% signifies a solid equity base in relation to total assets. The company's assets are financed by a healthy mix of debt and equity, providing some stability despite recent losses.60
Neutral
Cash Flow
Cash flow analysis shows positive free cash flow, with a growth rate of 82.73% over the previous period, indicating improved cash efficiency. The operating cash flow to net income ratio is negative due to net losses, but the free cash flow to net income ratio suggests that cash generation is better than accounting profits. While cash flow management seems effective, the reliance on cash flow to offset losses is a concern.50
Neutral
| Breakdown | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 64.86M | 72.17M | 85.25M | 57.42M | 43.04M |
| Gross Profit | 18.87M | 19.54M | 24.55M | 17.77M | 11.57M |
| EBITDA | -287.00K | -1.82M | 3.88M | 5.18M | 611.00K |
| Net Income | -6.60M | -3.08M | 1.45M | 6.18M | -81.00K |
Balance Sheet | |||||
| Total Assets | 71.05M | 82.28M | 89.57M | 49.65M | 40.82M |
| Cash, Cash Equivalents and Short-Term Investments | 839.00K | 4.90M | 4.53M | 13.05M | 15.80M |
| Total Debt | 28.73M | 34.74M | 32.47M | 675.00K | 3.42M |
| Total Liabilities | 36.98M | 42.52M | 47.70M | 10.04M | 8.76M |
| Stockholders Equity | 34.07M | 39.76M | 41.87M | 39.60M | 32.06M |
Cash Flow | |||||
| Free Cash Flow | 2.43M | 1.70M | 217.00K | -3.35M | 4.31M |
| Operating Cash Flow | 3.17M | 4.18M | 2.89M | -3.12M | 4.55M |
| Investing Cash Flow | -738.00K | -2.48M | -27.12M | -227.00K | -4.14M |
| Financing Cash Flow | -6.49M | -1.34M | 15.70M | 605.00K | 2.85M |
RF Industries Technical Analysis
Neutral
6.70
Price Trends
6.76
Negative
5.41
Positive
4.88
Positive
Market Momentum
-0.06
Positive
44.55
Neutral
26.33
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RFIL, the sentiment is Neutral. The current price of 6.7 is below the 20-day moving average (MA) of 7.37, below the 50-day MA of 6.76, and above the 200-day MA of 4.88, indicating a neutral trend. The MACD of -0.06 indicates Positive momentum. The RSI at 44.55 is Neutral, neither overbought nor oversold. The STOCH value of 26.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
63 Neutral | $10.76B | 16.24 | 7.41% | 2.07% | 2.60% | -16.34% | |
61 Neutral | $37.11M | ― | 2.23% | ― | ― | ― | |
59 Neutral | $41.72M | ― | -43.18% | ― | -19.60% | -483.35% | |
52 Neutral | $73.23M | ― | -4.17% | ― | 20.14% | 82.63% | |
45 Neutral | $42.15M | ― | -64.46% | ― | -86.56% | 20.19% | |
26 Underperform | $33.83M | ― | -860.70% | ― | ― | 25.87% |
* Industrials Sector Average
Performance Comparison
RFIL
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73.13%
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0.38
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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.