RF Industries (RFIL) AI Stock Analysis

• Market Cap: $87.27M
• Dividend Yield: N/A
• Average Volume (3M): 217.57K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.73
• Revenue Growth: 20.14%
• EPS Growth: 82.63%
• Country: US
• Employees: 302
• Sector: Industrials
• Sector Strength: 94
• Industry: Electrical Equipment & Parts
• EPS (TTM): 0.07
• Shares Outstanding: 10,668,653
• 10 Day Avg. Volume: 322,112
• 30 Day Avg. Volume: 217,573
• PEG Ratio: -0.16
• Price to Book (P/B): 2.32
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 17.85
• Enterprise Value/Market Cap: 1.18
• Enterprise Value/Revenue: 0.38
• Enterprise Value/Gross Profit: 4.60
• Enterprise Value/Ebitda: 49.52
• 1Y Price Target: $5.00
• Price Target Upside: -41.04% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 58 Neutral
• Price Target: $9.00 ▲(6.13%Upside)

RF Industries' overall stock score is heavily influenced by technical analysis, which shows strong momentum and bullish signals, albeit with potential overbought conditions. Financial performance presents a mix of challenges and opportunities, with stable cash flows providing some optimism. However, valuation metrics indicate potential overvaluation due to negative earnings. The positive sentiment from the earnings call suggests potential for recovery, but the stock remains a risky investment given current financial metrics.

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 interconnect products and systems, which encompass cable assemblies, connectors, and custom fiber optic solutions. The company's key revenue streams include direct sales to end-users across various industries, such as telecommunications, data centers, and industrial sectors. Additionally, RF Industries benefits from strategic partnerships and collaborations with distributors and OEMs, which help to expand its market reach and drive sales. The company's ability to provide customized solutions and maintain high standards of product quality and reliability also plays a significant role in its revenue generation.

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.

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.

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.

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

• Technical Analysis Sentiment: Positive
• Last Price: 8.48
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: 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 8.48 is above the 20-day moving average (MA) of 7.39, above the 50-day MA of 5.64, and above the 200-day MA of 4.59, indicating a bullish trend. The MACD of 0.80 indicates Negative momentum. The RSI at 70.45 is Negative, neither overbought nor oversold. The STOCH value of 72.22 is Neutral, 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
Sector *	67 Neutral	CHF7.01B	25.64	14.57%	2.50%	-2.32%	-30.70%
APWC	66 Neutral	$38.14M	―	2.23%	―	―	―
IPWR	64 Neutral	$46.75M	―	-57.21%	―	-93.03%	24.28%
RFIL	58 Neutral	$87.27M	―	-4.17%	―	20.14%	82.63%
PPSI	56 Neutral	$39.03M	―	-43.18%	―	-19.60%	-483.35%
SDST	26 Underperform	$38.90M	―	-860.70%	―	―	-12310.81%
RAYA	―	$5.62M	―	-4.77%	―	―	―