RF Industries (RFIL) AI Stock Analysis

• Market Cap: $79.05M
• Dividend Yield: N/A
• Average Volume (3M): 155.53K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.73
• Revenue Growth: 22.60%
• EPS Growth: 95.36%
• Country: US
• Employees: 302
• Sector: Industrials
• Sector Strength: 70
• Industry: Electrical Equipment & Parts
• EPS (TTM): 0.10
• Shares Outstanding: 10,667,447
• 10 Day Avg. Volume: 207,864
• 30 Day Avg. Volume: 155,535
• PEG Ratio: -0.06
• Price to Book (P/B): 1.27
• Price to Sales (P/S): 0.67
• P/FCF Ratio: 17.88
• Enterprise Value/Market Cap: 1.43
• Enterprise Value/Revenue: 1.48
• Enterprise Value/Gross Profit: 4.67
• Enterprise Value/Ebitda: 35.07
• 1Y Price Target: $9.25
• Price Target Upside: 29.37% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 56 Neutral
• Price Target: $7.50 ▲(4.90% Upside)

RF Industries' overall score is driven by financial challenges, including negative profitability and cash flow issues. However, positive earnings call sentiment and technical indicators provide some optimism. Valuation concerns persist due to a negative P/E ratio and lack of dividend yield.

Positive Factors

Revenue Growth

The significant year-over-year revenue growth indicates strong demand for RF Industries' products and services, suggesting a robust market position and potential for sustained expansion in the telecommunications and connectivity sectors.

Improved Profit Margins

The improvement in gross profit margins reflects enhanced operational efficiency and cost management, which can lead to better profitability and financial health over the long term, supporting sustainable business growth.

Market Diversification

Diversification into new markets such as aerospace and data centers reduces dependency on any single sector, enhancing resilience against industry-specific downturns and providing new growth avenues.

Negative Factors

Operational Inefficiencies

Persistent operational inefficiencies, as indicated by negative profit margins, could hinder long-term profitability and limit the company's ability to reinvest in growth opportunities or weather economic downturns.

Supply Chain Challenges

Supply chain disruptions and tariff uncertainties pose risks to the company's ability to maintain consistent production and cost control, potentially affecting future profitability and operational stability.

Reliance on Non-U.S. Components

Dependence on international components exposes the company to geopolitical risks and supply chain disruptions, which could impact production timelines and cost structures, affecting long-term competitiveness.

RF Industries Business Overview & Revenue Model

Company Description

RF 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 Money

RF 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 Financial Statement Overview

Summary

RF Industries is facing financial challenges with declining profitability and operational inefficiencies. Despite a 13.18% revenue growth, the company struggles to convert sales into profits, reflected by negative net profit and EBIT margins. The balance sheet shows moderate leverage and a solid equity base, while improved free cash flow indicates effective cash management, providing a buffer against operational losses.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	76.35M	64.86M	72.17M	85.25M	57.42M	43.04M
Gross Profit	24.17M	18.87M	19.54M	24.55M	17.77M	11.57M
EBITDA	3.22M	-287.00K	-1.82M	3.88M	5.18M	611.00K
Net Income	-336.00K	-6.60M	-3.08M	1.45M	6.18M	-81.00K
Balance Sheet
Total Assets	73.20M	71.05M	82.28M	89.57M	49.65M	40.82M
Cash, Cash Equivalents and Short-Term Investments	3.00M	839.00K	4.90M	4.53M	13.05M	15.80M
Total Debt	27.08M	28.73M	34.74M	32.47M	675.00K	3.42M
Total Liabilities	38.43M	36.98M	42.52M	47.70M	10.04M	8.76M
Stockholders Equity	34.77M	34.07M	39.76M	41.87M	39.60M	32.06M
Cash Flow
Free Cash Flow	1.89M	2.43M	1.70M	217.00K	-3.35M	4.31M
Operating Cash Flow	2.24M	3.17M	4.18M	2.89M	-3.12M	4.55M
Investing Cash Flow	-332.00K	-738.00K	-2.48M	-27.12M	-227.00K	-4.14M
Financing Cash Flow	-669.00K	-6.49M	-1.34M	15.70M	605.00K	2.85M

RF Industries Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 7.15
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 7.15 is above the 20-day moving average (MA) of 7.08, below the 50-day MA of 7.33, and above the 200-day MA of 5.12, indicating a neutral trend. The MACD of 0.11 indicates Negative momentum. The RSI at 49.70 is Neutral, neither overbought nor oversold. The STOCH value of 62.47 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for RFIL.

RF Industries Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
APWC	67 Neutral	$42.57M	―	2.23%	―	―	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
PPSI	59 Neutral	$50.26M	―	-43.18%	―	-19.60%	-483.35%
RFIL	56 Neutral	$79.05M	―	-0.98%	―	22.60%	95.36%
IPWR	45 Neutral	$44.15M	―	-64.46%	―	-86.56%	20.19%
SDST	26 Underperform	$23.01M	―	-860.70%	―	―	25.87%
RAYA	―	$8.08M	―	-4.77%	―	―	―

RF Industries Corporate Events

RF Industries Holds Annual Stockholders Meeting

On September 10, 2025, RF Industries held its Annual Meeting of Stockholders in Parsippany, New Jersey, where shareholders voted on four key proposals. Sheryl Cefali and Robert Dawson were elected to the Board of Directors, and the company decided to continue holding annual advisory votes on executive compensation. Additionally, the compensation of executive officers was approved, and CohnReznick LLP was ratified as the independent registered public accounting firm for the fiscal year ending October 31, 2025.

The most recent analyst rating on (RFIL) stock is a Hold with a $9.00 price target. To see the full list of analyst forecasts on RF Industries stock, see the RFIL Stock Forecast page.