tiprankstipranks
Trending News
More News >
Rf Industries, Ltd. (RFIL)
:RFIL

RF Industries (RFIL) AI Stock Analysis

Compare
204 Followers

Top Page

RF

RF Industries

(NASDAQ:RFIL)

Rating:61Neutral
Price Target:
$7.00
▲(6.87%Upside)
RF Industries shows potential for recovery with strong revenue growth and improved profitability highlighted in the earnings call. The technical analysis supports a bullish trend, but high RSI and Stochastic suggest caution. Financially, the company faces challenges with negative net profits and operational inefficiencies. Overall, the strategic improvements and strong market presence offer a positive outlook despite valuation concerns.

RF Industries (RFIL) vs. SPDR S&P 500 ETF (SPY)

RF Industries Business Overview & Revenue Model

Company DescriptionRF 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 MoneyRF 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 Earnings Call Summary

Earnings Call Date:Jun 16, 2025
(Q2-2025)
|
% Change Since: 46.53%|
Next Earnings Date:Sep 11, 2025
Earnings Call Sentiment Positive
The earnings call highlighted strong revenue growth, improved profitability, a significant backlog increase, and successful product innovations. However, challenges such as exposure to tariffs and a net loss were noted.
Q2-2025 Updates
Positive Updates
Strong Revenue Growth
Fiscal second quarter net sales grew 17% to $18.9 million year over year.
Improved Profitability
Gross profit margin increased to 31.5%, exceeding the target goal of 30%.
Positive Operating Income
The company 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 $18.4 million, a big increase from six weeks ago.
Innovative Product Launches
Launched a next-gen direct air cooling system with advanced control capabilities and a NEMA four certification.
Expansion into Diverse Markets
Growth driven by wireless, aerospace, public safety, industrial OEM customers, and new markets like energy, transportation, and telecom.
Strong Adjusted EBITDA Growth
Adjusted EBITDA was more than $1.1 million, a significant improvement compared to $572,000 in Q2 2024.
Negative Updates
Exposure to Tariffs
Potential impacts due to tariffs on certain products and components from suppliers in Asia.
Net Loss Despite Improvements
Consolidated net loss was $245,000 or $0.02 per diluted share.
Company Guidance
During the second quarter of fiscal 2025, RF Industries demonstrated significant growth and operational improvements. Net sales increased by 17% to $18.9 million compared to the previous year, and the gross profit margin exceeded the target by reaching 31.5%. The company reported an operating profit of $106,000, a stark contrast to the operating loss of $415,000 in the same quarter of 2024. Adjusted EBITDA rose to over $1.1 million, with a 6% margin, indicating progress towards the 10% margin goal. The backlog grew to $18.4 million, up from $15 million at the end of April. RF Industries is diversifying its market presence, with growth in sectors such as wireless, aerospace, and public safety, and is focusing on innovative solutions in areas like data centers and transportation. Despite challenges like tariff uncertainties, the company maintains a strong financial position with a working capital of $12.1 million and is exploring more favorable financing options to enhance liquidity. Looking ahead, RF Industries expects third-quarter sales to align with second-quarter figures, marking a significant increase from $16.8 million in the third quarter of the previous year.

RF Industries Financial Statement Overview

Summary
RF Industries is facing financial challenges, including declining profitability and operational inefficiencies. Despite some revenue growth, the company's ability to convert sales into profits is limited. The balance sheet shows moderate leverage, but negative returns indicate underlying issues. Improved free cash flow suggests effective cash management, providing some buffer against operational losses.
Income Statement
45
Neutral
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
60
Neutral
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
50
Neutral
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue73.40M64.86M72.17M85.25M57.42M43.04M
Gross Profit22.41M18.87M19.54M24.55M17.77M11.57M
EBITDA2.34M-287.00K-1.82M3.88M5.18M611.00K
Net Income-1.43M-6.60M-3.08M1.45M6.18M-81.00K
Balance Sheet
Total Assets72.68M71.05M82.28M89.57M49.65M40.82M
Cash, Cash Equivalents and Short-Term Investments3.59M839.00K4.90M4.53M13.05M15.80M
Total Debt27.63M28.73M34.74M32.47M675.00K3.42M
Total Liabilities38.51M36.98M42.52M47.70M10.04M8.76M
Stockholders Equity34.17M34.07M39.76M41.87M39.60M32.06M
Cash Flow
Free Cash Flow4.43M2.43M1.70M217.00K-3.35M4.31M
Operating Cash Flow4.92M3.17M4.18M2.89M-3.12M4.55M
Investing Cash Flow-475.00K-738.00K-2.48M-27.12M-227.00K-4.14M
Financing Cash Flow-2.26M-6.49M-1.34M15.70M605.00K2.85M

RF Industries Technical Analysis

Technical Analysis Sentiment
Positive
Last Price6.55
Price Trends
50DMA
4.47
Positive
100DMA
4.46
Positive
200DMA
4.30
Positive
Market Momentum
MACD
0.61
Negative
RSI
78.45
Negative
STOCH
90.06
Negative
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 6.55 is above the 20-day moving average (MA) of 5.11, above the 50-day MA of 4.47, and above the 200-day MA of 4.30, indicating a bullish trend. The MACD of 0.61 indicates Negative momentum. The RSI at 78.45 is Negative, neither overbought nor oversold. The STOCH value of 90.06 is Negative, 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

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
65
Neutral
$10.77B15.805.51%1.90%3.03%-26.66%
63
Neutral
$34.64M2.23%
61
Neutral
$69.88M-4.17%20.14%82.63%
55
Neutral
$30.53M-43.18%-19.60%-483.35%
53
Neutral
$39.24M-57.21%-93.03%24.28%
26
Underperform
$12.57M-860.70%-12310.81%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
RFIL
RF Industries
6.55
2.53
62.94%
APWC
Asia Pac Wire &Cable
1.68
0.13
8.39%
IPWR
Ideal Power
4.70
-2.95
-38.56%
PPSI
Pioneer Power Solutions
2.74
-0.45
-14.11%
SDST
Stardust Power
0.21
-9.53
-97.84%
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.Date of analysis: Jul 01, 2025