DB:RF5

Stock Analysis Report

RF Industries

Executive Summary

RF Industries, Ltd., together with its subsidiaries, designs, manufactures, and markets interconnect products and systems in the United States, Canada, Mexico, and internationally.


Snowflake Analysis

Very undervalued with flawless balance sheet.


Similar Companies

Share Price & News

How has RF Industries's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: RF5's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-4.9%

RF5

1.7%

DE Electronic

-0.6%

DE Market


1 Year Return

-39.7%

RF5

-28.3%

DE Electronic

-20.9%

DE Market

Return vs Industry: RF5 underperformed the German Electronic industry which returned -28.3% over the past year.

Return vs Market: RF5 underperformed the German Market which returned -20.9% over the past year.


Shareholder returns

RF5IndustryMarket
7 Day-4.9%1.7%-0.6%
30 Day-36.6%-19.1%-18.6%
90 Day-40.8%-23.2%-26.2%
1 Year-38.9%-39.7%-26.8%-28.3%-18.6%-20.9%
3 Year170.7%155.8%-4.0%-7.1%-19.0%-25.8%
5 Year6.0%-9.4%53.5%42.4%-21.2%-31.8%

Price Volatility Vs. Market

How volatile is RF Industries's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is RF Industries undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: RF5 (€3.52) is trading below our estimate of fair value (€8.63)

Significantly Below Fair Value: RF5 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: RF5 is good value based on its PE Ratio (12.3x) compared to the Electronic industry average (18.7x).

PE vs Market: RF5 is good value based on its PE Ratio (12.3x) compared to the German market (16.6x).


Price to Earnings Growth Ratio

PEG Ratio: RF5 is good value based on its PEG Ratio (0.4x)


Price to Book Ratio

PB vs Industry: RF5 is good value based on its PB Ratio (1.2x) compared to the DE Electronic industry average (1.2x).


Next Steps

Future Growth

How is RF Industries forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

32.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RF5's forecast earnings growth (32.6% per year) is above the savings rate (-0.4%).

Earnings vs Market: RF5's earnings (32.6% per year) are forecast to grow faster than the German market (14.1% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: RF5's revenue (12.1% per year) is forecast to grow faster than the German market (3.9% per year).

High Growth Revenue: RF5's revenue (12.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if RF5's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has RF Industries performed over the past 5 years?

42.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RF5 has high quality earnings.

Growing Profit Margin: RF5's current net profit margins (5.1%) are lower than last year (12%).


Past Earnings Growth Analysis

Earnings Trend: RF5's earnings have grown significantly by 42.1% per year over the past 5 years.

Accelerating Growth: RF5's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: RF5 had negative earnings growth (-54.3%) over the past year, making it difficult to compare to the Electronic industry average (-7.4%).


Return on Equity

High ROE: RF5's Return on Equity (9.1%) is considered low.


Next Steps

Financial Health

How is RF Industries's financial position?


Financial Position Analysis

Short Term Liabilities: RF5's short term assets ($29.2M) exceed its short term liabilities ($5.5M).

Long Term Liabilities: RF5's short term assets ($29.2M) exceed its long term liabilities ($2.4M).


Debt to Equity History and Analysis

Debt Level: RF5 is debt free.

Reducing Debt: RF5 has not had any debt for past 5 years.

Debt Coverage: RF5 has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: RF5 has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: RF5 has a high level of physical assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if RF5's debt is covered by short term assets.


Next Steps

Dividend

What is RF Industries's current dividend yield, its reliability and sustainability?

2.11%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: RF5's dividend (2.11%) is higher than the bottom 25% of dividend payers in the German market (1.71%).

High Dividend: RF5's dividend (2.11%) is low compared to the top 25% of dividend payers in the German market (4.85%).


Stability and Growth of Payments

Stable Dividend: RF5's dividend payments have been volatile in the past 10 years.

Growing Dividend: RF5's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (25.9%), RF5's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.5yrs

Average management tenure


CEO

Rob Dawson (45yo)

2.75s

Tenure

US$361,946

Compensation

Mr. Robert D. Dawson, also known as Rob, has been Chief Executive Officer and President at RF Industries, Ltd. since July 17, 2017. Mr. Dawson served as Division President of Vision Technology Services at  ...


CEO Compensation Analysis

Compensation vs Market: Rob's total compensation ($USD361.95K) is about average for companies of similar size in the German market ($USD434.26K).

Compensation vs Earnings: Rob's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Robert Dawson
President2.75yrsUS$361.95k0.73% $249.6k
Howard Hill
Founder & Director41.25yrsUS$50.00k2.33% $799.2k
Mark Turfler
Senior VP6.25yrsUS$193.86k0.026% $8.8k
Ray Bibisi
Chief Revenue Officer0.25yrno datano data

4.5yrs

Average Tenure

67yo

Average Age

Experienced Management: RF5's management team is considered experienced (4.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Robert Dawson
President2.75yrsUS$361.95k0.73% $249.6k
Howard Hill
Founder & Director41.25yrsUS$50.00k2.33% $799.2k
Gerald Garland
Independent Director2.83yrsUS$62.50k0.42% $144.1k
Marvin Fink
Independent Chairman of the Board13.25yrsUS$65.00k0.83% $283.2k
Edward Benoit
Independent Director7yrsUS$65.00k0.19% $63.9k
Sheryl Cefali
Director0.83yrUS$22.14k0.059% $20.3k

4.9yrs

Average Tenure

68yo

Average Age

Experienced Board: RF5's board of directors are considered experienced (4.9 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: RF5 insiders have sold more shares than they have bought in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2.3%.


Top Shareholders

Company Information

RF Industries, Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: RF Industries, Ltd.
  • Ticker: RF5
  • Exchange: DB
  • Founded: 1979
  • Industry: Electronic Manufacturing Services
  • Sector: Tech
  • Market Cap: US$36.983m
  • Listing Market Cap: US$34.280m
  • Shares outstanding: 9.76m
  • Website: https://www.rfindustries.com

Number of Employees


Location

  • RF Industries, Ltd.
  • Building 6000
  • 7610 Miramar Road
  • San Diego
  • California
  • 92126
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
RFILNasdaqGM (Nasdaq Global Market)YesCommon StockUSUSDMar 1985
RF5DB (Deutsche Boerse AG)YesCommon StockDEEURMar 1985

Biography

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 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, electromechanical wiring harnesses, wiring harnesses, ambient thermal systems, and shrouds for small cell installations. 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 OEMs. The company was formerly known as Celltronics, Inc. and changed its name to RF Industries, Ltd. in November 1990. RF Industries, Ltd. was founded in 1979 and is headquartered in San Diego, California. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/04 21:36
End of Day Share Price2020/04/03 00:00
Earnings2020/01/31
Annual Earnings2019/10/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.