NasdaqGM:RFIL

Stock Analysis Report

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.

Rewards

PE ratio (14.8x) is below the US market (18.4x)

Risk Analysis

High level of non-cash earnings

Highly volatile share price over past 3 months

Profit margins (7.4%) are lower than last year (12.9%)

Shareholders have been diluted in the past year

+ 1 more risk


Snowflake Analysis

Flawless balance sheet and fair value.


Similar Companies

Cobham

LSE:COB

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: RFIL's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

1.1%

RFIL

1.8%

US Electronic

0.8%

US Market


1 Year Return

-22.2%

RFIL

23.7%

US Electronic

17.8%

US Market

Return vs Industry: RFIL underperformed the US Electronic industry which returned 23.7% over the past year.

Return vs Market: RFIL underperformed the US Market which returned 17.8% over the past year.


Shareholder returns

RFILIndustryMarket
7 Day1.1%1.8%0.8%
30 Day-4.0%0.9%1.8%
90 Day-33.6%6.2%4.1%
1 Year-21.3%-22.2%25.0%23.7%20.4%17.8%
3 Year257.8%232.3%47.0%42.9%45.9%36.4%
5 Year67.2%39.1%83.2%74.2%68.1%49.6%

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

Valuation

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

14.85x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: RFIL ($5.82) is trading above our estimate of fair value ($1.13)

Significantly Below Fair Value: RFIL is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: RFIL is good value based on its PE Ratio (14.8x) compared to the Electronic industry average (20.9x).

PE vs Market: RFIL is good value based on its PE Ratio (14.8x) compared to the US market (18.4x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate RFIL's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: RFIL is good value based on its PB Ratio (1.8x) compared to the US Electronic industry average (2.1x).


Next Steps

Future Growth

How is RF Industries forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

21.8%

Forecasted Tech industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as RF Industries has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has RF Industries performed over the past 5 years?

33.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RFIL has a high level of non-cash earnings.

Growing Profit Margin: RFIL's current net profit margins (7.4%) are lower than last year (12.9%).


Past Earnings Growth Analysis

Earnings Trend: RFIL's earnings have grown significantly by 33.6% per year over the past 5 years.

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

Earnings vs Industry: RFIL had negative earnings growth (-31.2%) over the past year, making it difficult to compare to the Electronic industry average (53.7%).


Return on Equity

High ROE: RFIL's Return on Equity (11.9%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is RF Industries's financial position?


Financial Position Analysis

Short Term Liabilities: RFIL's short term assets ($32.1M) exceed its short term liabilities ($5.4M).

Long Term Liabilities: RFIL's short term assets ($32.1M) exceed its long term liabilities ($91.0K).


Debt to Equity History and Analysis

Debt Level: RFIL is debt free.

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

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

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


Balance Sheet

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

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


Next Steps

Dividend

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

1.38%

Current Dividend Yield


Dividend Yield vs Market

company1.4%marketbottom25%1.4%markettop25%3.7%industryaverage1.5%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: RFIL's dividend (1.38%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.43%).

High Dividend: RFIL's dividend (1.38%) is low compared to the top 25% of dividend payers in the US market (3.72%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (20.4%), RFIL'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

What is the CEO of RF Industries's salary, the management and board of directors tenure and is there insider trading?

5.9yrs

Average management tenure


CEO

Rob Dawson (45yo)

2.4yrs

Tenure

US$495,871

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 ($USD495.87K) is about average for companies of similar size in the US market ($USD530.45K).

Compensation vs Earnings: Rob's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Management Age and Tenure

5.9yrs

Average Tenure

67yo

Average Age

Experienced Management: RFIL's management team is seasoned and experienced (5.9 years average tenure).


Board Age and Tenure

4.6yrs

Average Tenure

68yo

Average Age

Experienced Board: RFIL's board of directors are considered experienced (4.6 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 3.7%.


Management Team

  • Howard Hill (78yo)

    Founder & Director

    • Tenure: 40.9yrs
    • Compensation: US$50.00k
  • Mark Turfler (67yo)

    Senior VP

    • Tenure: 5.9yrs
    • Compensation: US$313.25k
  • Rob Dawson (45yo)

    President

    • Tenure: 2.4yrs
    • Compensation: US$495.87k

Board Members

  • Howard Hill (78yo)

    Founder & Director

    • Tenure: 40.9yrs
    • Compensation: US$50.00k
  • Gerald Garland (68yo)

    Independent Director

    • Tenure: 2.5yrs
    • Compensation: US$50.00k
  • Marvin Fink (83yo)

    Independent Chairman of the Board

    • Tenure: 12.9yrs
    • Compensation: US$50.00k
  • Joe Benoit (65yo)

    Independent Director

    • Tenure: 6.7yrs
    • Compensation: US$50.00k
  • Sheryl Cefali

    Director

    • Tenure: 0.5yrs
  • Rob Dawson (45yo)

    President

    • Tenure: 2.4yrs
    • Compensation: US$495.87k

Company Information

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


Key Information

  • Name: RF Industries, Ltd.
  • Ticker: RFIL
  • Exchange: NasdaqGM
  • Founded: 1979
  • Industry: Electronic Manufacturing Services
  • Sector: Tech
  • Market Cap: US$53.754m
  • Shares outstanding: 9.30m
  • 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’s RF Connect ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/11 23:43
End of Day Share Price2019/12/11 00:00
Earnings2019/07/31
Annual Earnings2018/10/31


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.