RF Industries (NasdaqGM:RFIL) - Share price, News & Analysis

RFIL fundamental analysis
Snowflake Score
Valuation	3/6
Future Growth	4/6
Past Performance	1/6
Financial Health	3/6
Dividends	0/6

RFIL Stock Overview

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

Rewards

Trading at 83.7% below our estimate of its fair value

Earnings are forecast to grow 47.44% per year

Risk Analysis

High level of non-cash earnings

Profit margins (2.6%) are lower than last year (10.9%)

Does not have a meaningful market cap ($61M)

RF Industries Competitors

Price History & Performance

Summary of all time highs, changes and price drops for RF Industries
Historical stock prices
Current Share Price	US$6.10
52 Week High	US$9.63
52 Week Low	US$5.48
Beta	1.15
1 Month Change	0.32%
3 Month Change	-11.08%
1 Year Change	-17.79%
3 Year Change	-27.73%
5 Year Change	237.95%
Change since IPO	20,233.33%

Shareholder Returns

	RFIL	US Electronic	US Market
7D	-0.2%	3.8%	6.6%
1Y	-17.8%	-19.0%	-18.5%

Return vs Industry: RFIL exceeded the US Electronic industry which returned -20.9% over the past year.

Return vs Market: RFIL exceeded the US Market which returned -20.5% over the past year.

Price Volatility

Is RFIL's price volatile compared to industry and market?
RFIL volatility
RFIL Average Weekly Movement	5.1%
Electronic Industry Average Movement	7.4%
Market Average Movement	8.0%
10% most volatile stocks in US Market	16.6%
10% least volatile stocks in US Market	3.1%

Stable Share Price: RFIL is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: RFIL's weekly volatility (5%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1979	300	Rob Dawson	https://www.rfindustries.com

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.

RF Industries Fundamentals Summary

How do RF Industries's earnings and revenue compare to its market cap?
RFIL fundamental statistics
Market Cap	US$61.02m
Earnings (TTM)	US$1.97m
Revenue (TTM)	US$74.79m

31.4x

P/E Ratio

0.8x

P/S Ratio

Is RFIL overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
RFIL income statement (TTM)
Revenue	US$74.79m
Cost of Revenue	US$54.23m
Gross Profit	US$20.56m
Other Expenses	US$18.59m
Earnings	US$1.97m

Last Reported Earnings

Apr 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	0.19
Gross Margin	27.49%
Net Profit Margin	2.63%
Debt/Equity Ratio	41.7%

How did RFIL perform over the long term?

See historical performance and comparison

We’ve recently updated our valuation analysis.

Valuation

Is RFIL undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for RFIL?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for RFIL. This is calculated by dividing RFIL's market cap by their current preferred multiple.
What is RFIL's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	US$61.02m

RFIL key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	1x
Enterprise Value/EBITDA	14.6x
PEG Ratio	0.7x

Price to Earnings Ratio vs Peers

How does RFIL's PE Ratio compare to its peers?

RFIL PE Ratio vs Peers

The above table shows the PE ratio for RFIL vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	8x

Forward PE

Price-To-Earnings vs Peers: RFIL is expensive based on its Price-To-Earnings Ratio (31.4x) compared to the peer average (8x).

Price to Earnings Ratio vs Industry

How does RFIL's PE Ratio compare vs other companies in the U.S. Electronic Industry?

Price-To-Earnings vs Industry: RFIL is expensive based on its Price-To-Earnings Ratio (31.4x) compared to the US Electronic industry average (16.7x)

Price to Earnings Ratio vs Fair Ratio

What is RFIL's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

RFIL PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	31.4x
Fair PE Ratio	25.8x

Price-To-Earnings vs Fair Ratio: RFIL is expensive based on its Price-To-Earnings Ratio (31.4x) compared to the estimated Fair Price-To-Earnings Ratio (25.8x).

Share Price vs Fair Value

What is the Fair Price of RFIL when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: RFIL ($6.1) is trading below our estimate of fair value ($37.38)

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

Price to Earnings Growth Ratio

PEG Ratio: RFIL is good value based on its PEG Ratio (0.7x)

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Future Growth

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

Future Growth Score

4/6

Future Growth Score 4/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

47.4%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: RFIL's forecast earnings growth (47.4% per year) is above the savings rate (1.9%).

Earnings vs Market: RFIL's earnings (47.4% per year) are forecast to grow faster than the US market (13.9% per year).

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

Revenue vs Market: RFIL's revenue (9.8% per year) is forecast to grow faster than the US market (8.3% per year).

High Growth Revenue: RFIL's revenue (9.8% 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 RFIL's Return on Equity is forecast to be high in 3 years time

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Past Performance

How has RF Industries performed over the past 5 years?

Past Performance Score

1/6

Past Performance Score 1/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

23.4%

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 (2.6%) are lower than last year (10.9%).

Past Earnings Growth Analysis

Earnings Trend: RFIL has become profitable over the past 5 years, growing earnings by 23.4% per year.

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 (-56.5%) over the past year, making it difficult to compare to the Electronic industry average (33%).

Return on Equity

High ROE: RFIL's Return on Equity (4.9%) is considered low.

Discover strong past performing companies

Financial Health

How is RF Industries's financial position?

Financial Health Score

3/6

Financial Health Score 3/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: RFIL's short term assets ($41.6M) exceed its short term liabilities ($14.6M).

Long Term Liabilities: RFIL's short term assets ($41.6M) exceed its long term liabilities ($14.9M).

Debt to Equity History and Analysis

Debt Level: RFIL's net debt to equity ratio (32.4%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if RFIL's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: RFIL's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: Insufficient data to determine if RFIL's interest payments on its debt are well covered by EBIT.

Balance Sheet

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Dividend

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

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

Dividend Yield vs Market

Notable Dividend: Unable to evaluate RFIL's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate RFIL's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.

Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if RFIL's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if RFIL's dividend payments have been increasing.

Earnings Payout to Shareholders

Earnings Coverage: RFIL is not paying a notable dividend for the US market.

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as RFIL has not reported any payouts.

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Management

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

1.0yrs

Average management tenure

CEO

Rob Dawson (47 yo)

4.92yrs

Tenure

US$1,037,842

Compensation

Mr. Robert D. Dawson, also known as Rob, has been Chief Executive Officer and President at RF Industries, Ltd. since July 17, 2017 and has been its Director since July 21, 2018. Mr. Dawson served as Divisi...

CEO Compensation Analysis

Compensation vs Market: Rob's total compensation ($USD1.04M) is above average for companies of similar size in the US market ($USD758.64K).

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

Leadership Team

Experienced Management: RFIL's management team is not considered experienced ( 1 years average tenure), which suggests a new team.

Board Members

Experienced Board: RFIL's board of directors are considered experienced (3.9 years average tenure).

Ownership

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

Insider Trading Volume

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

Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/06/24 00:00
End of Day Share Price	2022/06/24 00:00
Earnings	2022/04/30
Annual Earnings	2021/10/31