Summary
RF Industries: The Business Is Recovering, But The Shares Are Overextended
RF Industries has improved revenue and margins, but the current valuation assumes unsustainably high growth and profitability. Recent margin gains are driven by peak custom cabling demand and favorable product mix, which management admits may not be durable. Cash flow remains weak despite accounting profitability, with negative operating cash flow and a declining cash balance raising concerns.
3 Reasons Why Growth Investors Shouldn't Overlook RF Industries (RFIL)
RF Industries (RFIL) is well positioned to outperform the market, as it exhibits above-average growth in financials.
RFIL Q2 Earnings Call Signals Margin-Led Growth Path
RF Industries' Q2 call showed margin-led growth, stronger bookings, rising backlog and sequential Q3 sales expectations as diversification gains traction.
RF Industries Ltd. Investors
| Name | Quantity | Cost | Value | Profit ($) | Gain (%) |
|---|---|---|---|---|---|
 Point72 Asset Management LP Point72 Asset Management LP | 43,044 | $390,411.48 | $616,390.08 | $225,978.6 | 57.88% |
| TK Taro Kuriyama Axq Capita LLP | 10,658 | $109,884 | $147,346.85 | $37,462.85 | 34.09% |
 Kevin Bresler TD Waterhouse Canada Inc. | 3,500 | $25,235 | $46,637.5 | $21,402.5 | 84.81% |
| MA Marie-Andree Alain Federation des caisses Desjardins du Quebec | 1,350 | $5,621.63 | $17,779.5 | $12,157.87 | 216.27% |
 Carmen McClennon WR Wealth Planners, LLC | 200 | $620 | $2,594 | $1,974 | 318.39% |
RF Industries Ltd. (RFIL) FAQ
What is the stock price today?
On which exchange is it traded?
What is its stock symbol?
Does it pay dividends? What is the current yield?
What is its market cap?
Has RF Industries Ltd. ever had a stock split?
RF Industries Ltd. Profile
| Electrical Equipment Industry | Industrials Sector | Robert D. Dawson CEO | NASDAQ (NMS) Exchange | 749552105 CUSIP |
| US Country | 289 Employees | 15 Apr 2020 Last Dividend | 11 Mar 2011 Last Split | 28 May 1997 IPO Date |
Overview
RF Industries, Ltd., a prominent entity in the manufacturing and marketing of interconnect products and systems, operates across different parts of the world including the United States, Canada, Italy, Mexico, and beyond. The company has structured its operations into two primary segments: RF Connector and Cable Assembly, and Custom Cabling Manufacturing and Assembly. With its roots tracing back to its founding in 1979 and a name change from Celltronics, Inc. to RF Industries, Ltd. in November 1990, it has established its headquarters in San Diego, California. RF Industries caters to a diffuse client base comprising telecommunications carriers, equipment manufacturers, wireless and network infrastructure carriers, and original equipment manufacturers, leveraging both warehousing distributors and its in-house marketing and sales team for product distribution.
Products and Services
RF Industries, Ltd. offers an expansive portfolio of products and services engineered to meet the needs of a varied clientele, including industrial, telecommunications, medical, and military sectors. Below is a detailed listing of their primary offerings:
- Coaxial Connectors and Cable Assemblies: The company designs, manufactures, and distributes a wide range of coaxial connectors and cable assemblies, which are essential components integrated with coaxial connectors for various applications.
- Custom Copper and Fiber Cable Assemblies: Tailored copper and fiber optic cable assemblies are provided, alongside complex hybrid fiber optic and power solution cables. These are designed for communication, computer, LAN, automotive, and medical equipment, showcasing the company’s ability to meet specific client needs.
- Energy-Efficient Cooling Systems: These systems are geared towards wireless base stations and remote equipment shelters, highlighting RF Industries’ commitment to supporting infrastructure with advanced thermal management solutions.
- 5G Small Cell Integrated Enclosures: The company also steps into the 5G realm by offering custom-designed, pole-ready integrated enclosures, catering to the burgeoning needs of small cell technology deployment.
- Electromechanical Wiring Harnesses: RF Industries creates cable assemblies and wiring harnesses specifically for blue chip companies in industrial, oilfield, instrumentation, medical, and military sectors. This service underscores the company’s versatility in producing connectivity and wiring solutions.
- Connectivity Solutions to Telecommunications and Data Communications Distributors: The company extends its offerings to include connectivity solutions tailored to the needs of distributors in the telecommunications and data communications markets.
- Thermal Control Systems: Another significant area of expertise is the development of thermal control systems, further emphasizing RF Industries’ role in ensuring operational efficiency and reliability in critical communication infrastructures.
- Radio Frequency and Microwave Distribution System Products: The product line includes dividers, directional couplers, and filters, which are vital for the effective management and distribution of RF and microwave signals within various systems.
