RF Industries, Ltd.
RF Industries, Ltd. Fundamental Analysis
RF Industries, Ltd. (RFIL) shows weak financial fundamentals with a PE ratio of 433.02, profit margin of 0.34%, and ROE of 0.77%. The company generates $0.1B in annual revenue with strong year-over-year growth of 24.25%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 43.5/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze RFIL's fundamental strength across five key dimensions:
Efficiency Score
WeakRFIL struggles to generate sufficient returns from assets.
Valuation Score
ModerateRFIL shows balanced valuation metrics.
Growth Score
ModerateRFIL shows steady but slowing expansion.
Financial Health Score
ExcellentRFIL maintains a strong and stable balance sheet.
Profitability Score
ModerateRFIL maintains healthy but balanced margins.
Key Financial Metrics
Is RFIL Expensive or Cheap?
P/E Ratio
RFIL trades at 433.02 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, RFIL's PEG of 1.57 indicates fair valuation.
Price to Book
The market values RF Industries, Ltd. at 3.29 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 26.62 times EBITDA. This signals the market has high growth expectations.
How Well Does RFIL Make Money?
Net Profit Margin
For every $100 in sales, RF Industries, Ltd. keeps $0.34 as profit after all expenses.
Operating Margin
Core operations generate 3.40 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $0.77 in profit for every $100 of shareholder equity.
ROA
RF Industries, Ltd. generates $0.38 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
RF Industries, Ltd. generates limited operating cash flow of $4.88M, signaling weaker underlying cash strength.
Free Cash Flow
RF Industries, Ltd. produces free cash flow of $4.45M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $0.41 in free cash annually.
FCF Yield
RFIL converts 3.75% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
433.02
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
1.57
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.29
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.47
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.71
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.80
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.008
vs 25 benchmark
ROA
Return on assets percentage
0.004
vs 25 benchmark
ROCE
Return on capital employed
0.05
vs 25 benchmark
How RFIL Stacks Against Its Sector Peers
| Metric | RFIL Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 433.02 | 25.96 | Worse (Expensive) |
| ROE | 0.77% | 1263.00% | Weak |
| Net Margin | 0.34% | -41827.00% (disorted) | Weak |
| Debt/Equity | 0.71 | 0.79 | Neutral |
| Current Ratio | 1.80 | 10.05 | Neutral |
| ROA | 0.38% | -1497918.00% (disorted) | Weak |
RFIL outperforms its industry in 0 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews RF Industries, Ltd.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
70.18%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
184.17%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
-8.46%
Industry Style: Cyclical, Value, Infrastructure
Declining