Research Frontiers Inc (NASDAQ: REFR)

Sector: Technology Industry: Electronic Components CIK: 0000793524
Market Cap 32.10 Mn
P/B 21.40
P/E -17.00
P/S 26.15
ROIC (Qtr) -69.22
Div Yield % 0.00
Rev 1y % (Qtr) 1.42
Total Debt (Qtr) 1.20 Mn
Debt/Equity (Qtr) 0.80
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About

Investment thesis

Bull case

  • Healthy cash reserves of 1.13M provide 7.97x coverage of short-term debt 141894, demonstrating strong liquidity position and minimal refinancing risk.
  • Tangible assets of 2.77M provide exceptional 518.99x coverage of deferred revenue 5336, showing strong service capability backing.
  • Operating cash flow of (816134) fully covers other non-current liabilities (5336) by 152.95x, showing strong long-term stability.
  • Tangible assets of 2.77M provide robust 67.45x coverage of other current liabilities 41057, indicating strong asset backing.
  • R&D investment of 633899 represents healthy 118.80x of deferred revenue 5336, indicating strong future innovation pipeline.

Bear case

  • Investment activities of (1463) provide weak support for R&D spending of 633899, which is -0x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Operating cash flow of (816134) provides insufficient coverage of deferred revenue obligations of 5336, which is -152.95x, raising concerns about future service delivery capabilities.
  • The company's operating cash flow of (816134) shows concerning coverage of stock compensation expenses of 264520, with a -3.09 ratio indicating potential earnings quality issues.
  • Free cash flow of (817597) provides weak coverage of capital expenditures of 1463, with a -558.85 ratio suggesting additional external financing needs for growth initiatives.
  • Operating earnings of (1.89M) show weak coverage of depreciation charges of 276638, with a -6.82 ratio indicating high capital intensity and potential reinvestment needs.

Peer comparison

Companies in the Electronic Components
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 APH Amphenol Corp /De/ 180.75 Bn 42.33 7.83 15.50 Bn
2 GLW Corning Inc /Ny 111.40 Bn 69.80 7.13 8.43 Bn
3 TEL TE Connectivity plc 69.66 Bn 33.75 3.85 5.71 Bn
4 CLS Celestica Inc 33.17 Bn 47.38 2.94 0.78 Bn
5 JBL Jabil Inc 27.80 Bn 39.54 0.89 3.37 Bn
6 FLEX Flex Ltd. 24.18 Bn 28.38 0.90 5.02 Bn
7 FN Fabrinet 17.82 Bn 47.27 4.58 0.06 Bn
8 TTMI Ttm Technologies Inc 9.30 Bn 70.47 3.34 1.00 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 11.57 3.02
EV to Cash from Ops. EV/CFO -39.27 -590.38
EV to Debt EV to Debt 26.72 107.94
EV to EBIT EV/EBIT -16.98 20.68
EV to EBITDA EV/EBITDA -18.79 -27.60
EV to Free Cash Flow [EV/FCF] EV/FCF -39.20 -537.03
EV to Market Cap EV to Market Cap 1.00 -1.14
EV to Revenue EV/Rev 26.12 96.65
Price to Book Value [P/B] P/B 21.40 6.99
Price to Earnings [P/E] P/E -17.00 -8.83
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 1.07
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 20.91
Dividend per Basic Share Div per Share (Qtr) 0.00 0.26
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 10.42
Interest Coverage Interest Coverage 0.00 14.05
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -41.35 -43.87
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -31.41 125.88
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 -0.04
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -59.54 -176.07
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -47.91 14.38
EBIT Growth (1y) % EBIT 1y % (Qtr) -59.54 15.28
EBT Growth (1y) % EBT 1y % (Qtr) -59.54 7.50
EPS Growth (1y) % EPS 1y % (Qtr) -100.00 2.30
FCF Growth (1y) % FCF 1y % (Qtr) 41.00 9.29
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -16.49 15.57
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.44 0.77
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.05
Cash Ratio Cash Ratio (Qtr) 5.33 1.48
Current Ratio Curr Ratio (Qtr) 7.61 3.80
Debt to Equity Ratio Debt/Equity (Qtr) 0.80 0.68
Interest Cover Ratio Interest Cover Ratio 0.00 14.05
Times Interest Earned Times Interest Earned 0.00 14.05
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -131.30 21.48
EBIT Margin % EBIT Margin % (Qtr) -153.83 -42.60
EBT Margin % EBT Margin % (Qtr) -153.83 -10.39
Gross Margin % Gross Margin % (Qtr) 100.00 31.37
Net Profit Margin % Net Margin % (Qtr) -153.80 -11.50