RF Acquisition Corp II (NASDAQ: RFAI)

Sector: Financial Services Industry: Shell Companies CIK: 0002012807
Market Cap 152.23 Mn
P/B -33.15
P/E 45.21
P/S 0.00
ROIC (Qtr) 29.39
Div Yield % 0.00
Rev 1y % (Qtr) 0.00
Total Debt (Qtr) 0.00
Debt/Equity (Qtr) 0.00
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About

Investment thesis

Bull case

  • Tangible assets of 52.66M provide robust 68.06x coverage of other current liabilities 773724, indicating strong asset backing.
  • Retained earnings of (4.59M) represent substantial 1x of equity (4.59M), indicating strong internal capital generation.
  • Tangible assets of 52.66M provide robust 54.32x coverage of current liabilities 969449, showing strong asset backing.
  • Cash position of 337383 fully covers payables of 195725 by 1.72x, showing strong vendor relationship management.
  • Tangible assets of 52.66M provide robust 877.65x coverage of receivables 60000, showing strong asset quality.

Bear case

  • Operating cash flow of (561403) barely covers its investment activities of 71.46M, with a coverage ratio of -0.01, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • High financing cash flow of (71.52M) relative to working capital of (567649), which is 125.99x suggests concerning dependence on external funding for operational needs.
  • Operating cash flow of (561403) is outpaced by equity issuance of (71.58M) (0.01 ratio), indicating concerning reliance on equity markets for funding operations.
  • Tangible assets of 52.66M provide limited backing for working capital of (567649), which is -92.77x, suggesting increased operational risk in market downturns.
  • R&D investment of 0 represents just 0x of SG&A expenses of 1.26M, indicating potential underinvestment in innovation relative to administrative overhead.

Peer comparison

Companies in the Shell Companies
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 ANSC Agriculture & Natural Solutions Acquisition Corp 493.77 Mn 56.15 0.00 0.84 Mn
2 CCIX Churchill Capital Corp IX/Cayman 395.47 Mn 46.22 0.00 0.00 Mn
3 ALF Centurion Acquisition Corp. 394.73 Mn 32.55 0.00 0.01 Mn
4 GPAT GP-Act III Acquisition Corp. 389.33 Mn 31.65 0.00 0.40 Mn
5 HYAC Haymaker Acquisition Corp. 4 338.26 Mn 38.17 0.00 1.88 Mn
6 SIMA SIM Acquisition Corp. I 328.57 Mn 35.70 0.00 0.00 Mn
7 AFJK Aimei Health Technology Co., Ltd. 303.65 Mn 216.00 0.00 1.66 Mn
8 GRAF Graf Global Corp. 300.58 Mn 34.68 0.00 0.00 Mn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 2.88 0.95
EV to Cash from Ops. EV/CFO -270.16 18.30
EV to Debt EV to Debt 0.00 125,153.88
EV to EBIT EV/EBIT 45.04 34.06
EV to EBITDA EV/EBITDA -120.67 -165.45
EV to Free Cash Flow [EV/FCF] EV/FCF -270.16 18.30
EV to Market Cap EV to Market Cap 1.00 0.63
EV to Revenue EV to Revenue 0.00 0.00
Price to Book Value [P/B] P/B -33.15 -20.50
Price to Earnings [P/E] P/E 45.21 -125.27
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 0.04
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 0.00
Dividend per Basic Share Div per Share (Qtr) 0.00 0.00
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 0.00
Interest Coverage Interest Coverage 0.00 2.94
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex Growth (1y) % 0.00 0.00
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -64.81 410.95
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 0.00
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 6.66 282.79
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -247.39 -126.98
EBIT Growth (1y) % EBIT 1y % (Qtr) 6.66 304.32
EBT Growth (1y) % EBT 1y % (Qtr) 6.66 303.65
EPS Growth (1y) % EPS 1y % (Qtr) -17.24 956.13
FCF Growth (1y) % FCF 1y % (Qtr) -527.26 -37.62
Gross Profit Growth (1y) % Gross Profit Growth (1y) % 0.00 0.00
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.00 0.00
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.00
Cash Ratio Cash Ratio (Qtr) 0.35 52.04
Current Ratio Curr Ratio (Qtr) 0.41 4.89
Debt to Equity Ratio Debt/Equity (Qtr) 0.00 -0.27
Interest Cover Ratio Interest Cover Ratio 0.00 2.94
Times Interest Earned Times Interest Earned 0.00 2.94
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % 0.00 0.00
EBIT Margin % EBIT Margin % 0.00 0.00
EBT Margin % EBT Margin % 0.00 0.00
Gross Margin % Gross Margin % 0.00 0.00
Net Profit Margin % Net Profit Margin % 0.00 0.00