R F Industries Ltd (NASDAQ: RFIL)

Sector: Industrials Industry: Electrical Equipment & Parts CIK: 0000740664
Market Cap 83.48 Mn
P/B 2.37
P/E 1,113.00
P/S 1.04
ROIC (Qtr) 0.35
Div Yield % 0.00
Rev 1y % (Qtr) 22.94
Total Debt (Qtr) 26.59 Mn
Debt/Equity (Qtr) 0.76
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About

R F Industries Ltd., often recognized by its ticker symbol RFIL, operates in the wireless and broadband communications industry. The company's primary business activities encompass the design, development, and manufacturing of a diverse range of products, including coaxial connectors, cables, and other components. These products find application in various sectors, particularly in wireless and broadband communications. They are marketed to a broad customer base, which includes wireless carriers, distributors, and other telecommunications companies. The...

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Investment thesis

Bull case

  • Robust free cash flow of 4.36M exceeds capital expenditure of 223000 by 19.53x, indicating strong organic growth funding capability.
  • Robust tangible asset base of 53.52M provides 3.80x coverage of working capital 14.07M, indicating strong operational backing.
  • Operating cash flow of 4.58M fully covers other non-current liabilities 247000 by 18.54x, showing strong long-term stability.
  • Tangible assets of 53.52M provide robust 6.78x coverage of other current liabilities 7.90M, indicating strong asset backing.
  • Cash reserves of 5.08M provide solid 20.56x coverage of other non-current liabilities 247000, indicating strong liquidity.

Bear case

  • Operating cash flow of 4.58M barely covers its investment activities of (223000), with a coverage ratio of -20.53, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of (223000) provide weak support for R&D spending of 2.98M, which is -0.07x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Operating earnings of 813000 show weak coverage of depreciation charges of 2.46M, with a 0.33 ratio indicating high capital intensity and potential reinvestment needs.
  • Free cash flow of 4.36M represents just -12.07x of debt issuance (361000), suggesting concerning reliance on leverage rather than internal cash generation for growth.
  • High depreciation of 2.46M relative to operating cash flow of 4.58M, which is 0.54x suggests significant maintenance capital requirements affecting free cash flow.

Geographical Breakdown of Revenue (2025)

Product and Service Breakdown of Revenue (2025)

Peer comparison

Companies in the Electrical Equipment & Parts
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 VRT Vertiv Holdings Co 93.00 Bn 69.78 9.09 3.16 Bn
2 BE Bloom Energy Corp 34.73 Bn -392.76 17.16 2.99 Bn
3 HUBB Hubbell Inc 27.97 Bn 31.52 4.78 2.33 Bn
4 NVT nVent Electric plc 19.43 Bn 76.81 8.40 1.56 Bn
5 AYI Acuity Inc. (De) 12.85 Bn 109.95 6.86 0.91 Bn
6 AEIS Advanced Energy Industries Inc 11.80 Bn 79.52 6.56 0.68 Bn
7 NVX NOVONIX Ltd 11.53 Bn -174.00 1,943.36 -
8 ENS EnerSys 6.79 Bn 21.71 1.82 1.18 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 1.47 3.49
EV to Cash from Ops. EV/CFO 23.49 9.10
EV to Debt EV to Debt 4.05 113.17
EV to EBIT EV/EBIT 132.30 -17.64
EV to EBITDA EV/EBITDA 32.83 3.56
EV to Free Cash Flow [EV/FCF] EV/FCF 24.69 39.13
EV to Market Cap EV to Market Cap 1.29 2.59
EV to Revenue EV/Rev 1.33 77.74
Price to Book Value [P/B] P/B 2.37 4.98
Price to Earnings [P/E] P/E 1,113.00 23.89
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 0.00 -2.92
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 3.27
Dividend per Basic Share Div per Share (Qtr) 0.00 0.37
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 1.79
Interest Coverage Int. cover (Qtr) 0.00 -16.86
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 69.78 -135.37
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 505.36 92.17
Dividend Growth (1y) % Div 1y % (Qtr) 0.00 5.22
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 101.14 -45.52
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 358.56 -56.26
EBIT Growth (1y) % EBIT 1y % (Qtr) 121.38 -64.20
EBT Growth (1y) % EBT 1y % (Qtr) 121.38 8.52
EPS Growth (1y) % EPS 1y % (Qtr) 101.59 13.91
FCF Growth (1y) % FCF 1y % (Qtr) 79.48 -66.58
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 41.68 15.53
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 1.10 0.63
Cash Payout Ratio Cash Payout (Qtr) 0.00 -0.10
Cash Ratio Cash Ratio (Qtr) 0.24 3.50
Current Ratio Curr Ratio (Qtr) 1.67 5.07
Debt to Equity Ratio Debt/Equity (Qtr) 0.76 0.41
Interest Cover Ratio Int Coverage (Qtr) 0.00 -16.86
Times Interest Earned Times Interest Earned (Qtr) 0.00 -16.86
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 4.10 -1,947.23
EBIT Margin % EBIT Margin % (Qtr) 1.01 -2,051.19
EBT Margin % EBT Margin % (Qtr) 1.01 -2,170.94
Gross Margin % Gross Margin % (Qtr) 33.20 2.02
Net Profit Margin % Net Margin % (Qtr) 0.10 -2,202.04