Last Updated: 19 Sep 2024
Executive Summary
RF Industries Ltd. (RFIL) is a manufacturer of interconnection products and systems. The company has a market capitalization of $39.87 million and trades on the NASDAQ exchange. The latest stock price is $3.71. RFIL has reported negative earnings per share (EPS) of -$0.69 in the latest quarter and has a trailing price-to-sales (P/S) ratio of 0.64. The company's financial performance has been weak in recent quarters, with revenue and earnings declining year-over-year.
Company Overview
RF Industries Ltd. designs, manufactures, and markets interconnection products and systems in the United States, Canada, Mexico, and internationally. The company's products include coaxial cables, connectors, adapters, and other components used in the telecommunications, aerospace, and defense industries. RFIL has a global manufacturing footprint with facilities in the United States, Mexico, and China.
Fundamental Analysis
RFIL's financial performance has been weak in recent quarters. The company reported a net loss of -$892,000 in the latest quarter, compared to a net income of $1.1 million in the same quarter last year. Revenue declined by 7.6% year-over-year to $62.28 million. The company's gross margin also declined from 42.2% to 39.4%.
RFIL's balance sheet is relatively weak. The company has total debt of $11.6 million and cash and equivalents of $1.9 million. The company's debt-to-equity ratio is 1.16, which is above the industry average.
Technical Analysis
RFIL's stock price has been trending down in recent months. The stock is currently trading below its 50-day and 200-day moving averages. The relative strength index (RSI) is below 50, indicating that the stock is oversold.
Short Term Outlook
The short-term outlook for RFIL is negative. The company's financial performance has been weak and the stock price has been trending down. The stock is currently trading below its key moving averages and the RSI is oversold.
Long Term Outlook
The long-term outlook for RFIL is uncertain. The company's financial performance has been weak in recent quarters, but the company has a strong market position and a global manufacturing footprint. The company's long-term success will depend on its ability to improve its financial performance and execute its growth strategy.
Analyst Recommendations
The majority of analysts have a "Hold" rating on RFIL. The average analyst target price is $4.25, which is 14.3% above the current stock price.
