📊 RFIL Key Takeaways
Is R F Industries Ltd. (RFIL) a Good Investment?
RF Industries demonstrates strong revenue growth (+24.3% YoY) and dramatic net income expansion (+101.1% YoY), supported by a clean balance sheet with zero debt and solid liquidity ratios. However, negative operating cash flow (-$47K) and free cash flow (-$297K) despite reported profitability signal concerning working capital dynamics or earnings quality issues that warrant caution before accumulating positions.
RF Industries shows solid top-line momentum with 24% YoY growth and a move toward breakeven, supported by positive free cash flow. A debt-free balance sheet, adequate liquidity, and improving operating income position the company to inflect earnings if gross margin holds and SG&A scales.
R F Industries Ltd. Key Strengths (RFIL)
- Strong revenue growth of 24.3% YoY demonstrates market traction and demand
- Net income nearly doubled YoY (+101.1%), showing improving profitability at bottom line
- Zero long-term debt with 0.00x debt-to-equity ratio minimizes financial risk
- Solid liquidity position (Current Ratio 1.89x, Quick Ratio 1.11x) supports operational flexibility
- Reasonable gross margin of 33.8% indicates healthy product-level economics
- 24.3% YoY revenue growth with improving operating income
- Debt-free balance sheet with solid liquidity (current 1.80x, quick 1.05x)
- Positive free cash flow and 6.1x interest coverage
RFIL Stock Risks: R F Industries Ltd. Investment Risks
- Negative operating cash flow (-$47K) and free cash flow (-$297K) despite net profitability indicate potential working capital deterioration or earnings quality concerns
- Razor-thin operating margin (3.2%) and net margin (2.1%) leave minimal buffer for operational disruptions
- Very low returns on equity (2.2%) and assets (1.2%) suggest inefficient capital deployment and scaling challenges
- Potential disconnect between reported net income growth and actual cash generation warrants investigation into one-time items or accounting quality
- Low absolute cash balance ($3.4M) creates vulnerability if negative cash flow trend persists
- Very thin margins with near-breakeven profitability (operating margin 0.9%)
- Execution risk on cost control; earnings highly sensitive to mix and utilization
- Working capital swings could pressure cash generation despite low leverage
Key Metrics to Watch
- Operating Cash Flow trend - must turn positive to validate earnings quality
- Working capital changes - investigate receivables and inventory growth driving OCF divergence
- Operating margin expansion - need to demonstrate path to sustainable 5%+ operating margins
- Free Cash Flow conversion - critical to monitor if company can generate positive FCF while growing revenue
- Gross margin sustainability - ensure 33.8% gross margin holds as revenue scales
- Gross margin trend
- Operating margin (SG&A leverage)
R F Industries Ltd. (RFIL) Financial Metrics & Key Ratios
💡 AI Analyst Insight
R F Industries Ltd. presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
RFIL Profit Margin, ROE & Profitability Analysis
RFIL vs Technology Sector: How R F Industries Ltd. Compares
How R F Industries Ltd. compares to Technology sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is R F Industries Ltd. Stock Overvalued? RFIL Valuation Analysis 2026
Based on fundamental analysis, R F Industries Ltd. has mixed fundamental signals relative to the Technology sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
R F Industries Ltd. Balance Sheet: RFIL Debt, Cash & Liquidity
RFIL Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: R F Industries Ltd.'s revenue has grown significantly by 46% over the 5-year period, indicating strong business expansion. The most recent EPS of $-0.63 indicates the company is currently unprofitable.
RFIL Revenue Growth, EPS Growth & YoY Performance
RFIL Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q2 2026 | $18.9M | -$245.0K | $-0.02 |
| Q3 2025 | $16.8M | -$98.0K | $-0.01 |
| Q2 2025 | $16.1M | -$245.0K | $-0.02 |
| Q1 2025 | $13.5M | -$50.0K | $0.00 |
| Q3 2024 | $15.7M | -$705.0K | $-0.07 |
| Q2 2024 | $16.1M | -$581.0K | $-0.06 |
| Q1 2024 | $13.5M | -$1.2M | $-0.11 |
| Q3 2023 | $15.7M | $771.0K | $0.08 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
R F Industries Ltd. Dividends, Buybacks & Capital Allocation
RFIL SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for R F Industries Ltd. (CIK: 0000740664)
📋 Recent SEC Filings
❓ Frequently Asked Questions about RFIL
What is the AI rating for RFIL?
R F Industries Ltd. (RFIL) has a Combined AI Grade of A from Claude (B) and ChatGPT (A) with 64% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are RFIL's key strengths?
Claude: Strong revenue growth of 24.3% YoY demonstrates market traction and demand. Net income nearly doubled YoY (+101.1%), showing improving profitability at bottom line. ChatGPT: 24.3% YoY revenue growth with improving operating income. Debt-free balance sheet with solid liquidity (current 1.80x, quick 1.05x).
What are the risks of investing in RFIL?
Claude: Negative operating cash flow (-$47K) and free cash flow (-$297K) despite net profitability indicate potential working capital deterioration or earnings quality concerns. Razor-thin operating margin (3.2%) and net margin (2.1%) leave minimal buffer for operational disruptions. ChatGPT: Very thin margins with near-breakeven profitability (operating margin 0.9%). Execution risk on cost control; earnings highly sensitive to mix and utilization.
What is RFIL's revenue and growth?
R F Industries Ltd. reported revenue of $39.7M.
Does RFIL pay dividends?
R F Industries Ltd. does not currently pay dividends.
Where can I find RFIL SEC filings?
Official SEC filings for R F Industries Ltd. (CIK: 0000740664) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is RFIL's EPS?
R F Industries Ltd. has a diluted EPS of $0.07.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is RFIL's fundamental grade?
Based on our AI fundamental analysis in June 2026, R F Industries Ltd. has a A grade with 64% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is RFIL stock overvalued or undervalued?
Valuation metrics for RFIL: ROE of 2.2% (sector avg: 22%), net margin of 2.1% (sector avg: 18%). Compare these metrics with sector averages to assess valuation.
What is RFIL's AI grade for 2026?
Our dual AI analysis gives R F Industries Ltd. a combined A grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is RFIL's free cash flow?
R F Industries Ltd.'s operating cash flow is $-47.0K, with capital expenditures of $250.0K. FCF margin is -0.7%.
How does RFIL compare to other Technology stocks?
Vs Technology sector averages: Net margin 2.1% (avg: 18%), ROE 2.2% (avg: 22%), current ratio 1.89 (avg: 2.5).