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1. Company Snapshot

1.a. Company Description

RF Industries, Ltd., together with its subsidiaries, designs, manufactures, and markets interconnect products and systems in the United States, Canada, Mexico, and internationally.The company operates through two segments, RF Connector and Cable Assembly and Custom Cabling Manufacturing and Assembly.The company's RF Connector and Cable Assembly segment designs, manufactures, and distributes various coaxial connectors and cable assemblies that are integrated with coaxial connectors.


The Custom Cabling Manufacturing and Assembly segment designs, manufactures, markets, and distributes custom copper and fiber cable assemblies, complex hybrid fiber optic and power solution cables, energy-efficient cooling systems for wireless base stations and remote equipment shelters, and custom designed pole-ready 5G small cell integrated enclosures.It also manufactures and sells custom and standard cable assemblies, hybrid fiber optic power solution cables, adapters, and electromechanical wiring harnesses for communication, computer, LAN, automotive, and medical equipment.In addition, the company designs and manufactures cable assemblies and wiring harnesses for blue chip industrial, oilfield, instrumentation, and military customers.


It also designs and manufactures quality connectivity solutions to telecommunications and data communications distributors.The company sells its products through warehousing distributors and in-house marketing and sales team.It serves telecommunications carriers and equipment manufacturers, wireless and network infrastructure carriers, and original equipment manufacturers.


The company was formerly known as Celltronics, Inc.and changed its name to RF Industries, Ltd.in November 1990.


RF Industries, Ltd.was incorporated in 1979 and is headquartered in San Diego, California.

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1.b. Last Insights on RFIL

RF Industries, Ltd.'s recent performance was driven by strong Q2 earnings and revenue beat, surpassing the Zacks Consensus Estimate of $0.04 per share with $0.07 per share. Net sales increased by 17.4% year-over-year to $18.9 million, driven by growing demand for interconnect products and systems. The company's ability to execute on its strategy and capitalize on the steady growth in semiconductor sales, particularly in the AI-driven market, contributed to its success.

1.c. Company Highlights

2. RF Industries' Q3 2025 Earnings: A Strong Performance

RF Industries reported a robust Q3 2025, with revenues rising 17.5% year-over-year to $19.8 million, accompanied by an impressive expansion in gross profit margin to 34%. The actual EPS came out at $0.1, beating estimates of $0.06. Adjusted EBITDA reached $1.6 million, representing 8% of sales, and the company is on track to achieve its 10% target. The backlog stood at $16.1 million, down from $19.7 million post-Q3, and the company maintains a strong balance sheet with $3 million in cash and $13.1 million in working capital.

Publication Date: Sep -15

📋 Highlights

Financial Highlights

The company's financial performance was marked by significant improvements across key metrics. Operating profit reached $719,000, a substantial turnaround from the $419,000 loss in the same period last year. The gross margin expansion of 450 basis points was a notable achievement, driven by the company's diversified product lines and customer base. With a current P/E Ratio of -228.61, the market's expectations are high, and the P/S Ratio of 1.01 indicates a relatively reasonable valuation.

Growth Drivers and Outlook

Dawson stated revenue growth is expected to exceed 30%, driven by diverse contributions from traditional wireless and newer markets like aerospace, transportation, and data centers. The company is witnessing meaningful bookings anticipated by Q1 2026 for Olympic/World Cup projects, with multiyear deployments possible. The 100+ venue pipeline supports long-term growth, and EBITDA margin is expected to improve to 10% via higher sales and operational efficiencies.

Valuation and Profitability

The company's valuation metrics indicate a mixed picture, with a P/B Ratio of 2.21 and an EV/EBITDA of 31.37. The ROE is currently at -0.98%, and the ROIC stands at 11.27%. The Net Debt / EBITDA ratio is 7.48, indicating a relatively high debt burden. However, the Free Cash Flow Yield is 2.46%, suggesting a reasonable return for investors.

3. NewsRoom

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RF Industries Announces an Additional $2 Million Order from Leading Aerospace Company

Oct -22

Source: accessnewswire.com

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3 Stocks Backed by Soaring Semiconductor Sales to Boost Your Portfolio

Oct -07

Source: zacks.com

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3 Relative Price Strength Leaders That Investors Can't Ignore

Sep -25

Source: zacks.com

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RF Industries, Ltd. (RFIL) Q3 2025 Earnings Call Transcript

Sep -11

Source: seekingalpha.com

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RF Industries, Ltd. (RFIL) Surpasses Q3 Earnings and Revenue Estimates

Sep -11

Source: zacks.com

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RF Industries Reports Third Quarter Fiscal Year 2025 Financial Results

Sep -11

Source: accessnewswire.com

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RF Industries to Report Third Quarter Fiscal Year 2025 Financial Results on September 11

Sep -02

Source: accessnewswire.com

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RF Industries' Backlog Continues to Grow: Can it Spark a Comeback?

Aug -27

Source: zacks.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (8.76%)

6. Segments

RF Connector and Cable Assembly

Expected Growth: 8.97%

RF Industries' RF Connector and Cable Assembly growth is driven by increasing demand for 5G infrastructure, IoT devices, and high-speed data transmission. The company's strong relationships with top OEMs, continuous product innovation, and expanding presence in Asia also contribute to its 8.97% growth.

Custom Cabling Manufacturing and Assembly

Expected Growth: 8.4%

RF Industries' custom cabling manufacturing and assembly growth of 8.4% is driven by increasing demand for high-reliability interconnects in 5G infrastructure, rising adoption of IoT devices, and growing need for customized cabling solutions in industrial automation, medical, and aerospace industries.

7. Detailed Products

RF Connectors

RF Industries offers a wide range of RF connectors, including SMA, SMB, SMC, N, TNC, and more, designed for high-frequency applications.

Coaxial Cables

RF Industries provides high-quality coaxial cables designed for high-frequency applications, including RG, RG/U, and semi-rigid cables.

RF Adapters

RF Industries offers a variety of RF adapters, including in-series, between-series, and within-series adapters, designed for flexible connectivity.

RF Cable Assemblies

RF Industries provides custom and standard RF cable assemblies, including jumper cables, patch cables, and pigtail cables.

DC Blocks

RF Industries offers DC blocks designed to prevent DC voltage from entering RF circuits, ensuring safe and reliable operation.

RF Switches

RF Industries provides high-reliability RF switches designed for high-frequency applications, including SPDT, SP3T, and SP4T switches.

RF Attenuators

RF Industries offers fixed and variable RF attenuators designed to reduce signal power levels in high-frequency applications.

8. RF Industries, Ltd.'s Porter Forces

Forces Ranking

Threat Of Substitutes

RF Industries, Ltd. faces moderate threat from substitutes due to the availability of alternative products in the market.

Bargaining Power Of Customers

RF Industries, Ltd. has a high bargaining power of customers due to the presence of large and established customers who can negotiate prices and terms.

Bargaining Power Of Suppliers

RF Industries, Ltd. has a low bargaining power of suppliers due to the presence of multiple suppliers and the company's ability to negotiate prices.

Threat Of New Entrants

RF Industries, Ltd. faces a moderate threat of new entrants due to the presence of barriers to entry and the company's established market position.

Intensity Of Rivalry

RF Industries, Ltd. operates in a highly competitive industry with many established players, leading to a high intensity of rivalry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 27.99%
Debt Cost 3.95%
Equity Weight 72.01%
Equity Cost 8.60%
WACC 7.29%
Leverage 38.88%

11. Quality Control: RF Industries, Ltd. passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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RF Industries

A-Score: 3.9/10

Value: 4.7

Growth: 3.7

Quality: 3.1

Yield: 0.0

Momentum: 10.0

Volatility: 2.0

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

5.92$

Current Price

5.92$

Potential

-0.00%

Expected Cash-Flows