RF Industries holds a performance score of 3 on a scale from 0 to 100. The company's Beta (Systematic Risk) is -0.62, suggesting potential diversification benefits within a portfolio. As market returns increase, returns on RF Industries are expected to decrease at a significantly lower rate. During bear markets, RF Industries is likely to outperform the market.
While it's crucial to consider RF Industries' existing price patterns, it's equally important to maintain a realistic perspective on the equity's price patterns. Currently, RF Industries carries a risk of 2.38%.
For a comprehensive understanding of RF Industries' performance, please review the company's coefficient of variation, semi-variance, and period momentum indicator. Additionally, consider the relationship between the Treynor ratio and daily balance of power to determine if RF Industries will continue to follow its current price history.
Top Findings
RF Industries (RFIL) has shown promising
fundamentals that could indicate a potential upswing. The company has a solid net asset value of
$89.57M, which is a strong indicator of its
financial health and stability. Furthermore, RFIL has demonstrated a commendable return on assets (ROA) of 1.3%, which suggests that the company is effectively using its assets to generate earnings. Over the past five years, RFIL has also delivered a robust return of 2.82%, indicating a consistent performance and potential for future growth.
Typically, a company's
financial statements are the reports that show the
financial position of the company. There are three main documents that fall into the category of financial statements. These documents include RF Industries income statement, its balance sheet, and the statement of cash flows. Potential RF Industries investors and stakeholders use financial statements to determine how well the company is positioned to perform in the future. Although RF Industries investors may use each financial statement separately, they are all related. The changes in RF Industries's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on RF Industries's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet, but not equivalent to net income shown on the income statement. Please read more on our
technical analysis and
fundamental analysis pages.
The goal of RF Industries
fundamental analysis is to do accurate financial forecasts. There are several possible objectives to fundamental analysis, such as projecting of RF Industries performance into the future periods or doing a reasonable stock valuation. The intrinsic value of RF Industries shares is the value that is considered the true value of the share. If
the intrinsic value of RFIL is higher than its market price, buying is generally recommended. If it is equal to the market price, it is recommended to hold; and if it is less than the market price, then one should sell all shares RF Industries. Please read more on our
fundamental analysis page.
How important is RF Industries's Liquidity
RF Industries
financial leverage refers to using borrowed capital as a funding source to finance RF Industries ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. RF Industries financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to RF Industries' owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of RF Industries' financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the
breakdown between RF Industries's total debt and its cash.
Breaking down the case for RF Industries
Although in the United States, the Securities and Exchange Commission has enforced strong rules to prevent insiders from engaging in insider trading, finding insiders among active shareholders of RF Industries is not uncomon. Institutional investors typically avoid acquiring a high percentage of RF Industries stocks because performing such an act may violate securities laws. They are usually not investing their own money, but rather making investments on behalf of their clients. Let's take a look at how the ownership of RFIL is distributed among investors.
Ownership Allocation
RF Industries shows a total of 10.29 Million outstanding shares. RF Industries shows tangible amount of outstanding shares owned by
insiders. An
insider is usually defined as a CEO, other corporate executive, director, or
institutional investor who own at least 10% of the company's outstanding shares. Since such a large part of the company is owned by insiders, it is advisable to analyze if each of these insiders have been buying or selling the stock in recent months. Note that regardless of who owns the company, if the true value of the entity is less than the market is willing to pay for it, you may not be able to generate positive returns over time.
| Retail Investors54.15% | Insiders21.67% | Institutions24.18% |
| Retail Investors | 54.15 |
| Insiders | 21.67 |
| Institutions | 24.18 |
Please be aware that individual investors typically purchase shares for their personal accounts and usually in smaller quantities compared to institutional investors. While they might influence RF Industries' decisions if they own a significant combined portion of its shares, such influence is relatively rare. Conversely, institutional investors - like mutual funds, pension funds, hedge funds, and other investment companies - often have a substantial sway over RF Industries' decisions due to their larger holdings.
Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. RF Industries has an asset utilization ratio of 95.19 percent. This suggests that the company is making $0.95 for each dollar of assets. An increasing asset utilization means that RF Industries is more efficient with each dollar of assets it utilizes for everyday operations.
| Current Assets44.2 M | Assets Non Current53.7 M | Goodwill30.5 M | |
| Current Assets | 44.18 Million | 33.82 |
| Assets Non Current | 53.75 Million | 41.14 |
| Goodwill | 30.47 Million | 23.32 |
| Tax Assets | 2.25 Million | 1.72 |
Cash is king, and RF Industries (RFIL) is steadily ascending the throne. With an end period cash flow of $4.5M and cash from operations at $2.89M, the company's liquidity position appears strong. Despite a change in cash of -$8.5M, the company has managed to maintain a healthy balance sheet with net assets totaling $89.57M. The company's revenue stands at $85.25M, with a cost of revenue at $60.7M, indicating a gross profit of $24.55M. However, the company's net income applicable to common shares is a modest $1.4M, suggesting room for improvement in operational efficiency. The company's risk-adjusted performance is 0.027, indicating a relatively low level of risk for investors. However, with a probability of bankruptcy at 35.66%, investors should tread carefully. Despite these challenges, RFIL's market capitalization of $31.28M and a forward dividend yield of 0.0156 suggest potential for growth and returns in the future.
Will RFIL pull back in February 2024?
RF Industries (NASDAQ: RFIL) has recently exhibited a worrisome financial indicator, as its Sortino Ratio has increased to -0.05. This negative ratio, a measure of
risk-adjusted return on an investment, implies that the company's returns are not sufficiently compensating for the risk it is undertaking. Consequently, there is a potential for RFIL's stock price to trend downwards in February 2024. Investors are advised to exercise caution and closely monitor the company's performance and market conditions before making any investment decisions. As of January 10th, RF Industries has a market risk adjusted performance of -0.09 and a Standard Deviation of 2.3. In relation to fundamental indicators, the
technical analysis model allows for a timely examination of RF Industries' technical drivers, as well as their interrelationships. In essence, this information can be used to determine if the company will mirror its model of historical prices and volume patterns, or if the prices will eventually revert. We have been able to collect and analyze data for nineteen technical drivers for RF Industries, which can be compared to its sector peers.
We recommend checking RF Industries' coefficient of variation, as well as the relationship between the Treynor Ratio and semi variance, to decide if RF Industries is priced favorably, assuming the market reflects its current price of 3.06 per share. Given that RF Industries has a Jensen Alpha of 0.1734, we advise you to review RF Industries' latest market performance to ensure the company can sustain itself in the future. In conclusion, RF Industries (RFIL) has been experiencing a slow surge in its stock value, but the potential for a significant upsurge cannot be overlooked. The analyst's target price estimated value stands at
$4.25, which is a strong indication of the stock's potential growth. The valuation real value is currently at
$3.36, slightly below the analyst's target, suggesting there is room for growth. The analyst overall consensus is a 'Strong Buy', further reinforcing the potential for an upswing. However, investors should also consider the possible downside price of $0.78. As the fiscal year end in October approaches, it will be interesting to see how RF Industries performs. .
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Vlad Skutelnik is a Macroaxis Contributor. Vlad covers stocks, funds, cryptocurrencies, and ETFs that are traded in North America, focusing primarily on fundamentals, valuation and market volatility. He has many years of experience in fintech, predictive investment analytics, and risk management.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Vlad Skutelnik do not own shares of RF Industries. Please refer to our
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