RF Industries Ltd. Common Stock (RFIL)

FairStock Score: 32/100 — RISKY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

RF Industries is a small interconnect components maker with 289 employees, and I see little evidence of a durable competitive moat. Still, the numbers have improved. In fiscal Q3 2026, the quarter ended 2026-07-31, revenue was $24.0M, net income was $1.4M, and diluted EPS was $0.12. That compares with fiscal Q3 2025, the quarter ended 2025-07-31, when revenue was $19.8M, net income was $392,000, and diluted EPS was $0.04. For fiscal 2025, the year ended 2025-10-31, revenue was $80.6M and net income was only $75,000, following a fiscal 2024 net loss of $6.6M on $64.9M of revenue. The Lynch category is TURNAROUND, and FairStock's Piotroski F-Score of 9/9 supports the balance-sheet and earnings improvement. The financial quality is only ordinary. FairStock calculates ROE of 6.67% and ROCE of 4.01%, which are not high enough to suggest a wide moat. Debt-to-equity is 0.60, Altman Z-Score is 2.44, and trailing free cash flow is $3.2M, a 3.7% FCF yield. At the 2026-10-13 close of $7.95, market cap is $86.2M. FairStock's P/E is 36.14, P/B is 2.34, EV/EBITDA is 16.42, and PEG is 0.13, though that PEG rests on a very small profit base. The Graham Number is $4.19, giving a negative 89.74% margin of safety. The 52-week range of $5.54 to $22.30 and beta of 1.30 signal volatility. My conclusion: the turnaround is real but young, and the price already discounts continued progress. I would need to see sustained earnings, better returns on capital, and stronger free cash flow before viewing it as a Graham-style bargain.

In plain English: RF Industries makes connectors, cables, and wiring products used in communications and other equipment. The company has moved from losses to small profits and sales are rising, but profits are thin and the business earns low returns on the money it uses. At $7.95, the shares look expensive compared with the company's current earnings and the value of its net assets.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q3 2026 10-Q (period ended 2026-07-31) · fiscal Q2 2026 10-Q (period ended 2026-04-30) · fiscal Q1 2026 10-Q (period ended 2026-01-31) · fiscal Q3 2025 10-Q (period ended 2025-07-31) · FY2025 10-K (period ended 2025-10-31) · FY2024 10-K (period ended 2024-10-31) · FY2023 10-K (period ended 2023-10-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer