We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
RF Industries benefits from growing adoption of its integrated solutions, with backlog increasing to $15 million at the end of the second quarter of 2025 on bookings of $18.7 million. The company is winning new customers as well as repeat customers, reflecting a strong adoption rate as well as growing credibility and reputation.
Gross margin expanded 160 basis points year over year to 31.5% reflecting a better product mix and the company’s continued efforts to drive cost savings and operating efficiencies. RF Industries expects third-quarter fiscal 2025 sales to be roughly in line with second-quarter sales ($18.9 million) and a significant increase from $16.8 million reported in the year-ago quarter.
Year to date (YTD), RFIL shares have jumped 64.1% outperforming the broader sector’s appreciation of 11.8% and the industry’s decline of 4.5%. RFIL shares have outperformed peers, including TE Connectivity (TEL - Free Report) , Qorvo (QRVO - Free Report) and Skyworks (SWKS - Free Report) . While shares of TE Connectivity and Qorvo surged 41% and 27.4%, Skyworks fell 15.3% YTD.
RFIL Stock’s YTD Performance
Image Source: Zacks Investment Research
Technically, RFIL is trading above the 200-day SMA, suggesting a bullish trend.
RFIL Trades Above 200-Day SMA
Image Source: Zacks Investment Research
So, what should investors do with RFIL stock? Let’s dig deep into its fundamentals to gain some insight.
RFIL Benefits From Strong Portfolio and Adoption
RF Industries’ ongoing transition from a product-oriented company to an integrated solutions provider is expected to drive top-line growth over the long term. The company is gaining its footprint among wireless, aerospace, public safety and industrial OEM customers. RFIL is planning to penetrate industries including energy, transportation, wireline telecom and data centers.
RFIL’s small cell solutions are gaining adoption. It currently has 100 opportunities in the sales pipeline for Wireless DAS build-outs in stadiums and venues. Powered by new innovations that are enhancing cost-effective cooling systems is driving RFIL’s demand for direct air cooling as AI deployment drives demand for data centers. Next-gen systems that feature advanced control capabilities and a NEMA 4 certification for more rugged environments are expanding RF Industries’ opportunity into wireline telecom, edge data centers, energy and transportation applications.
A streamlined procurement and supply chain process is reducing inventory, which was $12.6 million in the second quarter of fiscal 2025, down from $14.7 million in the year-ago quarter. RF Industries is diversifying its supply chain, which is helping it limit tariff-related uncertainties. The company has some exposure to tariffs from certain products and components through certain suppliers in Asia, which is, however, expected to have a limited impact in the near term.
The Zacks Consensus Estimate for third-quarter fiscal 2025 earnings is currently pegged at 6 cents per share, unchanged over the past 30 days. The consensus mark for revenues is pegged at $18.5 million, suggesting roughly 10% over the figure reported in the year-ago quarter.
The Zacks Consensus Estimate for fiscal 2025 earnings is currently pegged at 24 cents per share, unchanged over the past 30 days. The consensus mark for revenues is pegged at $76.4 million, suggesting a jump of 17.8% from fiscal 2024’s reported figure.
RFIL Shares Are Overvalued
RF Industries shares are overvalued, as suggested by the Value Score of C.
In terms of forward price/cash flow, RFIL is trading at 13.92X compared with the industry’s 7.3X, suggesting a premium valuation.
RFIL Valuation
Image Source: Zacks Investment Research
RF Industries is trading at a higher multiple compared with Qorvo’s 11.53X and Skyworks’ 7.16X, but at a lower multiple compared with TE Connectivity’s 15.97X.
Conclusion
RF Industries’ initiatives to diversify its footprint and the growing adoption of its solutions, which are driving the backlog, are positive. However, tariffs are expected to negatively impact growth, and stretched valuation makes the stock a risky bet for investors in the near term.
Image: Bigstock
RF Industries Plunges 25% in a Month: Buy, Sell or Hold the Stock?
Key Takeaways
RF Industries (RFIL - Free Report) shares have plunged 24.6% in the past month, underperforming the Zacks Computer and Technology sector’s return of 2% and the Zacks Semiconductor Radio Frequency industry’s appreciation of 1.9%.
RF Industries benefits from growing adoption of its integrated solutions, with backlog increasing to $15 million at the end of the second quarter of 2025 on bookings of $18.7 million. The company is winning new customers as well as repeat customers, reflecting a strong adoption rate as well as growing credibility and reputation.
Gross margin expanded 160 basis points year over year to 31.5% reflecting a better product mix and the company’s continued efforts to drive cost savings and operating efficiencies. RF Industries expects third-quarter fiscal 2025 sales to be roughly in line with second-quarter sales ($18.9 million) and a significant increase from $16.8 million reported in the year-ago quarter.
Year to date (YTD), RFIL shares have jumped 64.1% outperforming the broader sector’s appreciation of 11.8% and the industry’s decline of 4.5%. RFIL shares have outperformed peers, including TE Connectivity (TEL - Free Report) , Qorvo (QRVO - Free Report) and Skyworks (SWKS - Free Report) . While shares of TE Connectivity and Qorvo surged 41% and 27.4%, Skyworks fell 15.3% YTD.
RFIL Stock’s YTD Performance
Image Source: Zacks Investment Research
Technically, RFIL is trading above the 200-day SMA, suggesting a bullish trend.
RFIL Trades Above 200-Day SMA
Image Source: Zacks Investment Research
So, what should investors do with RFIL stock? Let’s dig deep into its fundamentals to gain some insight.
RFIL Benefits From Strong Portfolio and Adoption
RF Industries’ ongoing transition from a product-oriented company to an integrated solutions provider is expected to drive top-line growth over the long term. The company is gaining its footprint among wireless, aerospace, public safety and industrial OEM customers. RFIL is planning to penetrate industries including energy, transportation, wireline telecom and data centers.
RFIL’s small cell solutions are gaining adoption. It currently has 100 opportunities in the sales pipeline for Wireless DAS build-outs in stadiums and venues. Powered by new innovations that are enhancing cost-effective cooling systems is driving RFIL’s demand for direct air cooling as AI deployment drives demand for data centers. Next-gen systems that feature advanced control capabilities and a NEMA 4 certification for more rugged environments are expanding RF Industries’ opportunity into wireline telecom, edge data centers, energy and transportation applications.
A streamlined procurement and supply chain process is reducing inventory, which was $12.6 million in the second quarter of fiscal 2025, down from $14.7 million in the year-ago quarter. RF Industries is diversifying its supply chain, which is helping it limit tariff-related uncertainties. The company has some exposure to tariffs from certain products and components through certain suppliers in Asia, which is, however, expected to have a limited impact in the near term.
RFIL’s Earnings Estimate Revision Shows Steady Trend
The Zacks Consensus Estimate for third-quarter fiscal 2025 earnings is currently pegged at 6 cents per share, unchanged over the past 30 days. The consensus mark for revenues is pegged at $18.5 million, suggesting roughly 10% over the figure reported in the year-ago quarter.
RF Industries, Ltd. Price and Consensus
RF Industries, Ltd. price-consensus-chart | RF Industries, Ltd. Quote
The Zacks Consensus Estimate for fiscal 2025 earnings is currently pegged at 24 cents per share, unchanged over the past 30 days. The consensus mark for revenues is pegged at $76.4 million, suggesting a jump of 17.8% from fiscal 2024’s reported figure.
RFIL Shares Are Overvalued
RF Industries shares are overvalued, as suggested by the Value Score of C.
In terms of forward price/cash flow, RFIL is trading at 13.92X compared with the industry’s 7.3X, suggesting a premium valuation.
RFIL Valuation
Image Source: Zacks Investment Research
RF Industries is trading at a higher multiple compared with Qorvo’s 11.53X and Skyworks’ 7.16X, but at a lower multiple compared with TE Connectivity’s 15.97X.
Conclusion
RF Industries’ initiatives to diversify its footprint and the growing adoption of its solutions, which are driving the backlog, are positive. However, tariffs are expected to negatively impact growth, and stretched valuation makes the stock a risky bet for investors in the near term.
RF Industries currently has a Zacks Rank #3 (Hold), which implies investors should wait for a favorable point to accumulate the stock. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.