RF Industries Ltd (RFIL)
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RF Industries builds the parts of the wireless network nobody ever sees: connectors, cable harnesses, small cell enclosures, cooling systems. The stock ranks no. 3 in the U.S. selection of our in-house Big Earnings Surprise scanner (as of July 18, 2026) because reported earnings beat analyst estimates by at least 20 percent four quarters in a row — and the share price has more than tripled in twelve months. We read the annual reports (10-K) and quarterly reports (10-Q): a genuine turnaround with record revenue, a 35 percent gross margin and a growing backlog — but also a record profit of all of $0.9 million, a cash balance of $3.4 million, and a valuation near 165 times trailing earnings. Not investment advice — just the question of whether a rope woven from percentages can carry the weight of real dollars.
Appears in These Scanners
This stock currently matches 15 of our scanner strategies — each hit links to the scanner.
Only genuine hits from verified scanners count; pure ranking metrics (P/E, P/S, and similar, which just sort the whole universe) don't count as a hit. View all scanners
Basics
Performance
Valuation
Profitability
Balance Sheet & Safety
Growth
Quality & Screener
AI Rating
NeutralGeprüft am 19.07.2026 gegen den Geschäftsbericht (10-K) für das Geschäftsjahr 2025 (Ende 31.10.2025, eingereicht 14.01.2026), den 10-K 2024 und die vier jüngsten Quartalsberichte (10-Q, zuletzt zum 30.04.2026): In keinem der sechs ausgewerteten SEC-Filings von RF Industries findet sich ein einziger Treffer zu KI-Begriffen (artificial intelligence, machine learning, generative, large language model, AI) — weder eine KI-Umsatzquelle noch operativer KI-Einsatz noch ein konkretes KI-Geschäftsrisiko fürs eigene Modell. RF Industries verkauft Verbindungstechnik (Koax-Steckverbinder, Kabelkonfektion, Kleinzellen-Gehäuse, Kühlsysteme) an Telekom-Netzbetreiber, Netzwerkausrüster und OEMs; einen KI-Bezug stellt das Unternehmen selbst nirgends her — auch die Kühlsysteme werden ausschließlich im Kontext von Mobilfunk-Standorten („small cell“, DAS) beschrieben, nicht für Rechenzentren. Nach dem Kriterienkatalog eindeutig „neutral“ (dokumentierter Negativ-Befund).
View the full file — quotes, sources, reviewed filings
Filings Reviewed: 10-Q 2026-06-15 · 10-Q 2026-03-16 · 10-Q 2025-09-11 · 10-Q 2025-06-16 · 10-K 2026-01-14 · 10-K 2025-01-21
Rated on July 19, 2026 · How the Rating Is Built
Highlighted are things our editorial team noticed: green = stands out as strong, red = deserves a closer look. No single metric is a verdict on its own — always read it in context.
Quarterly Figures
| Quarter | EPS (Earnings Per Share) | EPS YoY (%) | Sales ($M) | Sales YoY (%) | Net Margin (%) | OCF ($M) | FCF ($M) |
|---|---|---|---|---|---|---|---|
| 2025: Q1 | -0.02 | – | 19 | 42.70 | -1.30 | 1 | 1 |
| 2025: Q2 | -0.02 | – | 19 | 17.40 | -1.30 | 2 | 2 |
| 2025: Q3 | 0.04 | – | 20 | 17.50 | 2.00 | 0 | 0 |
| 2025: Q4 | 0.02 | – | 23 | 22.90 | 0.80 | 2 | 2 |
| 2026: Q1 | 0.00 | – | 19 | -1.20 | -0.30 | 1 | 1 |
| 2026: Q2 | 0.08 | – | 21 | 9.40 | 4.20 | -1 | -1 |
- EPS (Earnings Per Share):
- Quarterly profit divided by the total share count — how much of the profit works out to a single share.
- YoY (Year over Year):
- Change versus the same quarter a year ago — this is how you compare without seasonal distortion (e.g. the holiday shopping season).
- Sales:
- All revenue for the quarter, before any costs are deducted — the top line of the income statement.
- Net Margin:
- What percentage of sales is left over as profit in the end. Negative means the company is posting a loss.
- OCF (Operating Cash Flow):
- The cash that actually flows into the till from the core business during the quarter — harder to dress up than book profit.
- FCF (Free Cash Flow):
- Operating cash flow minus capital expenditures — the money that's genuinely free to use, say for paying down debt, buybacks, or dividends.
Assessment: Opportunities & Risks
Four consecutive quarters of pre-tax income, earnings per share at least 20 percent above the analyst estimate in each of the last four quarters (most recently ~71 percent; fundamental data, as of 07/18/2026), record revenue of $80.6 million in fiscal 2025 (+24.2 percent) after two loss years — the swing is documented in the SEC filings (10-K 2025; 10-Q as of 04/30/2026).
Gross margin up from 29.1 (FY2024) through 33.2 (FY2025) to 35.1 percent in the quarter ended 04/30/2026; backlog grown within six months from $15.5 million to $20.0 million (+29 percent); custom cabling +45 percent in FY2025 on the aerospace push.
The record quarterly profit is $0.9 million, the full fiscal year 2025 produced $0.1 million (91 percent tax rate); first-half fiscal 2026 operating cash flow was slightly negative at −$47,000 — the percentage records stand on a very small dollar base (10-K 2025; 10-Q as of 04/30/2026).
P/E near 165 (trailing), price-to-sales around 2.8, price-to-book around 6.2 at a market value around $230 million (data as of 07/18/2026); even four repeated record quarters ($0.32/share p.a.) would still leave a P/E near 65 — the market is paying for the extrapolation, not the state.
Single large customers account for up to 26 percent of receivables (wireless carrier, FY2025) and 14 percent of revenue (aerospace customer, Q2 FY2026) — without minimum purchase obligations; the small cell project business swung −37 and −17 percent with carrier budget cycles (Q1/Q2 FY2026; 10-K Item 1A, 10-Q).
Cash of $3.4 million plus the secured EBC credit facility ($6.1 million drawn; maturity extended to March 2029, terms improved in November 2025), current ratio 1.9, Altman Z around 6.5, Piotroski 7 of 9 — direction is solid, but Note 1 of the 10-Q explicitly frames the going-concern basis around future profits and the credit line, and the rally lifted every option into the money (diluted share count +7 percent).
RF Industries is the rare case in which the streak euphoria and the books are both right: the turnaround is real — record revenue, a margin staircase to 35.1 percent, a backlog up 29 percent, four surprise quarters in a row — and at the same time it is tiny: $0.9 million of net income in the best quarter, $3.4 million in cash, slightly negative first-half operating cash flow and going-concern vocabulary in the footnote. In between sits a valuation near 165 times trailing earnings that presupposes a steep continuation, plus the prospect of a one-time tax book gain from releasing the valuation allowance that will distort the optics of a future quarter. Whoever invests here is not buying the state achieved but the extension of a streak. Not investment advice.
- RFIL joined the research list as rank 3 of our in-house Big Earnings Surprise scanner (U.S. selection, as of July 18, 2026) — part of our series on the top 20 of that selection.
- Scanner metrics (P/E, P/S, P/B, Piotroski, Altman Z, RS and EPS rating, surprise history) use trailing twelve-month figures as of the July 18, 2026 data cut-off; the confluence additionally spanned 13 trend and momentum scanners.
- Price and market value figures (~$21, ~$230 million) from the July 18, 2026 feed, sanity-checked against 10,851,265 shares outstanding per the quarterly report 10-Q as of April 30, 2026; analyses are evergreen, daily prices are not a buy argument.
About the Company
RF Industries, Ltd. befasst sich mit dem Entwurf, der Herstellung und der Vermarktung von Verbindungsprodukten und -systemen in den USA, Kanada, Deutschland, China und international.
| Employees | 289 |
|---|---|
| Headquarters | San Diego, CA |
| Website | rfindustries.com |
| IPO Date | 28. May 1997 |
Management
| Name | Title | Birth Year |
|---|---|---|
| Robert D. Dawson | CEO & Director | 1974 |
| Ray Bibisi | COO & President | 1965 |
| Peter Yin CPA | Treasurer, CFO & Corporate Secretary | 1984 |
Executives per the latest required filings; titles kept in their original language. Source: fundamental data.
Chart
Interactive price chart (TradingView).
Data as of: July 21, 2026 · Source: fundamental data & SEC filings (annual and quarterly reports, 10-K/10-Q)
Note: pure fact-based analysis, not investment advice and not a solicitation to buy or sell. All figures without guarantee.