RF Industries Financials Support the Uptrend, Stock Up 209%

    Author Siraj SarwarPosted on Categories Computer HardwareTags , , , , , , , , , , , , , ,
    RF Industries

    Investor’s confidence in future fundamentals along with the support from a substantial improvement in financial numbers drove RF Industries (NASDAQ:RFIL) share price higher over the last twelve months. RFIL stock price soared 209% in the last year alone. Its shares are currently trading above $4, and its market capitalization hovers around $42 million.

    RF Industries

    Source Image: finviz.com

    The history of 31 consecutive quarterly dividends from the microcap company adds to investor’s confidence. The company offers the quarterly dividend of $0.02 per share, yielding around 1.86%.

    RF Industries strategy of leveraging the correct channels and investing only in necessary resources along with cost-cutting is working. The company posted year over year revenue growth of 56% in the first quarter of fiscal 2018, supported 98% revenue growth from Custom Cabling Manufacturing and Assembly segment.

    Higher sales and improved margins led RF Industries to turn the loss of $0.02 per share in the past year quarter to earnings of $0.05 per share in the first quarter this year.

    Robert Dawson, President, and CEO said: “In the first quarter we executed well on our long-term growth initiatives which provided a strong start to Fiscal 2018.  We drove increased sales at all divisions over Q1 last year and controlled costs, allowing us to deliver improved margins and profitability.

    The management looks confident in their future fundamentals considering the huge growth in backlog – which increased to $20 million by the end of the first quarter from $4 million in the same period last year.

    >>RF Industries Stock Moves Higher After Earnings Announcement

    RF Industries management claims channel models and new go-to-market strategies and are aiding in generating higher sales and bookings. The company expects to generate double-digit sales growth in the second quarter, which could further support its share price valuations. RIFL stock is trading around 0.79 times to earnings and 1.14 times to book ratio, compared to the industry average of 2.13 and 3.08, respectively.  

    Featured Image: Depositphotos/© vectorfusionart

    Author Siraj Sarwar
    About the author: Based in Saudi Arabia, Siraj has a strong understanding of and passion for accounting and finance. He has worked for international clients for many years on several projects related to the stock market, equity research and other business, accounting and finance related projects. Siraj is a published financial analyst on the world's leading websites including SeekingAlpha, TheStreet, MSN, and others.