- RFIL is a marginally profitable producer in the competitive market of electronic components for telecommunications.
- The company has had uneven earnings, very rarely above $4 million.
- RFIL does not show growth in revenues, margins or earnings and recognizes that it has no moat to fight with much bigger competitors.
- RFIL recognized more than $6.3 million in PPP loans forgiveness and ERC tax exemptions that allowed the company to show a profit for the year and depress its P/E multiple.
- RFIL completed the acquisition of Microlab, another marginally profitable company, for $24 million. We doubt the acquisition is value accretive.
For further details see:
RF Industries Is Overvalued Because Of PPP Loan And Completed Dubious Acquisition