MeritValue

R F INDUSTRIES LTD

RFILdata completeness 88%16 fiscal years on file
The thesis, from the filings

R F INDUSTRIES LTD earns about 0% on invested capital, below its ~9% cost of capital, but has diluted owners by 6% over 5 years — no moat visible in the numbers. The estimate methods put fair value between $7.82 and $13.91 a share.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2021FY 2022FY 2023FY 2024FY 2025
Revenue$57.4M1$72.2M2$72.2M2$64.9M3$80.6M3
Net income$6.18M4−$3.08M5−$3.08M5−$6.6M6$75,0006
Operating cash flow−$3.12M7$2.89M8$4.19M9$3.17M10$4.58M10
Capital expenditure$227,00011$2.68M12$2.48M13$738,00014$235,00014
Free cash flow (derived)−$3.35M7$217,0008$1.7M9$2.43M10$4.34M10
Total debt$015$15.6M16$13.1M17$017—
Cash & equivalents$13.1M18$4.53M19$4.9M20$839,00021$5.08M21
Diluted shares10.2M10.3M10.3M10.5M10.8M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$32.68
your share of equity
Profit it earned you last year
$0.07
Free cash flow it threw off
$4.03
Debt you’d be carrying
—

10 shares is a claim on $32.68 of net worth that earned you $0.07 and generated $4.03 of cash last year.

iii. Is this a good business?
Moat signal · return on invested capital
0% avg · 5y
FY21 23%FY22 -6%FY23 -7%FY24 -9%FY25 1%

It earned about 0% on invested capital against a ~9% cost of capital — below the cost of funding. The numbers show no moat.

seeing a moat in the numbers →
Management signal · capital allocation
+6% shares · 5y

Share count is up 6% over 5 years — owners have been diluted. Worth asking what they got for it.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0

The 2 estimate methods that apply put fair value between $7.82 and $13.91 a share. They rest on different assumptions, so where they diverge is the story; the Graham Number is a stricter floor, not a target.

DCF · Growth Exit 10Y
$13.91
assumptions (10)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears10
  • fcfGrowth20.0%
  • fcfBase$2.43M
DCF · Growth Exit 5Y
$7.82
assumptions (10)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears5
  • fcfGrowth20.0%
  • fcfBase$2.43M
Earnings Power Value
not applicable
normalized (5y-median) earnings non-positive — EPV undefined
Graham Number
$0.86
assumptions (1)
  • grahamMultiplier2250.0%

Different models answer different questions — which to trust when →

v. The price question — last, on purpose
Is today’s price fair?
See live price ↗
Type a price. The ledger answers.
Or set your own belief
FCF growth, next 5 years20.0%
Discount rate (WACC)8.93%
Terminal growth2.5%
At your growth, a share is worth $7.82
The three cases
Bear0.0%$3.69
Base20.0%$7.82
Bull20.0%$7.82

Bear/base/bull growth = 0% / filed history / history + 5pp. Type a price to see the return each case implies.

Default growth 20.0%= this company’s own filed history (median-to-median FCF CAGR, clamped 0–20%). Your adjustments are recorded anonymously. They become the “what do owners actually believe” dataset.

Sources — the receipts
  1. 10-K · period ending 2021-10-31 · accession 0001437749-23-001684 (RevenueFromContractWithCustomerIncludingAssessedTax)
  2. 10-K · period ending 2022-10-31 · accession 0001437749-25-001497 (RevenueFromContractWithCustomerIncludingAssessedTax)
  3. 10-K · period ending 2024-10-31 · accession 0001437749-26-001268 (RevenueFromContractWithCustomerIncludingAssessedTax)
  4. 10-K · period ending 2021-10-31 · accession 0001437749-23-001684 (NetIncomeLoss)
  5. 10-K · period ending 2022-10-31 · accession 0001437749-25-001497 (NetIncomeLoss)
  6. 10-K · period ending 2024-10-31 · accession 0001437749-26-001268 (NetIncomeLoss)
  7. 10-K · period ending 2021-10-31 · accession 0001437749-23-001684 (NetCashProvidedByUsedInOperatingActivities)
  8. 10-K · period ending 2022-10-31 · accession 0001437749-24-002469 (NetCashProvidedByUsedInOperatingActivities)
  9. 10-K · period ending 2023-10-31 · accession 0001437749-25-001497 (NetCashProvidedByUsedInOperatingActivities)
  10. 10-K · period ending 2024-10-31 · accession 0001437749-26-001268 (NetCashProvidedByUsedInOperatingActivities)
  11. 10-K · period ending 2021-10-31 · accession 0001437749-23-001684 (PaymentsToAcquirePropertyPlantAndEquipment)
  12. 10-K · period ending 2022-10-31 · accession 0001437749-24-002469 (PaymentsToAcquirePropertyPlantAndEquipment)
  13. 10-K · period ending 2023-10-31 · accession 0001437749-25-001497 (PaymentsToAcquirePropertyPlantAndEquipment)
  14. 10-K · period ending 2024-10-31 · accession 0001437749-26-001268 (PaymentsToAcquirePropertyPlantAndEquipment)
  15. 10-K · period ending 2021-10-31 · accession 0001437749-23-001684 (LongTermDebtNoncurrent)
  16. 10-K · period ending 2022-10-31 · accession 0001437749-24-002469 (LongTermDebtNoncurrent)
  17. 10-K · period ending 2023-10-31 · accession 0001437749-25-001497 (LongTermDebtNoncurrent)
  18. 10-K · period ending 2021-10-31 · accession 0001437749-23-001684 (CashAndCashEquivalentsAtCarryingValue)
  19. 10-K · period ending 2022-10-31 · accession 0001437749-24-002469 (CashAndCashEquivalentsAtCarryingValue)
  20. 10-K · period ending 2023-10-31 · accession 0001437749-25-001497 (CashAndCashEquivalentsAtCarryingValue)
  21. 10-K · period ending 2024-10-31 · accession 0001437749-26-001268 (CashAndCashEquivalentsAtCarryingValue)