RedFlow (FRA:2RF) Financial Strength: 3 (As of Dec. 2023) — Near Median

Author: Vera Yuan Vera Yuan
Vera Yuan
Vera Yuan
Director of Data and Quant Analytics at GuruFocus
Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Reviewed by: Charlie Tian Charlie Tian
Charlie Tian
Charlie Tian
Founder & CEO of GuruFocus
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.

FRA:2RF RedFlow Ltd FRA:2RF
29 GF Score
Price €0.05
View Full Analysis

What is RedFlow Financial Strength?

RedFlow FRA:2RF 29 Financial Strength is 3 as of Dec. 2023, which is at its 10-year median of 3.00. GuruFocus rates FRA:2RF with a GF Score™ of 29/100.

RedFlow has the Financial Strength Rank of 3. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is rated on a scale of 1 to 10 and is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.
4. Other debt related ratios.

A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.

RedFlow did not have earnings to cover the interest expense. RedFlow's debt to revenue ratio for the quarter that ended in Dec. 2023 was 1.23. As of today, RedFlow's Altman Z-Score is 0.00.


RedFlow  (FRA:2RF) Financial Strength Explanation

The rank is rated on a scale of 1 to 10. A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.

RedFlow has the Financial Strength Rank of 3. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.


RedFlow Financial Strength Related Terms


FRA:2RF vs JFTH, SPEC, VRT: Financial Strength Comparison

For the Electrical Equipment & Parts subindustry, RedFlow's Financial Strength, along with its competitors' market caps and Financial Strength data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


RedFlow Financial Strength vs Industrial Products Industry

For the Industrial Products industry and Industrials sector, RedFlow's Financial Strength distribution charts can be found below:

* The bar in red indicates where RedFlow's Financial Strength falls into.


FRA:2RF
29GF Score
RedFlow Ltd FRA:2RF
Financial Strength is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

RedFlow Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

RedFlow's Interest Expense for the months ended in Dec. 2023 was €-0.00 Mil. Its Operating Income for the months ended in Dec. 2023 was €-8.61 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was €0.00 Mil.

RedFlow's Interest Coverage for the quarter that ended in Dec. 2023 is

RedFlow did not have earnings to cover the interest expense.

The higher the ratio, the stronger the company's financial strength is.

2. Debt to revenue ratio. The lower, the better.

RedFlow's Debt to Revenue Ratio for the quarter that ended in Dec. 2023 is

Debt to Revenue Ratio=Total Debt (Q: Dec. 2023 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(0.096 + 0) / 0.078
=1.23

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

RedFlow has a Z-score of 0.00, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Frequently Asked Questions Learn more about Financial Strength →
What does a Financial Strength of 3 mean?
RedFlow (FRA:2RF) has a Financial Strength of 3 as of Dec. 2023. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on RedFlow and its competitors. This is near median its historical median of 3.00. Over the past decade, RedFlow's Financial Strength has ranged from 1.00 to 9.00.
Is RedFlow's Financial Strength too high?
RedFlow's current Financial Strength of 3 is near median its 10-year median of 3.00. Over the past 10 years, this metric has ranged from a low of 1.00 to a high of 9.00. Overall, RedFlow has a GF Score™ of 29/100, reflecting its overall financial health beyond just this single metric.
How does RedFlow's Financial Strength compare to JFTH and SPEC?
RedFlow's Financial Strength of 3 can be compared against companies in the Industrial Products industry. Historically, RedFlow's own Financial Strength has ranged from 1.00 to 9.00 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Financial Strength for an Industrial Products company?
A good Financial Strength depends on the Industrial Products industry context. However, Financial Strength should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Financial Strength mean?
A high Financial Strength can signal that a stock is expensive relative to its fundamentals. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on RedFlow and its competitors. RedFlow's current Financial Strength is 3, which is near median its own 10-year median of 3.00. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is RedFlow stock overvalued right now?
RedFlow (FRA:2RF) has a current Financial Strength of 3. The current Financial Strength is 3, which is near median its 10-year median of 3.00. RedFlow's overall GF Score™ is 29/100. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Financial Strength calculated?
Financial Strength is calculated from a company's financial statements. For RedFlow (FRA:2RF), the current Financial Strength is 3 as of Dec. 2023. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

RedFlow Business Description

Address 1/27 Counihan Road, Seventeen Mile Rocks, Brisbane, QLD, AUS, 4073
RedFlow Ltd consists of the development, manufacture, and sale of its bromine flowing electrolyte battery module (ZBM). The company's batteries provide sustainable energy storage solutions for various applications, including telecommunications, renewables integration, on and off-grid remote power, microgrids and smart grids, and transmission and distribution deferral. Redflow batteries are designed for high cycle-rate, long time-base stationary energy storage applications in the residential, commercial and industrial, and telecommunications sectors, and are scalable from a single battery installation through to grid-scale deployments.
29GF Score

Get the complete analysis for FRA:2RF

Financial Strength is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

€0.05
Price