Frequency Electronics, Inc.

Frequency Electronics, Inc.

FEIMยทNASDAQ

$69.16

-4.2%
TechnologyCommunication Equipment

Frequency Electronics, Inc., together with its subsidiaries, designs, develops, manufactures, and sells precision time and frequency control products and components for microwave integrated circuit applications. It operates through two segments, FEI-NY and FEI-Zyfer. The FEI-NY segment offers precision time, frequency generation, and synchronization products and subsystems used in communication satellites, terrestrial cellular telephone, or other ground-based telecommunication stations; and other components and systems for the United States military. The FEI-Zyfer segment designs, develops, and manufactures products for precision navigation and timing primarily incorporating global positioning system technologies into radar systems, airborne SIGINT/COMINT platforms, information networks, test equipment, military command and control terminals, and satellite ground stations. The company's products are used in commercial, government satellites, secure communications, command, control, communication, computer, intelligence, security and reconnaissance, and electronic warfare applications for the United States government on land, sea, and air-borne platforms. It markets its products directly and through independent sales representative organizations located in the United States, Europe, and Asia. Frequency Electronics, Inc. was founded in 1961 and is headquartered in Mitchel Field, New York.

At a Glance

Live Snapshot
Market Cap$680.67M
EPS2.4600
P/E Ratio28.11
Earnings Date07/09/2026

Intrinsic Alpha Methodology

Thesis Lenses

Signal ยท Driver ยท Risk

Signal

High confidence

Valuation multiple is elevated (P/E 28.1).

Valuation inputs: P/E 28.1, earnings yield +3.6%, momentum -4.2%.

If multiples stay elevated while momentum fades, downside repricing risk rises.

Driver

High confidence

Return profile is strong (ROE +42.8%, ROIC +16.2%).

Profitability stack: net margin +34.1%, ROE +42.8%, ROIC +16.2%.

Quality deterioration often appears in margins before it shows up in headline EPS.

Risk

High confidence

Downside profile looks controlled across current risk inputs.

Risk factors: liabilities/assets +40.7%, momentum -4.2%, net margin +34.1%.

Higher leverage with weak momentum and thin margins can amplify drawdown severity.

feim

Frequency Electronics, Inc. Market vs Earnings Trajectory

FEIM ยท NASDAQ

Loading price and EPS data...

Frequency Electronics, Inc.

Frequency Electronics, Inc. Fair Value Envelope

FEIM ยท NASDAQ

Our analysis suggests that FEIM has a fair value of HIDDEN per share in the Base Case projection. With shares currently trading at $69.16, this represents a potential HIDDEN relative to our calculated worth for Frequency Electronics, Inc..

Intrinsic Value
Current Price: $69.16
3Y-365.0%
5Y-324.0%
10Y+1950.0%
3Y+45.0%
5Y+68.0%
10Y+16.0%
3Y-375.0%
5Y-338.0%
10Y+2268.0%
3Y-135.0%
5Y+1.0%
10Y-149.0%
3Y-249.0%
5Y+12.0%
10Y+530.0%
3Y+11.0%
5Y+3.0%
10Y-22.0%
Frequency Electronics, Inc.

Frequency Electronics, Inc. Profit Bridge

FEIM ยท NASDAQ
Revenue69.81M
Cost of Goods Sold (39.71M)
Gross Profit30.10M
Operating Expenses (18.36M)
Operating Income11.73M
Interest Expense (104.00K)
Other Income/Expense412.00K
Pretax Income12.14M
Income Tax (-11.54M)
Net Income23.80M
Net Income
23.80M

Profitability Analysis

Gross Margin

43.1%

Strong gross margins indicate healthy pricing and efficient production or service delivery.

Operating Margin

16.8%

Healthy operating margins demonstrate effective cost control and strong business fundamentals.

Net Profit Margin

34.1%

Exceptional profitability. The company converts a significant portion of revenue to bottom-line earnings.

Effective Tax Rate

-95.0%

Below-average tax rate suggests effective tax planning, favorable jurisdictions, or tax credits.

Profitability Insight

Efficient profit conversion: Minimal margin compression from gross to net indicates lean operations and favorable tax/interest environment.

43.11%
Gross Profit Margin
28%
3Y+142.0%
5Y+209.0%
10Y+27.0%
16.81%
Operating Profit Margin
85%
3Y-201.0%
5Y-164.0%
10Y+680.0%
34.09%
Net Profit Margin
237%
3Y-290.0%
5Y-242.0%
10Y+1949.0%
42.79%
Return on Equity
205%
3Y-331.0%
5Y-332.0%
10Y+3875.0%
25.39%
Return on Assets
347%
3Y-348.0%
5Y-332.0%
10Y+2937.0%
16.22%
Return on Invested Capital
124%
3Y-230.0%
5Y-249.0%
10Y+2768.0%
FEIM

Frequency Electronics, Inc. Cash Conversion Engine

FEIM ยท NASDAQ
Net Income23.69M
Depreciation & Amortization2.06M
Stock-Based Compensation1.16M
Change in Working Capital-19.19M
Others2.91M
Capital Expenditures-1.81M
Free Cash Flow-3.24M

Cash Flow Quality Analysis

FCF Conversion Rate

-13.7%

Negative free cash flow despite positive earnings raises concerns about cash generation ability or heavy capital requirements.

CapEx Intensity

-126.6%

Asset-light business model. Low capital requirements leave more cash available for shareholders and growth investments.

FCF Growth Trend

-144.8%

Significant FCF decline raises concerns. Urgent review needed of operational performance and capital allocation.

Working Capital Impact

-$19.19M

Significant working capital drain. Growth may be consuming cash through inventory buildup or receivables extensionโ€”monitor closely.

Cash Flow Quality Insight

Cash flow concerns: Despite profitability, the company is burning cash. Review working capital management, CapEx levels, and sustainability of current operations.

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Frequency Electronics, Inc. Funding & Solvency Profile

FEIM ยท NASDAQ
Cash & Cash Equivalents86.00K
Net Receivables25.41M
Inventory25.83M
Other Current Assets1.22M
Total Current Assets53 M
Property, Plant & Equipment14.81M
Goodwill & Intangible Assets617.00K
Long-Term Investments1.39M
Other Non-Current Assets24.81M
Total Non-Current Assets41 M
Total Assets
94.19M

Financial Health Analysis

Current Ratio

2.60x

Excellent liquidity position. The company can easily cover its short-term obligations with substantial cushion.

Debt-to-Equity Ratio

0.56x

Balanced capital structure with moderate leverage. Equity exceeds debt, suggesting healthy financial stability.

Working Capital

32 M

Strong working capital position provides significant operational flexibility and financial cushion.

Asset Composition

56% Current

Balanced asset mix between current and non-current assets, typical of many stable businesses.

Financial Health Insight

Strong financial foundation: Excellent liquidity combined with conservative leverage suggests the company is well-positioned to weather economic uncertainties and fund growth opportunities.

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Frequency Electronics, Inc. Street Expectations Map

FEIM ยท NASDAQ

Wall Street analysts project that FEIM stock may decline over the coming 12 months. The consensus 1-year price target stands at 44.00, with estimates ranging from a low of 42.00 to a high of 46.00.

Lowest Target
42.00
-39.27%
Consensus Target
44.00
-36.38%
Highest Target
46.00
-33.49%

The consensus 1-year price target stands at 44.00, with estimates ranging from a low of 42.00 to a high of 46.00.

Analyst Consensus Analysis

Upside Potential

-36.4%

Significant downside risk. Stock trading well above analyst consensus suggests elevated valuation concerns and potential correction.

Analyst Agreement

9.1% spread

High analyst agreement. Narrow target range indicates strong consensus on valuation, suggesting clear investment thesis and predictable outlook.

Risk-Reward Profile

0.85x

Unfavorable risk-reward. Downside risk exceeds upside potential. Consider defensive positioning or alternative opportunities.

Analyst Conviction

Low

Bearish or uncertain outlook. Limited upside or poor consensus suggests challenges ahead or fundamental concerns.

Market Sentiment Insight

Consensus overvaluation: Analysts agree the stock is richly valued with limited upside. Consider booking profits or defensive positioning unless you have contrarian conviction in unrecognized catalysts.

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Frequency Electronics, Inc. Insider Positioning

FEIM ยท NASDAQ

During the last 12 months, there has been no insider trading activity reported for FEIM.

3 Months

Bought

0

0.00

Sold

0

0.00

Net Activity

+0

+$0

3-6 Months

Bought

0

0.00

Sold

0

0.00

Net Activity

+0

+$0

6-9 Months

Bought

0

0.00

Sold

0

0.00

Net Activity

+0

+$0

9-12 Months

Bought

0

0.00

Sold

0

0.00

Net Activity

+0

+$0

Top Buyers

No buying activity

Top Sellers

No selling activity

Insider Activity Analysis

Net Insider Sentiment

Neutral

No insider trading activity reported. This could indicate blackout periods, lack of conviction, or regulatory restrictions.

Insider Participation

No Activity

No insider trading activity reported from any insiders in the past year.

0.00%
Dividend Yield
3Y-100.0%
5Y-
10Y-
ย 

feim Dividend History

FEIM
10Y CAGR +26%
Latest $1
Annual $1
5 year growth trend
Last Period: +0%