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Frequency Electronics
(NASDAQ:FEIM)
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Rating:56Neutral
Price Target:
$64.00
▲(5.59% Upside)
Action:Reiterated
Date:09/12/26
Overall score reflects strong forward-looking business momentum from the latest earnings call (record revenue/backlog and reiterated multi-year targets) and a solid balance sheet, tempered by weak recent cash flow and earnings volatility, very expensive valuation (high P/E), and currently negative/soft technical momentum.
Positive Factors
Revenue and Backlog Growth
Record revenue and a rapidly expanding fully funded backlog provide stronger visibility into future demand than isolated quarterly sales would. The 1.76-to-1 book-to-bill and growth across satellite and defense programs support sustained expansion over the next several quarters.
Negative Factors
Weak Cash Conversion
Negative trailing free cash flow limits the amount of internally generated funding available for growth and reduces the quality of recent reported earnings. If working-capital or capital-spending demands remain elevated, FEIM may need to rely more on external capital to fulfill expansion plans.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue and Backlog Growth
Record revenue and a rapidly expanding fully funded backlog provide stronger visibility into future demand than isolated quarterly sales would. The 1.76-to-1 book-to-bill and growth across satellite and defense programs support sustained expansion over the next several quarters.
Read all positive factors
Frequency Electronics Key Performance Indicators (KPIs)
Any
Revenue By Segment
Breaks down earnings from different business units or product lines, highlighting which areas are driving growth and which may need strategic adjustments. Offers insight into the company's diversification and market focus.
Breaks down earnings from different business units or product lines, highlighting which areas are driving growth and which may need strategic adjustments. Offers insight into the company's diversification and market focus.
Data provided by:
The Fly
The FlyFrequency Electronics (FEIM) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$711.34M
Dividend Yield8.21%
Average Volume (3M)291.08K
Price to Earnings (P/E)248.2
Beta (1Y)1.34
Revenue Growth-9.43%
EPS Growth-103.56%
CountryUS
Employees237
SectorGeneral
Sector StrengthN/A
IndustryCommunication Equipment
Share Statistics
EPS (TTM)-0.09
Shares Outstanding11,177,530
10 Day Avg. Volume187,911
30 Day Avg. Volume291,082
Financial Highlights & Ratios
PEG Ratio5.38
Price to Book (P/B)8.70
Price to Sales (P/S)7.76
P/FCF Ratio-311.17
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda>-0.01
Forecast
1Y Price Target
$100.00Price Target Upside64.99% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)1.05
Revenue Forecast (FY)$81.47M
Frequency Electronics Business Overview & Revenue Model
Company Description
Frequency Electronics, Inc. (FEIM) is a firm dedicated to the design, development, production, and sale of highly precise timing and frequency control products and their associated components. These specialized items are primarily intended for mic...
How the Company Makes Money
FEIM makes money by selling specialized, high-reliability timing and frequency control products and associated engineering/manufacturing services, primarily to aerospace and defense customers. Revenue is largely generated from (1) product and subs...
Frequency Electronics Earnings Call Summary
Earnings Call Date:Sep 10, 2026
(Q1-2027)
| % Change Since: |
Next Earnings Date:Dec 15, 2026
Earnings Call Sentiment Positive
The call was strongly positive, led by record revenue, substantial earnings growth, a record fully funded backlog, strong satellite and defense demand, a debt-free balance sheet, and additional capital to expand capacity. Management also described meaningful technology and program opportunities across missile defense, proliferated satellites, quantum sensing, and advanced timing systems. The primary challenges were production capacity constraints, early-stage or unproven opportunities in some markets, absolute SG&A growth, and margins that remain below the fiscal 2029 targets.Positive Updates
Record First-Quarter Revenue
First-quarter fiscal 2027 revenue was $23.5 million, an all-time record for FEI, up 70% year over year and up 52% sequentially.
Negative Updates
Margins Remain Below Fiscal 2029 Minimum Targets
Although margins improved substantially, first-quarter gross margin of 45.8% remained below the 50% minimum target and operating margin of 22% remained below the 30% minimum target set for fiscal 2029. Management cautioned that progress should not be interpreted as a straight-line upward trend.
Read all updates
Q1-2027 Updates
Positive
Negative
Record First-Quarter Revenue
First-quarter fiscal 2027 revenue was $23.5 million, an all-time record for FEI, up 70% year over year and up 52% sequentially.
Read all positive updates
Company Guidance
Frequency Electronics reiterated its target of $150 million or more in annual revenue by fiscal 29, which ends 04/30/2029, and its 3-year minimum margin targets of 50% for gross margin and 30% for operating margin by fiscal 29; first-quarter gross margin was 45.8% and operating margin was 22%. The company said it expects revenue from Patriot and THAAD programs in 2027 and for years beyond, expects additional revenue growth from capacity expansion to be organic, anticipates being a free cash flow generative on an annual basis going forward, and said the capital raise may result in both reaching the $150 million minimum target sooner and making that target a substantially larger number by fiscal 29. It expects internal R&D funding to stay under, 10%, revenue, with some additional R&D expenditure over the next couple of years, and said any acquisitions would likely be small tuck ins.Frequency Electronics Financial Statement Overview
Summary
Income Statement
46
Neutral
Balance Sheet
76
Positive
Cash Flow
41
Neutral
| Breakdown | Apr 2026 | Apr 2025 | Apr 2024 | Apr 2023 | Apr 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 63.23M | 69.81M | 55.27M | 40.78M | 48.30M |
| Gross Profit | 18.40M | 30.10M | 18.58M | 7.85M | 8.60M |
| EBITDA | -2.91M | 14.30M | 7.70M | -2.88M | -5.58M |
| Net Income | -903.00K | 23.80M | 5.59M | -5.50M | -8.66M |
Balance Sheet | |||||
| Total Assets | 90.71M | 93.74M | 98.47M | 90.78M | 84.76M |
| Cash, Cash Equivalents and Short-Term Investments | 1.60M | 4.72M | 18.32M | 12.05M | 21.52M |
| Total Debt | 7.65M | 8.76M | 6.18M | 7.64M | 9.10M |
| Total Liabilities | 34.30M | 38.12M | 58.66M | 57.89M | 38.07M |
| Stockholders Equity | 56.40M | 55.62M | 39.82M | 32.89M | 46.69M |
Cash Flow | |||||
| Free Cash Flow | -1.58M | -3.24M | 7.22M | 257.00K | 2.18M |
| Operating Cash Flow | 1.28M | -1.43M | 8.71M | 1.18M | 4.04M |
| Investing Cash Flow | -2.86M | -1.81M | -1.49M | 8.67M | -2.28M |
| Financing Cash Flow | -1.57M | -9.94M | 0.00 | -9.35M | 0.00 |
Frequency Electronics Technical Analysis
Negative
60.61
Price Trends
65.64
Negative
64.42
Negative
56.47
Positive
Market Momentum
-1.73
Negative
45.91
Neutral
74.14
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FEIM, the sentiment is Negative. The current price of 60.61 is below the 20-day moving average (MA) of 64.89, below the 50-day MA of 65.64, and above the 200-day MA of 56.47, indicating a neutral trend. The MACD of -1.73 indicates Negative momentum. The RSI at 45.91 is Neutral, neither overbought nor oversold. The STOCH value of 74.14 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FEIM.
Frequency Electronics Risk Analysis
Frequency Electronics disclosed 17 risk factors in its most recent earnings report. Frequency Electronics reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 1 New Risks
1.
Noncompliance with any of the covenants in the Company's $10 million senior secured revolving credit facility (the "Credit Agreement"), which matures on June 12, 2029, could result in any debt outstanding thereunder becoming due, which could have a material adverse effect on its financial position, operations and liquidity. Q1, 2026
Frequency Electronics Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $274.68M | 19.59 | 29.34% | 4.53% | 15.70% | 9.65% | |
62 Neutral | $120.93M | 49.12 | 11.50% | 2.58% | 13.86% | ― | |
56 Neutral | $711.34M | 248.24 | 6.12% | 8.21% | -9.43% | -103.56% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
52 Neutral | $127.35M | -23.48 | -4.47% | ― | 15.83% | 6.44% | |
51 Neutral | $45.84M | -0.66 | -9.10% | 3.05% | -8.31% | 77.99% | |
48 Neutral | $103.35M | -10.17 | -19.55% | ― | 24.22% | 43.94% |
* General Sector Average
FEIM
Frequency Electronics
62.06
34.93
128.75%
CMTL
Comtech Telecommunications
1.46
-0.89
-37.87%
KVHI
KVH Industries
7.14
1.03
16.86%
OCC
Optical Cable
14.28
4.49
45.86%
BKTI
BK Technologies
71.31
-0.23
-0.32%
AMPG
AmpliTech Group
3.45
-0.60
-14.81%
Frequency Electronics Corporate Events
Business Operations and StrategyPrivate Placements and Financing
Frequency Electronics Completes Stock Offering to Fund Growth
Positive
Aug 5, 2026
On July 30, 2026, Frequency Electronics, Inc. completed an offering of 1,739,131 shares of common stock, with 1,086,957 shares sold by the company and 652,174 shares sold by Edenbrook-affiliated selling stockholders through an underwriting syndica...
Business Operations and StrategyPrivate Placements and FinancingRegulatory Filings and Compliance
Frequency Electronics Completes Public Common Stock Offering
Positive
Jul 30, 2026
Frequency Electronics, Inc. completed a public offering of common stock on July 30, 2026, issuing 1,086,957 new shares alongside 652,174 shares sold by existing shareholders Edenbrook Value Fund, LP and Edenbrook Long Only Value Fund, LP. The shar...
Business Operations and StrategyPrivate Placements and Financing
Frequency Electronics Establishes New Secured Revolving Credit Facility
Positive
Jun 12, 2026
On June 12, 2026, Frequency Electronics, Inc. entered into a senior secured revolving credit facility with JPMorgan Chase Bank for up to $10 million over three years, including up to $5 million for letters of credit, with an option to increase the...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.