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Frequency Electronics
(NASDAQ:FEIM)
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Rating:55Neutral
Price Target:
$59.00
▼(-18.58% Downside)
Action:Reiterated
Date:07/31/26
FEIM scores in the mid-range primarily due to weak recent operating results and cash flow quality (TTM loss and negative free cash flow) despite a conservatively financed balance sheet. Technicals are also soft with the stock below key short/intermediate moving averages. Offsetting factors include a notably upbeat earnings-call outlook supported by a record $111M funded backlog and strong bookings, plus improved capital flexibility from the recent equity offering and new revolving credit facility.
Positive Factors
Record Funded Backlog
A $111M funded backlog provides multi-year revenue visibility and de-risks near-term demand variability. Durable conversion of backlog into production revenue supports steady top-line growth over 1–3 years and underpins management's multi-year CAGR targets and planning for capacity and workforce.
Negative Factors
Weak Cash Generation
Negative and declining free cash flow indicates weaker cash conversion and higher working-capital or capex demands. Persistent FCF deficits erode liquidity over time, can force reliance on external financing, constrain reinvestment, and raise execution risk if backlog conversion and margin improvement are delayed.
Read all positive and negative factors
Positive Factors
Negative Factors
Record Funded Backlog
A $111M funded backlog provides multi-year revenue visibility and de-risks near-term demand variability. Durable conversion of backlog into production revenue supports steady top-line growth over 1–3 years and underpins management's multi-year CAGR targets and planning for capacity and workforce.
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
$591.12M
Dividend YieldN/A
Average Volume (3M)289.83K
Price to Earnings (P/E)―
Beta (1Y)1.14
Revenue Growth-9.43%
EPS Growth-103.56%
CountryUS
Employees226
SectorTechnology
Sector Strength88
IndustryCommunication Equipment
Share Statistics
EPS (TTM)-0.09
Shares Outstanding9,870,077
10 Day Avg. Volume433,086
30 Day Avg. Volume289,829
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
$75.00Price Target Upside3.51% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)1.1
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:Jul 15, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Sep 15, 2026
Earnings Call Sentiment Positive
The call presented a constructive forward-looking picture: record bookings/backlog, a diversified pipeline across space and defense, clear multi-year revenue and margin targets (34% CAGR to $150M and gross/operating margin goals of 50%/30% by FY2029), and strategic investments already made to support scale. Near-term results were weighed down by a planned year of "digestion," pre-revenue engineering and process investments, a $3.8M inventory write-down related to FEI-Elcom restructuring, and several one-time charges that depressed reported margins and quarterly revenue. Management emphasized these were strategic, mostly non-recurring actions intended to position the company for higher-margin, higher-rate production and sustained growth, and expects revenue and cash generation to rebound in fiscal 2027.Positive Updates
Record Funded Backlog
Reported a record-funded backlog of $111 million as of fiscal year end, providing multi-year revenue visibility and supporting expected revenue conversion over the next 1–3 years.
Negative Updates
Quarterly Revenue Decline
Consolidated revenue for the three months ended April 30, 2026 was $15.4 million versus $19.9 million in the prior-year period—a decline of $4.5 million or ~22.6% quarter-over-year.
Read all updates
Q4-2026 Updates
Positive
Negative
Record Funded Backlog
Reported a record-funded backlog of $111 million as of fiscal year end, providing multi-year revenue visibility and supporting expected revenue conversion over the next 1–3 years.
Read all positive updates
Company Guidance
Management guided to a multi‑year acceleration supported by a record funded backlog of $111 million and a nearly 3x book‑to‑bill in Q4, and set a three‑year revenue target of at least $150 million (≈34% CAGR from FY2026), with multiple new quarterly revenue records expected in FY2027 and a return to cash generation beginning in the current quarter. They established minimum margin targets of 50% gross and 30% operating by FY2029 (with D&A in the low‑ to mid‑single‑digit % of revenue), noted adjusted Q4 and FY gross/operating margins of ~36%/1% and ~41%/11% (ex‑nonrecurring investments/charges), and emphasized FY2026 was the largest bookings year in company history. Near‑term reported results included consolidated Q4 revenue of $15.4M (vs. $19.9M year‑ago) and a FY revenue decline of ~$6.6M (≈9%), headwinds from a $3.8M FEI‑Elcom inventory write‑down (yielding >$9M future tax benefits), ~250 employees at year‑end, and management’s view that no further material investments are required to achieve the targets.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
72.46
Price Trends
66.84
Negative
59.54
Negative
51.80
Positive
Market Momentum
1.67
Negative
57.16
Neutral
75.02
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 72.46 is above the 20-day moving average (MA) of 63.80, above the 50-day MA of 66.84, and above the 200-day MA of 51.80, indicating a neutral trend. The MACD of 1.67 indicates Negative momentum. The RSI at 57.16 is Neutral, neither overbought nor oversold. The STOCH value of 75.02 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 0 New Risks
Frequency Electronics Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $299.05M | 20.89 | 33.31% | ― | 14.16% | 38.26% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
56 Neutral | $125.17M | 127.34 | 4.67% | ― | 13.61% | ― | |
55 Neutral | $591.12M | -611.50 | -1.56% | ― | -9.43% | -103.56% | |
54 Neutral | $50.93M | -0.76 | -9.10% | ― | -8.31% | 77.99% | |
53 Neutral | $180.74M | -35.00 | -3.82% | ― | 7.22% | 46.78% | |
53 Neutral | $124.41M | -15.18 | -17.50% | ― | 149.18% | 54.90% |
* Technology Sector Average
FEIM
Frequency Electronics
57.97
31.52
119.17%
CMTL
Comtech Telecommunications
1.68
-0.37
-18.05%
KVHI
KVH Industries
9.26
4.01
76.38%
OCC
Optical Cable
14.86
10.12
213.50%
BKTI
BK Technologies
80.00
42.38
112.65%
AMPG
AmpliTech Group
4.65
1.80
63.16%
Frequency Electronics Corporate Events
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.