Frequency Electronics Inc (FEIM) stock analysis
Close on Nov 11, 2026Market cap $769.18MP/E 272.9Yield –
StockData Score
Prices as of Nov 11, 2026How the score works
Mixed10 of 30 checks passed
Frequency Electronics passes 10 of the 30 checks behind our score; 9 could not be run for lack of data and count as not passed. Each dot in the shape is one check — hover it for the numbers.
- Valuation
- 0/6
- Growth
- 1/6
- Past performance
- 3/6
- Financial health
- 6/6
- Dividend
- 0/6
What stands out
No debt
Frequency Electronics has no borrowings on its latest balance sheet.
Revenue growing 10%+ a year
Revenue grew 15.7% a year over the last three fiscal years.
Interest well covered
Operating income covers interest expense 22.4 times.
Debt covered by cash flow
There is no debt to cover.
What to watch
Margin of safety under 20%
The price is 583% above fair value, so there is no margin of safety.
Trading above fair value
The share price of $68.23 is above our fair value estimate of $9.99.
Return on equity under 15%
Return on equity was 3.0% over the last twelve months and averaged 6.5% over five years; we look for 15% on both.
Return on capital under 10%
Return on invested capital was 3.4%, below the 10% that usually covers the cost of capital.
Valuation0/6
P/E above its 5-year median
Frequency Electronics's P/E of 272.9 is above its own 5-year median of 22.0.
P/E above the industry
Frequency Electronics's P/E of 272.9 is above the Laboratory Apparatus and Analytical, Optical, Measuring, and Controlling Instruments median of 36.5.
EV/EBITDA above its 5-year median
Frequency Electronics's EV/EBITDA of 199.7 is above its 5-year median of 24.6.
P/B above the industry
Frequency Electronics's price-to-book of 6.42 is above the Laboratory Apparatus and Analytical, Optical, Measuring, and Controlling Instruments median of 3.17.
Trading above fair value
The share price of $68.23 is above our fair value estimate of $9.99.
Margin of safety under 20%
The price is 583% above fair value, so there is no margin of safety.
Growth1/6
Revenue growing 10%+ a year
Revenue grew 15.7% a year over the last three fiscal years.
EPS growth over 3 years
Needs positive EPS three years ago and today.
Earnings acceleration
Needs positive net income now, a year ago and five years ago.
Growing slower than the industry
Revenue grew 6.3% over the last twelve months; the Laboratory Apparatus and Analytical, Optical, Measuring, and Controlling Instruments median is 8.4%.
Guidance unchanged
The latest outlook (Fiscal 2029 annual revenue, Sep 10, 2026) was maintained, so it neither adds nor takes away points.
Gross margin slipping
Gross margin was 33.0% over the last twelve months, against 41.5% a year earlier.
Past performance3/6
Return on equity under 15%
Return on equity was 3.0% over the last twelve months and averaged 6.5% over five years; we look for 15% on both.
Return on capital under 10%
Return on invested capital was 3.4%, below the 10% that usually covers the cost of capital.
Return on equity above the industry
Frequency Electronics's return on equity of 3.0% is above the Laboratory Apparatus and Analytical, Optical, Measuring, and Controlling Instruments median of 1.1%.
Earnings over 5 years
Needs positive net income five years ago and in the latest year.
Net margin above its 5-year average
Net margin was 3.7% over the last twelve months, against a 5-year average of 2.2%.
Net margin above the industry
Frequency Electronics's net margin of 3.7% is above the Laboratory Apparatus and Analytical, Optical, Measuring, and Controlling Instruments median of -1.3%.
Financial health6/6
No debt
Frequency Electronics has no borrowings on its latest balance sheet.
Debt not rising
With no debt today, leverage cannot have risen.
Debt covered by cash flow
There is no debt to cover.
Interest well covered
Operating income covers interest expense 22.4 times.
Short-term assets cover short-term debts
Current assets are 5.34 times current liabilities.
Low bankruptcy risk
The Altman Z-score is 14.96; above 3 is the safe zone and below 1.8 the distress zone.
Dividend0/6
No dividend
Frequency Electronics has not paid a dividend in the last twelve months.
Yield against Treasuries
No dividend.
Yield against the market
No dividend.
Dividend stability
No dividend.
Earnings cover
No dividend.
Cash-flow cover
No dividend.
Fair value
How we estimate itOur estimate per share
$9.99
The share price is 583% above this estimate.
| Method | Multiple used | Own 5Y median | Industry median | Value per share | Weight |
|---|---|---|---|---|---|
| P/E | 29.2× | 22.0× | 36.5× | $7.31 | 53% |
| EV/EBITDA | 24.2× | 24.6× | 23.7× | $13.05 | 47% |
| P/Bleft out, too far from the others | 3.0× | 2.7× | 3.2× | $31.41 | – |
| Earnings powerleft out, too far from the others | 8.7% cost of equity | – | – | $1.14 | – |
| Fair value | $9.99 | 100% | |||
Valuation over time
Using the earnings and balance sheet published at each date, not today's.
- P/E at month end
- Own 5-year median 22.0
- Laboratory Apparatus and Analytical, Optical, Measuring, and Controlling Instruments median 36.5
An estimate from reported numbers and market multiples, not a price target or investment advice. It can be far off for companies whose profits are about to change sharply.
Market risk
From the past year of daily prices.
Liquidity
Medium risk
- Average value traded per day
- $17.97M
- Value traded per 1% price move
- $4.83M
Downside
High risk
- Typical loss in a bad month
- 25.2%
- Volatility (annualized)
- 97%
- Sharpe ratio, 1 year
- 1.17
- Beta to the S&P 500 (5Y)
- 0.77
Typical bad-month loss, week by week
Margins
Share of revenue, fiscal years 2012 to 2026
Gross margin
Operating margin
Net margin
Growth rates
Compound annual growth to fiscal 2026
| Per year | 1 year | 3 years | 5 years | 10 years | Five-year pace |
|---|---|---|---|---|---|
| Revenue | -9.4% | +15.7% | +3.1% | +1.3% | |
| Gross profit | -38.9% | +32.8% | +1.7% | -0.5% |
Returns and balance sheet
10 fiscal years. Hover a measure to see how it is calculated.
| Measure | FY2017 | FY2021 | FY2026 | Trend |
|---|---|---|---|---|
| Return on equity | -5.3% | 1.2% | -1.6% | |
| Return on assets | -4.1% | 0.7% | -1.0% | |
| Current ratio | 8.61 | 2.97 | 2.29 | |
| Interest coverage | -50.2× | -7.5× | -34.5× | |
| Inventory turnover | 1.2× | 1.8× | 1.9× | |
| Capex to revenue | 10.4% | 2.3% | 4.5% | |
| Diluted shares | 9M | 9M | 10M |
Where the cash went
Fiscal 2022 to 2026, five years combined
Frequency Electronics generated $16.63M from operations and spent $29.81M on capital expenditure, dividends and share buybacks. 30% of that went back into the business.
DuPont analysis
Return on equity split into margin, efficiency and leverage
| Fiscal year | Net margin | Asset turnover | Equity multiplier | Return on equity |
|---|---|---|---|---|
| FY2026 | -1.4% | 0.69× | 1.65× | -1.6% |
| FY2025 | 33.9% | 0.79× | 1.85× | 49.6% |
| FY2024 | 10.1% | 0.70× | 2.17× | 15.4% |
| FY2023 | -13.5% | 0.51× | 2.00× | -13.8% |
| FY2022 | -17.9% | 0.53× | 1.80× | -17.0% |
| FY2021 | 1.3% | 0.57× | 1.73× | 1.2% |
| FY2020 | -24.2% | 0.47× | 1.52× | -17.1% |
| FY2019 | -5.1% | 0.58× | 1.35× | -4.0% |
| FY2018 | -60.3% | 0.40× | 1.29× | -31.2% |
| FY2017 | -9.6% | 0.43× | 1.29× | -5.3% |
Piotroski F-Score
Nine tests of profitability, balance sheet and efficiency, fiscal 2026 against fiscal 2025
- ProfitableNet income above zero-$903.00K
- Cash generatingOperating cash flow above zero$1.28M
- Return on assets improvedROA up on the prior year28.5% → -1.0%
- Earnings backed by cashOperating cash flow above net income$1.28M vs -$903.00K
- Less leverageLong-term debt to assets fell– → –
- Better liquidityCurrent ratio rose2.26 → 2.29
- No dilutionShare count did not rise10M → 10M
- Gross margin improvedGross margin up on the prior year43.11% → 29.10%
- More efficientAsset turnover rose0.84 → 0.67
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