Frequency Electronics Inc. Common Stock (FEIM)

FairStock Score: 18/100 — RISKY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I see Frequency Electronics as a small niche supplier—232 employees—making precision time and frequency products for satellites and communications. The business may have technical barriers, but the financial record is uneven. In FY2026, the year ended 2026-04-30, filed figures show revenue of $63.2 million and a net loss of $903,000, or diluted EPS of -$0.09. That followed FY2025 net income of $23.7 million, or diluted EPS $2.46, and FairStock therefore classifies it as a turnaround: a loss in the latest year after earlier profits. The most recent filed quarter, fiscal Q1 2027 ended 2026-07-31, reported net income of $4.2 million and diluted EPS of $0.41, a big improvement, though the filed excerpt lacked revenue. The balance sheet looks safe: debt/equity 0.06, Altman Z 15.48, Piotroski 6/9. But returns are poor—FairStock calculates ROE 3.04%, ROCE 3.06%, and trailing free cash flow of -$184,000. Valuation is the main hurdle. At the 2026-10-13 close of $72.07, FairStock shows P/E 288.28 and P/B 6.59 on EPS of $0.25. Graham Number is $7.84, implying a margin of safety of -819.26%; EV/EBITDA is 407.76. The PEG ratio of 0.51 depends on large growth continuing, but I prefer tangible, consistent earnings and cash generation. A low-debt turnaround with one good quarter is worth watching, not paying a premium for as if the turnaround were already proven.

In plain English: Frequency Electronics makes precise timing and frequency parts used in satellites and communications equipment. It is a small company that had a loss in its latest full year, but it just showed a profitable quarter. Compared with the money it earns and the value of its assets, the stock price looks very high.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q1 2027 10-Q (period ended 2026-07-31) · fiscal Q3 2026 10-Q (period ended 2026-01-31) · fiscal Q2 2026 10-Q (period ended 2025-10-31) · fiscal Q1 2026 10-Q (period ended 2025-07-31) · FY2026 10-K (period ended 2026-04-30) · FY2025 10-K (period ended 2025-04-30) · FY2024 10-K (period ended 2024-04-30)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer