FEIM faces a 3-of-4 earnings miss streak with an earnings-quality red flag and declining revenue against a rich valuation, and has already reached its price target ahead of a 5-day earnings event, though the stock remains technically oversold within an intact 200-day uptrend.
Thesis pillars
- Revenue Decline With Rich Valuation→Stable
- Consecutive Earnings Miss Streak↓Deteriorating
- Earnings Quality Red Flag→Stable
- +2 more pillars — see the Why tab for full reasoning
Frequency Electronics, Inc. (FEIM) Stock Analysis
Technology · Communication Equipment
Sell if holding. Analyst target reached at $88.43 — A.R:R is negative (-0.6) — price has exceeded the analyst target. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Near 52-week high (1.5% away).
Frequency Electronics, Inc. designs, develops, and manufactures precision time and frequency generation systems for commercial and U.S. Government satellites, C4ISR, and Electronic Warfare systems, organized into the FEI-NY and FEI-Zyfer segments. The company derived about 94%... Read more
Sell if holding. Analyst target reached at $88.43 — A.R:R is negative (-0.6) — price has exceeded the analyst target. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Near 52-week high (1.5% away). Chart setup: No clear chart pattern; technical signals are mixed. Score 5.8/10, moderate confidence.
Passes 6/8 gates (positive momentum, no SEC red flags, news events none recent, earnings proximity 76d clear, semi cycle peak clear, materials cycle peak clear). Fails on favorable risk/reward ratio and clean insider activity. Suitability: aggressive.
About Frequency Electronics, Inc.
About Frequency Electronics, Inc.
Frequency Electronics derived approximately 94% of its fiscal 2025 sales from U.S. Government contracts or subcontracts, with its FEI-NY segment — precision timing and frequency systems for satellite payloads and non-space defense programs — contributing about 76% of consolidated revenue and Northrop Grumman alone accounting for more than 10% of sales. The company employed 226 people and spent $6.1 million of its own funds on research and development in fiscal 2025.
Frequency Electronics earns revenue almost entirely from government-related defense and space programs, with 96% of fiscal 2025 sales derived from fixed-price contracts that put cost-overrun risk on the company, and the remainder from cost-plus arrangements that reimburse actual costs. Sales flow either directly to U.S. Government agencies or indirectly as a subcontractor to large prime contractors such as Northrop Grumman, Lockheed Martin, and BAE Systems, each of which exceeded 10% of consolidated revenue in at least one of the last two fiscal years. Manufacturing runs through two segments: FEI-NY, based on Long Island, which builds satellite payload timing systems and RF microwave modules through its FEI-Elcom subsidiary, and FEI-Zyfer, based in California, which builds GPS-based precision-timing products where more than 95% of segment revenue comes from end users that are the U.S. Government. Frequency Electronics competes against the in-house capabilities of its largest customers — Boeing, Northrop Grumman, and Lockheed Martin — as well as against Microchip Technology and Mercury Systems in non-space markets.
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Frequency Electronics' 10-K draws a distinction between its general supplier base, where it says it is not dependent on any one source and maintains alternatives, and its space-qualified component supply chain, where that flexibility breaks down: the company states it is reliant on suppliers who are space-qualified, which limits its ability to procure certain key materials, such as circuit boards, from other vendors. Industry consolidation among these specialized suppliers could eliminate vendors or discontinue product lines the company depends on, forcing costly lifetime buys or electronics redesigns — a risk layered on top of a fixed-price contract structure that already puts 96% of fiscal 2025 sales at cost-overrun risk.
See also: Technology · Communication Equipment
From Frequency Electronics, Inc.'s most recent 10-K filing, extracted August 30, 2026.
Recent developments
updated 2026-09-26Recent Developments — Frequency Electronics, Inc.
Latest news
- NEWS Frequency Electronics (FEIM) Reports Earnings Miss with Revenue Decline - GuruFocus — GuruFocus negative
- NEWS Earnings call transcript: Frequency Electronics falls after Q4 2026 revenue drop - Investing.com — Investing.com negative
- NEWS Frequency Electronics Shares Fall After Swinging to a 4Q Loss - Moomoo — Moomoo negative
- NEWS Is Frequency Electronics Inc (FEIM) Facing Challenges After Q4 E - GuruFocus — GuruFocus negative
- NEWS FREQUENCY ELECTRONICS ($FEIM) Releases Q4 2026 Earnings - Quiver Quantitative — Quiver Quantitative neutral
Generated 2026-09-26T02:41:57Z.
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Rating Breakdown
2 floor-breakers·1 ceiling hit
No near-term catalyst priced in. Thesis progression will come from fundamentals grinding, not event reaction.static
Priced at a premium — multiples above sector norms. Needs delivery on growth + margins to justify.static
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Sell if holding. Analyst target reached at $88.43 — A.R:R is negative (-0.6) — price has exceeded the analyst target. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Near 52-week high (1.5% away). Chart setup: No clear chart pattern; technical signals are mixed. Prior stop was $82.24. Score 5.8/10, moderate confidence.
Take-profit target: $101.69 (-8.2% upside). Prior stop was $82.24. Stop-loss: $82.24.
Analyst target reached - limited upside remaining; Near 52-week high (1.5% away); Sector modifier (Technology): -0.8.
Frequency Electronics, Inc. trades at a P/E of 338.2 (forward 44.0). TrendMatrix value score: 3.6/10. Verdict: Sell.
8 analysts cover FEIM with a consensus score of 4.1/5. Average price target: $96.
What does Frequency Electronics, Inc. do?Frequency Electronics, Inc. designs, develops, and manufactures precision time and frequency generation systems for...
Frequency Electronics, Inc. designs, develops, and manufactures precision time and frequency generation systems for commercial and U.S. Government satellites, C4ISR, and Electronic Warfare systems, organized into the FEI-NY and FEI-Zyfer segments. The company derived about 94% of fiscal 2025 sales from U.S. Government contracts or subcontracts, with FEI-NY contributing roughly 76% of consolidated revenue and Northrop Grumman accounting for more than 10% of sales.