Frequency Electronics is growing revenue 70% YoY with a Piotroski F-Score of 9/9 and 134% cash conversion, but 91% of revenue comes from U.S. Government programs, insiders sold $37.5M (5.2% of market cap), and 3 of the last 4 earnings reports missed.
Thesis pillars
- Rapid Growth Strong Cash Conversion→Stable
- Government Customer Concentration↓Deteriorating
- Earnings Miss And Insider Selling↓Deteriorating
- +1 more pillar — see the Why tab for full reasoning
Pillars as of Oct 24, 2026, based on the 10-K filed Jul 17, 2026
Frequency Electronics, Inc. (FEIM) Stock Analysis
Technology · Communication Equipment
Sell if holding. Momentum 2.6/10 is below the 5.0 floor at $61.52 — engine's falling-knife protection flags exit rather than catching a breakdown. Specifics: Concentration risk — Customer: U.S. Government programs (91.0%); Sector modifier (Technology): -0.8.
Frequency Electronics designs and manufactures precision time and frequency products for satellite payloads, C4ISR and electronic warfare systems, in two segments: FEI-NY and FEI-Zyfer. About 91% of fiscal 2026 sales were under U.S. Government contracts or subcontracts, mostly... Read more
Sell if holding. Momentum 2.6/10 is below the 5.0 floor at $61.52 — engine's falling-knife protection flags exit rather than catching a breakdown. Specifics: Concentration risk — Customer: U.S. Government programs (91.0%); Sector modifier (Technology): -0.8. Chart setup: No clear chart pattern; technical signals are mixed. Score 5.9/10, moderate confidence.
Passes 7/8 gates (favorable risk/reward ratio, clean insider activity, no SEC red flags, news events none recent, earnings proximity 35d clear, semi cycle peak clear, materials cycle peak clear). Fails on weak momentum. Suitability: aggressive.
About Frequency Electronics, Inc.
About Frequency Electronics, Inc.
Frequency Electronics derived approximately 94% of fiscal 2025 sales from U.S. Government contracts or subcontracts for government end-use, with its FEI-NY segment — covering satellite payload and non-space defense electronics — contributing 76% of consolidated revenue and Northrop Grumman alone accounting for more than 10% of sales. The company employs 226 people, all based in the U.S., and spent $6.1 million of its own funds on research and development in fiscal 2025, up from $3.4 million a year earlier.
Frequency Electronics earns revenue primarily from fixed-price and cost-plus contracts — 96% of fiscal 2025 sales came from fixed-price work, which shifts cost-overrun risk onto the company — sold directly to U.S. Government agencies or indirectly as a subcontractor to large defense primes such as Northrop Grumman, Lockheed Martin, and BAE Systems. Its FEI-Zyfer segment, which designs GPS-based precision-timing products for secure military communications, derives more than 95% of its revenue from end users that are the U.S. Government, while FEI-NY supplies master timing systems, power converters, and RF microwave modules for satellite payloads including Iridium NEXT, Intelsat EPIC, and the GPS III program. The company is reliant on a limited number of space-qualified suppliers for key materials such as circuit boards, and it previously held a minority, now fully impaired, equity stake in Morion, a Russian crystal-oscillator maker whose status turned uncertain after the Russia-Ukraine conflict and resulting sanctions.
Show full overview
Frequency Electronics carries a distinct regulatory overhang tied to its legacy Morion investment: the 10-K discloses that Morion is a less-than-wholly-owned subsidiary of Gazprombank, a state-owned Russian bank, exposing the company to Office of Foreign Assets Control sanctions risk even though the Morion stake was fully impaired following the Russia-Ukraine conflict. Separately, roughly 41.2% of the company's outstanding common stock is concentrated among just five individuals or entities, a share-ownership concentration the 10-K flags as a stock-price risk distinct from the revenue concentration tied to U.S. Government and Northrop Grumman contracts.
See also: Technology · Communication Equipment
From Frequency Electronics, Inc.'s most recent 10-K filing, extracted October 18, 2026.
Recent developments
updated Oct 28, 2026Recent Developments — Frequency Electronics, Inc.
Latest news
- NEWS Frequency Electronics Announces Approximately $12 Million in New Contract Awards Supporting Space and Defense Programs — fiscal.ai Oct 28, 2026 positive
- NEWS Frequency Electronics Announces ~$12M In Contract Awards For U.S. Government Space And Defense Programs — benzinga Oct 28, 2026 positive
- NEWS Frequency Electronics Announces Chief Financial Officer Transition and Reaffirms Fiscal 2029 Financial Targets — fiscal.ai Oct 21, 2026 neutral
- NEWS Frequency Electronics Appoints Allen Kaplan CFO, Effective Nov. 1, Succeeding Steven L. Bernstein; Co. Reaffirms Minimum — benzinga Oct 21, 2026 neutral
- NEWS 12 Information Technology Stocks Moving In Wednesday's Pre-Market Session — benzinga Sep 30, 2026 neutral
Latest item Oct 28, 2026 · Generated 2026-11-05T11:39:29Z.
Upcoming dated catalysts
Thesis
Key Metrics
Quality Signals
Options Flow
Concentration Risks(10-K Item 1A)
- HIGHCustomerU.S. Government programs91%10-K Item 1A: 'we rely heavily on U.S. Government programs, from which we derived approximately 91% and 94% of our sales in fiscal year 2026'
- MEDIUMCustomerLockheed Martin, L3Harris and Boeing each over 10% of revenues10-K Item 1A: 'Lockheed Martin, L3Harris, and Boeing each accounted for more than 10% of the Company’s consolidated revenues'
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results. How we score · Editorial policy
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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
Price action weak — below key moving averages, no momentum carry. Needs a base before trend-continuation setups apply.static
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Sell if holding. Momentum 2.6/10 is below the 5.0 floor at $61.52 — engine's falling-knife protection flags exit rather than catching a breakdown. Specifics: Concentration risk — Customer: U.S. Government programs (91.0%); Sector modifier (Technology): -0.8. Chart setup: No clear chart pattern; technical signals are mixed. Prior stop was $57.21. Score 5.9/10, moderate confidence.
Analyst target: $81.17 (+31.9% upside). Prior stop was $57.21. Stop-loss: $57.21.
Concentration risk — Customer: U.S. Government programs (91.0%); Sector modifier (Technology): -0.8; Consecutive earnings misses (3).
Frequency Electronics, Inc. trades at a P/E of 246.1 (forward 32.0). TrendMatrix value score: 4.9/10. Verdict: Sell.
8 analysts rate FEIM, with a consensus score of 4.0/5. 2 analysts publish price targets averaging $96.
What does Frequency Electronics, Inc. do?Frequency Electronics designs and manufactures precision time and frequency products for satellite payloads, C4ISR and...
Frequency Electronics designs and manufactures precision time and frequency products for satellite payloads, C4ISR and electronic warfare systems, in two segments: FEI-NY and FEI-Zyfer. About 91% of fiscal 2026 sales were under U.S. Government contracts or subcontracts, mostly via large primes, with backlog of about $111 million at April 30, 2026. Products include rubidium atomic frequency standards and GPS-based timing.