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→Stable
- 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. At $69.98, A.R:R 1.4:1 is below the 1.5:1 minimum. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Concentration risk — Customer: U.S. Government programs (94.0%); Sector modifier (Technology): -0.8.
Frequency Electronics makes precision time and frequency generation technology used in commercial and U.S. Government satellites, C4ISR and electronic warfare systems. About 94% of fiscal 2025 sales came from U.S. Government programs, and Northrop Grumman alone exceeded 10% of... Read more
Sell if holding. At $69.98, A.R:R 1.4:1 is below the 1.5:1 minimum. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Concentration risk — Customer: U.S. Government programs (94.0%); Sector modifier (Technology): -0.8. Chart setup: No clear chart pattern; technical signals are mixed. Score 5.8/10, moderate confidence.
Passes 5/8 gates (no SEC red flags, news events none recent, earnings proximity 55d clear, semi cycle peak clear, materials cycle peak clear). Fails on weak momentum and favorable risk/reward ratio and clean insider activity. 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.
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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 11, 2026.
Recent developments
updated 2026-10-16Recent 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 2026-10-16T11:37:13Z.
Upcoming dated catalysts
Thesis
Key Metrics
Quality Signals
Options Flow
Concentration Risks(10-K Item 1A)
- HIGHCustomerU.S. Government programs94%10-K Item 1A: 'Government programs, from which we derived approximately 94% and 98% of our sales in fiscal 2025 and fiscal 2024, respectively'
- LOWCustomerNorthrop Grumman10-K Item 1A: 'During fiscal year 2025, only Northrop Grumman accounted for more than 10% of the Company'
- MEDIUMSupplierlimited number of suppliers for space qualified parts10-K Item 1A: 'FEI-NY is dependent on a limited number of suppliers for space qualified parts'
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results.
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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
Momentum below the gate floor. Component breakdown shows what dragged the score down.static
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Sell if holding. At $69.98, A.R:R 1.4:1 is below the 1.5:1 minimum. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Concentration risk — Customer: U.S. Government programs (94.0%); Sector modifier (Technology): -0.8. Chart setup: No clear chart pattern; technical signals are mixed. Prior stop was $65.28. Score 5.8/10, moderate confidence.
Take-profit target: $81.17 (+16.0% upside). Prior stop was $65.28. Stop-loss: $65.28.
Concentration risk — Customer: U.S. Government programs (94.0%); Sector modifier (Technology): -0.8; Consecutive earnings misses (3).
Frequency Electronics, Inc. trades at a P/E of 279.9 (forward 36.4). TrendMatrix value score: 4.4/10. 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 makes precision time and frequency generation technology used in commercial and U.S. Government...
Frequency Electronics makes precision time and frequency generation technology used in commercial and U.S. Government satellites, C4ISR and electronic warfare systems. About 94% of fiscal 2025 sales came from U.S. Government programs, and Northrop Grumman alone exceeded 10% of consolidated revenues.