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. Engine safety override at $60.67: a dimension score below its floor triggers a hard block regardless of the otherwise-positive setup — overall score 3.7/10. Specifically: High short interest: 10%; Below-average business quality.
Frequency Electronics designs, develops, and manufactures precision time and frequency generation technology used in commercial and U.S. Government satellites, C4ISR, and Electronic Warfare systems, operating through two segments: FEI-NY (76% of fiscal 2025 consolidated revenue)... Read more
Sell if holding. Engine safety override at $60.67: a dimension score below its floor triggers a hard block regardless of the otherwise-positive setup — overall score 3.7/10. Specifically: High short interest: 10%; Below-average business quality. Chart setup: No clear chart pattern; technical signals are mixed. Score 3.7/10, high confidence.
Passes 5/9 gates (positive momentum, no SEC red flags, news events none recent, semi cycle peak clear, materials cycle peak clear). Fails on favorable risk/reward ratio and clean insider activity and earnings proximity 5d<=7d. 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 Northrop Grumman alone accounting for more than 10% of consolidated revenue. The company operates through two segments: FEI-NY, which generated 76% of fiscal 2025 consolidated revenue from satellite payload and non-space defense electronics, and FEI-Zyfer, which generated 27% and derives more than 95% of its own revenue from U.S. Government end users. Frequency Electronics employed 226 people, all based in the U.S., and spent $6.1 million of its own funds on R&D in fiscal 2025.
Frequency Electronics earns revenue under fixed-price and cost-plus contracts, either directly with U.S. Government agencies or as a subcontractor to large defense primes such as Northrop Grumman, Lockheed Martin, and BAE Systems; 96% of fiscal 2025 sales came from fixed-price contracts, which shift cost-overrun risk onto the company. FEI-NY designs master timing systems, power converters, and frequency generation products for satellite payloads (used on programs including Iridium NEXT, Intelsat EPIC, and GPS III) as well as ruggedized subsystems for U.S. military mobile platforms, while FEI-Zyfer builds GPS-based precision time and anti-spoofing products for radar, SIGINT, and command-and-control systems. The company is not dependent on any single materials supplier and maintains alternate sources, but FEI-NY relies on a limited number of suppliers for space-qualified parts, where qualifying an alternate can be difficult. Backlog stood at $70 million as of April 30, 2025, down from $78 million a year earlier, with approximately 64% expected to convert to revenue in fiscal 2026.
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Frequency Electronics' customer concentration is more volatile year to year than a single 94% government-sales figure suggests: in fiscal 2024, four customers -- Lockheed Martin, Northrop Grumman, the Office of Naval Research, and BAE Systems -- each individually cleared 10% of consolidated revenue, while in fiscal 2025 only Northrop Grumman did. That concentration compounds with contract-type risk: 96% of fiscal 2025 sales came from fixed-price contracts, under which Frequency Electronics -- not the customer -- bears the risk of cost overruns, and the 10-K notes two government end-use contracts were terminated during fiscal 2025.
See also: Technology · Communication Equipment
From Frequency Electronics, Inc.'s most recent 10-K filing, extracted August 23, 2026.
Recent developments
updated 2026-09-05Recent Developments — Frequency Electronics, Inc.
Latest news
- NEWS Frequency Electronics (FEIM) Reports Earnings Miss with Revenue Decline - GuruFocus — GuruFocus negative
- NEWS Earnings call transcript: Frequency Electronics falls after Q4 2026 revenue drop - Investing.com — Investing.com negative
- NEWS Frequency Electronics Shares Fall After Swinging to a 4Q Loss - Moomoo — Moomoo negative
- NEWS Is Frequency Electronics Inc (FEIM) Facing Challenges After Q4 E - GuruFocus — GuruFocus negative
- NEWS FREQUENCY ELECTRONICS ($FEIM) Releases Q4 2026 Earnings - Quiver Quantitative — Quiver Quantitative neutral
Generated 2026-09-05T21:12:04Z.
Upcoming dated catalysts
Thesis
Key Metrics
Quality Signals
Options Flow
Concentration Risks(10-K Item 1A)
- HIGHCustomerU.S. Government94%10-K Item 1: 'approximately 94% and 98%, respectively, of the Company’s sales were made under contracts to the U.S. Government or subcontracts for U.S. Government end-use'
- LOWCustomerNorthrop Grumman10-K Item 1: 'During fiscal year 2025, Northrop Grumman Company (“Northrop Grumman”) accounted for more than 10% of the Company’s consolidated revenues.'
- HIGHProductFEI-NY segment76%10-K Item 1: 'approximately 76% and 73%, respectively, of the Company’s consolidated revenues were from products sold by the FEI-NY segment'
- HIGHCustomerFEI-Zyfer U.S. Government end users95%10-K Item 1: 'More than 95% of FEI-Zyfer’s revenues are derived from sales where the end user is the U.S. Government.'
- HIGHSupplierspace-qualified parts suppliers (FEI-NY)10-K Item 1: '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
4 floor-breakers
Revenue shrinking — -23.0% YoY. Growth thesis broken unless recovery story develops.static
No near-term catalyst priced in. Thesis progression will come from fundamentals grinding, not event reaction.static
Ranks in the bottom of its industry peers on the composite signal. Better names in the same sector exist.static
Unprofitable operations — net margin -1.4%. Quality floor flags this regardless of sector context.static
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Sell if holding. Engine safety override at $60.67: a dimension score below its floor triggers a hard block regardless of the otherwise-positive setup — overall score 3.7/10. Specifically: High short interest: 10%; Below-average business quality. Chart setup: No clear chart pattern; technical signals are mixed. Prior stop was $56.42. Score 3.7/10, high confidence.
Take-profit target: $68.85 (+13.5% upside). Prior stop was $56.42. Stop-loss: $56.42.
Concentration risk — Customer: U.S. Government (94.0%); Concentration risk — Product: FEI-NY segment (76.0%); Quality below floor (3.1 < 4.0).
Frequency Electronics, Inc. trades at a P/E of N/A (forward 38.9). TrendMatrix value score: 4.3/10. Verdict: Sell.
8 analysts cover FEIM with a consensus score of 4.1/5. Average price target: $81.
What does Frequency Electronics, Inc. do?Frequency Electronics designs, develops, and manufactures precision time and frequency generation technology used in...
Frequency Electronics designs, develops, and manufactures precision time and frequency generation technology used in commercial and U.S. Government satellites, C4ISR, and Electronic Warfare systems, operating through two segments: FEI-NY (76% of fiscal 2025 consolidated revenue) and FEI-Zyfer (27%, more than 95% of which comes from U.S. Government end users). The company derived approximately 94% of fiscal 2025 sales from U.S. Government contracts or subcontracts, with Northrop Grumman alone accounting for more than 10% of consolidated revenue, and held a $70 million backlog as of April 30, 20