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↓Deteriorating
- +2 more pillars — see the Why tab for full reasoning
Frequency Electronics, Inc. (FEIM) Stock Analysis
Breakout setup
Technology · Communication Equipment
Sell if holding. Engine safety override at $69.55: 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: 12%; Elevated put/call ratio: 1.83; Below-average business quality.
Frequency Electronics designs and manufactures precision time and frequency generation technology for commercial and U.S. Government satellites, C4ISR, and Electronic Warfare systems, operating through two segments: FEI-NY (satellite, C4ISR, and EW products) and FEI-Zyfer... Read more
Sell if holding. Engine safety override at $69.55: 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: 12%; Elevated put/call ratio: 1.83; Below-average business quality. Chart setup: Golden cross, above all MAs, RSI 57, MACD bullish. Score 3.7/10, high confidence.
Passes 6/8 gates (positive momentum, clean insider activity, no SEC red flags, earnings proximity 45d clear, semi cycle peak clear, materials cycle peak clear). Fails on favorable risk/reward ratio. Suitability: aggressive.
About Frequency Electronics, Inc.
About Frequency Electronics, Inc.
Frequency Electronics derived approximately 94% of its fiscal 2025 sales from contracts to, or subcontracts for, the U.S. Government, with Northrop Grumman alone accounting for more than 10% of consolidated revenues. The FEI-NY segment generated 76% of consolidated revenue from satellite payload, C4ISR, and Electronic Warfare products, while FEI-Zyfer contributed 27% from GPS-based precision timing systems. The company employed 226 people as of its fiscal 2025 year-end and spent $6.1 million of its own funds on research and development.
Frequency Electronics earns revenue under fixed-price and cost-plus contracts with U.S. Government agencies and their prime contractors, as well as commercial satellite operators, for precision timing and frequency-generation hardware embedded in satellite payloads and ground-based secure communications systems. Its products fly on commercial and government satellite programs including Iridium NEXT, Intelsat EPIC, O3B, WAAS, MexSat, and the GPS III constellation, and beyond Northrop Grumman, the company's principal customers and channel partners have included Lockheed Martin, the Office of Naval Research, and BAE Systems. As of April 30, 2025, the company's backlog stood at approximately $70 million, down from $78 million a year earlier, with about 64% expected to convert to revenue in fiscal 2026. While Frequency Electronics says it is not dependent on any single supplier for materials generally, it discloses that its FEI-NY segment depends on a limited number of suppliers for space-qualified parts.
Show full overview
Frequency Electronics' competitive position is complicated by a structural overlap between its customers and its competitors: the 10-K names Boeing, Northrop Grumman, and Lockheed Martin as its principal competition for space products because these primes also maintain in-house microwave frequency generation capability, even as Northrop Grumman separately ranks as a customer accounting for more than 10% of fiscal 2025 revenue. For non-space products, the company instead competes against larger domestic suppliers Microchip Technology and Mercury Systems. This dual-role dynamic means a prime's decision to insource more of its own timing and frequency hardware would simultaneously shrink Frequency Electronics' addressable market and its revenue from that same account.
See also: Technology · Communication Equipment
From Frequency Electronics, Inc.'s most recent 10-K filing, extracted July 26, 2026.
Recent developments
updated 2026-07-27Recent Developments — Frequency Electronics, Inc.
Latest news
- NEWS Frequency Electronics (FEIM) Reports Earnings Miss with Revenue Decline - GuruFocus — GuruFocus negative
- NEWS Earnings call transcript: Frequency Electronics falls after Q4 2026 revenue drop - Investing.com — Investing.com negative
- NEWS Frequency Electronics Shares Fall After Swinging to a 4Q Loss - Moomoo — Moomoo negative
- NEWS Is Frequency Electronics Inc (FEIM) Facing Challenges After Q4 E - GuruFocus — GuruFocus negative
- NEWS FREQUENCY ELECTRONICS ($FEIM) Releases Q4 2026 Earnings - Quiver Quantitative — Quiver Quantitative neutral
Generated 2026-07-27T16:42:47Z.
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'
- 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'
- LOWCustomerNorthrop Grumman10-K Item 1: 'During fiscal year 2025, Northrop Grumman Company ... accounted for more than 10% of the Company's consolidated revenues.'
- MEDIUMSupplierspace qualified parts suppliers10-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
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
No near-term catalyst priced in. Thesis progression will come from fundamentals grinding, not event reaction.static
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Sell if holding. Engine safety override at $69.55: 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: 12%; Elevated put/call ratio: 1.83; Below-average business quality. Chart setup: Golden cross, above all MAs, RSI 57, MACD bullish. Prior stop was $64.80. Score 3.7/10, high confidence.
Take-profit target: $78.91 (-1.2% upside). Prior stop was $64.80. Stop-loss: $64.80.
Concentration risk — Customer: U.S. Government (94.0%); Concentration risk — Product: FEI-NY segment (76.0%); Target reached (-1.2% upside).
Frequency Electronics, Inc. trades at a P/E of N/A (forward 46.4). TrendMatrix value score: 4.1/10. 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 and manufactures precision time and frequency generation technology for commercial and...
Frequency Electronics designs and manufactures precision time and frequency generation technology for commercial and U.S. Government satellites, C4ISR, and Electronic Warfare systems, operating through two segments: FEI-NY (satellite, C4ISR, and EW products) and FEI-Zyfer (GPS-based precision timing for secure communications). Approximately 94% of fiscal 2025 sales were made under contracts to, or subcontracts for, U.S. Government end-use, and Northrop Grumman accounted for more than 10% of consolidated revenues. The company employed 226 people, all in the U.S., and held a $70 million backlog