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
Breakout setup
Technology · Communication Equipment
Sell if holding. Engine safety override at $78.73: a dimension score below its floor triggers a hard block regardless of the otherwise-positive setup — overall score 3.6/10. Specifically: High short interest: 14%; Below-average business quality; Rich valuation.
Frequency Electronics designs and manufactures precision time and frequency generation technology for satellites, C4ISR, and electronic warfare systems, operating through two segments — FEI-NY (satellite and DOD electronics, 76% of fiscal 2025 revenue) and FEI-Zyfer (GPS-based... Read more
Sell if holding. Engine safety override at $78.73: a dimension score below its floor triggers a hard block regardless of the otherwise-positive setup — overall score 3.6/10. Specifically: High short interest: 14%; Below-average business quality; Rich valuation. Chart setup: Golden cross, above all MAs, RSI 60, MACD bullish. Score 3.6/10, high confidence.
Passes 6/8 gates (positive momentum, no SEC red flags, news events none recent, earnings proximity 25d 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 drew approximately 94% of fiscal 2025 sales from contracts to, or subcontracts for, the U.S. Government, with the FEI-NY segment contributing 76% of consolidated revenue and FEI-Zyfer the remaining 27%. Foreign sales, concentrated in Europe and Asia, made up just 6% of revenue, and the company funded $6.1 million of self-directed R&D across a workforce of 226 U.S.-based employees.
Frequency Electronics sells under both fixed-price contracts, where it bears the risk of cost overruns and keeps the benefit of savings, and cost-plus contracts that reimburse actual costs, typically as a subcontractor to prime defense contractors or directly to U.S. Government agencies. Consolidated backlog stood at approximately $70 million as of April 30, 2025, down from $78 million a year earlier, with about 64% expected to convert to revenue in fiscal 2026. FEI-Zyfer alone derives more than 95% of its revenue from end users that are the U.S. Government. The company's principal customers double as its principal competitors for space products -- Boeing, Northrop Grumman, and Lockheed Martin all maintain in-house alternatives -- while Microchip Technology and Mercury Systems compete on terrestrial and electronic-warfare products. Although the company says it maintains alternative sources for most materials, FEI-NY depends on a limited number of suppliers for space-qualified parts, a narrower sourcing base than its general procurement.
Show full overview
Frequency Electronics' customer base swung from four named counterparties above the 10%-of-revenue threshold in fiscal 2024 -- Lockheed Martin, Northrop Grumman, the Office of Naval Research, and BAE Systems -- down to just one, Northrop Grumman, in fiscal 2025, illustrating how concentrated and volatile the company's revenue mix can be year to year even while the overall U.S. Government share of sales stayed above 90%. That dependence is not merely theoretical: two government end-use contracts were terminated during fiscal 2025, and the 10-K states plainly that the loss of any single major customer could have a material adverse effect on the business, since government programs remain subject to cancellation or delay tied to annual appropriations cycles rather than long-term commitments.
See also: Technology · Communication Equipment
From Frequency Electronics, Inc.'s most recent 10-K filing, extracted August 2, 2026.
Recent developments
updated 2026-08-16Recent 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 2026-08-16T18:22:05Z.
Upcoming dated catalysts
Thesis
Key Metrics
Quality Signals
Options Flow
Concentration Risks(10-K Item 1A)
- HIGHCustomerU.S. Government (prime + subcontracts)94%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.'
- HIGHCustomerFEI-Zyfer segment — 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.'
- 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.'
- MEDIUMSupplierspace-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
5 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
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. Engine safety override at $78.73: a dimension score below its floor triggers a hard block regardless of the otherwise-positive setup — overall score 3.6/10. Specifically: High short interest: 14%; Below-average business quality; Rich valuation. Chart setup: Golden cross, above all MAs, RSI 60, MACD bullish. Prior stop was $73.22. Score 3.6/10, high confidence.
Take-profit target: $90.54 (-12.5% upside). Prior stop was $73.22. Stop-loss: $73.22.
Concentration risk — Customer: U.S. Government (prime + subcontracts) (94.0%); Concentration risk — Customer: FEI-Zyfer segment — U.S. Government end users (95.0%); Target reached (-12.5% upside).
Frequency Electronics, Inc. trades at a P/E of N/A (forward 50.5). TrendMatrix value score: 3.4/10. 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 satellites,...
Frequency Electronics designs and manufactures precision time and frequency generation technology for satellites, C4ISR, and electronic warfare systems, operating through two segments — FEI-NY (satellite and DOD electronics, 76% of fiscal 2025 revenue) and FEI-Zyfer (GPS-based precision timing, where over 95% of revenue 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 its only customer exceeding 10% of consolidated revenue.