Cash conversion efficiency is strained, evidenced by a negative OCF/NI ratio in seven of the last ten quarters and a significant $8.9 million working capital outflow in 2025Q3.
| Metric | TTM | Apr'25 | Apr'24 | Apr'23 | Apr'22 | Apr'21 | Apr'20 | Apr'19 | Apr'18 | Apr'17 | Apr'16 | Apr'15 | Apr'14 | Apr'13 | Apr'12 | Apr'11 | Apr'10 | Apr'09 | Apr'08 | Apr'07 | Apr'06 | Apr'05 | Apr'04 | Apr'03 | Apr'02 | Apr'01 | Apr'00 | Apr'99 | Apr'98 | Apr'97 | Apr'96 |
|---|
| Cash from Operations | -934K | -1.43M | 8.71M | 1.18M | 4.04M | 12.16M | -1.41M | -97K | 4.53M | 3.89M | 2.92M | 1.88M | 3.64M | 2.83M | 2.14M | 1.88M | 7.63M | 7.22M | -1.85M | -6.65M | -2.5M | 2.54M | -2.57M | 2.45M | 4.89M | 3.95M | 3.54M | -1.8M | 3.2M | 4M | 7M |
| Operating CF Margin % | - | -2.05% | 15.75% | 2.88% | 8.36% | 22.41% | -3.39% | -0.2% | 11.5% | 7.72% | 4.84% | 2.46% | 5.09% | 4.11% | 3.37% | 3.53% | 15.45% | 13.69% | -2.87% | -11.82% | -4.74% | 4.6% | -5.13% | 7.76% | 11.89% | 8.03% | 13.35% | -9.47% | 10% | 14.34% | 27.89% |
| Operating CF Growth % | 21.71% | -116.4% | 641.11% | -70.89% | -66.8% | 964.04% | -1350.52% | -102.14% | 16.59% | 33.01% | 55.31% | -48.33% | 28.56% | 32.14% | 14.1% | -75.38% | 5.69% | 491.22% | 72.22% | -165.42% | -198.74% | 198.72% | -204.94% | -49.99% | 23.89% | 11.52% | 296.83% | -156.25% | -20% | -42.86% | 62.79% |
| Net Income | 7.2M | 23.69M | 5.59M | -5.5M | -8.66M | 680K | -10.03M | -2.53M | -23.78M | -4.82M | 1M | 2.83M | 4.04M | 3.69M | 7.37M | 6.01M | 2.75M | -11.04M | 887K | -257K | 4.8M | 5.04M | 162K | -8.86M | 1.38M | 5.64M | 3.14M | 1.2M | 100K | 4.9M | 2.8M |
| Depreciation & Amortization | 2.06M | 2.06M | 2.12M | 2.43M | 3.02M | 3.3M | 3.32M | 2.8M | 2.48M | 2.64M | 2.71M | 2.94M | 2.47M | 2.41M | 2.24M | 1.94M | 1.94M | 2.17M | 1.97M | 1.73M | 1.87M | 2.01M | 2.1M | 1.6M | 1.46M | 1.45M | 2.1M | 2.3M | 2.4M | 1.6M | 1.3M |
| Stock-Based Compensation | 1.16M | 1.16M | 822K | 197K | 247K | 273K | 312K | 500K | 470K | 662K | 824K | 1.08M | 1.1M | 947K | 862K | 476K | 557K | 566K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | -12.05M | -12.05M | 0 | 269K | 0 | 1.39M | 8K | 3.36M | 9.64M | -1.35M | -1.26M | -720K | -160K | -320K | -3.1M | -3.55M | 753K | 6.08M | -820K | -1.3M | 886K | -2.61M | 411K | -247K | 358K | -1.41M | 0 | 0 | -2.6M | 0 | 0 |
| Other Non-Cash Items | 1.54M | 2.91M | 276K | 2.13M | 2.11M | -281K | 2.79M | 65K | 7.08M | 9.7M | 881K | 955K | 404K | 3M | 2.74M | 2.3M | 1.74M | 3.94M | 2.26M | 559K | 797K | -6.34M | 242K | 9.69M | -1K | 3.12M | 103K | 400K | -900K | 200K | 1.6M |
| Working Capital Changes | -840K | -19.19M | -108K | 1.65M | 7.32M | 6.79M | 2.19M | -4.3M | 8.63M | -2.93M | -1.23M | -5.2M | -4.22M | -6.89M | -7.97M | -5.29M | -100K | 5.5M | -2.33M | -8.33M | -7.05M | 4.44M | -5.48M | 264K | 1.12M | -4.85M | -1.8M | -5.7M | 4.2M | -2.7M | 1.3M |
| Change in Receivables | -9.01M | -9.01M | 10K | -332K | 1.57M | -752K | 1.97M | -2.99M | 5.9M | -3.6M | -1.72M | -3.21M | -1.63M | 465K | -4.52M | -1.61M | 2.36M | 5.72M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Inventory | -1.3M | -1.3M | -3.82M | -1.22M | -464K | 3M | 17K | -199K | -2.1M | 2.17M | -3.31M | 1.27M | -3.1M | -6.02M | -4.24M | -1.75M | -2.01M | -1.33M | 709K | -9.01M | -904K | -1.53M | -3.04M | -1.11M | 546K | -4.61M | -3.75M | -3.2M | 0 | -800K | 200K |
| Change in Payables | 0 | -989K | 884K | 384K | -1K | -205K | 374K | -195K | 379K | -746K | 1.18M | 25K | 614K | -502K | 880K | -534K | 814K | 325K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Investing | -2.88M | -1.81M | -1.49M | 8.67M | -2.28M | -1.19M | -3.43M | -4.66M | 341K | -1.45M | -3.53M | 1.16M | -3.57M | -2.01M | -8M | -6.72M | -552K | -6.41M | 13.32M | 2.05M | 317K | 3.58M | 529K | 506K | 607K | -5M | 2.19M | -3.7M | 2.1M | -16.5M | 6.1M |
| Capital Expenditures | -3.21M | -1.81M | -1.49M | -918K | -1.86M | -1.24M | -1.48M | -2.77M | -1.42M | -5.23M | -3.44M | -4.16M | -5.41M | -2.25M | -1.4M | -1.95M | -975K | -627K | -2.11M | -2.71M | -2.1M | -1.64M | -1.34M | -834K | -1.54M | -1.93M | -668K | -1.4M | -1M | -1.1M | -300K |
| CapEx % of Revenue | 4.74% | 2.59% | 2.7% | 2.25% | 3.85% | 2.28% | 3.57% | 5.59% | 3.6% | 10.39% | 5.69% | 5.43% | 7.55% | 3.26% | 2.2% | 3.67% | 1.97% | 1.19% | 3.27% | 4.83% | 3.98% | 2.97% | 2.68% | 2.65% | 3.74% | 3.92% | 2.52% | 7.37% | 3.13% | 3.94% | 1.2% |
| Acquisitions | 0 | 0 | 0 | -9.59M | 422K | 1.24M | 1.48M | 2.77M | 188K | 5.23M | 3.44M | 4.16M | 5.41M | 2.25M | -4.48M | 1.95M | 975K | 627K | 0 | 0 | -84K | -135K | -2.54M | 0 | 0 | -8.14M | 0 | 0 | 6.6M | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 329K | 0 | 0 | 9.59M | -422K | -1.24M | -1.48M | -2.77M | 55K | -5.27M | -3.44M | -4.16M | -5.41M | -2.18M | 24K | -1.95M | -1.07M | -847K | 0 | -3.32M | 955K | -763K | 28K | 120K | -313K | 0 | 0 | 0 | -100K | 0 | 500K |
| Cash from Financing | -1.57M | -9.94M | 0 | -9.35M | 0 | -4.96M | 4.96M | 0 | 55K | -6.67M | 141K | -3.9M | 4.27M | -1.87M | 5.71M | -149K | -1.4M | -7.39M | -2.04M | 3.58M | -1.57M | -5.28M | 1.46M | -2.73M | -2.23M | -1.84M | -1.3M | -2.6M | 1.4M | 500K | -1.4M |
| Debt Issued (Net) | 0 | 0 | 0 | 0 | 0 | -4.96M | 4.96M | 0 | 0 | -6M | 0 | -4.1M | 4.08M | -357K | 5.68M | -258K | -1.4M | -4.29M | -151K | 5M | -9K | -3.72M | 2.98M | -630K | -662K | -929K | -700K | -700K | -1.4M | -500K | -700K |
| Equity Issued (Net) | -1.2M | -377K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -3.11M | -153K | 293K | 144K | 111K | 153K | -434K | 95K | 716K | -777K | -400K | 900K | 500K | -700K |
| Dividends Paid | 0 | -9.57M | 0 | -9.35M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -1.68M | 0 | 0 | 0 | 0 | -1.74M | -1.72M | -1.71M | -1.69M | -1.67M | -1.66M | -1.66M | -1.63M | 0 | -1.5M | -1.5M | 0 | 0 |
| Share Repurchases | -1.36M | -377K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -3.11M | -311K | 0 | 0 | -66K | 0 | -501K | 0 | 0 | -1.53M | -500K | 0 | 0 | -700K |
| Other Financing | -377K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -671K | 141K | 200K | 182K | 172K | 22K | 109K | 0 | 0 | 0 | 0 | 0 | 17K | 0 | 0 | 0 | 0 | 172K | 0 | 2M | 500K | 0 |
| Net Change in Cash | -5.39M | -13.18M | 7.22M | 488K | 1.75M | 6M | 125K | -4.15M | 5.13M | -3.34M | -1.14M | -476K | 4.24M | -1.32M | -493K | -4.68M | 5.04M | -6.12M | 9.69M | -1.3M | -4.06M | 1M | -253K | 569K | 3.26M | -2.89M | 4.43M | -8.1M | 6.7M | -12M | 11.7M |
| Free Cash Flow | -4.67M | -3.24M | 7.22M | 257K | 2.18M | 10.92M | -2.89M | -2.86M | 3.12M | -1.34M | -514K | -2.27M | -1.76M | 583K | 748K | -74K | 6.66M | 6.59M | -3.95M | -9.36M | -4.61M | 896K | -3.91M | 1.61M | 3.35M | 2.02M | 2.88M | -3.2M | 2.2M | 2.9M | 6.7M |
| FCF Margin % | -6.88% | -4.64% | 13.05% | 0.63% | 4.51% | 20.12% | -6.96% | -5.78% | 7.9% | -2.67% | -0.85% | -2.97% | -2.46% | 0.85% | 1.18% | -0.14% | 13.47% | 12.5% | -6.14% | -16.65% | -8.73% | 1.62% | -7.81% | 5.12% | 8.14% | 4.11% | 10.83% | -16.84% | 6.88% | 10.39% | 26.69% |
| FCF Growth % | -192.25% | -144.84% | 2707.78% | -88.19% | -80.07% | 477.79% | -0.91% | -191.94% | 331.6% | -161.67% | 77.41% | -29.04% | -402.4% | -22.06% | 1110.81% | -101.11% | 0.96% | 266.88% | 57.77% | -103.08% | -614.29% | 122.9% | -342.38% | -51.88% | 65.88% | -29.67% | 189.84% | -245.45% | -24.14% | -56.72% | 63.41% |
| FCF per Share | -0.48 | -0.34 | 0.77 | 0.03 | 0.23 | 1.18 | -0.32 | -0.32 | 0.35 | -0.15 | -0.06 | -0.26 | -0.20 | 0.07 | 0.09 | -0.01 | 0.81 | 0.79 | -0.45 | -1.09 | -0.53 | 0.10 | -0.46 | 0.19 | 0.39 | 0.24 | 0.36 | -0.41 | 0.28 | 0.39 | 0.93 |
| FCF Conversion (FCF/Net Income) | -0.65x | -0.06x | 1.56x | -0.21x | -0.47x | 17.88x | 0.14x | 0.04x | -0.19x | -0.81x | 2.91x | 0.67x | 0.90x | 0.77x | 0.29x | 0.31x | 2.78x | -0.65x | -2.08x | 25.86x | -0.52x | 0.50x | -15.86x | -0.28x | 3.55x | 0.70x | 1.13x | -1.50x | 32.00x | 0.82x | 2.50x |
| Interest Paid | -56K | 104K | 114K | 129K | 77K | 0 | 0 | 0 | 79K | 146K | 128K | 140K | 153K | 186K | 119K | 114K | 121K | 200K | 476K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 19K | 371K | 13K | 7K | 15K | 0 | 0 | 0 | 325K | 335K | 1.31M | 1.85M | 1.74M | 2.99M | 1.48M | 2.25M | 205K | 30K | 940K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Project-based cash flow volatility
As reported in recent financial statements, FEIM's operating cash flow frequently decouples from net income, evidenced by a negative OCF/NI ratio in seven of the last ten quarters, which suggests that reported profits are not translating into tangible liquidity for the company's specialized aerospace operations.
The persistent gap between net income and operating cash flow indicates that earnings are heavily reliant on non-cash accruals or timing differences in revenue recognition. Investors should monitor whether this divergence reflects legitimate accounting for long-term contracts or an underlying inability to collect cash efficiently from government prime contractors.
Based on the provided quarterly data, FEIM's free cash flow trajectory is erratic, with negative FCF margins reaching as low as -20.9% in 2025Q3, highlighting the difficulty in maintaining consistent cash generation amidst the company's project-based revenue model and fluctuating operational requirements.
The lack of a stable FCF trend suggests that the company's cash generation is highly sensitive to the specific milestones of its defense contracts. This volatility may complicate long-term capital planning and suggests that the business model currently struggles to produce reliable surplus cash to fund internal growth initiatives.
According to the cash flow statements, working capital changes have been a primary driver of liquidity volatility, with a significant $8.9 million outflow in 2025Q3, indicating that the company's cash position is highly susceptible to the timing of inventory procurement and milestone-based billing cycles.
The substantial swings in working capital suggest that FEIM is frequently forced to absorb the costs of long-cycle projects before receiving corresponding payments. This dynamic appears to be a structural feature of their defense-heavy business, which may necessitate a larger cash buffer than currently maintained to avoid liquidity crunches.
As indicated by the financial data, FEIM's capital expenditures have remained relatively consistent, averaging roughly 3-5% of revenue, which suggests that the company is primarily focused on maintaining its specialized manufacturing infrastructure rather than aggressive capacity expansion for its space-qualified timing components.
The moderate capital intensity appears appropriate for a firm relying on established flight heritage, yet it highlights a potential bottleneck if demand for LEO satellite constellations accelerates. Management must balance these maintenance requirements with the need to upgrade facilities to support more standardized, higher-volume production models.
Based on reported figures, FEIM has utilized its limited cash reserves for share repurchases and dividends, such as the $9.6 million dividend payment in 2025Q2, despite the company's inconsistent ability to generate positive free cash flow from its core operations.
This deployment strategy appears aggressive given the volatility of the company's operating cash flow and the relatively small cash balance of $4.7 million. Investors should consider whether these capital returns are sustainable or if they may eventually constrain the company's ability to fund necessary R&D or operational scaling.
Quick answers to the most common questions about buying FEIM stock.
Frequency Electronics, Inc. (FEIM) generated $-1.4M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Frequency Electronics, Inc. (FEIM) reported negative free cash flow of $3.2M in 2025, indicating capital requirements exceeded cash from operations.
Frequency Electronics, Inc. (FEIM) spent $1.8M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Frequency Electronics, Inc. (FEIM) returned $9.6M to shareholders via cash dividends and spent $0.4M on share repurchases. This shows the company's commitment to returning capital to its equity investors.