Frequency Electronics, Inc. (FEIM)
Valuation Overview•Is Frequency Electronics, Inc. Overvalued or Undervalued?
Commands a premium valuation multiple over its peers, likely pricing in superior execution.
Moderate quality score of 68/100, reflecting stable operating margins and manageable leverage.
Analysts remain cautious, with consensus price targets indicating limited room for upside expansion.
Verdict: Solid fundamental quality, though profitability presents a headwind.
Wall Street is cautious, forecasting potential downside. However, capital return yields remain modest, anchored by a strong, well-covered dividend yield.
FEIM demonstrates adequate business quality with stable profitability. This is supported by a highly conservative balance sheet featuring strong liquidity and pristine Altman Z safety.
The company demonstrates solid revenue growth (13.1% 3Y CAGR) paired with stable bottom-line earnings. Operating efficiency remains adequate with margins around 12.6%.
| Financial Metric | Trend (12Q) | Latest Qtr | 1Y Growth | 3Y CAGR | 5Y CAGR | 10Y CAGR |
|---|---|---|---|---|---|---|
| Revenue | $17.1M | +26.3% | +13.1% | +11.0% | -0.9% | |
| EBITDA | $1.8M | — | — | — | — | |
| Net Income | $1.8M | +325.5% | — | — | +23.7% | |
| EPS (Diluted) | $0.18 | +316.9% | — | — | +22.6% | |
| Free Cash Flow | -$1.1M | -144.8% | — | -2.3% | — |
| Metric | TTM | 3Y Avg | 5Y Avg | 10Y Avg |
|---|---|---|---|---|
| Gross Margin | 39.2% | 32.0% | 29.0% | 26.0% |
| Operating Margin | 12.6% | 4.8% | -0.8% | -8.0% |
| Net Margin | 30.1% | 10.2% | 2.8% | -8.3% |
| FCF Margin | -9.1% | 3.0% | 6.7% | 2.5% |
| Quarter | EPS Est. | EPS Act. | Surprise | EPS | Rev |
|---|---|---|---|---|---|
| Q1'26Latest | $0.30 | $0.16 | -47.5% | ||
| Q4'25 | $0.30 | $0.18 | -41.0% | ||
| Q3'25 | $0.43 | $0.07 | -83.7% | ||
| Q3'25 | $0.27 | $0.34 | +25.9% | ||
| Q1'25 | — | $1.60 | — | ||
| Q4'24 | — | $0.28 | — | ||
| Q3'24 | — | $0.25 | — | ||
| Q3'24 | — | $0.28 | — |
Total return is +233.9% (1Y), outperforming the benchmark by +208.9%
| Period | Total Return | vs S&P 500 (Alpha) | Dividend Contribution |
|---|---|---|---|
| YTD | +44.1% | +34.8% | — |
| 1Y | +233.9% | +208.9% | — |
| 3YCAGR | +123.4% | +101.2% | +15.1% |
| 5YCAGR | +51.9% | +38.5% | +21.6% |
| 10YCAGR | +22.5% | +8.2% | — |
The S&P 500 is at 31.3x trailing P/E — Expensive relative to historical averages.
Quick answers to common questions about Frequency Electronics, Inc. (FEIM) valuation, health, and returns.
Based on peer relative multiples, Frequency Electronics, Inc. appears Slightly expensive versus peers compared to industry peers.
Frequency Electronics, Inc. has multiple valuation anchors: Peer Relative Fair Value: $62.12 | Wall Street Analyst Target: $43.67 (implying -40.0% upside). A convergence of these signals offers higher conviction.
Frequency Electronics, Inc. displays good financial health with a composite quality score of 68/100, supported by a Altman Z-Score of 12.6 (safe zone), Piotroski F-Score of 5/9, Return on Invested Capital (ROIC) of 20.1%.
Frequency Electronics, Inc. pays a 1.4% dividend yield, covered by a 40% payout ratio with 0 years of growth, supplemented by a 0.1% buyback yield.
Frequency Electronics, Inc.'s current growth trajectory is Accelerating. The company achieved +26.3% 1Y revenue growth and +316.9% 1Y EPS growth, compared to its 3Y revenue CAGR of +13.1%.
Wall Street consensus is Buy based on 2 analysts, beating EPS expectations in 25% of recent quarters with a -3-quarter streak. The consensus price target represents a -40.0% change from current levels.
Investment risks for Frequency Electronics, Inc. include: -33.0% 1-year max drawdown, high beta (2.72x market volatility). Volatility risk is characterized by a beta of 2.72x.
No. These computations are purely quantitative model outputs for informational purposes. They do not account for qualitative management shifts or macro events. Always consult a licensed RIA before buying or selling shares.
Disclaimer: This page is for informational purposes only and does not constitute financial advice. All valuation models, scores, and target estimates are automated computations under stated assumptions and should not be relied upon as the sole basis for any investment decision.