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—
- Consecutive Earnings Miss Streak—
- Earnings Quality Red Flag—
- +2 more pillars — see the Why tab for full reasoning
Frequency Electronics, Inc. (FEIM) Stock Analysis
Range Bound setup
Technology · Communication Equipment
Sell if holding. At $64.51, A.R:R is negative (-0.1) — price has exceeded the analyst target. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Concentration risk — Customer: U.S. Government contracts/subcontracts (94.0%); Concentration risk — Product: FEI-NY segment revenue (76.0%).
Frequency Electronics designs, manufactures, and sells precision time and frequency generation systems (1 Hz to 46 GHz) for commercial and U.S. Government satellite payloads, C4ISR, and Electronic Warfare systems, operating through two segments: FEI-NY (satellite payload and... Read more
Sell if holding. At $64.51, A.R:R is negative (-0.1) — price has exceeded the analyst target. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Concentration risk — Customer: U.S. Government contracts/subcontracts (94.0%); Concentration risk — Product: FEI-NY segment revenue (76.0%). Chart setup: RSI 53 mid-range, Bollinger mid-band. Score 4.7/10, moderate confidence.
Passes 6/8 gates (clean insider activity, no SEC red flags, news events none recent, earnings proximity 55d clear, semi cycle peak clear, materials cycle peak clear). Fails on weak momentum and 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 U.S. Government contracts or subcontracts for government end-use, with Northrop Grumman alone accounting for more than 10% of consolidated revenue. The company designs precision time and frequency generation systems spanning 1 Hz to 46 GHz for satellite payloads, C4ISR, and Electronic Warfare applications through two segments — FEI-NY (76% of fiscal 2025 revenue) and FEI-Zyfer (27%, more than 95% U.S. Government end-use) — and closed the fiscal year with a $70 million backlog.
FEI-NY, based at the company's Long Island, New York headquarters, builds master timing systems, power converters, and frequency generation/distribution products for satellite payloads (Iridium NEXT, Intelsat EPIC, GPS III, MILSTAR, AEHF) as well as ruggedized non-space subsystems for DOD platforms; its FEI-Elcom subsidiary supplies RF microwave modules up to 60 GHz for electronic-warfare and SIGINT applications. FEI-Zyfer, based in California, makes GPS-based precision time references for secure terrestrial command-and-control and anti-jam/anti-spoofing applications, drawing more than 95% of its revenue from U.S. Government end users. Contracts are structured as fixed-price (Frequency Electronics bears cost-overrun risk) or cost-plus (costs reimbursed), and government end-use contracts can be terminated for convenience or default; two such contracts were terminated during fiscal 2025. Manufacturing depends on space-qualified parts sourced from a limited number of qualified suppliers, even though the company maintains alternate sources for its broader materials purchases, and foreign sales made up just 6% of fiscal 2025 revenue.
Show full overview
Frequency Electronics' revenue is concentrated in a single customer type rather than a single company: 94% of fiscal 2025 sales flowed from U.S. Government contracts or subcontracts, with Northrop Grumman individually exceeding the 10% disclosure threshold (Lockheed Martin, the Office of Naval Research, and BAE Systems each cleared that bar in fiscal 2024). The 10-K states plainly that losing any one of these customers could have a material adverse effect on the business, even though management believes existing relationships are satisfactory and is not aware of any pending cancellation — a risk compounded by the fact that FEI-NY separately depends on a limited number of suppliers for space-qualified parts, where alternate-supplier qualification may not be feasible or cost-effective if a shortfall occurs.
See also: Technology · Communication Equipment
From Frequency Electronics, Inc.'s most recent 10-K filing, extracted July 6, 2026.
Recent developments
updated 2026-07-17Recent 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 2026-07-17T20:32:00Z.
Upcoming dated catalysts
Thesis
Key Metrics
Quality Signals
Options Flow
Concentration Risks(10-K Item 1A)
- HIGHCustomerU.S. Government contracts/subcontracts94%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 segment revenue76%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: 'Northrop Grumman Company ("Northrop Grumman") 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
2 floor-breakers
No near-term catalyst priced in. Thesis progression will come from fundamentals grinding, not event reaction.static
Momentum below the gate floor. Component breakdown shows what dragged the score down.static
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Sell if holding. At $64.51, A.R:R is negative (-0.1) — price has exceeded the analyst target. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Concentration risk — Customer: U.S. Government contracts/subcontracts (94.0%); Concentration risk — Product: FEI-NY segment revenue (76.0%). Chart setup: RSI 53 mid-range, Bollinger mid-band. Prior stop was $59.99. Score 4.7/10, moderate confidence.
Take-profit target: $73.15 (-1.2% upside). Prior stop was $59.99. Stop-loss: $59.99.
Concentration risk — Customer: U.S. Government contracts/subcontracts (94.0%); Concentration risk — Product: FEI-NY segment revenue (76.0%); Analyst target reached - limited upside remaining.
Frequency Electronics, Inc. trades at a P/E of 82.5 (forward 36.0). TrendMatrix value score: 4.4/10. Verdict: Sell.
8 analysts cover FEIM with a consensus score of 4.1/5. Average price target: $75.
What does Frequency Electronics, Inc. do?Frequency Electronics designs, manufactures, and sells precision time and frequency generation systems (1 Hz to 46 GHz)...
Frequency Electronics designs, manufactures, and sells precision time and frequency generation systems (1 Hz to 46 GHz) for commercial and U.S. Government satellite payloads, C4ISR, and Electronic Warfare systems, operating through two segments: FEI-NY (satellite payload and non-space DOD/commercial products, 76% of fiscal 2025 revenue) and FEI-Zyfer (GPS-based precision time references, 27% of fiscal 2025 revenue, more than 95% from U.S. Government end users). Approximately 94% of fiscal 2025 sales were made under U.S. Government contracts or subcontracts, with Northrop Grumman alone accounti