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↑Improving
- Earnings Quality Red Flag→Stable
- +2 more pillars — see the Why tab for full reasoning
Frequency Electronics, Inc. (FEIM) Stock Analysis
Technology · Communication Equipment
Sell if holding. Engine safety override at $86.66: 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: 11%; Below-average business quality; Rich valuation.
Frequency Electronics designs, develops, 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 and non-space... Read more
Sell if holding. Engine safety override at $86.66: 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: 11%; Below-average business quality; Rich valuation. Chart setup: No clear chart pattern; technical signals are mixed. Score 3.7/10, high confidence.
Passes 6/8 gates (positive momentum, no SEC red flags, news events none recent, earnings proximity 88d 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 derived approximately 94% of fiscal 2025 sales from U.S. Government contracts or subcontracts for government end-use, with its FEI-NY segment — covering satellite payload and non-space defense electronics — contributing 76% of consolidated revenue and Northrop Grumman alone accounting for more than 10% of sales. The company employs 226 people, all based in the U.S., and spent $6.1 million of its own funds on research and development in fiscal 2025, up from $3.4 million a year earlier.
Frequency Electronics earns revenue primarily from fixed-price and cost-plus contracts — 96% of fiscal 2025 sales came from fixed-price work, which shifts cost-overrun risk onto the company — sold directly to U.S. Government agencies or indirectly as a subcontractor to large defense primes such as Northrop Grumman, Lockheed Martin, and BAE Systems. Its FEI-Zyfer segment, which designs GPS-based precision-timing products for secure military communications, derives more than 95% of its revenue from end users that are the U.S. Government, while FEI-NY supplies master timing systems, power converters, and RF microwave modules for satellite payloads including Iridium NEXT, Intelsat EPIC, and the GPS III program. The company is reliant on a limited number of space-qualified suppliers for key materials such as circuit boards, and it previously held a minority, now fully impaired, equity stake in Morion, a Russian crystal-oscillator maker whose status turned uncertain after the Russia-Ukraine conflict and resulting sanctions.
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Frequency Electronics carries a distinct regulatory overhang tied to its legacy Morion investment: the 10-K discloses that Morion is a less-than-wholly-owned subsidiary of Gazprombank, a state-owned Russian bank, exposing the company to Office of Foreign Assets Control sanctions risk even though the Morion stake was fully impaired following the Russia-Ukraine conflict. Separately, roughly 41.2% of the company's outstanding common stock is concentrated among just five individuals or entities, a share-ownership concentration the 10-K flags as a stock-price risk distinct from the revenue concentration tied to U.S. Government and Northrop Grumman contracts.
See also: Technology · Communication Equipment
From Frequency Electronics, Inc.'s most recent 10-K filing, extracted September 6, 2026.
Recent developments
updated 2026-09-14Recent 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 2026-09-14T06:44:00Z.
Upcoming dated catalysts
Thesis
Key Metrics
Quality Signals
Options Flow
Concentration Risks(10-K Item 1A)
- HIGHCustomerU.S. Government (contracts/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.'
- MEDIUMCustomerNorthrop Grumman10-K Item 1: 'During fiscal year 2025, Northrop Grumman Company (“Northrop Grumman”) accounted for more than 10% of the Company’s consolidated revenues.'
- HIGHProductFEI-NY segment76%10-K Item 1: 'During fiscal years 2025 and 2024, approximately 76% and 73%, respectively, of the Company’s consolidated revenues were from products sold by the FEI-NY segment.'
- 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.'
- HIGHSupplierspace-qualified suppliers (e.g., circuit boards)10-K Item 1A: 'The Company is reliant on suppliers who are space-qualified, limiting the ability to procure certain key materials, such as circuit boards, from other vendors.'
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results.
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Rating Breakdown
6 floor-breakers·1 ceiling hit
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
Priced at a premium — multiples above sector norms. Needs delivery on growth + margins to justify.static
Unprofitable operations — net margin -1.4%. Quality floor flags this regardless of sector context.static
Technicals below the gate floor. Component breakdown shows what dragged the score down.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 $86.66: 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: 11%; Below-average business quality; Rich valuation. Chart setup: No clear chart pattern; technical signals are mixed. Prior stop was $82.19. Score 3.7/10, high confidence.
Take-profit target: $101.63 (-14.9% upside). Prior stop was $82.19. Stop-loss: $82.19.
Concentration risk — Customer: U.S. Government (contracts/subcontracts) (94.0%); Concentration risk — Product: FEI-NY segment (76.0%); Target reached (-14.9% upside).
Frequency Electronics, Inc. trades at a P/E of 353.5 (forward 46.0). TrendMatrix value score: 3.1/10. Verdict: Sell.
8 analysts cover FEIM with a consensus score of 4.1/5. Average price target: $89.
What does Frequency Electronics, Inc. do?Frequency Electronics designs, develops, and manufactures precision time and frequency generation technology for...
Frequency Electronics designs, develops, 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 and non-space government/commercial products) and FEI-Zyfer (GPS-based precision timing for secure communications). Approximately 94% of fiscal 2025 sales were made under U.S. Government contracts or subcontracts for government end-use, and Northrop Grumman alone accounted for more than 10% of consolidated revenues. The company employed 226 people, all