Frequency Electronics, Inc. (FEIM) AI Stock Analysis

Frequency Electronics, Inc. specializes in the design, development, manufacturing, and distribution of precision time and frequency control products and components for microwave integrated circuit applications. It operates through two segments: FEI-NY and FEI-Zyfer. The FEI-NY segment produces precision time, frequency generation, and synchronization products used in communication satellites, terrestrial cellular networks, ground stations, and United States military communications. The FEI-Zyfer segment designs and manufactures precision navigation and timing solutions integrating GPS technologies for radar systems, airborne SIGINT/COMINT platforms, information networks, military command and control terminals, and satellite ground stations.

Annual revenue experienced volatility, rising from $48.3M in FY2022 to $69.8M in FY2025 before declining 9.4% to $63.2M in FY2026. Over the five years from FY2021 to FY2026, revenue generated a compound annual growth rate of 3.1%. Net income shifted from $23.8M with a net margin of 34.1% in FY2025 to -$903,000 with a net margin of -1.4% in FY2026, alongside an operating margin of -4.7%. However, trailing twelve months revenue reached $72.9M with an operating margin of 22.2%. In the latest quarter ended July 31, 2026, quarterly revenue growth reached 69.8% year-over-year, and quarterly earnings expanded by 528.8%.

As of July 31, 2026, the company held $61.4M in cash and short-term investments against total debt of $7.0M, resulting in net cash of $54.4M. Total assets stood at $153.6M and shareholders' equity was $119.8M. The balance sheet shows liquidity with a current ratio of 5.34 and a debt-to-equity ratio of 0.06. In FY2026, operating cash flow was $1.3M, capital expenditures were $2.9M, and free cash flow stood at -$1.6M. The company also allocated $1.6M to share buybacks.

FEIM trades at a trailing price-to-earnings multiple of 260.7x and an enterprise value to EBITDA ratio of 482.1x, both well above the median of its US-listed Technology peers at 28.1x and 16.6x, respectively. Its price-to-sales ratio is 10.1x compared to the peer median of 2.8x, though forward P/E of 14.2x is below the peer median of 18.8x. Over the past year, the stock gained 81.2%, outperforming the S&P 500 (SPY) return of 16.8%. Over five years, the stock achieved a return of 726.7% versus 83.0% for the index.

Analyst coverage includes 1 Strong Buy and 1 Hold rating, with no Buy, Sell, or Strong Sell recommendations. The mean price target is $95.50, representing an upside of 46.5% compared to the last close of $65.18. For the current fiscal year ending April 30, 2027, the consensus revenue estimate is $82.7M with an EPS estimate of $1.23. The company beat EPS estimates in 1 of the last 4 quarters. The next earnings date is December 10, 2026.

This page is an AI-written research summary of Frequency Electronics, Inc. (FEIM). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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