📊 FEIM Key Takeaways
Is Frequency Electronics Inc. (FEIM) a Good Investment?
Frequency Electronics is experiencing significant operational deterioration with declining revenue (-9.4% YoY), negative operating income (-4.7% margin), and negative free cash flow (-1.6M). With only 1.6M in cash and no clear path to profitability, the company faces revenue headwinds and operational losses that will exhaust capital if not reversed.
Frequency Electronics' fundamentals have weakened, with revenue declining 9.4% and operating, net, and free-cash-flow margins all turning negative. Solid liquidity and modest leverage provide resilience, but the company needs to restore profitable growth and cash generation before its fundamental outlook becomes attractive.
Frequency Electronics Inc. Key Strengths (FEIM)
- Conservative debt structure with Debt/Equity of 0.15x providing financial flexibility
- Solid current ratio of 2.29x indicating near-term liquidity capacity
- Gross margin of 29.1% remains reasonable for manufacturing segment
- Current ratio of 2.29x indicates adequate near-term liquidity
- Low debt-to-equity ratio of 0.15x limits balance-sheet leverage
- Operating cash flow remained positive at $1.28M despite the net loss
FEIM Stock Risks: Frequency Electronics Inc. Investment Risks
- Revenue declining 9.4% YoY with no stabilization evident in latest period
- Negative free cash flow of -1.6M despite positive OCF; capital expenditures exceed operating cash generation
- Critical cash position of only 1.6M with ongoing operational losses limiting runway
- Negative ROE (-1.6%) and ROA (-1.0%) indicate value destruction and poor asset utilization
- Operating losses and negative interest coverage ratio (-34.5x) indicate inability to cover financing costs from operations
- Revenue contracted 9.4% year over year, indicating weakening business momentum
- Negative operating margin and net margin reflect poor current profitability
- Capital expenditures exceeded operating cash flow, producing negative free cash flow of $1.58M
Key Metrics to Watch
- Revenue stabilization and inflection back to growth trajectory
- Operating margin recovery toward positive territory
- Free cash flow generation and path to cash flow breakeven
- Cash balance adequacy relative to quarterly burn rate
- Revenue growth and operating margin recovery
- Operating cash flow relative to capital expenditures
Frequency Electronics Inc. (FEIM) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Strong liquidity with a 2.29x current ratio provides a solid financial cushion.
FEIM Profit Margin, ROE & Profitability Analysis
FEIM vs Utilities Sector: How Frequency Electronics Inc. Compares
How Frequency Electronics Inc. compares to Utilities sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Frequency Electronics Inc. Stock Overvalued? FEIM Valuation Analysis 2026
Based on fundamental analysis, Frequency Electronics Inc. has mixed fundamental signals relative to the Utilities sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Frequency Electronics Inc. Balance Sheet: FEIM Debt, Cash & Liquidity
FEIM Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Frequency Electronics Inc.'s revenue has declined by 55% over the 5-year period, indicating business contraction. The most recent EPS of $2.46 reflects profitable operations.
FEIM Revenue Growth, EPS Growth & YoY Performance
FEIM Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2026 | N/A | $634.0K | $0.16 |
| Q2 2026 | N/A | $634.0K | $0.18 |
| Q1 2026 | N/A | $634.0K | $0.07 |
| Q3 2025 | N/A | $130.0K | $0.01 |
| Q3 2024 | $55.0K | $130.0K | N/A |
| Q2 2024 | $31.0K | $797.0K | N/A |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Frequency Electronics Inc. Dividends, Buybacks & Capital Allocation
FEIM SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Frequency Electronics Inc. (CIK: 0000039020)
📋 Recent SEC Filings
❓ Frequently Asked Questions about FEIM
What is the AI rating for FEIM?
Frequency Electronics Inc. (FEIM) has a Combined AI Grade of C from Claude (C) and ChatGPT (C) with 84% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are FEIM's key strengths?
Claude: Conservative debt structure with Debt/Equity of 0.15x providing financial flexibility. Solid current ratio of 2.29x indicating near-term liquidity capacity. ChatGPT: Current ratio of 2.29x indicates adequate near-term liquidity. Low debt-to-equity ratio of 0.15x limits balance-sheet leverage.
What are the risks of investing in FEIM?
Claude: Revenue declining 9.4% YoY with no stabilization evident in latest period. Negative free cash flow of -1.6M despite positive OCF; capital expenditures exceed operating cash generation. ChatGPT: Revenue contracted 9.4% year over year, indicating weakening business momentum. Negative operating margin and net margin reflect poor current profitability.
What is FEIM's revenue and growth?
Frequency Electronics Inc. reported revenue of $63.2M.
Does FEIM pay dividends?
Frequency Electronics Inc. does not currently pay dividends.
Where can I find FEIM SEC filings?
Official SEC filings for Frequency Electronics Inc. (CIK: 0000039020) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is FEIM's EPS?
Frequency Electronics Inc. has a diluted EPS of $-0.09.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is FEIM's fundamental grade?
Based on our AI fundamental analysis in August 2026, Frequency Electronics Inc. has a C grade with 84% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is FEIM stock overvalued or undervalued?
Valuation metrics for FEIM: ROE of -1.6% (sector avg: 10%), net margin of -1.4% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
What is FEIM's AI grade for 2026?
Our dual AI analysis gives Frequency Electronics Inc. a combined C grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is FEIM's free cash flow?
Frequency Electronics Inc.'s operating cash flow is $1.3M, with capital expenditures of $2.9M. FCF margin is -2.5%.
How does FEIM compare to other Utilities stocks?
Vs Utilities sector averages: Net margin -1.4% (avg: 12%), ROE -1.6% (avg: 10%), current ratio 2.29 (avg: 0.8).