📊 FEIM Key Takeaways
Is Frequency Electronics Inc. (FEIM) a Good Investment?
Frequency Electronics demonstrates solid profitability with healthy gross margins (38.1%) and strong interest coverage (50x), indicating operational competence and low financial distress risk. However, negative free cash flow (-3.0M, -6.3% FCF margin) and declining operating cash flow (-779K) raise concerns about cash generation despite positive net income, suggesting potential working capital challenges or accounting quality issues that warrant further investigation.
Frequency Electronics shows improving earnings and solid balance-sheet stability, with positive net income, reasonable margins, low leverage, and strong interest coverage. However, growth quality is mixed because operating cash flow and free cash flow are negative, and the very low cash balance reduces flexibility despite acceptable liquidity ratios.
Why Buy Frequency Electronics Inc. Stock? FEIM Key Strengths
- Healthy gross margin of 38.1% demonstrates strong product pricing power and cost management
- Fortress balance sheet with low leverage (0.14x Debt/Equity) and excellent interest coverage ratio of 50x
- Positive net income of 4.0M and net margin of 8.4% showing bottom-line profitability
- Strong liquidity position with current ratio of 2.60x and quick ratio of 1.32x
- Profitable operations with 38.1% gross margin and positive operating and net margins
- Conservative leverage profile with 0.14x debt-to-equity and strong 50.0x interest coverage
- Healthy liquidity ratios with 2.60x current ratio and 1.32x quick ratio
FEIM Stock Risks: Frequency Electronics Inc. Investment Risks
- Significant cash flow deterioration with negative operating cash flow (-779K) and free cash flow (-3.0M) despite positive net income suggests potential working capital strain or earnings quality concerns
- Negative FCF margin of -6.3% indicates the company is not converting revenue into actual cash despite profitability
- Minimal cash position (86K) creates vulnerability despite low absolute debt levels, limiting financial flexibility
- Extremely low ROE (6.6%) and ROA (4.2%) suggest inefficient capital deployment and limited returns to shareholders
- Negative operating cash flow and free cash flow raise concerns about earnings quality and working-capital pressure
- Cash balance is extremely low at $86K, limiting near-term financial flexibility
- Return metrics remain modest, with ROE of 6.6% and ROA of 4.2%, suggesting only moderate capital efficiency
Key Metrics to Watch
- Operating cash flow trend and reconciliation with net income to verify earnings quality
- Working capital components (receivables, inventory, payables) to identify source of cash flow deterioration
- Revenue growth and gross margin sustainability in upcoming periods
- Capital expenditure levels relative to depreciation and cash generation capacity
- Operating cash flow conversion relative to net income
- Revenue growth and operating margin trend
Frequency Electronics Inc. (FEIM) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Strong liquidity with a 2.60x 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 $0.59 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 Rating of HOLD from Claude (HOLD) and ChatGPT (HOLD) with 66% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are FEIM's key strengths?
Claude: Healthy gross margin of 38.1% demonstrates strong product pricing power and cost management. Fortress balance sheet with low leverage (0.14x Debt/Equity) and excellent interest coverage ratio of 50x. ChatGPT: Profitable operations with 38.1% gross margin and positive operating and net margins. Conservative leverage profile with 0.14x debt-to-equity and strong 50.0x interest coverage.
What are the risks of investing in FEIM?
Claude: Significant cash flow deterioration with negative operating cash flow (-779K) and free cash flow (-3.0M) despite positive net income suggests potential working capital strain or earnings quality concerns. Negative FCF margin of -6.3% indicates the company is not converting revenue into actual cash despite profitability. ChatGPT: Negative operating cash flow and free cash flow raise concerns about earnings quality and working-capital pressure. Cash balance is extremely low at $86K, limiting near-term financial flexibility.
What is FEIM's revenue and growth?
Frequency Electronics Inc. reported revenue of $47.8M.
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 $0.41.
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 rating reflects both perspectives for balanced insights.
Is FEIM a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Frequency Electronics Inc. has a HOLD rating with 66% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is FEIM stock overvalued or undervalued?
Valuation metrics for FEIM: ROE of 6.6% (sector avg: 10%), net margin of 8.4% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
Should I buy FEIM stock in 2026?
Our dual AI analysis gives Frequency Electronics Inc. a combined HOLD rating 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 $-779.0K, with capital expenditures of $2.3M. FCF margin is -6.3%.
How does FEIM compare to other Utilities stocks?
Vs Utilities sector averages: Net margin 8.4% (avg: 12%), ROE 6.6% (avg: 10%), current ratio 2.60 (avg: 0.8).