olivLaw · US equity research
Frequency Electronics, Inc. FEIM
Instruments For Meas & Testing of Electricity & Elec Signals · SIC 3825 · Vertical: Instruments For Meas & Testing of Electricity & Elec Signals (SIC 3825)
Frequency Electronics designs and manufactures precision time and frequency generation systems used in commercial and government satellites, as well as in C4ISR and electronic warfare systems. In the first quarter of fiscal 2027 the company reported record revenue of 23.5 million USD, and its funded backlog reached 129 million USD.
At the close of 04 Nov 2026, Frequency Electronics, Inc. (FEIM) stock was 61.52 USD (−7.61% on the day), with market capitalisation 693.5 m USD, P/E 243.8 on diluted EPS of 0.25 USD over the last 12 months, dividend yield 0.33%, beta 1.77, 52-week range 27.07–89.00 USD. Latest reported quarter (Q1 2027): revenue of 23.5 m USD (+69.8% YoY), net income of 4.2 m USD (+565.0% YoY), diluted EPS 0.41 USD.
Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.
Price history
Loading chart…
Technical reading
- RSI (14)
- 36.8
- weak (30–45)
- Bollinger (20, 2)
- 60.41 – 76.30
- in the lower half of the band · %B 0.07 · band width 23.2%
- SMA 50 / 200
- 73.22 / 62.59
- mixed trend
- MACD (12, 26, 9)
- -2.81 / -2.51
- MACD below signal
Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).
Performance
| Company | S&P 500 | vs S&P 500 | Vertical median | |
|---|---|---|---|---|
| 1 month | −28.0% | −1.1% | −26.9 pp | — |
| 3 months | −13.4% | −0.5% | −12.9 pp | — |
| 6 months | +7.6% | +4.4% | +3.3 pp | — |
| Year to date | +14.3% | +12.3% | +1.9 pp | — |
| 1 year | +81.1% | +13.5% | +67.6 pp | +47.7% |
| 3 years | +714.8% | +76.4% | +638.4 pp | +50.8% |
| 5 years | +509.1% | +63.7% | +445.4 pp | — |
Price returns, dividends excluded.
Quarterly results
Latest quarter: Q1 2027 · 31 Jul 2026
Quarterly margins
Quarterly statements · USD
| Fiscal year | Q2 '25 | Q3 '25 | Q4 '25 | Q1 '26 | Q2 '26 | Q3 '26 | Q4 '26 | Q1 '27 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 15.8 m | 18.9 m | 20.0 m | 13.8 m | 17.1 m | 16.9 m | 15.4 m | 23.5 m |
| Cost of revenue | 8.2 m | 10.6 m | 12.5 m | 8.7 m | 10.6 m | 10.3 m | 15.2 m | 12.7 m |
| Gross profit | 7.6 m | 8.3 m | 7.5 m | 5.1 m | 6.5 m | 6.6 m | 152.0 k | 10.8 m |
| Research & development | 1.6 m | 1.4 m | 1.5 m | 1.1 m | 1.2 m | 1.8 m | 1.9 m | 1.4 m |
| SG&A | 3.4 m | 3.4 m | 2.7 m | 3.6 m | 3.6 m | 3.6 m | 4.6 m | 4.1 m |
| Operating income | 2.6 m | 3.5 m | 3.3 m | 364.0 k | 1.7 m | 1.3 m | -6.4 m | 5.2 m |
| Depreciation & amortisation | 550.0 k | 458.0 k | 586.0 k | 470.0 k | 433.0 k | 512.0 k | 479.0 k | 287.0 k |
| Interest expense | 27.0 k | 26.0 k | 25.0 k | 23.0 k | 22.0 k | 21.0 k | 20.0 k | 19.0 k |
| Pre-tax income | 2.8 m | 3.6 m | 3.2 m | 557.0 k | 1.8 m | 1.4 m | -6.7 m | 5.2 m |
| Income tax | 139.0 k | -11.8 m | 10.0 k | -77.0 k | -31.0 k | -127.0 k | -1.8 m | 1.0 m |
| Net income | 2.7 m | 15.4 m | 3.2 m | 634.0 k | 1.8 m | 1.6 m | -4.9 m | 4.2 m |
| Diluted EPS | 0.28 | 1.60 | 0.33 ≈ | 0.07 | 0.18 | 0.16 | -0.50 ≈ | 0.41 |
| Operating cash flow | 3.8 m ≈ | -3.6 m ≈ | -155.0 k | 1.2 m | -523.0 k ≈ | -1.4 m ≈ | 2.1 m | 2.6 m |
| Capex | 521.0 k ≈ | 329.0 k ≈ | 631.0 k | 776.0 k | 613.0 k ≈ | 865.0 k ≈ | 605.0 k | 844.0 k |
| Dividends paid | 9.6 m | 0 ≈ | 0 | — | — | 0 ≈ | 0 | — |
| Share repurchases | 100.0 k ≈ | 215.0 k ≈ | 0 | 583.0 k | 375.0 k ≈ | 616.0 k ≈ | 0 | 0 |
≈ derived quarter (cumulative difference / share-days average)
E/P over time
E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.
Today's P/E sits at the 100 percentile of its own 12-quarter history (min 7.0, median 19.5, max 229.7; quarters with earnings only).
Fiscal years
| Fiscal year | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 49.5 m | 41.5 m | 54.3 m | 48.3 m | 40.8 m | 55.3 m | 69.8 m | 63.2 m |
| Revenue YoY | +25.6% | −16.2% | +30.7% | −11.0% | −15.6% | +35.6% | +26.3% | −9.4% |
| Net income | -2.5 m | -10.0 m | 680.0 k | -8.7 m | -5.5 m | 5.6 m | 23.7 m | -903.0 k |
| Net income YoY | unavailable | unavailable | unavailable | −1,374.0% | unavailable | unavailable | +323.4% | −103.8% |
| Diluted EPS | unavailable | unavailable | unavailable | unavailable | unavailable | 0.59 | 2.46 | -0.09 |
| Diluted EPS YoY | unavailable | unavailable | unavailable | unavailable | unavailable | unavailable | +316.9% | −103.7% |
| net % | -5.1% | -24.2% | 1.3% | -17.9% | -13.5% | 10.1% | 33.9% | -1.4% |
| Free cash flow | -2.9 m | -2.9 m | 10.9 m | 2.2 m | 257.0 k | 7.2 m | -3.2 m | -1.6 m |
Reported results vs expectations
Loading…
Balance sheet & financial health
Fiscal year 2026 · 30 Apr 2026
- Cash
- 1.6 m USD
- Financial debt
- unavailable USD
- Net debt
- unavailable USD
- Equity
- 56.4 m USD
- Total assets
- 90.7 m USD
- Debt / equity
- unavailable
- Current ratio
- 2.29x
- ROE
- -1.6%
- ROA
- -1.0%
- FCF margin
- -2.5%
Financial statements (source on every figure)
Revenue and net income (USD)
Margins
Income statement · USD
| Line | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Revenue | 54.3 m | 48.3 m | 40.8 m | 55.3 m | 69.8 m | 63.2 m | SEC (XBRL)· 17 Jul 2026verified |
| Cost of revenue | 37.3 m | 39.7 m | 32.9 m | 36.7 m | 39.7 m | 44.8 m | SEC (XBRL)· 17 Jul 2026verified |
| Gross profit | 16.9 m | 8.6 m | 7.8 m | 18.6 m | 30.1 m | 18.4 m | SEC (XBRL)· 17 Jul 2026verified |
| Research & development | 4.7 m | 5.0 m | 3.1 m | 3.4 m | 6.1 m | 6.0 m | SEC (XBRL)· 17 Jul 2026verified |
| SG&A | 13.2 m | 11.7 m | 9.4 m | 10.2 m | 12.3 m | 15.4 m | SEC (XBRL)· 17 Jul 2026verified |
| Operating income | -958.0 k | -8.0 m | -4.7 m | 5.0 m | 11.7 m | -3.0 m | SEC (XBRL)· 17 Jul 2026verified |
| Depreciation & amortisation | 3.3 m | 3.0 m | 2.4 m | 2.1 m | 2.1 m | 1.9 m | SEC (XBRL)· 17 Jul 2026verified |
| EBITDA | 2.3 m ≈ | -5.0 m ≈ | -2.2 m ≈ | 7.1 m ≈ | 13.8 m ≈ | -1.1 m ≈ | SEC (XBRL)· 17 Jul 2026derived |
| Interest expense | 127.0 k | 77.0 k | 156.0 k | 109.0 k | 104.0 k | 87.0 k | SEC (XBRL)· 17 Jul 2026verified |
| Pre-tax income | 476.0 k | -8.7 m | -5.4 m | 5.5 m | 12.1 m | -2.9 m | SEC (XBRL)· 17 Jul 2026verified |
| Income tax | -204.0 k | 1.0 k | 74.0 k | -130.0 k | -11.5 m | -2.0 m | SEC (XBRL)· 17 Jul 2026verified |
| Net income | 680.0 k | -8.7 m | -5.5 m | 5.6 m | 23.7 m | -903.0 k | SEC (XBRL)· 17 Jul 2026verified |
| Diluted EPS | — | — | — | 0.59 | 2.46 | -0.09 | SEC (XBRL)· 17 Jul 2026verified |
| Weighted average diluted shares | 9.2 m | 9.3 m | 9.3 m | 9.4 m | 9.6 m | 9.8 m | SEC (XBRL)· 17 Jul 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating income + Depreciation & amortisation.
Balance sheet · USD
| Line | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Cash | 9.8 m | 11.6 m | 12.0 m | 18.3 m | 4.7 m | 1.6 m | SEC (XBRL)· 17 Jul 2026verified |
| Receivables | 5.5 m | 4.3 m | 4.6 m | 4.6 m | 5.9 m | 4.6 m | SEC (XBRL)· 14 Sept 2026verified |
| Inventories | 19.7 m | 19.9 m | 20.5 m | 23.4 m | 23.5 m | 22.6 m | SEC (XBRL)· 17 Jul 2026verified |
| Current assets | 61.2 m | 56.0 m | 48.3 m | 58.1 m | 53.1 m | 48.0 m | SEC (XBRL)· 17 Jul 2026verified |
| Property, plant & equipment, net | 9.6 m | 8.6 m | 7.1 m | 6.4 m | 6.2 m | 7.1 m | SEC (XBRL)· 17 Jul 2026verified |
| Goodwill | — | — | 617.0 k | 617.0 k | 617.0 k | 218.0 k | SEC (XBRL)· 17 Jul 2026verified |
| Total assets | 98.5 m | 84.8 m | 74.5 m | 83.3 m | 93.7 m | 90.7 m | SEC (XBRL)· 17 Jul 2026verified |
| Accounts payable | — | — | — | 2.3 m | — | — | SEC (XBRL)· 17 Mar 2025verified |
| Current liabilities | 20.6 m | 21.9 m | 27.3 m | 30.8 m | 23.5 m | 21.0 m | SEC (XBRL)· 17 Jul 2026verified |
| Total liabilities | 43.1 m | 38.1 m | 41.6 m | 43.4 m | 38.1 m | 34.3 m | SEC (XBRL)· 17 Jul 2026verified |
| Equity | 55.4 m † | 46.7 m † | 32.9 m † | 39.8 m † | 55.6 m † | 56.4 m † | SEC (XBRL)· 17 Jul 2026verified |
† equity attributable to the parent's shareholders: in these years the issuer no longer reports the total including non-controlling interests.
Cash flow · USD
| Line | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Operating cash flow | 12.2 m | 4.0 m | 1.2 m | 8.7 m | -1.4 m | 1.3 m | SEC (XBRL)· 17 Jul 2026verified |
| Capex | 1.2 m | 1.9 m | 918.0 k | 1.5 m | 1.8 m | 2.9 m | SEC (XBRL)· 17 Jul 2026verified |
| Free cash flow | 10.9 m ≈ | 2.2 m ≈ | 257.0 k ≈ | 7.2 m ≈ | -3.2 m ≈ | -1.6 m ≈ | SEC (XBRL)· 17 Jul 2026derived |
| Investing cash flow | -1.2 m | -2.3 m | 8.7 m | -1.5 m | -1.8 m | -2.9 m | SEC (XBRL)· 17 Jul 2026verified |
| Financing cash flow | -5.0 m | 0 | -9.4 m | 0 | -9.9 m | -1.6 m | SEC (XBRL)· 17 Jul 2026verified |
| Dividends paid | — | 0 | 9.4 m | 0 | 9.6 m | 0 | SEC (XBRL)· 17 Jul 2026verified |
| Share repurchases | — | — | — | 0 | 377.0 k | 1.6 m | SEC (XBRL)· 17 Jul 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating cash flow − Capex.
Computed indicators
Growth
Profitability
Returns
Balance sheet
Liquidity
Cash
Efficiency
Market and valuation
1 indicators that do not apply to the sector.
Valuation
olivLaw classification
- score weight coverage: 56.2% of at least 60%
A scoring methodology on indicators and valuation, not investment advice.
Closing price
04 Nov 2026Source: olivLaw, closing series
Market cap: 693.5 m USD
Key indicators
Coverage and freshness
Score by group
56% · Insufficient data
Estimated value range
The combined range = the median of the valid methods' low, central and high values; it is not a probability interval and does not cover every result. Envelope of all methods: 2.63 – 7.74 USD.
Valuation assumptions are editorial choices, not measured; beta is not measured.
Method ranges (USD per share)
— — Mid · ▏ Price
Valuation methods
- DCF (discounted cash flow)unavailable · net debt missing: EV cannot be bridged to equity (missing debt is not zero)
- Peers: EV/EBITDAunavailable · net debt missing: EV cannot be bridged to equity (missing debt is not zero)
- Peers: P/E6.49 – 7.74 (Mid 7.29)4 companies used · median multiple 28.9x · quartiles 25.7x – 30.7xALNT, ITRI, TER, VLTO
- Dividend discount (DDM)2.63 – 3.53 (Mid 3.01)
Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.
Assumptions (illustrative, editorial)
- Risk-free rate
- 4.3%
- Equity risk premium
- 5.0%
- Beta (default)
- 1.00
- Cost of equity
- 9.3%
- Terminal growth
- 2.5%
Factor scorecard
Insufficient data
Minimum-evidence gate: score weight coverage: 56.2% of at least 60%
| Factor | Value | Score | Weight used |
|---|---|---|---|
| ROIC · Quality | unavailable | unavailable | — |
| Net margin · Quality | 3.7% | 56 (vs peers) | 11% |
| FCF conversion · Quality | -6.9% | 0 (on a fixed band) | 11% |
| Revenue CAGR 3Y · Growth | 15.7% | 100 (on a fixed band) | 15% |
| EPS CAGR 3Y · Growth | unavailable | unavailable | — |
| Net debt / EBITDA · Balance sheet | unavailable | unavailable | — |
| Interest coverage · Balance sheet | 22.4x | 100 (on a fixed band) | 11% |
| Current ratio · Balance sheet | 5.3x | 100 (on a fixed band) | 7% |
| P/E (TTM) · Valuation | 243.8x | 17 (vs peers) | 19% |
| EV/EBITDA · Valuation | unavailable | unavailable | — |
| FCF yield · Valuation | -0.0% | 0 (on a fixed band) | 15% |
| Shareholder yield (distributions) · Returns | 0.1% | 2 (on a fixed band) | 11% |
| Payout ratio (FCF) · Returns | unavailable | unavailable | — |
Factors without a value were dropped; the remaining weights were renormalised.
Score groups
- Balance sheet100/100 · 2/3 factors with a value
- Growth· partial100/100 · 1/2 factors with a value
- Quality28/100 · 2/3 factors with a value
- Returns· partial2/100 · 1/2 factors with a value
- Valuation9/100 · 2/3 factors with a value
A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.
Memo
FREQUENCY ELECTRONICS, INC. (FEIM). Latest full fiscal year: 2026; data up to 2026-07-31.
Figures computed from the financial statements: revenue 63.2 m USD in 2026; YoY growth -9.4%; net margin 3.7%; ROE 3.0%.
The estimated value range is 4.56–5.64 USD per share (median of 2 methods, agreement: low); assumptions are illustrative. Against the central value of 5.15 USD, the price of 61.52 USD leaves a potential of -91.6% (value / price − 1) and a margin of safety of -1,094.4% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.
Insufficient data for a verdict (score weight coverage: 56.2% of at least 60%).
Text generated deterministically from the figures shown; no language model. Not investment advice.
What supports the thesis
- Revenue CAGR 3Y: 15.7%
- Interest coverage: 22.4x
- Current ratio: 5.3x
What contradicts it
- FCF conversion: -6.9%
- P/E (TTM): 243.8x
- FCF yield: -0.0%
- Shareholder yield (distributions): 0.1%
- The price is above the estimated value range
- The valuation methods diverge
Not assessed (insufficient data or a ratio without meaning): ROIC, EPS CAGR 3Y, Net debt / EBITDA, EV/EBITDA, Payout ratio (FCF).
Versus the vertical median
Instruments For Meas & Testing of Electricity & Elec Signals (SIC 3825) · same industry (4-digit SIC) · compared with 9 companies
Multiples and returns vs the median
Price rebased to 100 (monthly, 5 years)
Companies in the vertical
| Market cap | P/E | ROE | Net margin | Revenue YoY | 1A / 3A | |
|---|---|---|---|---|---|---|
| TERTeradyne, Inc. | 39.2 bn | 28.8 | 42.9% | 27.5% | +13.1% | +38% / +172% |
| VLTOVeralto Corporation | 28.5 bn | 28.9 | 33.0% | 17.3% | +6.0% | +16% / +51% |
| ITRIItron, Inc. | 4.5 bn | 16.4 | 16.5% | 12.1% | −3.0% | +3% / +51% |
| COHUCohu, Inc. | 2.1 bn | — | -2.8% | -4.0% | +12.7% | +81% / +39% |
| AEHRAehr Test Systems | 2.0 bn | — | -4.2% | -14.3% | −15.2% | +165% / +165% |
| ALNTAllient Inc | 1.4 bn | 35.8 | 12.1% | 6.2% | +4.6% | +48% / +205% |
| TRNSTranscat, Inc. | 1.0 bn | 226.7 | 1.5% | 1.3% | +19.2% | +91% / +10% |
| FEIMFrequency Electronics, Inc. | 693.5 m | 243.8 | 3.0% | 3.7% | −9.4% | +81% / +715% |
| INTTinTest Corporation | 175.9 m | 335.2 | 0.6% | 0.5% | −12.9% | +74% / +7% |
| DAIOData I | 25.2 m | — | -61.2% | -50.1% | −1.2% | −16% / −16% |
1- and 3-year price returns: for FEIM from daily closes (the same as the performance table), for the other companies from month-end closes.
olivLaw engine forecast
The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.
The engine has no published run for this company yet.
Valuation scenarios (editable assumptions)
Illustrative scenarios
Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.
Estimated price (USD)
| Estimated price | Bear | Base | Bull |
|---|---|---|---|
| 1 years | 37.86 Total return -38% · Per year -38% | 66.63 Total return 8% · Per year 8% | 99.94 Total return 62% · Per year 62% |
| 3 years | 44.91 Total return -27% · Per year -10% | 88.12 Total return 43% · Per year 13% | 143.92 Total return 134% · Per year 33% |
| 5 years | 53.27 Total return -13% · Per year -3% | 116.54 Total return 89% · Per year 14% | 207.24 Total return 237% · Per year 27% |
- Exit P/E± 22.03
- Net margin± 15.42
- Annual revenue growth± 11.50
- Annual dilution± 1.30
AI analysis
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
In brief
Frequency Electronics designs and manufactures precision time and frequency generation systems used in commercial and government satellites, as well as in C4ISR and electronic warfare systems. In the first quarter of fiscal 2027 the company reported record revenue of 23.5 million USD, and its funded backlog reached 129 million USD 3.
SWOT
Strengths
- The company holds a recognized leadership position in precision time and frequency technology, with over one hundred awards of excellence received 3.
- Funded backlog has grown considerably and gives visibility into future revenue, while the company reported rising gross and operating margins 23.
- The company carries no debt, and a recent secondary offering significantly strengthened its balance sheet 3.
Weaknesses
- Heavy dependence on government contracts and a few large customers exposes the company to shifts in priorities or program cancellations 1.
- Revenue in fiscal 2026 declined, and gross margin was under pressure from investments and unusual charges 1.
- Fixed-price contracts shift cost overrun risk to the company, and contract estimates can be difficult to make accurately 1.
Opportunities
- The ALT-PNT, quantum sensing, space defense and proliferated satellite markets are extensions the company is actively targeting 1.
- If revenue growth continues, the company could reach its revenue targets set for fiscal 2029 3.
- Growing demand for secure communications and jamming resistance could open new government contracts 1.
Risks
- Dependence on the U.S. Governmenthigh
Government programs may be partially funded, reduced or delayed, and the loss of a major program could significantly affect revenue 1.
- Customer concentrationhigh
A small number of large customers account for a significant share of sales, and losing one of them could have a material impact 1.
- Contract estimatesmedium
Fixed-price contracts and cost estimates can lead to profitability adjustments if costs rise or technical problems arise 1.
- Product defectsmedium
A defect in a component integrated into a satellite could lead to the complete loss of the satellite, with consequences for reputation and business 1.
- Specialized workforcemedium
The company depends on engineers and physicists with long experience, and the retirement of key employees could affect production capacity 1.
Investment thesis
What would need to be true (bull case)
- If revenue growth from the first quarter is sustained, the company could show that its cost base and margins are sound, with record revenue and a growing backlog 23.
- A debt-free balance sheet and the proceeds from the offering could support capacity investments and entry into new markets without additional financing 3.
- Expansion into quantum sensors and jamming-resistant PNT solutions could open markets much larger than the traditional ones 1.
What would break the thesis
- Revenue in fiscal 2026 declined, and the first-quarter growth could prove temporary if scheduled projects do not materialize as planned 13.
- Dependence on government funding and a few customers could amplify the impact of any budget delay or shift in priorities 1.
- Margins could come under pressure again if labor, component or investment costs rise faster than revenue 1.
What to watch
- Development of funded backlog and new ordersQ2 2027
- Gross and operating margins compared with the first-quarter levelQ2 2027
- Progress toward the revenue target for fiscal 20292027
- Use of offering proceeds and operating cash flownext 10-K
Products, market & competition
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
The business
Frequency Electronics, Inc. describes itself as a world leader in precision time and frequency generation technology, incorporated into commercial and U.S. Government satellites, C4ISR and electronic warfare systems 1. Founded in 1961 as a research and development firm, its present mission is to provide precision time and low phase noise frequency generation systems from 1 Hz to 46 GHz 1. Since April 30, 2026, FEI-Elcom has been converted into a Delaware limited liability company, with its operations continuing under the FEI-NY segment 1.
The company operates through two reportable segments, FEI-NY and FEI-Zyfer, primarily aligned with the geographic locations of its subsidiaries, and focuses strategically on satellite payloads, C4ISR and electronic warfare 1. Sales are mainly made to the U.S. Government, directly or through subcontracts, with many contracts on a fixed-price basis 1. Beyond the space market, the company has recently begun selling quantum sensing products, including magnetometers 1.
Its major customers include Lockheed Martin, L3Harris and Boeing, each accounting for more than 10% of consolidated revenue in fiscal 2026 1. The company is not dependent on any single supplier, but relies on a limited number of suppliers for space-qualified parts 1.
Segments
FEI-NY
The FEI-NY segment, headquartered in Long Island, New York, designs and manufactures electronics for U.S. Government and commercial satellites, as well as products for the U.S. military and telecom customers. It generated approximately 72% of consolidated revenue in fiscal 2026 1.
FEI-Zyfer
The FEI-Zyfer segment, based in California, designs products for secure positioning, navigation and timing (PNT) based on GPS, integrated into radar systems, airborne SIGINT platforms and military command terminals. More than 95% of its revenue comes from sales where the end user is the U.S. Government 1.
Market context
The company serves markets in which over 14,000 U.S. satellites operate in geostationary, medium and low Earth orbits, and the number of high-throughput satellites is expected to grow 1. Revenue from government satellite programs fell from 53% to 31% of total revenue in fiscal 2026, while non-space U.S. Government and DOW revenue rose 12.
The U.S. defense and electronic warfare market is dominated by government funding, which can be delayed by budget cycles and political disputes over appropriations 1. If demand for jamming-resistant PNT keeps growing, the company could benefit from its ALT-PNT and quantum sensing programs 1.
Trends
- Rising demand for resilient PNTtailwind
Threats to GPS signals through jamming and spoofing could increase demand for precision clocks and ALT-PNT solutions, areas where the company has experience 1.
- Quantum sensorstailwind
Quantum sensors, including magnetometers, are a new market that uses the physics behind atomic clocks, and the company sees it as a natural extension of its activity 1.
- Government budget uncertaintyheadwind
Budget delays, government shutdowns and spending cuts could postpone or cancel programs, affecting the company's revenue 1.
- Inflation and supply chain pressuresmixed
Higher labor costs, supplier delays and price pressures could weigh on fixed-price contract margins, although the company reported a recovery in gross margin in the first quarter 12.
Competitive position
The company operates in a highly competitive industry in which many competitors are larger, have greater financial resources and larger research and development staffs 1. Major customers and prime contractors also have in-house capabilities that could allow them to develop comparable products 1.
Competition also comes from less expensive, lower-performance products aimed at commercial low Earth orbit constellations, which could reduce the company's market share 1. Competitors with volume contracts may offer more aggressive pricing 1.
- Major U.S. defense prime contractors acting as system integrators
Major customers of the company, such as Lockheed Martin, L3Harris and Boeing, could develop or source comparable products in-house, which is a form of indirect competition 1.
- Commercial suppliers of atomic clocks and oscillators
Larger competitors with broader research and development resources may offer rival technologies for satellites and defense systems 1.
- Makers of navigation and electronic warfare systems
Companies developing GPS and electronic warfare solutions compete with the FEI-Zyfer segment for defense contracts 1.
- Makers of components for commercial satellites
As commercial constellations grow, lower-cost satellite component makers could gain market share 1.
Links, dependencies and risks
Who the company is tied to, from its own SEC filings (customers, suppliers, production, partners, competitors, countries, regulation), from the 5 %+ holders' statements (13D/13G) and from what other companies say about it. Click a node for its evidence; on a listed company the graph moves to it.
Loading the links…
News & filings
In the press
- Tiny plasma-grown particles enable easier magnetization reversal in materials for high-frequency electronicsPhys.org · 07 Oct 2026 · EN
- Frequency Electronics (FEIM) Soars After Record RevenueYahoo Finance — News · 12 Sept 2026 · EN
- Frequency Electronics Q1 Revenue Rises 70% to Record $23.5 MillionYahoo Finance — News · 11 Sept 2026 · EN
- Frequency Electronics Q1 Earnings Call HighlightsYahoo Finance — News · 10 Sept 2026 · EN
The latest news item in our archive is from 07 Oct 2026; the newest SEC filing is from 21 Oct 2026. The press archive comes from the RSS feeds we follow and does not necessarily cover the latest event — the filings alongside do.
SEC filings
- Current report21 Oct 2026Departure or appointment of officers · Regulation FD disclosure · Financial statements and exhibits
- Current report08 Oct 2026Shareholder vote
- Quarterly report14 Sept 2026
- Current report10 Sept 2026Results of operations · Financial statements and exhibits
- Proxy statement28 Aug 2026
- Current report05 Aug 2026Other events · Financial statements and exhibits
- Current report30 Jul 2026Material agreement · Financial statements and exhibits
- Annual report17 Jul 2026
- Current report15 Jul 2026Results of operations · Financial statements and exhibits
- Current report12 Jun 2026Material agreement · Creation of a direct financial obligation · Financial statements and exhibits
Sources
- [1] Form 10-K, fiscal year ended 2026-04-30 · SEC / Frequency Electronics, Inc. · 17 Jul 2026
- [2] Form 10-Q, quarter ended 2026-07-31 · SEC / Frequency Electronics, Inc. · 14 Sept 2026
- [3] Form 8-K, results release (exhibit 99.1) · SEC / Frequency Electronics, Inc. · 10 Sept 2026
Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.