NasdaqGM:FEIM

Stock Analysis Report

Frequency Electronics

Executive Summary

Frequency Electronics, Inc. designs, develops, manufactures, and sells precision time and frequency control products and components for microwave integrated circuit applications.

Snowflake

Fundamentals

Flawless balance sheet and overvalued.


Similar Companies

Share Price & News

How has Frequency Electronics's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-0.4%

FEIM

4.0%

US Electronic

1.8%

US Market


1 Year Return

5.3%

FEIM

13.3%

US Electronic

7.3%

US Market

Return vs Industry: FEIM underperformed the US Electronic industry which returned 13.3% over the past year.

Return vs Market: FEIM matched the US Market which returned 7.3% over the past year.


Shareholder returns

FEIMIndustryMarket
7 Day-0.4%4.0%1.8%
30 Day-0.3%1.1%-0.7%
90 Day-4.5%4.2%0.06%
1 Year5.3%5.3%14.4%13.3%9.7%7.3%
3 Year16.8%16.8%54.7%50.4%46.3%36.9%
5 Year1.2%1.2%88.7%79.6%64.5%46.5%

Price Volatility Vs. Market

How volatile is Frequency Electronics's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Frequency Electronics undervalued compared to its fair value and its price relative to the market?

1.66x

Price to Book (PB) ratio


Share Price vs. Fair Value

Undervalued: FEIM ($11.55) is trading above our estimate of fair value ($0.04)

Significantly Undervalued: FEIM is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: FEIM is unprofitable, so we can't compare its PE Ratio to the Electronic industry average.

PE vs Market: FEIM is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

Low PEG Ratio: Insufficient data to calculate FEIM's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: FEIM is good value based on its PB Ratio (1.7x) compared to the US Electronic industry average (2x).


Next Steps

Future Growth

How is Frequency Electronics forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

21.0%

Forecasted Tech industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Frequency Electronics has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Frequency Electronics performed over the past 5 years?

-64.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: FEIM is unprofitable, and losses have increased over the past 5 years at a rate of -64.1% per year.

Accelerating Growth: Unable to compare FEIM's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: FEIM is unprofitable, making it difficult to compare its past year earnings growth to the Electronic industry (58.6%).


Return on Equity

High ROE: FEIM has a negative Return on Equity (-5.01%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: FEIM is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: FEIM is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is Frequency Electronics's financial position?


Financial Position Analysis

Short Term Liabilities: FEIM's short term assets ($51.5M) exceeds its short term liabilities ($6.5M)

Long Term Liabilities: FEIM's short term assets (51.5M) exceeds its long term liabilities (25.8M)


Debt to Equity History and Analysis

Debt Level: FEIM is debt free.

Reducing Debt: FEIM has no debt compared to 5 years ago when its debt to equity ratio was 13.8%.


Balance Sheet

Inventory Level: FEIM has a high level of physical assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if FEIM's debt is covered by short term assets.


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable FEIM has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: FEIM is unprofitable but has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by -28.5% per year.


Next Steps

Dividend

What is Frequency Electronics's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

company0%marketbottom25%1.5%markettop25%3.7%industryaverage1.5%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: Unable to evaluate FEIM's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate FEIM's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.

Stable Dividend: Insufficient data to determine if FEIM's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if FEIM's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: FEIM is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of FEIM's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

What is the CEO of Frequency Electronics's salary, the management and board of directors tenure and is there insider trading?

2.5yrs

Average management tenure


CEO

Stan Sloane (69yo)

1.4yrs

Tenure

US$522,475

Compensation

Dr. Stanton David Sloane, also known as Stan, has been President and Chief Executive Officer of Frequency Electronics, Inc. since May 1, 2018 and had served as its Chief Operating Officer from September 13 ...


CEO Compensation Analysis

Compensation vs. Market: Stan has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the US market.

Compensation vs Earnings: Stan's compensation has increased whilst the company is unprofitable.


Management Age and Tenure

2.5yrs

Average Tenure

69.5yo

Average Age

Experienced Management: FEIM's management team is considered experienced (2.5 years average tenure).


Board Age and Tenure

3.2yrs

Average Tenure

72yo

Average Age

Experienced Board: FEIM's board of directors are considered experienced (3.2 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$115,65124 Sep 19
Edenbrook Capital Partners, LLC
EntityCompany
Shares10,000
Max PriceUS$11.57
BuyUS$118,14119 Sep 19
Edenbrook Capital Partners, LLC
EntityCompany
Shares10,428
Max PriceUS$11.60
BuyUS$31,94129 Jul 19
Edenbrook Capital Partners, LLC
EntityCompany
Shares2,700
Max PriceUS$11.83
BuyUS$62,40923 Jul 19
Edenbrook Capital Partners, LLC
EntityCompany
Shares5,206
Max PriceUS$11.99
BuyUS$251,49604 Apr 19
Edenbrook Capital Partners, LLC
EntityCompany
Shares21,500
Max PriceUS$11.70
BuyUS$12,45902 Apr 19
Edenbrook Capital Partners, LLC
EntityCompany
Shares1,061
Max PriceUS$11.77
BuyUS$2,44328 Mar 19
Edenbrook Capital Partners, LLC
EntityCompany
Shares211
Max PriceUS$11.58
BuyUS$15,94621 Mar 19
Edenbrook Capital Partners, LLC
EntityCompany
Shares1,389
Max PriceUS$11.48
BuyUS$43,29519 Mar 19
Edenbrook Capital Partners, LLC
EntityCompany
Shares3,716
Max PriceUS$11.87
BuyUS$39,11514 Jan 19
Edenbrook Capital Partners, LLC
EntityCompany
Shares3,784
Max PriceUS$10.45
BuyUS$56,37203 Jan 19
Edenbrook Capital Partners, LLC
EntityCompany
Shares5,515
Max PriceUS$10.66
BuyUS$19,18531 Dec 18
Russell Sarachek
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,986
Max PriceUS$9.66
BuyUS$29,07028 Dec 18
Edenbrook Capital Partners, LLC
EntityCompany
Shares3,000
Max PriceUS$9.69
BuyUS$38,88030 Oct 18
Martin Bloch
EntityIndividual
Role
Chairman of the Board
Executive Chairman & Chief Scientist
Shares3,600
Max PriceUS$10.80

Ownership Breakdown


Management Team

  • Martin Bloch (83yo)

    Executive Chairman & Chief Scientist

    • Tenure: 1.4yrs
    • Compensation: US$535.99k
  • Markus Hechler (73yo)

    Consultant

    • Tenure: 0.8yrs
    • Compensation: US$247.92k
  • Leonard Martire (82yo)

    Vice President of Program Management

    • Tenure: 12.8yrs
    • Compensation: US$299.80k
  • Oleandro Mancini (70yo)

    Senior Vice President of Business Development

    • Tenure: 9.8yrs
    • Compensation: US$308.74k
  • Stan Sloane (69yo)

    President

    • Tenure: 1.4yrs
    • Compensation: US$522.48k
  • Steve Strang (55yo)

    President of FEI-Zyfer

    • Tenure: 14.4yrs
    • Compensation: US$200.90k
  • Jim Davis (65yo)

    President of FEI-Elcom Tech Inc

    • Tenure: 0yrs
  • Steve Bernstein (54yo)

    CFO, Secretary & Treasurer

    • Tenure: 3.5yrs
  • John Caulfield

    Vice President of Manufacturing

    • Tenure: 0.8yrs
  • Walter Kaufmann

    Chief Medical Officer

    • Tenure: 0.8yrs

Board Members

  • Jonathan Brolin (46yo)

    Lead Independent Director

    • Tenure: 1.4yrs
    • Compensation: US$25.00k
  • Martin Bloch (83yo)

    Executive Chairman & Chief Scientist

    • Tenure: 1.4yrs
    • Compensation: US$535.99k
  • Joel Girsky (79yo)

    Independent Director

    • Tenure: 33yrs
    • Compensation: US$33.00k
  • Richard Schwartz (84yo)

    Independent Director

    • Tenure: 15.8yrs
    • Compensation: US$29.00k
  • Stan Sloane (69yo)

    President

    • Tenure: 1.4yrs
    • Compensation: US$522.48k
  • Lance Lord (72yo)

    Independent Director

    • Tenure: 3.1yrs
    • Compensation: US$25.00k
  • Russell Sarachek (56yo)

    Independent Director

    • Tenure: 3.2yrs
    • Compensation: US$25.00k

Company Information

Frequency Electronics, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Frequency Electronics, Inc.
  • Ticker: FEIM
  • Exchange: NasdaqGM
  • Founded: 1961
  • Industry: Electronic Equipment and Instruments
  • Sector: Tech
  • Market Cap: US$104.423m
  • Shares outstanding: 9.04m
  • Website: https://freqelec.com

Number of Employees


Location

  • Frequency Electronics, Inc.
  • 55 Charles Lindbergh Boulevard
  • Mitchel Field
  • New York
  • 11553
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
FEIMNasdaqGM (Nasdaq Global Market)YesCommon StockUSUSDJan 1980

Biography

Frequency Electronics, Inc. designs, develops, manufactures, and sells precision time and frequency control products and components for microwave integrated circuit applications. It operates through two se ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/17 23:35
End of Day Share Price2019/10/17 00:00
Earnings2019/07/31
Annual Earnings2019/04/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.