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.

Risk Analysis

Earnings have declined by -58.22% per year over past 5 years

Currently unprofitable and not forecast to become profitable over the next 3 years

Does not have a meaningful market cap ($84M)



Snowflake Analysis

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

Stable Share Price: FEIM has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.4%

FEIM

1.7%

US Electronic

1.5%

US Market


1 Year Return

-20.9%

FEIM

10.4%

US Electronic

20.1%

US Market

Return vs Industry: FEIM underperformed the US Electronic industry which returned 10.4% over the past year.

Return vs Market: FEIM underperformed the US Market which returned 20.1% over the past year.


Shareholder returns

FEIMIndustryMarket
7 Day-1.4%1.7%1.5%
30 Day-6.5%-4.7%1.4%
90 Day-10.4%2.4%8.7%
1 Year-20.9%-20.9%11.5%10.4%22.7%20.1%
3 Year-13.5%-13.5%37.4%33.6%50.1%40.5%
5 Year-25.1%-25.1%70.5%62.1%73.1%54.1%

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?

1.45x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate FEIM's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate FEIM's fair value to establish if it is undervalued.


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

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 (1.5x) compared to the US Electronic industry average (1.9x).


Next Steps

Future Growth

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

21.4%

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?

-58.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FEIM is currently unprofitable.

Growing Profit Margin: FEIM is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: FEIM is unprofitable, and losses have increased over the past 5 years at a rate of -58.2% 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 (14.6%).


Return on Equity

High ROE: FEIM has a negative Return on Equity (-14.07%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Frequency Electronics's financial position?


Financial Position Analysis

Short Term Liabilities: FEIM's short term assets ($49.1M) exceed its short term liabilities ($8.3M).

Long Term Liabilities: FEIM's short term assets ($49.1M) exceed its long term liabilities ($25.5M).


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 12.5%.


Balance Sheet

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

Debt Coverage by Assets: FEIM's debt is not covered by short term assets (assets are -2.7613258165268E+16x debt).


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: FEIM has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: FEIM has sufficient cash runway for 2.4 years if free cash flow continues to grow at historical rates of 17.3% each year.


Next Steps

Dividend

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


Dividend Yield vs Market

company0%marketbottom25%1.4%markettop25%3.7%industryaverage1.6%forecastin3Yearsn/a

Current dividend yield vs market & industry

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.


Stability and Growth of Payments

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

How experienced are the management team and are they aligned to shareholders interests?

1.8yrs

Average management tenure


CEO

Stan Sloane (69yo)

1.8yrs

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's total compensation ($USD522.48K) is about average for companies of similar size in the US market ($USD521.92K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Stanton Sloane
President1.8yrsUS$522.48k0.33% $278.1k
Oleandro Mancini
Senior Vice President of Business Development10.1yrsUS$308.74k0.20% $172.8k
Steven Bernstein
CFO, Secretary & Treasurer3.8yrsno datano data
Thomas McClelland
Senior VP & Chief Scientist0.08yrsUS$153.16k0.048% $40.3k
Walter Kaufmann
Chief Medical Officer1.1yrsno datano data
Steven Strang
President of FEI-Zyfer14.8yrsUS$200.90k0.12% $98.0k
James Davis
President of FEI-Elcom Tech Inc0yrsno datano data
Leonard Martire
Vice President of Program Management13.1yrsUS$299.80kno data
John Caulfield
Vice President of Manufacturing1.1yrsno datano data
Markus Hechler
Consultant1.1yrsUS$247.92k0.18% $151.7k

1.8yrs

Average Tenure

67yo

Average Age

Experienced Management: FEIM's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Stanton Sloane
President1.8yrsUS$522.48k0.33% $278.1k
Jonathan Brolin
Lead Independent Director1.8yrsUS$25.00kno data
Martin Bloch
Director59.1yrsUS$535.99k7.9% $6.7m
Joel Girsky
Independent Director33.3yrsUS$33.00k0.91% $765.2k
Richard Schwartz
Independent Director16.1yrsUS$29.00k0.11% $94.6k
Lance Lord
Independent Director3.4yrsUS$25.00k0.055% $46.4k
Russell Sarachek
Independent Director3.5yrsUS$25.00k4.49% $3.8m

3.5yrs

Average Tenure

72yo

Average Age

Experienced Board: FEIM's board of directors are considered experienced (3.5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: FEIM insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

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$84.353m
  • Shares outstanding: 9.10m
  • 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 segments, FEI-NY and FEI-Zyfer. The FEI-NY segment offers precision time, frequency generation, and synchronization products and subsystems used in communication satellites, terrestrial cellular telephone, or other ground-based telecommunication stations; and other components and systems for the United States military. The FEI-Zyfer segment designs, develops, and manufactures products for precision navigation and timing primarily incorporating global positioning system technologies into radar systems, airborne SIGINT/COMINT platforms, information networks, test equipment, military command and control terminals, and satellite ground stations. The company’s products are used in commercial, government satellite payload systems, secure communications, command, control, communication, computer, intelligence, security and reconnaissance, counter measures, and electronic warfare applications for the United States government on land, sea, and air-borne platforms. It markets its products directly and through independent sales representative organizations located in the United States, Europe, and Asia. Frequency Electronics, Inc. was founded in 1961 and is headquartered in Mitchel Field, New York. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/16 23:51
End of Day Share Price2020/02/14 00:00
Earnings2019/10/31
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.