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 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

-2.3%

FEIM

2.0%

US Electronic

2.0%

US Market


1 Year Return

-9.9%

FEIM

27.4%

US Electronic

23.6%

US Market

Return vs Industry: FEIM underperformed the US Electronic industry which returned 30.2% over the past year.

Return vs Market: FEIM underperformed the US Market which returned 24.7% over the past year.


Shareholder returns

FEIMIndustryMarket
7 Day-2.3%2.0%2.0%
30 Day3.3%2.9%3.9%
90 Day-14.5%11.2%12.0%
1 Year-9.9%-9.9%28.7%27.4%26.2%23.6%
3 Year-11.1%-11.1%54.6%50.3%53.2%43.3%
5 Year-14.9%-14.9%90.0%80.5%75.7%56.3%

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?

1.55x

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 (1.6x) compared to the US Electronic industry average (2.1x).


Next Steps

Future Growth

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

23.0%

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?

-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 (53.6%).


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 reduce at historical rates of -32.9% 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%industryaverage1.4%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

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

2.7yrs

Average management tenure


CEO

Stan Sloane (69yo)

1.7yrs

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 ($USD522.48K) is about average for companies of similar size in the US market ($USD519.76K).

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


Management Age and Tenure

2.7yrs

Average Tenure

69.5yo

Average Age

Experienced Management: FEIM's management team is considered experienced (2.7 years average tenure).


Board Age and Tenure

3.4yrs

Average Tenure

72yo

Average Age

Experienced Board: FEIM's board of directors are considered experienced (3.4 years average tenure).


Insider Trading

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


Recent Insider Transactions

BuyUS$28,24909 Jan 20
Edenbrook Capital Partners, LLC
EntityCompany
Shares2,786
Max PriceUS$10.14
BuyUS$128,44706 Jan 20
Edenbrook Capital Partners, LLC
EntityCompany
Shares12,561
Max PriceUS$10.24
BuyUS$214,44219 Dec 19
Edenbrook Capital Partners, LLC
EntityCompany
Shares23,000
Max PriceUS$9.46
BuyUS$207,85017 Dec 19
Edenbrook Capital Partners, LLC
EntityCompany
Shares22,300
Max PriceUS$9.34
BuyUS$94,34016 Dec 19
Stanton Sloane
EntityIndividual
Role
Chief Executive Officer
President
Shares10,000
Max PriceUS$9.53
BuyUS$528,29016 Dec 19
Edenbrook Capital Partners, LLC
EntityCompany
Shares56,271
Max PriceUS$9.45
BuyUS$6,74530 Oct 19
Edenbrook Capital Partners, LLC
EntityCompany
Shares598
Max PriceUS$11.28
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

Ownership Breakdown

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


Management Team

  • Martin Bloch (83yo)

    Executive Chairman & Chief Scientist

    • Tenure: 1.7yrs
    • Compensation: US$535.99k
  • Markus Hechler (73yo)

    Consultant

    • Tenure: 1yrs
    • Compensation: US$247.92k
  • Leonard Martire (82yo)

    Vice President of Program Management

    • Tenure: 13yrs
    • Compensation: US$299.80k
  • Oleandro Mancini (70yo)

    Senior Vice President of Business Development

    • Tenure: 10yrs
    • Compensation: US$308.74k
  • Stan Sloane (69yo)

    President

    • Tenure: 1.7yrs
    • Compensation: US$522.48k
  • Steve Strang (55yo)

    President of FEI-Zyfer

    • Tenure: 14.7yrs
    • Compensation: US$200.90k
  • Jim Davis (65yo)

    President of FEI-Elcom Tech Inc

    • Steve Bernstein (54yo)

      CFO, Secretary & Treasurer

      • Tenure: 3.8yrs
    • John Caulfield

      Vice President of Manufacturing

      • Tenure: 1yrs
    • Walter Kaufmann

      Chief Medical Officer

      • Tenure: 1yrs

    Board Members

    • Jonathan Brolin (46yo)

      Lead Independent Director

      • Tenure: 1.7yrs
      • Compensation: US$25.00k
    • Martin Bloch (83yo)

      Executive Chairman & Chief Scientist

      • Tenure: 1.7yrs
      • Compensation: US$535.99k
    • Joel Girsky (79yo)

      Independent Director

      • Tenure: 33.3yrs
      • Compensation: US$33.00k
    • Richard Schwartz (84yo)

      Independent Director

      • Tenure: 16yrs
      • Compensation: US$29.00k
    • Stan Sloane (69yo)

      President

      • Tenure: 1.7yrs
      • Compensation: US$522.48k
    • Lance Lord (72yo)

      Independent Director

      • Tenure: 3.3yrs
      • Compensation: US$25.00k
    • Russell Sarachek (56yo)

      Independent Director

      • Tenure: 3.4yrs
      • 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$90.235m
    • 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 Analysis2020/01/18 23:35
    End of Day Share Price2020/01/17 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.