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Frequency Electronics Inc

Frequency Electronics Inc

FEIM
$65.90USD+17.41%+9.77 today

MARKET CAP

648.6M

P/E (TTM)

FWD P/E

58.5x

DAY RANGE

$54 – $67

52W RANGE

$20
$80

AI Summary

Stalk
Sell NowHigh

FEIM is in a Stage 4 downtrend with clear lower highs and lower lows, confirmed by a decisive support failure that broke the prior structural pivot. Short- and intermediate-term EMAs slope downward acting as resistance, reinforcing a bearish medium-term bias. Short-term execution conditions favor sell-side participation, warranting selling now into any rallies into the EMA9/21 or prior support-turned-resistance zone. The long-term uptrend remains intact but is under pressure from distribution dynamics.

  • Record backlog at $83M, with pipeline targeting $100M soon.
  • Q2 revenue reached $17.1M, +24% sequentially on $45M new contracts.
  • Negative earnings yield indicates potential overvaluation and earnings sustainability risk.
Full analysis →

The case for & against

Bull & Bear analysis

Bullish

Frequency Electronics, Inc. (NASDAQ: FEIM) is a leader in the high-tech defense and satellite sectors, focusing on precision time and frequency control solutions. The company is strategically positioned to leverage its advanced technologies such as quantum sensing and alternative navigation systems, catering primarily to defense and aerospace markets. Their offerings are critical for both military and civilian applications, with a growing focus on next-generation satellite communications.

Bull says

  • Record backlog at $83M, with pipeline targeting $100M soon.
  • Q2 revenue reached $17.1M, +24% sequentially on $45M new contracts.
  • Zero debt and $32M working capital, current ratio 2.6 supports R&D.
  • Investing in quantum sensing and alt navigation drives next-gen growth.
  • Rising defense budgets and satellite demand fuel contract pipeline.
  • Strong profitability metrics and rate sensitivity may boost returns if rates decline.

Bear says

  • Negative earnings yield indicates potential overvaluation and earnings sustainability risk.
  • Operating income fell to $1.3M from $3.5M last year on higher SG&A.
  • Revenue down to $16.9M from $18.9M YoY, driven by lower-margin contracts.
  • Contract execution delays create revenue volatility and postpone cash flows.
  • Elevated leverage risk from tech investments may strain financial health.
  • Weak growth factors and high short interest reflect bearish investor sentiment.

Investment themes with FEIM

Defense Tech +0.63%

ONDS · EH · UMAC

Earnings Call · Q2 2025 · Mgmt. Guidance

Updated 07-15-2026neutral

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