FREQUENCY ELECTRONICS INC
FEIM · Instruments For Meas & Testing of Electricity & Elec Signals · 9.8M shares · +0%/yr ↑ dilution · EDGAR filings ↗
Reference price $15.78 · est. market cap ~$155M — last insider purchase, 2025-03-27 (estimated from the dated SEC Form 4 price × shares outstanding — not a live quote)
Grade
B80Niche precision time/frequency defense supplier posting outstanding returns, tempered by small scale and cash constraints.
Strengths
- Top-decile ROE (42.6%), ROA (100th pct), net margin (33.9%) and operating margin (87.5th); revenue up 26%
- Strong backlog in satellite/C4ISR programs and excellent interest coverage
Risks
- Net income inflated by a one-time valuation-allowance release; OCF and FCF were negative with only $4.7M cash (5.8 quarters runway)
- Heavy U.S. government (94%) and customer concentration (Northrop) on largely fixed-price contracts
Notable findings
- Cash burnNegative free cash flow (-3.2M)
- Customer concentration~96% of revenue from one customer/distributor — In fiscal 2025, 96% of our sales were derived from fixed-price contracts
Quarterly revenue
Last 4 quarters · from SEC filings.
Key metrics
Gross margin
43.1%
Operating margin
16.8%
Net margin
33.9%
Return on equity
42.6%
Return on assets
25.3%
Revenue growth (QoQ)
-1.4%
Net-income growth
323.4%
Interest coverage
112.8×
Current ratio
2.3×
Free cash flow
-$3M
EBITDA
$14M
Tangible book value
$55M
Cash & investments
$5M
Cash runway
6q
Stock comp / revenue
1.7%
Insider transactions · last 18 months
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| 2025-04-23 | MCCLELLAND THOMAS | Option exercise | 8.0K | $13.24 |
| 2025-04-23 | MCCLELLAND THOMAS | Tax withheld | 5.9K | $18.03 |
| 2025-04-23 | MANCINI OLEANDRO | Option exercise | 10K | $13.24 |
| 2025-04-23 | MANCINI OLEANDRO | Tax withheld | 7.3K | $18.03 |
| 2025-04-17 | SCHWARTZ RICHARD | Option exercise | 10K | $13.24 |
| 2025-04-17 | SCHWARTZ RICHARD | Tax withheld | 7.7K | $17.28 |
| 2025-03-27 | Sarachek Russell M | Buy | 2.0K | $15.78 |
| 2025-03-27 | Sarachek Russell M | Buy | 198 | $15.70 |
| 2025-03-19 | Sarachek Russell M | Buy | 1.6K | $15.62 |
All non-derivative Form 4 activity (SEC), newest first.
Supply chain
Customers (2)
- U.S. Government 94% of rev
- Northrop Grumman
Suppliers (1)
- Morion, Inc.
Named in the 10-K; linked when we track them.
Notable events (8-K)
| Date | Items | |
|---|---|---|
| 2026-06-12 | Material agreementDebt obligationExhibits | filing ↗ |
| 2026-03-11 | ResultsExhibits | filing ↗ |
| 2025-12-11 | ResultsExhibits | filing ↗ |
| 2025-10-09 | Shareholder vote | filing ↗ |
| 2025-09-11 | ResultsOtherExhibits | filing ↗ |
| 2025-07-10 | ResultsExhibits | filing ↗ |
| 2025-03-13 | ResultsExhibits | filing ↗ |
| 2024-12-10 | ResultsExhibits | filing ↗ |
Recent filings
| Form | Filed | Period | Accession |
|---|---|---|---|
| 8-K | 2026-06-12 | 2026-06-12 | 0001185185-26-002498 ↗ |
| 10-Q | 2026-03-17 | 2026-01-31 | 0001185185-26-000893 ↗ |
| 8-K | 2026-03-11 | 2026-03-11 | 0001185185-26-000840 ↗ |
| 10-Q | 2025-12-15 | 2025-10-31 | 0001185185-25-002057 ↗ |
| 8-K | 2025-12-11 | 2025-12-11 | 0001185185-25-002022 ↗ |
| 8-K | 2025-10-09 | 2025-10-08 | 0001185185-25-001405 ↗ |
| 10-Q | 2025-09-15 | 2025-07-31 | 0001185185-25-001203 ↗ |
| 8-K | 2025-09-11 | 2025-09-09 | 0001185185-25-001174 ↗ |
| 10-K | 2025-07-18 | 2025-04-30 | 0001185185-25-000806 ↗ |
| 8-K | 2025-07-10 | 2025-07-10 | 0001185185-25-000752 ↗ |
| 10-Q | 2025-03-17 | 2025-01-31 | 0001185185-25-000189 ↗ |
| 8-K | 2025-03-13 | 2025-03-13 | 0001185185-25-000178 ↗ |