Frequency Electronics, Inc. (FEIM)
NASDAQInformation TechnologyCommunication EquipmentSnapshot 2026-09-04
$60.67+1.30%
Close 2026-09-04 · 1-day change
NASDAQInformation TechnologyCommunication EquipmentSnapshot 2026-09-04
QuarterlyIQ Insights · FEIM
What must go right, what could break, what the price assumes, and what evidence comes next.
The current health of the standing investment case.
Recent financial performance sits below its industry cohort — worth keeping an eye on, though it has not freshly broken.
One-year growth currently built into the price, compared with our model's estimate.
| Measure | Marker shape | Value |
|---|---|---|
| Growth built into the price | circle | 199.0% |
| Our one-year growth estimate | diamond | 38.5% |
For each item: what to watch, what would become a concern, and what would make it less concerning.
A reporting-risk estimate, not a forecast of the stock-price response.
Historical relationships that met the evidence threshold. They do not prove cause or forecast a move.
Usually moved in the same direction.
Price observations: 365 days
Most sensitive to the broad stock market.
Based on historical daily prices through 2026-09-04.
Past price behavior in dollars on a $10,000 position. This does not measure permanent business risk.
How much price usually moves either way.
Use the underlying financial and sector pages to investigate the cause.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
Growth built into the price is above our model estimate.
The price assumes 160.5 percentage points more one-year growth.
The one-year revenue growth assumption on Valuation.
Elevated risk of a next-quarter earnings miss: this name has been missing across recent quarters and is on a run of consecutive earnings misses. A fundamental tilt, not a price call.
Model as of 2026-09-04 · Compared with 23 industry peers
FEIM — debt issuance
Dated 2026-07-30
Entry into a Material Definitive Agreement. On July 30, 2026, Frequency Electronics, Inc. (the “Company”) completed an offering (the “Offering”) of 1,739,131 shares of the Company’s common stock, par value $1.00 per share (“Common Stock”), pursuant to an underwriting agreement (the “Underwriting Agreement”) among the Company, Edenbrook Value Fund, LP and Edenbrook Long Only Value Fund, LP, as selling stockholders (the “Selling Stockholders”), and Morgan Stanley & Co. LLC, as representative of…
Why it matters: The new credit facility may improve cash flow and support growth plans. Monitoring its use is key.
Supportive ifThe company says it will use at least $5 million from the credit facility for growth.
Worry ifThe company does not use the credit facility or says it has cash flow problems.
Why it matters: Growing backlog shows strong future revenue potential and demand.
Supportive ifBacklog exceeds $111 million in Q1, indicating strong demand and order book growth.
Worry ifBacklog drops below $111 million in Q1. This suggests weaker demand.
Why it matters: Better operating margins are key to hitting the 30% goal by Fiscal 2029.
Supportive ifOperating margin for Q1 Fiscal 2027 rises to at least 1%. This shows progress.
Worry ifOperating margin for Q1 Fiscal 2027 stays negative. This shows ongoing challenges.
Why it matters: Winning big contracts is important for Frequency Electronics' growth. It can greatly increase revenue.
Supportive ifA contract worth over $5 million has been announced.
Worry ifNo new large contract announcements in the next quarter.
We watch for confirming and disproving signals on each item. Resolutions are found automatically where possible and checked by hand for unclear cases. Last 90 days shown.
A larger daily loss that occurred about once in every 20 trading days.
Deepest peak-to-trough drop in the last year.
| Measure | Value | Meaning |
|---|---|---|
| Typical day | ±$364 on $10,000 · ±3.6% | How much price usually moves either way. |
| Bad day | $681 loss on $10,000 · 6.8% | A larger daily loss that occurred about once in every 20 trading days. |
| Largest peak-to-trough drop in the past year | $3,302 loss on $10,000 · 33.0% | Deepest peak-to-trough drop in the last year. |
Past year. 1.00 means similar movement; 1.20 means about 20% more.
Past year. 1.00 means similar movement to the sector. This is secondary context.
Latest 30 trading days, shown as an annual percentage.
Latest 252 trading days, shown as an annual percentage.
20-trading-day average in US dollars.
Trading days used by the source risk snapshot.
Past results, not a forecast. Not investment advice.
Why it matters: A 30% operating margin is needed for growth. It shows how well the company manages costs.
Supportive ifOperating margin rises to at least 1% in Q1 2027. This shows a positive trend.
Worry ifThe operating margin is still negative. This shows that there are ongoing problems.
Why it matters: A recovery in revenue is key to achieving the $150M target by 2029. Current revenue is declining.
Supportive ifQ1 revenue is over $20 million. This shows a good trend.
Worry ifQ1 revenue stays below $20 million, continuing the decline.
Why it matters: How the company uses this facility will impact its capital needs and growth plans.
Watch forThe company plans to use the credit facility for growth investments.
Also watch forThe company has no need to use the credit facility. This shows stronger cash flow.
Why it matters: Better cash flow is important for the company's finances. It shows improved management.
Supportive ifCash from operations turns positive in Q3 2026.
Worry ifCash from operations remains negative in Q3 2026.
Why it matters: Starting revenue growth is key to reaching the $150 million target by 2029. This will show if the backlog translates into sales.
Supportive ifQ1 2027 revenue exceeds $15.4 million, indicating growth from the previous quarter.
Worry ifQ1 2027 revenue is less than $15.4 million, showing continued revenue decline.
Why it matters: Achieving this margin would indicate progress towards the 50% target by 2029. It shows the effectiveness of recent investments.
Supportive ifGross margin for Q1 2027 is reported at 36% or higher.
Worry ifGross margin for Q1 2027 is below 36%. This shows ongoing margin pressure.