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what it is
Frequency Electronics makes ultra-precise timing hardware for satellites, military systems, and telecom networks that break when the clock is wrong.
how it gets paid
Last year Frequency Electrs made $70M in revenue. space payload timing systems was the main engine at $24M, or 34% of sales.
why it's growing
Revenue grew 26.3% last year. $31 million matters most because one quarter equaled about 44% of the full-year $70 million revenue base.
what just happened
Latest quarter revenue hit $31M, up 81% vs. prior year, while EPS rose to $0.25.
At a glance
B balance sheet — gets the job done, barely
20/100 earnings predictability — expect surprises
24.9x trailing p/e — priced about right
38.1% return on capital — every dollar works hard here
$2.46 fy2024 eps est
xvary composite: 52/100 — below average
What they do
Frequency Electronics makes ultra-precise timing hardware for satellites, military systems, and telecom networks that break when the clock is wrong.
This company wins because failure is expensive. If your satellite, radar, or military network needs exact timing, you buy the part that has already flown, not the cheapest quote. FEIM has supplied more than 150 space and Department of Defense programs and has collected over 100 performance awards, which is a very boring way of saying customers trust the parts that already work.
How they make money
$70M
annual revenue · their business grew +26.3% last year
space payload timing systems
$24M
military precision navigation and timing
$18M
telecom synchronization products
$12M
microwave integrated components
$9M
support, spares, and other systems
$7M
The products that matter
precision clocks for satellites
Satellite Timing Systems
$21M · 30% of revenue
this segment produced $21M last year and grew +50%. the recent $45M contract win says that growth was not a one-quarter accident.
contract-driven growth
frequency control for defense programs
Defense & Aerospace Components
$42M · 60% of revenue
it's the core $42M business and grew +15% last year. this is the base layer that makes the satellite upside financeable.
core revenue base
components for network infrastructure
Commercial Telecom
$7M · 10% of revenue
it's a $7M segment and growth was flat. useful diversification, but not the reason you own the stock.
small contributor
Key numbers
38.1%
return on capital
Return on capital → profit from each dollar invested → so what: FEIM turns invested money into earnings far better than most industrial hardware businesses.
19.7%
operating margin
Operating margin → money left after running the business → so what: FEIM kept $19.70 from every $100 of sales before interest and taxes.
$6M
long-term debt
Long-term debt → borrowed money due over years → so what: debt is just 1% of capital, which keeps balance-sheet risk low versus a $470 million market value.
24.9x
trailing p/e
P/E → price divided by past earnings → so what: you are paying about $24.90 for each $1 of trailing profit.
Financial health
B
strength
- balance sheet grade B — adequate — nothing special
- risk rank 3 — safer than 50% of stocks
- price stability 20 / 100
- long-term debt $6M (1% of capital)
B — functional but not a standout on the balance sheet.
Total return vs. market
Return history isn't available for FEIM right now.
source: institutional data · return history unavailable
What just happened
beat estimates
Latest quarter revenue hit $31M, up 81% vs. prior year, while EPS rose to $0.25.
The business did $70 million in annual revenue, up 26.3% vs. prior year, and gross margin reached 37.6%. Quiet part out loud: on a $70 million base, one strong shipment quarter can make the income statement look like a different company.
$31M
revenue
$0.25
eps
37.6%
gross margin
the number that mattered
$31 million matters most because one quarter equaled about 44% of the full-year $70 million revenue base.
source: company earnings report, 2025
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What could go wrong
the top risk here is satellite program concentration and delivery timing.
med
One contract cycle is too big to shrug off
The recent $45M satellite contract haul equals about 64% of last year's $70M revenue. If a major program slips, this business feels it immediately.
Impact: revenue visibility looks strong until timing moves. Then the income statement moves with it.
med
Low predictability means the stock can punish normal lumpiness
FEIM carries a 20/100 earnings predictability score. In human terms, you should expect uneven quarters, and the market usually prices small-cap surprises harshly.
Impact: even profitable results like Q3 2026 can still feel disappointing if investors expected backlog to convert faster.
med
The share price already tells you this is a volatile setup
Price stability is just 20/100, and the 52-week range runs from $14 to $61. That's a wide band for a company with a $470M market cap.
Impact: if you own FEIM, you need to be right on execution and patient on timing. One without the other is usually painful.
A $45M backlog story is powerful. It is also fragile when your full revenue base is only $70M.
source: institutional data · regulatory filings · risk analysis
Pay attention to
metric
backlog conversion into reported revenue
The stock moved on $45M of new satellite awards. The next test is simple: does that award show up in revenue and profit, not just press releases.
calendar
Q4 2026 delivery timing
Management said the new work should fill backlog through Q4 2026. That makes the next few quarters a delivery story, not a forecasting exercise.
trend
satellite systems staying faster than the base business
Satellite Systems grew +50% last year versus +15% for Defense & Aerospace. If that gap closes fast, the growth narrative cools fast too.
risk
profitability during uneven quarters
Q3 2026 still produced $1.6M of net income on $16.9M of revenue. Watch whether FEIM can stay profitable when project timing gets messy.
Analyst rankings
earnings predictability
20 / 100
in human-speak, analysts do not expect clean, repeatable quarterly beats here.
risk rank
3
That puts FEIM around the middle on broad risk measures. The balance sheet is fine. The operating cadence is the messier part.
source: institutional data
Institutional activity
institutional ownership data for FEIM is being compiled.
source: institutional data
Price targets
3-5 year target range
n/a
n/a
$54
current price
n/a
target midpoint · n/a from current
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