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Frequency Electronics Inc (FEIM)

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Upturn Advisory Summary
12/05/2025: FEIM (3-star) is currently NOT-A-BUY. Pass it for now.
Analysis of Past Performance
Type Stock | Historic Profit 144.7% | Avg. Invested days 53 | Today’s Advisory PASS |
Upturn Star Rating ![]() | Upturn Advisory Performance | Stock Returns Performance |
Key Highlights
Company Size Small-Cap Stock | Market Capitalization 225.27M USD | Price to earnings Ratio 9.66 | 1Y Target Price 17 |
Price to earnings Ratio 9.66 | 1Y Target Price 17 | ||
Volume (30-day avg) - | Beta 0.37 | 52 Weeks Range 8.12 - 24.77 | Updated Date 06/29/2025 |
52 Weeks Range 8.12 - 24.77 | Updated Date 06/29/2025 | ||
Dividends yield (FY) - | Basic EPS (TTM) 2.41 |
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin 35.34% | Operating Margin (TTM) -13.02% |
Management Effectiveness
Return on Assets (TTM) 8.34% | Return on Equity (TTM) 52.23% |
Valuation
Trailing PE 9.66 | Forward PE - | Enterprise Value 224749222 | Price to Sales(TTM) 3.44 |
Enterprise Value 224749222 | Price to Sales(TTM) 3.44 | ||
Enterprise Value to Revenue 3.44 | Enterprise Value to EBITDA 19.52 | Shares Outstanding 9676510 | Shares Floating 6771624 |
Shares Outstanding 9676510 | Shares Floating 6771624 | ||
Percent Insiders 32.5 | Percent Institutions 57.4 |
Upturn AI SWOT
Frequency Electronics Inc

Company Overview
History and Background
Frequency Electronics Inc. (FEI) was founded in 1962. It has since evolved into a leading designer and manufacturer of high-precision electronic components and systems. The company has a history of serving demanding industries such as aerospace, defense, telecommunications, and test and measurement. Over the decades, FEI has grown through organic development and strategic acquisitions, expanding its technological capabilities and market reach.
Core Business Areas
- Time and Frequency Standards: FEI designs, manufactures, and markets a broad range of high-precision time and frequency reference instruments. These include atomic clocks, GPS disciplined oscillators, and other specialized timing solutions crucial for precise synchronization in various applications.
- RF, Microwave, and Other Electronic Products: This segment encompasses a variety of specialized electronic components and systems, including power amplifiers, frequency converters, and integrated subsystems. These products are often custom-designed for specific defense and commercial applications.
Leadership and Structure
Frequency Electronics Inc. is led by a management team with extensive experience in the electronics and defense industries. The company operates through its subsidiaries, including FEI-Zyfer, Inc. and Chrono-Time, Inc., which focus on specific product lines and markets.
Top Products and Market Share
Key Offerings
- Atomic Clocks and Oscillators: FEI produces highly accurate atomic clocks and disciplined oscillators (GPSDOs) that provide stable and precise time and frequency references. These are critical for satellite navigation, telecommunications, and scientific research. Competitors include Safran SA, Microchip Technology Inc., and Spectracom (part of Orolia).
- Timing and Synchronization Systems: The company offers integrated solutions for timing and synchronization, including specialized GPS receivers and time servers. These systems ensure accurate time distribution in critical infrastructure like data centers and power grids. Competitors include Trimble Inc. and Spirent Communications plc.
- RF and Microwave Subsystems: FEI designs and manufactures custom RF and microwave components and subsystems for defense applications, such as electronic warfare and radar systems. Key competitors in this niche include Mercury Systems, Inc. and L3Harris Technologies, Inc.
Market Dynamics
Industry Overview
The industries Frequency Electronics Inc. serves are characterized by high technical barriers to entry, long product development cycles, and strong demand for reliability and precision. The aerospace and defense sector is driven by government spending and technological advancements, while telecommunications and data infrastructure require robust and accurate timing solutions.
Positioning
Frequency Electronics Inc. is positioned as a niche provider of high-precision timing and frequency components and specialized RF solutions. Its competitive advantage lies in its engineering expertise, ability to develop custom solutions, and long-standing relationships with defense contractors and government agencies. The company operates in markets with significant technological sophistication.
Total Addressable Market (TAM)
The TAM for timing and frequency control devices is substantial and growing, driven by the expansion of 5G networks, IoT devices, data centers, and satellite constellations. For specialized RF and microwave components, the defense sector represents a significant, albeit fluctuating, market. FEI addresses a segment of this TAM where high precision and custom solutions are paramount, rather than competing in high-volume, commoditized markets. Its positioning is focused on high-value, specialized applications.
Upturn SWOT Analysis
Strengths
- Deep expertise in high-precision timing and frequency technology.
- Strong relationships with government and defense contractors.
- Ability to develop custom-engineered solutions.
- Established reputation for reliability and quality.
- Proprietary technologies in atomic clock development.
Weaknesses
- Relatively small company size compared to major defense contractors.
- Dependence on government spending cycles for a significant portion of revenue.
- Potential challenges in scaling production for mass-market applications.
- Limited brand recognition outside of its specialized markets.
Opportunities
- Growth in demand for precise timing in 5G infrastructure and IoT.
- Increasing investment in satellite technology and space-based applications.
- Expansion into commercial markets requiring advanced timing solutions (e.g., financial trading, data centers).
- Potential for strategic partnerships or acquisitions to expand capabilities.
- Advancements in quantum timing technologies.
Threats
- Budgetary constraints or shifts in government defense spending.
- Intensifying competition from larger, well-funded companies.
- Technological obsolescence if R&D lags.
- Supply chain disruptions for critical components.
- Cybersecurity threats impacting sensitive defense contracts.
Competitors and Market Share
Key Competitors
- Trimble Inc. (TRMB)
- Microchip Technology Inc. (MCHP)
- L3Harris Technologies, Inc. (LHX)
- Safran SA (SAF.PA - Foreign)
- Mercury Systems, Inc. (MRCY)
Competitive Landscape
Frequency Electronics Inc. competes in a landscape with larger, more diversified companies as well as specialized players. Its advantage lies in its deep technical expertise and ability to deliver highly customized solutions for demanding applications. However, it faces challenges in competing with the R&D budgets and sales forces of larger conglomerates. Its niche focus allows it to carve out a significant share in specific high-value segments.
Growth Trajectory and Initiatives
Historical Growth: Frequency Electronics Inc. has experienced periods of growth driven by defense spending cycles and advancements in telecommunications. However, its growth can be inconsistent due to the project-based nature of its business and reliance on government contracts.
Future Projections: Future growth is expected to be driven by the increasing demand for precise timing in emerging technologies like 5G, autonomous systems, and advanced aerospace applications. Analyst estimates for future growth should be consulted for specific projections, which often depend on the company securing new, significant contracts.
Recent Initiatives: Recent initiatives likely focus on product innovation, expanding its addressable market into commercial sectors, and potentially pursuing strategic partnerships or acquisitions to enhance its technological capabilities and market reach.
Summary
Frequency Electronics Inc. is a specialized manufacturer with strong expertise in precision timing and frequency systems, primarily serving the defense and aerospace sectors. Its strengths lie in custom solutions and established customer relationships. However, it faces challenges from larger competitors and is susceptible to government budget fluctuations. Growth opportunities exist in emerging technologies like 5G and IoT, but the company must navigate intense competition and invest in innovation to capitalize on them.
Similar Stocks
Sources and Disclaimers
Data Sources:
- Company Investor Relations (SEC Filings)
- Industry Analysis Reports
- Financial News Outlets
- Market Data Providers
Disclaimers:
This analysis is based on publicly available information and is for informational purposes only. It does not constitute investment advice. Financial data and market share are estimates and may vary. Investors should conduct their own due diligence before making investment decisions.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About Frequency Electronics Inc
Exchange NASDAQ | Headquaters Mitchel Field, NY, United States | ||
IPO Launch date 1983-09-01 | CEO, President & Director Dr. Thomas McClelland | ||
Sector Technology | Industry Communication Equipment | Full time employees 200 | Website https://freqelec.com |
Full time employees 200 | Website https://freqelec.com | ||
Frequency Electronics, Inc., together with its subsidiaries, engages in designing, development, and manufacturing of 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 and frequency control products for communication satellites, terrestrial cellular telephone or other ground-based telecommunication stations; and other components and systems for the U.S. military; and provides design and technical support for satellite business. The FEI-Zyfer segment offers global positioning system technologies to systems and subsystems for secure communications, both government and commercial, and other locator applications; and engages in sale and support of wireline telecommunications products, including US5G. 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.

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