Frequency Electronics
FEIM on Nasdaq. Frequency Electronics sells time and frequency systems to commercial and government customers. Market value $963m.
Price checks use the past 12 months to July 2026. Quality checks use five annual reports, the latest for the year to April 2026.
We can't read total debt from the filing, so debt is left out.
Should I look at this?
Not a fit for our list right now
Why it could be worth it
Nothing stands out yet.
See Industrials stocks that passed both tests
This is not advice. Check the numbers below.
For every $100 of what the whole company costs, it produced $-0.02 of spare cash in the past 12 months. A savings account pays about $4.
The filings do not give us enough to work this out.
The filings do not give us enough to work this out.
Quality score: 44 of 100. Price score: 18 of 100. Our list needs 70 on quality and 60 on price.
$87.13 a share, 234% above its 1-year low
Over the past year the price has ranged from $26.05 to $89.76.
Pays no dividend
Prices from Tuesday’s close (6 October).
Five years of cash, in billions
Spare cash swings from quarter to quarter here: a shortfall of $184,000 in the past 12 months, a shortfall of $2 million in the year to April 2026.
| Revenue | |||||
| Revenue | $48m | $41m | $55m | $70m | $63m |
| Operating margin | |||||
| Operating margin | -16.6% | -11.5% | 9.1% | 16.8% | -4.7% |
| Debt to equity | |||||
| Debt to equity | n/a | n/a | n/a | n/a | n/a |
| Shares outstanding | |||||
| Shares outstanding | 0.01bn | 0.01bn | 0.01bn | 0.01bn | 0.01bn |
Health checks
- Free cash flow positive3 of 5 years
- Accounting looks honest (Beneish)Not enough data
- Financial strength (Piotroski)3 of 8 checks we could run
- Profit backed by cash (accruals)Yes
- DebtUnknown
- Revenue growth, five yearsSlow, 3.1% a year
- Buying back its own sharesNo, 21% more shares since 2022
The quarter to July 2026
How the business did, compared with the same quarter a year earlier.
- Sales: $23 million last quarter, up 70% on a year ago.
- Profit: $4 million, up 565% on a year ago.
- It keeps 3 cents of each $1 of sales as operating profit, down from 14 cents a year earlier.
- Over the past 12 months it spent $184,000 more cash than it brought in, compared with $1 million a year earlier.
- 5% more shares than a year ago. Each share owns a bit less of the company.
- Sales grew on a year ago in 2 of the last 4 quarters.
| Quarter to | Amount |
|---|---|
| October 2024 | $16m |
| January 2025 | $19m |
| April 2025 | $20m |
| July 2025 | $14m |
| October 2025 | $17m |
| January 2026 | $17m |
| April 2026 | $15m |
| July 2026 | $23m |
| Quarter to | Amount |
|---|---|
| October 2024 | $3m |
| January 2025 | $15m |
| April 2025 | $3m |
| July 2025 | $634,000 |
| October 2025 | $2m |
| January 2026 | $2m |
| April 2026 | -$5m |
| July 2026 | $4m |
From the company's quarterly reports to the SEC.
Dates
- Next results (estimated)
- n/a
- Last annual report (10-K)
- 17 July 2026
- Next quarterly (estimated, 10-Q)
- 14 December 2026
Who owns it
None of the long-term investors we follow own it. 144 funds in all.
Largest holders overall
- Edenbrook Capital$124m
- Driehaus Capital Management$47mAdded
- BlackRock$34mAdded
- Vanguard Capital Management$19mAdded
- Next Century Growth Investors$15mAdded
- Dimensional Fund Advisors LP$15mCut
- Goldman Sachs Group$14mCut
- Segall Bryant & Hamill$14mCut
- G2 Investment Partners Management$13mAdded
- Geode Capital Management$12mAdded
From 13F filings for the quarter ended 30 June 2026.
Big holders and activists
3 investors own more than 5%.
- Jonathan BrolinPassive investorat least 11.3%(filed with 2 related holders)Since 28 July 2026
What they said
On July 28, 2026, Edenbrook Value Fund, LP, a private fund managed by Edenbrook, and Edenbrook Long Only Value Fund, LP (the "Fund"), as selling stockholders, and the Issuer entered into an underwriting agreement (the "Underwriting Agreement") with Morgan Stanley & Co. LLC, (the…
Read the filing - DRIEHAUS CAPITAL MANAGEMENT LLCPassive investor7.2%Since 30 June 2026
- BlackRock, Inc.Passive investor5.2%Since 30 June 2026
- The Vanguard GroupPassive investorSold down below 5%Since 30 September 2025
- Dimensional Fund Advisors LPPassive investorSold down below 5%Since 30 June 2025
- Wax Asset Management, LLCPassive investorSold down below 5%Since 31 December 2025
| Holder | Stake | Since | |
|---|---|---|---|
Jonathan Brolin Passive investor | at least 11.3% (filed with 2 related holders) | 28 July 2026 | What they saidOn July 28, 2026, Edenbrook Value Fund, LP, a private fund managed by Edenbrook, and Edenbrook Long Only Value Fund, LP (the "Fund"), as selling stockholders, and the Issuer entered into an underwriting agreement (the "Underwriting Agreement") with Morgan Stanley & Co. LLC, (the… Read the filing |
DRIEHAUS CAPITAL MANAGEMENT LLC Passive investor | 7.2% | 30 June 2026 | |
BlackRock, Inc. Passive investor | 5.2% | 30 June 2026 | |
The Vanguard Group Passive investor | Sold down below 5% | 30 September 2025 | |
Dimensional Fund Advisors LP Passive investor | Sold down below 5% | 30 June 2025 | |
Wax Asset Management, LLC Passive investor | Sold down below 5% | 31 December 2025 |
From Schedule 13D and 13G filings: anyone owning more than 5% must file one.
What insiders did
No insider bought shares on the open market in the last 12 months. 1 sold $38m.
- Edenbrook Capital, LLCDirectorSold
- Date
- 28 July 2026
- Shares
- 652,174
- Price
- $57.50
- Value
- $38m
| Date | Who | Did | Shares | Price | Value |
|---|---|---|---|---|---|
| 28 July 2026 | Edenbrook Capital, LLC Director | Sold | 652,174 | $57.50 | $38m |
From Form 4 filings: insiders must report trades in their own company's shares within two days.
Warning signs in its filings
Problems the company itself reported to the SEC, in its own words.
None of the serious warning signs we check for were found. 1 thing worth knowing.
We look for five warning signs: doubt it can keep going, weak checks on its own accounts, a notice that its past accounts can't be relied on, a change of auditor, and one customer bringing in a big share of sales. We don't check lawsuits, investigations or debt yet.
We checked the auditor's report, internal controls, restatement notices, auditor changes and big customers in the 10-K filed 17 Jul 2026, plus the 10-Q filed 14 Sep 2026 and 3 later 8-Ks.
One big customer
Worth knowingOne customer brings in a big share of sales: 91% last year. Losing that customer would hurt.
“For the years ended April 30, 2026 and 2025, approximately 91% and 94%, respectively, of the Company’s sales were made under contracts to the U.S. Government or subcontracts for U.S. Government end-use.”
From the 10-K filed 17 July 2026, Item 1. Business. Read it in the filing
A 10-K is the yearly report every US company files with the SEC. An 8-K is a short notice of a big event.
What could go wrong
Cheap for a reason is the question the numbers cannot answer.
Whether the price already reflects the risks is what the deep dive is for.
The deep dive
Everything above is arithmetic on public filings. The deep dive reads the last ten years of annual reports, the proxy statements, and the earnings calls, then argues the case the way Buffett, Klarman, and Hohn would, and checks every claim against the source.
- What the business is worth, as a range, and the margin of safety at today’s price
- Prices to start buying, buy, and buy hard
- The three things that would make this a mistake
- Every number footnoted to the filing it came from
Your first deep dive is free.
Not advice. Numbers on this page come from SEC filings and are updated each night; prices are updated again after the US market closes. The five-year figures are rounded.