revenue
150 $million
FY 2029
management target
FREQUENCY ELECTRONICS, INC.
Last · NASDAQ$71.20-0.87 (-1.21%)close · yahoo · 19h ago
Market cap$802.66M11.3M sh
P/E · TTM285fwd 37.1 · eps 0.25
Beta0.58vs S&P 500
Div yield0.00%annual · TTM
52w range
$26.05$89.76
Volume327.6Ksession
| Revenue | $72.9M |
|---|---|
| Operating income | $5.2M |
| Net income | $4.2M |
| Free cash flow | $1.8M |
| Operating margin | 7.1% |
| Net margin | 5.8% |
| Return on equity | 3.5% |
| Period | TTM 2026-07-31 |
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OpenFilings analyst
Our analyst
Agentic read of the latest earnings call — recommendation updates when we process a new transcript. Research synthesis, not investment advice.
Strong BuyBuyHoldSellStrong Sell
Strong demand visibility and improving profitability outweigh meaningful execution risk.
Buy: FEIM delivered record revenue of $23.5 million, up 70% year over year, with $129 million of funded backlog, 45.8% gross margin, 22% operating margin, and positive operating cash flow.
The bull case is accelerating space and defense demand plus a debt-free balance sheet strengthened by the $73 million offering; the key risk is whether production capacity can scale without delivery failures or margin dilution.
Themes
- Space Demand
- Defense Programs
- Production Ramp
- Funded Backlog
- Margin Expansion
- Alternative Pnt
Near term
Funded backlog rose 16% sequentially to $129 million, with approximately 60% to 65% expected to convert within 12 months.
The customer asking for more than a 50% increase in monthly output tests whether the production ramp can match demand.
The $73 million equity raise, including $14 million of greenshoe proceeds after quarter-end, should fund capacity expansion but dilutes existing holders.
Longer term
Management targets at least $150 million of annual revenue, 50% gross margin, and 30% operating margin by fiscal 2029.
DRAFS adoption, proliferated satellites, missile programs, quantum sensing, and alternative-PNT applications broaden the growth runway beyond legacy programs.
Vertical integration in quartz resonators and investment in higher-throughput equipment could support scale, but execution depends on converting boutique manufacturing into higher-volume production.
Red flags
Management explicitly described production scaling as a tightrope and said it is declining some customer schedules it considers unrealistic.
The company did not quantify the unfunded opportunity beyond saying it is multiple times the reported funded backlog.
The 50% gross-margin and 30% operating-margin goals remain targets, while current margins are 45.8% and 22%, respectively.
Forward outlook
gross margin
50 pct
FY 2029
management target
operating margin
30 pct
FY 2029
management target
OpenFilings analyst view from primary-source filings and earnings calls — not investment advice.
From latest 10-K · 2026-07-17
- Cash Runway Low
Red flags
- Cash Runway Low — Cash runway ~1.0 years
Upcoming earnings
9:00 PM UTC+1
Period
Oct 2026
Est. EPS
$0.20
Est. revenue
18.4M
Earnings transcripts
Press & signals
- GlobeNewswire
Frequency Electronics, Inc. Announces First Quarter of Fiscal Year 2027 Financial Results
- GlobeNewswire
Frequency Electronics Announces First Quarter Fiscal 2027 Financial Results Conference Call: Thursday, September 10, 2026, at 4:30 PM ET
- GlobeNewswire
Frequency Electronics Announces Pricing of Public Offering
The rest of this company's wire — with summaries and source links — is part of Pro.
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