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Verdict
Quantitative factor alignment verified for current market regime.
Quant Score
Rank
#1439
Positioning
Market Dominance
Manufacturing
Measuring And Control Equipment
$0
Thomas McClelland
Frequency Electronics, Inc. designs, develops, manufactures, and sells precision time and frequency control products. The FEI-NY segment offers precision time, frequency generation, and synchronization products and subsystems used in communication satellites, terrestrial cellular telephone, or other ground-based telecommunication stations.
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X-AXIS: EV/EBITDA (LOWER = CHEAPER) | Y-AXIS: ROE (HIGHER = ELITE) | RED CIRCLE = FEIM ANALYSIS TARGET
| Stock | Rating | Score▼ | Quality | Value | Momentum | P/E | EV/EBITDA | ROE | ROA | Gross Mgn | Op Mgn | Net Mgn | Rev Growth | Div Yield | D/E | Mkt Cap | AUDIT |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
$UL UNILEVER PLC | 78 | 96 | 98 | 59 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$ASML ASML HOLDING NV | 77 | 89 | 86 | 83 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$ESLT ELBIT SYSTEMS LTD | 76 | 81 | 87 | 85 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$MT ArcelorMittal | 75 | 71 | 98 | 85 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$AMAT APPLIED MATERIALS INC /DE | 75 | 85 | 87 | 84 | 20.9x | 13.6x | 32.9% | 20.5% | 48.8% | 30.6% | 24.4% | 7.7% | 0.9% | 32.0x | $148.6B | VS | |
$SIMO Silicon Motion Technology CORP | 75 | 84 | 86 | 85 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$CODA Coda Octopus Group, Inc. | 74 | 83 | 90 | 79 | 16.3x | 11.9x | 7.4% | 7.5% | 68.3% | 19.5% | 18.2% | 29.0% | 0.0% | 0.0x | $84M | VS | |
$GSK GSK plc | 74 | 84 | 90 | 70 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$EFXT Enerflex Ltd. | 74 | 80 | 91 | 83 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$BUD Anheuser-Busch InBev SA/NV | 74 | 84 | 97 | 63 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$FEIM FREQUENCY ELECTRONICS INC | 54 | 59 | 25 | 88 | 23.1x | 58.1x | 35.1% | 22.2% | 41.7% | 11.9% | 28.3% | 13.6% | 0.0% | 58.0x | $0 | ||
| SECTOR BENCH | - | - | - | - | - | 22.3x | 11.5x | -1.9% | 0.9% | 44.1% | 2.5% | 1.0% | 6.7% | 0.0% | 0.2x | - | REF |
FREQUENCY ELECTRONICS INC (FEIM) receives a "Hold" rating with a composite score of 53.7/100. It ranks #1439 out of 7,333 stocks in our coverage universe and carries a 3-star rating. Ratings are driven by a 6-factor quantitative model measuring quality, value, momentum, investment, stability, and short interest.
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Outperforming peers — winners tend to keep winning over 3-12 months
Expensive relative to fundamentals — limited margin of safety
Average quality profile
Average volatility — neutral timing signal
Aggressive spending — empire-building risk, dilutive growth
Mid-range overall rating
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Relative valuation derived from Manufacturing sector benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Re-calculated daily.
Projection based on user-defined inputs. Re-calculated daily against current market data.
Reverse DCF Framework — Mauboussin Methodology
Institutional-grade Reverse DCF analysis. This model identifies the growth hurdles embedded in current market prices. When implied growth is significantly lower than historical or projected rates, a margin of safety may exist. Re-audited daily.
No analyst ratings for FEIM.
View All Ratings| Factor | Global | Sector | Tilt |
|---|---|---|---|
| PROFITABILITY | 59 | 61 | -2NEUTRAL |
| MOMENTUM | 88 | 94 | -6DRAG |
| VALUATION | 25 | 14 | +11ALPHA |
| INVESTMENT | 25 | 24 | +1NEUTRAL |
| STABILITY | 49 | 42 | +7ALPHA |
| SHORT INT | 62 | 74 | -12DRAG |
Global = full universe. Sector = relative to industry peers. Positive tilt indicates idiosyncratic strength.
ROE proxy 35.1% (sector -1.9%)
GM 42% vs sector 44%, OM 12% vs sector 3%
Capital turnover N/A, R&D intensity 7.5%
Rev growth 14%, 11yr history
Interest coverage 77.9x
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation and elite competitive moats.
Profit generated per dollar of shareholder equity
Efficiency of asset utilization
Pricing power and cost efficiency
Core business profitability
Bottom-line profitability
The Quality factor evaluates the persistence and magnitude of realized cash flows. Companies with scores >70 exhibit superior pricing power and structural financial resilience through diverse economic regimes.
Our uncertainty rating tracks the predictability of future cash flows and potential for permanent capital loss. Moderate visibility with standard industry cyclicality.
We rate FREQUENCY ELECTRONICS INC (FEIM) as a Hold with a composite score of 53.7/100 at a current price of $52.99. The stock presents a mixed quantitative picture — neither compelling enough to warrant new accumulation nor weak enough to justify selling.
FREQUENCY ELECTRONICS INC holds a top-quartile position (#0 of 50) within the Manufacturing sector, based on our composite quantitative scoring across quality, value, momentum, and stability factors. The composite score of 53.7/100 places it at rank #1439 in our full universe.
The near-term outlook is constructive, with revenue growing at 14% and momentum in the 88th percentile confirming positive market sentiment. The combination of strong top-line growth and favorable price dynamics suggests the company is executing well on its growth strategy.
Narrow
High
Exemplary
Fair Value
Gross margins of 42% signal strong pricing power.
Returns on equity of 35.1% exceed cost of capital.
Positive momentum indicates institutional accumulation.
Vulnerability to macroeconomic shocks and interest rate volatility.
FREQUENCY ELECTRONICS INC represents a hold based on multi-factor quantitative performance.
Our model assigns FREQUENCY ELECTRONICS INC a Hold rating, with a composite score of 53.7/100 and 3 out of 5 stars. Ranked #1439 of 7,333 stocks, FEIM presents a mixed quantitative picture — neither compelling enough to initiate new positions nor weak enough to warrant selling. Investors already holding may consider maintaining their position while monitoring for changes in the factor profile.
With a quality score of 59/100, FEIM shows adequate but unremarkable business quality. The company reports a return on equity of 35.1% (sector avg: -1.9%), gross margins of 41.7% (sector avg: 44.1%), net margins of 28.3% (sector avg: 1.0%). This suggests the company generates acceptable returns but may lack the competitive positioning or operational efficiency to stand out from peers.
FEIM registers a value score of just 25/100, suggesting the stock trades at a significant premium to its fundamental metrics. Key valuation metrics include a P/E ratio of 23.15x, an EV/EBITDA of 58.12x, a P/B ratio of 8.12x. High-premium valuations like this require strong future execution to avoid multiple compression, and downside risk is elevated if growth disappoints.
FREQUENCY ELECTRONICS INC's investment score of 25/100 suggests limited reinvestment activity. Key growth metrics include revenue growth of 13.6% vs. a sector average of 6.7% and a return on assets of 22.2% (sector: 0.9%). While this can be positive for mature, cash-generative businesses returning capital to shareholders, it may also signal a lack of growth opportunities or management conservatism.
FEIM shows strong momentum characteristics with a score of 88/100. The stock has been trending above key moving averages, indicating solid demand from institutional buyers. Revenue growth stands at 13.6% year-over-year, while a beta of 1.22 reflects its sensitivity to broader market moves. This level of momentum typically signals sustained investor confidence and favorable near-term price action.
With a stability score of 49/100, FEIM exhibits average financial resilience. Key stability metrics include a beta of 1.22 and a debt-to-equity ratio of 58.00x (sector avg: 0.2x). While the balance sheet is not a major concern, the stock is subject to typical market volatility and may experience sharper drawdowns during risk-off episodes.
FEIM carries a short interest score of 62/100, indicating moderate short selling activity. This is a neutral reading — not enough to signal systemic bearishness, but worth monitoring. Specific risk factors include above-average market sensitivity (beta: 1.22), elevated leverage (D/E: 58.00x), micro-cap liquidity risk. At $0 market cap (micro-cap), FREQUENCY ELECTRONICS INC offers reasonable institutional liquidity.
FREQUENCY ELECTRONICS INC is a micro-cap company in the Manufacturing sector, ranked #0 of 50 in its sector (100th percentile) and #1439 of 7,333 overall (80th percentile). Key comparisons include ROE of 35.1% exceeding the -1.9% sector median and operating margins of 11.9% above the 2.5% sector average. This top-quartile standing reflects exceptional competitive strength relative to Manufacturing peers.
While FEIM currently exhibits a HOLD profile, superior opportunities exist within the MANUFACTURING sector. Our model identifies several "Strong Buy" candidates with higher quality scores and more attractive valuations among direct industry competitors.
View Top Manufacturing Alpha →Quant Factor Profile
Key factor gap
Momentum (88) vs Value (25) — closing this gap could shift the rating.
EV/EBITDA 407% ABOVE SECTOR MEDIAN
ROE 1945% BELOW SECTOR MEDIAN
Gross Margin 5% BELOW SECTOR MEDIAN
Discover why Zacks rates Frequency Electronics as "Outperform," being the first on Wall Street to initiate coverage on the stock. Explore its impressive revenue growth, strategic market positioning, improved operational efficiency and robust liquidity, setting it up for strong future performance.
The Frequency Electronics, Inc. ( NASDAQ:FEIM ) share price has softened a substantial 26% over the previous 30 days...
The article highlights 5 microcap stocks with exposure to defense spending, including Optex Systems, Frequency Electronics, Servotronics, Sypris Solutions, and National Presto. The companies have seen revenue and backlog growth, as well as improved profitability, due to increased defense spending by NATO members.
Broadcom, Johnson & Johnson, Verizon, Taylor Devices and Frequency Electronics are included in this Analyst Blog.
Above 50MA
37.18%
Net New Highs
+51081