Frequency Electronics, Inc.
Frequency Electronics, Inc. Fundamental Analysis
Frequency Electronics, Inc. (FEIM) shows moderate financial fundamentals with a PE ratio of 63.88, profit margin of 10.62%, and ROE of 12.49%. The company generates $0.1B in annual revenue with strong year-over-year growth of 26.30%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 66.3/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze FEIM's fundamental strength across five key dimensions:
Efficiency Score
ExcellentFEIM demonstrates superior asset utilization.
Valuation Score
ModerateFEIM shows balanced valuation metrics.
Growth Score
ModerateFEIM shows steady but slowing expansion.
Financial Health Score
ExcellentFEIM maintains a strong and stable balance sheet.
Profitability Score
WeakFEIM struggles to sustain strong margins.
Key Financial Metrics
Is FEIM Expensive or Cheap?
P/E Ratio
FEIM trades at 63.88 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, FEIM's PEG of -0.97 indicates potential undervaluation.
Price to Book
The market values Frequency Electronics, Inc. at 7.63 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 65.45 times EBITDA. This signals the market has high growth expectations.
How Well Does FEIM Make Money?
Net Profit Margin
For every $100 in sales, Frequency Electronics, Inc. keeps $10.62 as profit after all expenses.
Operating Margin
Core operations generate 9.77 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $12.49 in profit for every $100 of shareholder equity.
ROA
Frequency Electronics, Inc. generates $13.99 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Frequency Electronics, Inc. generates limited operating cash flow of $-3.15M, signaling weaker underlying cash strength.
Free Cash Flow
Frequency Electronics, Inc. generates weak or negative free cash flow of $-6.35M, restricting financial flexibility.
FCF Per Share
Each share generates $-0.65 in free cash annually.
FCF Yield
FEIM converts -1.36% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
63.88
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.97
vs 25 benchmark
P/B Ratio
Price to book value ratio
7.63
vs 25 benchmark
P/S Ratio
Price to sales ratio
6.79
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.23
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.82
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.12
vs 25 benchmark
ROA
Return on assets percentage
0.14
vs 25 benchmark
ROCE
Return on capital employed
0.21
vs 25 benchmark
How FEIM Stacks Against Its Sector Peers
| Metric | FEIM Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 63.88 | 34.43 | Worse (Expensive) |
| ROE | 12.49% | 1135.00% | Weak |
| Net Margin | 10.62% | -134808.00% (disorted) | Strong |
| Debt/Equity | 0.23 | 7.92 | Strong (Low Leverage) |
| Current Ratio | 1.82 | 5.77 | Neutral |
| ROA | 13.99% | -310795.00% (disorted) | Strong |
FEIM outperforms its industry in 3 out of 6 key metrics, particularly excelling in Net Margin, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Frequency Electronics, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
58.84%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
325.02%
Industry Style: Growth, Innovation, High Beta
High GrowthFCF CAGR
4.15%
Industry Style: Growth, Innovation, High Beta
Growing