FEIMFrequency Electronics, Inc.
Is the business good?
The checks split: nothing decisive, though earnings fully cash-backed (1.9×).
Operating profit is fully backed by cash. Conversion is improving vs a year ago.
Margins have held roughly steady, a stable cost structure.
Efficiency-driven, thin margins turned over fast (the retail model). ROE 12% = margin × turnover × leverage.
Unless marked, from derived.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is FEIM?
Frequency Electronics, Inc. earns 2.5% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.
Return on invested capital · cost of capital 9.0% · 6.5 points below what the capital costs: growth destroys value
- Operating margin
- 2.5%
Operating margin · Communication Equipment median 5.0% · 12 months to Q1 2027
- Cash conversion
- 1.89×
Cash conversion · 0.15× a year ago · operating cash flow covers the operating profit after tax
- Share count, year on year
- +5.2%
Share count, year on year · shareholders own a smaller slice than a year ago
| Year | Operating margin |
|---|---|
| FY2021 | −1.8% |
| FY2022 | −17% |
| FY2023 | −11% |
| FY2024 | 9.1% |
| FY2025 | 17% |
| FY2026 | −4.8% |
Details›
- Gross margin12 months to Q1 2027
- 33%
- Operating margin12 months to Q1 2027
- 2.5%
- Net margin12 months to Q1 2027
- 3.7%
- Free cash flow margin
- −0.25%
- R&D as % of revenue
- 8.6%
- Revenue, trailing twelve months
- $73M
- Free cash flow, trailing twelve months
- −$184K
- Net income, trailing twelve months
- $2.7M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 2.5%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.
Communication Equipment
Ranks #7 of 20 by RyuScore