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ZYBERNO

Stock Report

Updated Sep 1, 2026

FREQUENCY ELECTRONICS, INC. (FEIM)

NASDAQ

$60.46

Professional Investment Analysis

ZYBERNO SCORE →

Is it a great business? Is it getting better?

36.0/100

WEAK BUSINESS

FREQUENCY ELECTRONICS, INC. (FEIM) scores 36/100 — weak fundamentals with mixed indicators requiring careful analysis before acting.

📊 How is the Zyberno Score calculated? +

The Zyberno Score answers one question: "Is this a quality business worth owning?" It's a 0-100 investment grade that evaluates business fundamentals across four critical dimensions, based on principles from Warren Buffett, Benjamin Graham, Peter Lynch, and Charlie Munger.

The 4 Core Categories (25 points each):

1. PROFITABILITY (25 pts)

Metrics: ROE, ROIC, Net Margin, Operating Margin
Thresholds: ROE >20% excellent • ROIC >20% excellent • Net Margin >20% excellent • Operating Margin >25% excellent

2. FINANCIAL STRENGTH (25 pts)

Metrics: Debt-to-Equity, Current Ratio, Interest Coverage, Altman Z-Score
Thresholds: D/E <0.3 excellent • Current Ratio >2.5 excellent • Interest Coverage >10x excellent • Altman Z >3.0 safe

3. CASH FLOW QUALITY (25 pts)

Metrics: Free Cash Flow, OCF vs Net Income, FCF Margin
Thresholds: Positive & growing FCF excellent • OCF/NI >1.2x excellent (cash earnings exceed accounting)

4. GROWTH & CONSISTENCY (25 pts)

Metrics: Revenue Growth, Net Income Growth, FCF Growth, Piotroski F-Score
Thresholds: Growth via log-linear regression • Piotroski 8-9 excellent, 6-7 good

Score Interpretation:

75-100

GREAT BUSINESS

65-74

GOOD BUSINESS

50-64

AVERAGE BUSINESS

30-49

WEAK BUSINESS

0-29

POOR BUSINESS

→ View full FEIM quality analysis & detailed breakdown

VALUATION SIGNAL

N/A (Requires more data)

Requires fair value calculation and current price data

💰 How is Margin of Safety calculated? +

Margin of Safety measures how much discount or premium you're paying relative to a stock's intrinsic value. It's Benjamin Graham's core principle: the larger the margin, the lower your downside risk.

Formula: (Intrinsic Value − Current Price) ÷ Intrinsic Value × 100%

How We Calculate Intrinsic Value (DCF Method):

Step 1: Calculate current Owner Earnings (OCF − Maintenance CapEx)

Step 2: Calculate company-specific growth rate using log-linear regression on 16 quarters of Owner Earnings

Step 3: Project 10 years forward using the calculated growth rate

Step 4: Discount each year's cash flow to present value using 10% discount rate

Step 5: Calculate terminal value using 3% perpetual growth rate

Step 6: Sum all discounted cash flows = Intrinsic Value

What The Percentages Mean:

+50% or more

EXCELLENT — Very undervalued

+25% to +50%

GOOD — Attractive discount

0% to +25%

FAIR — Reasonable value

0% to -25%

CAUTION — Slight premium

-25% or worse

POOR — Overvalued

"Price is what you pay, value is what you get." — Warren Buffett

→ View full FEIM valuation analysis · → View full FEIM Brina Gap analysis

📈 How is Brina Gap calculated? +

Brina Gap measures the difference between the growth a business can fundamentally sustain and the growth the market is already pricing in.

Formula: Fundamental Growth Rate − Market-Implied Growth Rate

The Two Components:

Fundamental Growth Rate = ROIC × Reinvestment Rate

What the business can sustainably grow at based on how much it reinvests and what return it earns on that capital. Grounded in historical financials.

Market-Implied Growth Rate = Reverse DCF

The growth rate the current Enterprise Value implicitly assumes. Calculated by back-solving a 10-year DCF model (10% WACC, 3% terminal growth) until the present value of projected cash flows equals EV.

What The Gap Means:

Gap > +5% Market Underestimates — potential upside

+2% to +5% Slight Underestimate

-2% to +2% Fairly Priced — market consensus matches fundamentals

-5% to -2% Slight Overestimate

Gap < -5% Market Overestimates — price embeds optimism fundamentals don't support

A positive gap (market underestimates) combined with a positive Margin of Safety is the strongest combined signal — the business is both cheap historically and forward economics are stronger than the price suggests.

Critical Financial Health Indicators

Return on Equity (Profitability):CRITICAL (-1.6%)

Debt-to-Equity (Solvency Risk):EXCELLENT (0.27x)

Operating Margin (Operational Efficiency):CRITICAL (-4.7%)

Return on Capital (Capital Efficiency):CRITICAL (-3.6%)

📊 Valuation Trilogy

Three interconnected metrics for complete valuation analysis

Click any metric for full methodology and detailed analysis

Zyberno's Verdict

FREQUENCY ELECTRONICS, INC. (FEIM) stock report — Zyberno Score 36/100 (WEAK BUSINESS). Full financial analysis on Zyberno.

Over the trailing twelve months, FEIM generated -$611.00K in Owner Earnings. Capital was deployed as follows: $2.86M invested in capital expenditures. Reinvestment rate: -42.9%.

DIVISION I: EXECUTIVE SUMMARY

A. Market Valuation

Market Price & Capitalization (2)

Current Price:60.46

Market Cap:$591.50M

Valuation Multiples (3)

P/B Ratio:10.49x

P/S Ratio:9.36x

Peg Ratio:-999.00x

Enterprise Metrics (1)

Enterprise Value:$597.55M

Price Action & Momentum (3)

12-1 Momentum:

+87.5% (97th pctile)

📈 Click to view full FEIM Momentum analysis →

Momentum Percentile:97 / 100

% of 52-Week High:75.0%

B. Profitability Assessment

Return Metrics (5)

ROE:

-1.6%

📊 Click to view full FEIM ROE analysis →

ROA:-1.0%

Roic:

-3.6%

📊 Click to view full FEIM ROIC analysis →

Reinvestment Rate:-42.9%

Fundamental Growth Rate (g):1.6%

Margin Analysis (3)

Operating Margin Ttm:-4.7%

Net Margin Ttm:-1.4%

Ebitda Margin:-1.8%

TTM Performance (3)

Gross Margin Ttm:29.1%

Operating Margin Ttm:-4.7%

Net Margin Ttm:-1.4%

Yield Metrics (2)

Earnings Yield:-$0.15

Dividend Yield:0.0%

C. Log-Linear Regression Growth Trends

Earnings Surprise (SUE) (3)

Earnings Surprise (SUE):

-1.60

📊 Click to view full FEIM Earnings Surprise analysis →

EPS Surprise vs Expected:-344.3%

Latest Earnings Filed:2026-07-17

Revenue Growth (Linear) (1)

Revenue Growth Rate (Linear):18.5%

Earnings Growth (Linear) (1)

Net Income Growth Rate (Linear):38.3%

Cash Flow Growth (Linear) (2)

Free Cash Flow Growth Rate (Linear):-29.7%

Operating Cash Flow Growth Rate (Linear):-16.0%

Operating Growth (Linear) (1)

Operating Income Growth Rate (Linear):22.0%

D. Financial Stability

Liquidity Ratios (3)

Current Ratio:2.29x

Quick Ratio:1.21x

Cash Ratio:0.08x

Leverage Analysis (3)

Debt To Equity Ttm:0.27x

Debt-to-Equity Ratio:0.27x

Debt To Ebitda:-999.00x

Coverage Ratios (2)

Interest Coverage Ratio:-34.49x

Times Interest Earned:-34.49

Capital Structure (4)

Working Capital:26,992,000.00

Cash And Cash Equivalents:1,603,000.00

Long Term Debt:$5.65M

Net Debt:$6.05M

DIVISION II: FINANCIAL STATEMENTS ANALYSIS

A. Income Statement Analysis

Revenue Components (2)

Revenue TTM: $63.23M

Linear Growth: 18.5%

📊 Click to view full FEIM Revenue analysis & methodology →

Cost Of Revenue Ttm:$44.83M

Profitability Breakdown (2)

Gross profit TTM: $18.40M

Linear Growth: 6.6%

📊 Click to view full FEIM Gross Profit analysis & methodology →

Operating income TTM: -$3.00M

Linear Growth: 22.0%

📊 Click to view full FEIM Operating Income analysis & methodology →

Bottom Line Performance (3)

Net income TTM: -$903.00K

Linear Growth: 38.3%

📊 Click to view full FEIM Net Income analysis & methodology →

Income Before Tax:-$2.91M

Ebitda Ttm:-1,108,000.00

Operating Expenses (5)

Operating Expenses:0.00

R And D Expense:5,994,000.00

Sga Expense:15,403,000.00

Income Tax Expense:-$2.01M

Interest Expense:87,000.00

Expense Ratios (3)

R And D To Revenue Percentage:38.9%

Sga To Revenue Percentage:100.0%

Ebitda Margin:-1.8%

B. Balance Sheet Analysis

Asset Composition (5)

Total Assets:$90.71M

Current Assets:$47.98M

Ppe Net:7,105,000.00

Goodwill:218,000.00

Intangible Assets:$0.00

Liability Structure (4)

Total Liabilities:34,303,000.00

Current Liabilities:20,984,000.00

Long Term Debt:$5.65M

Short Term Debt:$2.00M

Equity & Capital (3)

Equity:$56.40M

Retained Earnings:$2.76M

Common Stock:9,925,000.00

Working Capital Items (3)

Accounts Receivable:4,740,000.00

Inventory:22,618,000.00

Accounts Payable:6,482,000.00

Special Items (2)

Contract Liabilities:9,418,000.00

Stock Based Compensation:1,974,000.00

C. Cash Flow Analysis

Operating Activities (2)

Operating cash flow TTM: $1.28M

Linear Growth: -16.0%

Free cash flow TTM: -$1.58M

Linear Growth: -29.7%

📊 Click to view full FEIM Free Cash Flow analysis & methodology →

Investment Activities (2)

Investing Cash Flow:-$605.00K

Capital Expenditures Ttm:2,859,000.00

Financing Activities (3)

Financing Cash Flow:$0.00

Dividends Paid Ttm:0.00

Stock Repurchase:0.00

Capital Transactions (3)

Common Stock Issuance:0.00

Long Term Debt Issuance:$0.00

Long Term Debt Repayments:$0.00

Non-Cash Items (1)

Depreciation Amortization Ttm:1,893,000.00

DIVISION III: OPERATIONAL METRICS

A. Per Share Analysis

Earnings Per Share (3)

EPS (Basic TTM):-0.09

Eps diluted TTM: -$0.09

Linear Growth: 32.5%

📊 Click to view full FEIM EPS analysis & methodology →

Earnings Per Share Ttm:-$0.09

Revenue & Cash Per Share (2)

Sales Per Share Ttm:6.46

Operating Cash Flow Per Share:$0.13

Book Value & Capital (2)

Book Value Per Share:$5.77

Cash Per Share:0.16

Dividend Policy (1)

Dividend Payout Ratio:-999.00x

B. Operational Efficiency

Asset Utilization (2)

Asset Turnover Ttm:0.68x

Working Capital Turnover Ttm:2.34x

Receivables Management (2)

Receivables Turnover Ttm:13.34x

Days Sales Outstanding Ttm:27.36

Inventory Management (2)

Inventory Turnover Ttm:1.98x

Days Inventory Outstanding Ttm:184.15

Payables & Cash Cycle (2)

Days Payable Outstanding:52.77

Cash Conversion Cycle:158.74

C. Quality & Risk Metrics

Financial Quality Scores (2)

Financial Strength Score:100.00

Quality Score:50.00

Market Metrics (2)

Beta:0.00x

Volatility Category:unknown

DIVISION IV: INVESTMENT ANALYSIS

A. Value Investment Framework

Owner Earnings Analysis (1)

-$611.00K

Damodaran Growth Analysis (2)

Reinvestment Rate:-42.9%

Fundamental Growth Rate (g):1.6%

B. Log-Linear Regression Growth Analysis

Growth Rates (Log-Linear Regression) (3)

Revenue Growth Rate (Linear):18.5%

Net Income Growth Rate (Linear):38.3%

Operating Income Growth Rate (Linear):22.0%

Cash Flow Growth Rates (2)

Free Cash Flow Growth Rate (Linear):-29.7%

Operating Cash Flow Growth Rate (Linear):-16.0%

Other Growth Rates (2)

Gross Profit Growth Rate (Linear):6.6%

Book Value Growth Rate (Linear):6.0%

C. Company Profile & Context

Corporate Information (6)

Symbol:FEIM

Company Name:FREQUENCY ELECTRONICS, INC.

Sector:Unknown

Industry:Instruments For Meas & Testing of Electricity & Elec Signals

Exchange:NASDAQ

Country:United States

Market Classification (3)

Market Cap Category:N/A

Price Category:high

Volume Category:N/A

Share Structure (3)

Shares Outstanding:9.78M

Shares Outstanding Basic:9.78M

Shares Outstanding Diluted:9.78M

Data Processing Info (3)

Processing Version:v3.0

Last Updated:2026-09-01 15:39:52 UTC

Data Timestamp:2026-09-01T15:39:52.480658