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ZYBERNO

Stock Report

Updated Sep 2, 2026

FREQUENCY HOLDINGS INC (FRQN)

OTC

$0.01

Professional Investment Analysis

ZYBERNO SCORE →

Is it a great business? Is it getting better?

27.0/100

POOR BUSINESS

FREQUENCY HOLDINGS INC (FRQN) scores 27/100 — concerning metrics indicating significant structural or financial risks.

📊 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 FRQN 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 FRQN valuation analysis · → View full FRQN 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 (0.0%)

Debt-to-Equity (Solvency Risk):EXCELLENT (0.00x)

Operating Margin (Operational Efficiency):CRITICAL (-284.0%)

Return on Capital (Capital Efficiency):CRITICAL (-7,664.3%)

📊 Valuation Trilogy

Three interconnected metrics for complete valuation analysis

Click any metric for full methodology and detailed analysis

Zyberno's Verdict

FREQUENCY HOLDINGS INC (FRQN) stock report — Zyberno Score 27/100 (POOR BUSINESS). Full financial analysis on Zyberno.

Over the trailing twelve months, FRQN generated -$1.27M in Owner Earnings. Capital was deployed as follows: $15.76K invested in capital expenditures. Reinvestment rate: 60.5%.

DIVISION I: EXECUTIVE SUMMARY

A. Market Valuation

Market Price & Capitalization (2)

Current Price:0.01

Market Cap:$4.86M

Valuation Multiples (3)

P/E Ratio:

0.28x

📊 Click to view full FRQN P/E analysis →

P/S Ratio:2.50x

Peg Ratio:-999.00x

Enterprise Metrics (1)

Enterprise Value:$5.39M

B. Profitability Assessment

Return Metrics (4)

ROA:62.8%

Roic:

-7,664.3%

📊 Click to view full FRQN ROIC analysis →

Reinvestment Rate:60.5%

Fundamental Growth Rate (g):-4,635.0%

Margin Analysis (3)

Operating Margin Ttm:-284.0%

Net Margin Ttm:25.3%

Ebitda Margin:-30.3%

TTM Performance (3)

Gross Margin Ttm:71.1%

Operating Margin Ttm:-284.0%

Net Margin Ttm:25.3%

Yield Metrics (2)

Earnings Yield:$384.62

Dividend Yield:0.0%

C. Log-Linear Regression Growth Trends

Revenue Growth (Linear) (1)

Revenue Growth Rate (Linear):100.0%

Earnings Growth (Linear) (1)

Net Income Growth Rate (Linear):100.0%

D. Financial Stability

Liquidity Ratios (3)

Current Ratio:0.02x

Quick Ratio:0.02x

Cash Ratio:0.01x

Leverage Analysis (1)

Debt To Ebitda:-999.00x

Coverage Ratios (2)

Interest Coverage Ratio:-4.25x

Times Interest Earned:-4.25

Capital Structure (4)

Working Capital:-4,570,545.00

Cash And Cash Equivalents:30,155.00

Long Term Debt:$0.00

Net Debt:$527.09K

DIVISION II: FINANCIAL STATEMENTS ANALYSIS

A. Income Statement Analysis

Revenue Components (2)

Revenue TTM: $1.95M

Linear Growth: 100.0%

📊 Click to view full FRQN Revenue analysis & methodology →

Cost Of Revenue Ttm:$562.70K

Profitability Breakdown (2)

Gross profit TTM: $1.38M

Linear Growth: -50.0%

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

-$5.53M

Bottom Line Performance (3)

Net income TTM: $491.96K

Linear Growth: 100.0%

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

Income Before Tax:$22.86M

Ebitda Ttm:-589,662.00

Operating Expenses (5)

Operating Expenses:8,084,844.00

R And D Expense:0.00

Sga Expense:889,491.00

Income Tax Expense:$0.00

Interest Expense:1,332,840.00

Expense Ratios (3)

R And D To Revenue Percentage:0.0%

Sga To Revenue Percentage:355.3%

Ebitda Margin:-30.3%

B. Balance Sheet Analysis

Asset Composition (5)

Total Assets:$102.29K

Current Assets:$102.29K

Ppe Net:7,500.00

Goodwill:1,226,427.00

Intangible Assets:$0.00

Liability Structure (4)

Total Liabilities:6,066,572.00

Current Liabilities:4,672,836.00

Long Term Debt:$0.00

Short Term Debt:$557.24K

Equity & Capital (3)

Equity:-$5.96M

Retained Earnings:-$11.76M

Common Stock:2,500,000,000.00

Working Capital Items (3)

Accounts Receivable:38,050.00

Inventory:0.00

Accounts Payable:557,241.00

Special Items (2)

Contract Liabilities:0.00

Stock Based Compensation:757,765.00

C. Cash Flow Analysis

Operating Activities (2)

-$1.19M-$1.21M

Investment Activities (2)

Investing Cash Flow:$53.90K

Capital Expenditures Ttm:15,760.00

Financing Activities (3)

Financing Cash Flow:$151.00K

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:4,939,059.00

DIVISION III: OPERATIONAL METRICS

A. Per Share Analysis

Earnings Per Share (3)

EPS (Basic TTM):0.06

$0.02

Earnings Per Share Ttm:$0.00

Revenue & Cash Per Share (2)

Sales Per Share Ttm:0.00

Operating Cash Flow Per Share:-$0.00

Book Value & Capital (2)

Book Value Per Share:-$0.01

Cash Per Share:0.00

Dividend Policy (1)

Dividend Payout Ratio:0.00x

B. Operational Efficiency

Asset Utilization (2)

Asset Turnover Ttm:2.49x

Working Capital Turnover Ttm:-999.00x

Receivables Management (2)

Receivables Turnover Ttm:51.16x

Days Sales Outstanding Ttm:7.13

Inventory Management (2)

Inventory Turnover Ttm:-999.00x

Days Inventory Outstanding Ttm:-999.00

Payables & Cash Cycle (2)

Days Payable Outstanding:361.46

Cash Conversion Cycle:-1,353.32

C. Quality & Risk Metrics

Financial Quality Scores (2)

Financial Strength Score:20.00

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)

-$1.27M

Damodaran Growth Analysis (2)

Reinvestment Rate:60.5%

Fundamental Growth Rate (g):-4,635.0%

B. Log-Linear Regression Growth Analysis

Growth Rates (Log-Linear Regression) (2)

Revenue Growth Rate (Linear):100.0%

Net Income Growth Rate (Linear):100.0%

Other Growth Rates (1)

Gross Profit Growth Rate (Linear):-50.0%

C. Company Profile & Context

Corporate Information (6)

Symbol:FRQN

Company Name:FREQUENCY HOLDINGS INC

Sector:Unknown

Industry:Business Services

Exchange:OTC

Country:United States

Market Classification (3)

Market Cap Category:N/A

Price Category:penny

Volume Category:N/A

Share Structure (3)

Shares Outstanding:883.47M

Shares Outstanding Basic:883.47M

Shares Outstanding Diluted:16.97B

Data Processing Info (3)

Processing Version:v3.0

Last Updated:2026-09-02 05:52:44 UTC

Data Timestamp:2026-08-24T18:16:40.523650