Forensic Analysis · Industrial & Scientific Instruments · as of Nov 8, 2026
Frequency Electronics Inc (FEIM)
A forensic read on Frequency Electronics Inc built from its complete SEC filings — financial-health screens, earnings quality, red flags and a price-aware rating. Reproducible math, not opinion.
C · Mixed — selective
Forensic grade
Safe
Financial health
3.6
Distress distance
Clean
Earnings quality
3
Forensic signals
-1.6%
ROE
-9.4%
Revenue growth
This free snapshot doesn't read filing or proxy text, so the auditor-quality and governance checks that can lower a grade were not evaluated (auditor quality, say on pay, board independence, going concern). Those checks only ever lower a grade, so the full analysis can land below the grade above but never above it — treat it as the most favourable reading, not the settled one.
Frequency Electronics Inc earns a C (Mixed — selective) forensic quality grade, and its balance-sheet distress test reads 3.6, placing it in the Safe zone. 3 forensic signals were flagged in its latest SEC filings, led by cash conversion.
What the filings flag
0.30×
FY2024–FY2026
Cash conversion.Over FY2024–FY2026, cumulative operating cash flow was 0.30× cumulative net income. Reported profit is not turning into cash. The shortfall is profit tied up in working capital rather than collected — the accrual and receivables lines below show where.Cash conversion: operating cash flow divided by net income, the share of profit that arrived as cash.
-3.5%
FY2026
Return on invested capital.Return on invested capital is -3.5% in the latest fiscal year, against 13.2% in FY2024, having run between -3.5% and 21.2% across FY2024–FY2026 with no direction held. After-tax operating profit was $5M in FY2024 and ($2M) in FY2026, with operating income at 9.1% of revenue in FY2024, 16.8% in FY2025 and -4.7% in FY2026. The capital base behind it grew +96% across FY2024–FY2026, from $34M to $67M, while the return fell 16.7 points, so the dollars added over that window earned less than the 13.2% the older base was already earning.
FCF ($2M)
FY2026
Shareholder returns.Returned $2M to shareholders (buybacks + dividends) in FY2026, but free cash flow was ($2M) after capex — there was no free cash flow to fund the payout from at all, though operating cash flow alone was $1M — 123% of that. The entire return is coming from debt or cash reserves, not cash the business itself generated — a harder case than returns merely running ahead of free cash flow, since here there was none to run ahead of.
Key fundamentals
Latest Revenue$63.2M
Revenue Growth YoY-9.4%
Revenue CAGR (2yr)+7.0%
Net Margin-1.4%
Free Cash Flow-$1.6M
Return on Equity-1.6%
The forensic grade and screens above are free — no account needed. Want the AI investment read on top — the 0–100 rating, thesis, bull-vs-bear, red flags and the 12-month scenario, written from Frequency Electronics Inc's actual 10-K/10-Q/8-K filings?