Frequency Electronics Inc (FEIM) Stock — Forensic Analysis, Red Flags & Rating | Stockonomy · Stockonomy
Forensic Analysis · Industrials / Manufacturing / Defense · as of Aug 11, 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.
D · Weak — demands caution
Forensic grade
Safe
Financial health
14.4
Distress distance
Clean
Earnings quality
5
Forensic signals
-785.1
P / E (ttm)
-1.6%
ROE
$808M
Market cap
0.00%
Dividend yield
-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 (red flags, auditor quality, say on pay, board independence). 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 D (Weak — demands caution) forensic quality grade, and its balance-sheet distress test reads 14.4, placing it in the Safe zone. 5 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, 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.
-3.5%
FY2026
Return on invested capital.Return on invested capital is -3.5% in the latest fiscal year and rising from -10% — well below its ~9% cost of capital, so reinvested dollars may be destroying value, not building it.
+1.6%/yr
FY2023–FY2026
Share-count dilution.Diluted share count changed +5% over the last 3 years to FY2026 (+1.6%/yr). The count is growing: more stock was issued than repurchased over this window, so aggregate results grew faster than their per-share equivalents. That's ~1.6% shaved off per-share growth every year — total profit has to grow that much just to keep earnings-per-share flat, and a stake held since FY2023 has been diluted ~5%.
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.
suspended
FY2025→FY2026
Key fundamentals
Latest Revenue$63.2M
Revenue Growth YoY-9.4%
Revenue CAGR (3yr)+15.7%
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?
Data from SEC EDGAR public filings · metrics as of Aug 11, 2026. Forensic signals flag probability, not certainty.
Dividend — suspended.The dividend has been SUSPENDED — $10M paid in FY2025, then $0 in FY2026. A suspension is a major signal the board is conserving cash; the prior payment history doesn't offset it.