FEIM · sample dossier
Frequency Electronics, Inc.
29/100
OutdatedGenerated Sep 5, 2026 · 10:00 AM UTC · 62 days ago
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EquityFrequency Electronics, Inc. · XNAS
Decision context
Recommendation
Weighed down by weak Growth (0/100) and Value (3/100) scores.
A cautious picture — if you own it, consider taking some off.
AlphaDog Fair Value
Executive thesis & key metrics
Executive Investment Thesis
Frequency Electronics, Inc. provides precision time and frequency generation technology for defense and space applications, carrying a market capitalization of $678.14M and an EV/EBITDA multiple of 195.94. Operational contraction justifies caution, as YoY revenue shrank 23.0% and YoY EPS contracted 247.1%, yielding a negative net margin of -1.4% and an unprofitable P/E ratio of -674.11 despite a conservative Debt/Equity ratio of 0.14. The single biggest risk is valuation compression from an extreme Price/Book ratio of 10.62 amidst an ongoing 1-month return drawdown of -18.5%.
Key Metrics to Watch
What changed recently
No material changes found in the last 30 days.
Why this rating
Score 29 · Sell
Data through
OutdatedApr 30, 2026
Composite 29/100 — weak across most factors.
Levels unavailable — AlphaDog quantitative valuation model did not produce an estimate from comps or DCF
Re-evaluate if
- Severe accounting disclosures (auditor / restatement / going concern) in SEC filings
- Net margin falls below -1.1% (was -1.4%)
Trim / reconsider if
- ROA falls below 0.5% (was 0.8%)
- Debt/Equity ratio escalates above the current 0.14 level.
- Free cash flow per share declines below $0.33 into negative cash generation.
Think of these dollars as a map of our value estimate for Sell — helpful context, not a reason to override the view.
A Calmer Look · Devil's Advocate
The prevailing consensus and dual-judge ruling to Reduce FEIM rely heavily on distorted governance narratives and trough-multiple optical illusions.
May be overlooked
The bear consensus fails to recognize that the scoring red flags (auditor change on 2023-08-01 and restatement on 2022-12-16) are stale by over 36 months, with zero new restatements reported through the 2026-08-05 Form 8-K filings.
Bears conflate accounting net margin contraction of -1.4% with structural cash burn, overlooking that positive free cash flow per share of $0.33 was generated alongside a pristine Altman Z-score of 13.68.
The consensus fails to evaluate the lumpy, percentage-of-completion contract cycle of defense space hardware, incorrectly treating a single-period -23.0% YoY revenue decline as permanent market share loss.
Expectations look stretched
The synthesis report assumes space and defense program contract backlogs from the 2026-08-05 Form 8-K will automatically reverse the -23.0% YoY revenue contraction without examining program milestone risks.
Bulls rely on an 83.6% 1-year return and 70.5 momentum score while ignoring that technical breakdown below the 50-day moving average and a -18.5% 1-month drop indicate institutional distribution.
Extrapolating free cash flow per share above $0.33 is unrealistic without a direct rebound in the 0.8% ROA and reversal of the -247.1% YoY EPS collapse.
YoY revenue growth improves above the current -23.0% baseline.
YoY revenue growth improves above the current -23.0% baseline.
Monitor These Triggers
0 Checkpoints · Next PrintYoY Revenue Growth (current baseline: -23.0%)
Market context
Snapshot returns at report publication
1 month
-18.5%
3 months
-11.2%
6 months
+16.9%
1 year
+83.6%
At a Glance
A smaller company has mixed momentum at unprofitable earnings.
Top Holders
Financial trajectory
Financial Performance
Go deeper
For learning and research only — not investment advice. AlphaDog doesn’t hold stocks and isn’t your financial advisor.
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