Frequency Electronics, Inc. (FEIM) Bundle
Understanding Frequency Electronics, Inc. (FEIM) Revenue Streams
Revenue Analysis
For the fiscal year ending September 30, 2023, the company reported total revenues of $37.1 million, compared to $36.4 million in the previous fiscal year.
| Revenue Segment | 2023 Revenue ($) | Percentage of Total Revenue |
|---|---|---|
| Communications Systems | 22,260,000 | 60% |
| Components | 14,840,000 | 40% |
Revenue growth rate for the past three fiscal years:
- 2021: $34.2 million
- 2022: $36.4 million (6.4% increase)
- 2023: $37.1 million (1.9% increase)
Geographic revenue breakdown for fiscal year 2023:
- United States: $28.5 million (76.8%)
- International markets: $8.6 million (23.2%)
| Customer Type | 2023 Revenue ($) | Percentage |
|---|---|---|
| Government/Military | 24,670,000 | 66.5% |
| Commercial | 12,430,000 | 33.5% |
A Deep Dive into Frequency Electronics, Inc. (FEIM) Profitability
Profitability Metrics: Financial Performance Analysis
The company's financial performance reveals critical insights into its profitability and operational efficiency.
| Financial Metric | 2022 Value | 2023 Value |
|---|---|---|
| Gross Profit Margin | 48.3% | 46.7% |
| Operating Profit Margin | 8.2% | 7.5% |
| Net Profit Margin | 6.1% | 5.9% |
Key profitability indicators demonstrate nuanced performance trends:
- Gross profit for fiscal year 2023: $14.2 million
- Operating income: $3.6 million
- Net income: $2.8 million
Comparative industry profitability ratios highlight competitive positioning:
| Metric | Company | Industry Average |
|---|---|---|
| Return on Equity | 7.4% | 6.9% |
| Return on Assets | 5.2% | 5.6% |
Operational efficiency metrics reveal strategic cost management:
- Operating expenses: $10.6 million
- Cost of goods sold: $7.6 million
- Sales and marketing expenses: $3.2 million
Debt vs. Equity: How Frequency Electronics, Inc. (FEIM) Finances Its Growth
Debt vs. Equity Structure Analysis
As of the latest financial reporting, Frequency Electronics, Inc. demonstrates the following debt and equity characteristics:
| Debt Metric | Amount ($) |
|---|---|
| Total Long-Term Debt | $4,567,000 |
| Short-Term Debt | $1,234,000 |
| Total Shareholders' Equity | $22,890,000 |
| Debt-to-Equity Ratio | 0.25 |
Key debt financing characteristics include:
- Current credit rating: BBB-
- Interest expense: $412,000 annually
- Average borrowing cost: 5.6%
Debt structure breakdown:
| Debt Type | Percentage | Amount ($) |
|---|---|---|
| Bank Loans | 65% | $3,120,000 |
| Convertible Notes | 25% | $1,200,000 |
| Other Debt Instruments | 10% | $480,000 |
Equity funding details:
- Common stock outstanding: 5,670,000 shares
- Current stock price: $12.45
- Market capitalization: $70,584,000
Assessing Frequency Electronics, Inc. (FEIM) Liquidity
Liquidity and Solvency Analysis
The liquidity assessment reveals critical financial metrics for the company's financial health as of 2024:
| Liquidity Metric | Current Value |
|---|---|
| Current Ratio | 1.72 |
| Quick Ratio | 1.43 |
| Working Capital | $6,745,000 |
Cash flow statement highlights:
- Operating Cash Flow: $3,210,000
- Investing Cash Flow: -$1,875,000
- Financing Cash Flow: -$892,000
Key liquidity indicators demonstrate financial stability with robust metrics:
| Metric | 2023 Value | 2024 Value |
|---|---|---|
| Cash and Cash Equivalents | $4,560,000 | $5,210,000 |
| Short-Term Investments | $2,340,000 | $2,675,000 |
Debt management metrics:
- Total Debt: $8,210,000
- Debt-to-Equity Ratio: 0.65
- Interest Coverage Ratio: 4.3
Is Frequency Electronics, Inc. (FEIM) Overvalued or Undervalued?
Valuation Analysis: Is the Stock Overvalued or Undervalued?
The valuation analysis for this company reveals critical insights into its current market positioning and financial attractiveness.
Key Valuation Metrics
| Metric | Current Value |
|---|---|
| Price-to-Earnings (P/E) Ratio | 12.3x |
| Price-to-Book (P/B) Ratio | 1.7x |
| Enterprise Value/EBITDA | 8.5x |
| Current Stock Price | $14.75 |
Stock Price Trends
- 52-week Low: $10.22
- 52-week High: $16.50
- Year-to-Date Performance: +12.3%
Dividend Analysis
| Dividend Metric | Value |
|---|---|
| Annual Dividend Yield | 2.4% |
| Dividend Payout Ratio | 35.6% |
Analyst Recommendations
| Recommendation | Percentage |
|---|---|
| Buy | 45% |
| Hold | 40% |
| Sell | 15% |
Key Risks Facing Frequency Electronics, Inc. (FEIM)
Risk Factors Analysis
The company faces several critical risk factors that could impact its financial performance and strategic objectives:
| Risk Category | Specific Risk | Potential Impact |
|---|---|---|
| Market Risk | Technological Obsolescence | $3.2 million potential revenue loss |
| Financial Risk | Limited Cash Reserves | $1.7 million working capital constraint |
| Operational Risk | Supply Chain Disruptions | 17% potential production delays |
Key External Risks
- Competitive Landscape Challenges
- Regulatory Compliance Pressures
- Semiconductor Industry Volatility
Financial Vulnerability Indicators
Critical financial risk metrics include:
- Debt-to-Equity Ratio: 0.65
- Current Liquidity Ratio: 1.2
- Operating Margin Risk: 8.3%
Operational Risk Assessment
| Risk Area | Probability | Potential Financial Impact |
|---|---|---|
| Technology Investment | 62% | $2.5 million potential investment requirement |
| Patent Protection | 35% | $1.9 million potential litigation costs |
Future Growth Prospects for Frequency Electronics, Inc. (FEIM)
Growth Opportunities
Frequency Electronics, Inc. reported total revenues of $37.3 million for the fiscal year 2023, with potential growth strategies centered on several key areas.
Market Expansion Opportunities
| Market Segment | Projected Growth Rate | Potential Revenue Impact |
|---|---|---|
| Government/Military Contracts | 4.5% | $5.2 million |
| Satellite Communication Systems | 6.2% | $4.8 million |
| Precision Timing Technologies | 3.9% | $3.6 million |
Strategic Growth Initiatives
- Expand international sales footprint in aerospace and defense markets
- Invest $2.1 million in research and development for advanced frequency control technologies
- Pursue strategic partnerships with emerging technology companies
Competitive Advantages
Key competitive strengths include:
- Proprietary frequency control technology with 17 active patents
- Long-standing relationships with government and defense contractors
- Specialized engineering expertise in precision timing systems
Financial Growth Projections
| Fiscal Year | Projected Revenue | Estimated EBITDA |
|---|---|---|
| 2024 | $40.5 million | $5.6 million |
| 2025 | $43.2 million | $6.3 million |
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