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FEIM, Frequency Electronics Inc.

Electronic Components & Instruments capital-intensive UnprofitableDistress / turnaround

The Company's present mission is to be the world leader in providing precision time and low phase noise frequency generation systems, from 1 Hz to 46 GHz for space and other challenging environments.

Government satellites, Command, Control, Communication, Computer, Intelligence, Surveillance and Reconnaissance ("C4ISR"), and Electronic Warfare ("EW") systems.

Latest annual: FY2026 10-K

FEIM · Frequency Electronics Inc.

The business

What it sells, where the money comes from, the kind of company it is.

Revenue · FY2026

$63M

−9.4% YoY · 3% 5-yr CAGR

Vital signs · TTM, with 5-yr average

Revenue $63M 5-yr avg $55M

Gross margin 29% 5-yr avg 29%

Operating margin −4.7% 5-yr avg −1.4%

ROIC −4% 5-yr avg 1%

Owner-earnings margin −1% 5-yr avg 3%

Free cash flow margin −2% 5-yr avg 2%

The business in brief

read the 10-K →

What this business is and what moves its needle, from its own SEC filings.

What it is: Revenue is Satellite Revenue (59%), Government Non-Space Revenue (38%) and Other Commercial & Industrial Revenue (3%).
Situation: Unprofitable. No sustained operating profit across the record; an earnings multiple has nothing to rest on. What the record does show is revenue, the gross-margin trajectory, and the burn against the cash on hand. Distress / turnaround. Thin interest coverage, or operating cash burned against real debt, across the record. The balance sheet carries this situation; the debt schedule sets the clock.
What moves the needle: Operating margin has reached 17% at its best but run negative through the cycle (median −11%) on a 22% gross margin — so the question is which reading is truer: whether the median was pulled below zero by one-off charges, by the cycle, or by spending it is still growing into, and whether it settles back at a profit. Inventory runs near 42% of sales, so how fast it turns back into cash — and the risk of writing it down when demand softens — sits alongside the margin. Read this kind of business on the installed base and the upgrade cycle. On its own account, the filing leans hardest on customer concentration, set against the numbers in what the filing emphasizes, below.
Is it a good business?: Return on capital has rarely cleared the cost of capital (median −6%, above 15% in 2 of 10 years). Owner earnings, the cash-based check, have been thin too. This is price-taker territory, where the balance sheet and the cycle matter more than any multiple; the rest is in the 10-K.

Every line is arithmetic on the company's filings, shown in full in the sections below.

Where the money comes from

read the 10-K →

Revenue spreads across 3 lines, the largest Satellite Revenue at 59%.

Revenue by product line, FY2025

Satellite Revenue59%$41M
Government Non-Space Revenue38%$27M
Other Commercial & Industrial Revenue3%$2M

From the segment footnote of the company's own 10-K. Shares are of total revenue; the profit bar shows each segment's share of segment operating profit, before unallocated corporate costs.

The record

Ten years of arithmetic, read across the cycle.

The record, 2017–2026

realized figures from each filing · older years to the left

2017’17	2018’18	2019’19	2020’20	2021’21	2022’22	2023’23	2024’24	2025’25	2026’26	TTMTTMApr 2026
											Income statement
$50M	$39M	$50M	$42M	$54M	$48M	$41M	$55M	$70M	$63M	$63M	RevenueRevenue
22%	13%	32%	14%	31%	18%	19%	34%	43%	29%	29%	Gross marginGross mgn
24%	27%	24%	28%	24%	24%	23%	18%	18%	24%	24%	SG&A / revenueSG&A/rev
14%	18%	13%	12%	9%	10%	8%	6%	9%	9%	9%	R&D / revenueR&D/rev
($8M)	($12M)	($3M)	($11M)	($958K)	($8M)	($5M)	$5M	$12M	($3M)	($3M)	Operating incomeOp. inc.
−14.9%	−31.5%	−5.7%	−26.3%	−1.8%	−16.6%	−11.5%	9.1%	16.8%	−4.7%	−4.7%	Operating marginOp. mgn
($5M)	($24M)	($3M)	($10M)	$680K	($9M)	($6M)	$6M	$24M	($903K)	($903K)	Net incomeNet inc.
											Cash flow & returns
$4M	$5M	($97K)	($1M)	$12M	$4M	$1M	$9M	($1M)	$1M	$1M	Operating cash flowOp. cash
$3M	$2M	$3M	$3M	$3M	$3M	$2M	$2M	$2M	$2M	$2M	DepreciationDeprec.
$5M	$25M	($870K)	$5M	$8M	$9M	$4M	$168K	($28M)	($2M)	($2M)	Working capital & otherWC & other
$5M	$1M	$3M	$1M	$1M	$2M	$918K	$1M	$2M	$3M	$3M	CapexCapex
10.4%	3.6%	5.6%	3.6%	2.3%	3.9%	2.3%	2.7%	2.6%	4.5%	4.5%	Capex / revenueCapex/rev
$1M	$3M	($3M)	($3M)	$11M	$2M	$257K	$7M	($3M)	($611K)	($611K)	Owner earningsOwner earn.
2.5%	7.9%	−5.8%	−7.0%	20.1%	4.5%	0.6%	13.1%	−4.6%	−1.0%	−1.0%	Owner earnings marginOE mgn
($1M)	$3M	($3M)	($3M)	$11M	$2M	$257K	$7M	($3M)	($2M)	($2M)	Free cash flowFCF
−2.7%	7.9%	−5.8%	−7.0%	20.1%	4.5%	0.6%	13.1%	−4.6%	−2.5%	−2.5%	Free cash flow marginFCF mgn
—	—	—	—	—	$0	$9M	$0	$10M	$0	$0	Dividends paidDiv. paid
—	—	—	—	—	—	—	$0	$377K	$2M	—	BuybacksBuybacks
-7%	-18%	-4%	-16%	-2%	-18%	-18%	23%	23%	-4%	-4%	ROICROIC
-5%	-38%	-4%	-18%	1%	-19%	-17%	14%	43%	-2%	-2%	Return on equityROE
—	—	—	—	—	−19%	−45%	14%	25%	−2%	−2%	Retained to equityRetained/eq
											Balance sheet
$10M	$14M	$12M	$14M	$20M	$22M	$12M	$18M	$5M	$2M	$2M	Cash & investmentsCash+inv
$11M	$4M	$6M	$4M	$6M	$4M	$5M	$5M	$6M	$5M	$5M	ReceivablesReceiv.
$29M	$26M	$23M	$23M	$20M	$20M	$21M	$23M	$23M	$23M	$23M	InventoryInvent.
$2M	$2M	$1M	$1M	$1M	$1M	$1M	$2M	$1M	$3M	$3M	Accounts payablePayables
$38M	$29M	$29M	$26M	$24M	$23M	$24M	$26M	$28M	$24M	$24M	Operating working capitalOper. WC
$70M	$52M	$53M	$51M	$61M	$56M	$48M	$58M	$53M	$48M	$48M	Current assetsCur. assets
$8M	$5M	$6M	$14M	$21M	$22M	$27M	$31M	$23M	$21M	$21M	Current liabilitiesCur. liab.
8.6×	9.9×	9.0×	3.7×	3.0×	2.6×	1.8×	1.9×	2.3×	2.3×	2.3×	Current ratioCurr. ratio
—	—	—	—	—	—	$617K	$617K	$617K	$218K	$218K	GoodwillGoodwill
$113M	$84M	$87M	$91M	$99M	$85M	$74M	$83M	$94M	$91M	$91M	Total assetsAssets
$0	—	$0	$5M	—	—	—	—	—	—	$11M	Total debtDebt
($10M)	—	($12M)	($9M)	—	—	—	—	—	—	$10M	Net debt / (cash)Net debt
-50.2×	-156.9×	-33.9×	-102.1×	-7.5×	-104.4×	-29.9×	46.0×	112.8×	-34.5×	-34.5×	Interest coverageInt. cov.
$89M	$63M	$63M	$54M	$55M	$47M	$33M	$40M	$56M	$56M	$56M	Shareholders’ equityEquity
1.3%	1.2%	1.0%	0.8%	0.5%	0.5%	0.5%	1.5%	1.7%	3.1%	3.1%	Stock comp / revenueSBC/rev
											Per share
8.8M	8.8M	9.2M	9.3M	9.2M	9.3M	9.3M	9.4M	9.6M	9.8M	9.8M	Shares out (diluted)Shares
$5.73	$4.46	$5.41	$4.45	$5.87	$5.21	$4.37	$5.86	$7.26	$6.46	$6.46	Revenue / shareRev/sh
$-0.55	$-2.69	$-0.28	$-1.08	$0.07	$-0.93	$-0.59	$0.59	$2.46	$-0.09	$-0.09	EPS (diluted)EPS
$0.14	$0.35	$-0.31	$-0.31	$1.18	$0.23	$0.03	$0.77	$-0.34	$-0.06	$-0.06	Owner earnings / shareOE/sh
$-0.15	$0.35	$-0.31	$-0.31	$1.18	$0.23	$0.03	$0.77	$-0.34	$-0.16	$-0.16	Free cash flow / shareFCF/sh
—	—	—	—	—	$0.00	$1.00	$0.00	$1.00	$0.00	$0.00	Dividends / shareDiv/sh
$0.60	$0.16	$0.30	$0.16	$0.13	$0.20	$0.10	$0.16	$0.19	$0.29	$0.29	Cap. spending / shareCapex/sh
$10.17	$7.16	$6.89	$5.82	$5.99	$5.04	$3.52	$4.22	$5.78	$5.77	$5.77	Book value / shareBVPS

Per-share growththe realized rate an owner's share compounded

	9-yr	5-yr
Revenue / share	+1.3%/yr	+2.0%/yr
Capital spending / share	−7.6%/yr	+16.9%/yr
Book value / share	−6.1%/yr	−0.8%/yr

The record, charted

FY2017–2026

Each measure over its full record; the current point and the worst year marked.

Share count

10Mpeak FY2026

ROIC

−4%low FY2022

Gross margin

29%low FY2018

Owner earnings vs. net income

Owner earningsNet income

The accountant's number, and the cash an owner can take; the gap is the tell.

($611K)owner earningsvs.($903K)net incomelow FY2025

Where the cash went

ReinvestBuybacksDividendsAcquisitionsRetained

Each year's operating cash, by what management did with it: the mix, and how it drifts.

FY2017FY2026

Owner-earnings bridge

FY2022–FY2026cash-flow statement, SEC EDGAR →

Net income is the accountant's number; owner earnings is the cash an owner could take out. The walk between them, off the cash-flow statement, and whether the gap is widening or holding.

In fiscal 2026 the business earned ($611K) of owner earnings, the operating cash left after the $2M it takes just to hold its position. It put $966K more into growth; free cash flow, after that spending, was ($2M).

	FY2026	FY2025	FY2024	FY2023	FY2022
Reported net income	($903K)	$24M	$6M	($6M)	($9M)
Depreciation & amortizationnon-cash charge added back	+$2M	+$2M	+$2M	+$2M	+$3M
Stock-based compensationreal costnon-cash, but a real cost	+$2M	+$1M	+$822K	+$197K	+$247K
Working capital & othertiming of cash in and out, other non-cash items	−$2M	−$28M	+$168K	+$4M	+$9M
Cash from operations	$1M	($1M)	$9M	$1M	$4M
Maintenance capital expenditurethe spending needed just to hold position and volume	−$2M	−$2M	−$1M	−$918K	−$2M
Owner earnings	($611K)	($3M)	$7M	$257K	$2M
Growth capital expenditurediscretionary; spent to get bigger, not to stand still	−$966K	—	—	—	—
Free cash flow	($2M)	($3M)	$7M	$257K	$2M
Owner-earnings marginowner earnings ÷ revenue	-1%	-5%	13%	1%	5%

Owner earnings is the cash an owner could pull out without starving the business: operating cash less the maintenance capital it must spend to hold its position (here about $2M, roughly its depreciation, the rate its assets wear out). The other $966K of its capital spending is growth it chose, not upkeep it owed; charged only with the maintenance it must do, the business earns well more than the year's free cash flow shows. The cash-flow statement also adds stock comp back as non-cash, but it is a real cost paid in shares; counted as the expense it is (less $2M), owner earnings is nearer ($3M).

Maintenance capex is estimated as depreciation where a growing business invests above it; free cash flow is the figure the scorecard's free-cash margin reads.

III

Quality & stewardship

Returns, the balance sheet, capital allocation, and pay.

Owner’s Scorecard

FY2026 10-K · source on SEC EDGAR →

Material weakness in financial controls

“The Company has identified a material weakness in its internal control over financial reporting for the fiscal year ended April 30, 2024.”

The figures below are only as sound as the controls that produced them. read the note →

Will it survive?

Can it pay its interest? -34.5×

Does not cover its interest

Operating income ($3M) ÷ interest expense $87K

What this means
A full year of operating profit didn't cover the interest bill. This is the zombie zone: the business depends on refinancing, asset sales, or forbearance to service its debt.
How heavy is the debt, net of cash? $4M

Net debt against an operating loss

Cash $2M − debt $6M

What this means
Netting $2M of cash and short-term investments against $6M of debt leaves $4M owed, with no operating profit this year to measure it against — understand that combination before anything else about the company. Net debt is the leverage figure that matters: the cash is already set against the debt. Strategic or illiquid investments aren't counted here.
How long is cash tied up? 187d

Long (60+ days)

DSO 27 + DIO 184 − DPO 24 days

What this means
Days cash is tied up between paying suppliers and collecting from customers. Lower is better; a long cycle means growth itself eats cash.

Is it a good business?

Return on invested capital -7%

Below average through the cycle

10-yr median, range -18%–23%; -4% latest = NOPAT ($2M) ÷ invested capital $61M

Industry peers: median -28%

What this means
The rate the business earns on the money tied up in it, Buffett's north star, because over time a stock tracks the ROIC beneath it. Above ~15% sustained hints at a moat; a return below the cost of capital (~8%) erodes value as a business grows rather than building it — the test Buffett weighs most. The headline is the median of the last 10 years (it ran -4% most recently), so one peak or trough year doesn't set the verdict. Asset-light businesses (R&D expensed, little capital) read artificially high, pair this with Owner Earnings.
Owner-earnings margin 1%

Thin through the cycle

10-yr median margin, range -7%–20%; latest ($611K) = operating cash $1M − maintenance capex $2M

Industry peers: median -25%

What this means
What an owner could take out without starving the business: operating cash less the maintenance capital it must spend to hold its position — Buffett's owner earnings. That's -1% of revenue this year, a 1% median across 10 years. It chose to put $966K more into growth, so free cash flow this year was ($2M) — the gap is investment, not weakness. Treating stock comp as the real expense it is (less $2M of SBC) leaves ($3M).
Are earnings backed by cash? $1M

Loss, but cash-generative

Net income ($903K) · cash from operations $1M

In the filing’s words The filing discloses a material weakness in its financial controls — the reported numbers here, and the record built on them, are only as reliable as the controls that produced them.

What this means
The company reported a net loss, so a conversion ratio isn't meaningful. What matters then is whether operations still threw off cash, here, they did.

How is the cash used?

Where do the earnings go? —

No surplus to allocate

What this means
The business didn't generate positive Owner Earnings this year, so any distributions came from the balance sheet or borrowing, not from operations.
Investing or harvesting? 1.51×

Expanding

Capex $3M ÷ depreciation $2M

What this means
Descriptive, not a grade. Above ~1× means investing faster than assets wear out (growth, or, sustained for years, today's earnings carrying less depreciation than tomorrow's will). Below means spending less than it's wearing out (efficiency, or a melting asset base). The ratio won't tell you which; the filings will.

Graham’s defensive tests · 2 of 5 met

Graham’s numerical criteria for the defensive investor (The Intelligent Investor, ch. 14), run on the filings. A floor of safety, not a buy signal; many fine modern businesses fail his strictest liquidity rules by design.

Adequate size Miss

Revenue ≥ $2B · $63M

What this means
Big enough to weather a storm. Graham's 1972 floor was ~$100M of sales (≈ $700M today); we use a $2B revenue line as a conservative modern stand-in.
Strong liquidity Pass

Current ratio ≥ 2× · 2.29×

What this means
Current assets at least twice current liabilities, near-term bills covered without touching the business. Strict by design: many cash-rich modern firms run leaner and miss it, holding their cushion in longer-dated securities.
Conservative debt Pass

Debt ≤ working capital · $6M vs $27M WC

What this means
Graham's rule that borrowings not exceed net current assets. Capital-heavy and buyback-heavy firms routinely fail it, read it next to interest coverage, not alone.
Earnings stability Miss

A profit every year (10-yr record) · 7 loss years

What this means
Graham wanted earnings in each of the past ten years, the stability a defensive owner leans on.
Dividend record Miss

Uninterrupted dividends · 2 of 10 yrs

What this means
An unbroken dividend was Graham's mark of durability. He wanted twenty years; the filings show about ten, and a single suspension breaks the streak. Non-payers, many fine modern compounders, fall outside his defensive net by design.
Earnings growth —

Earnings +33% over the record · —

What this means
Earnings were negative early in the record, a growth rate isn't meaningful.
Moderate price —

P/E ≤ 15 and P/E × P/B ≤ 22.5 · decided by the price

What this means
Graham's valuation gate, the wall he kept between a sound business and a sound investment. Three-year average earnings are $0.96/share (latest year $-0.09), the averaged base the calculator's gate runs on, and book value is $5.71/share. Enter a price in “What the price implies” just below for the P/E, P/B, and whether it clears. But this is the rule Buffett outgrew: there's no hard P/E law, and a wonderful business can deserve a far richer multiple if the thesis holds, treat it as the bargain-hunter's floor, not a verdict on the price.

Durability & moat, 2017–2026

Whether the record’s returns held, and what the capital reinvested earned.

Profitable years 3 of 10

What this means
Lost money in 7 year(s), look at what happened there before trusting the average.
Return on capital ≥ 15% 0 of 3 yrs

What this means
A moat shows up as a high return on invested capital that holds year after year, not one good vintage.
Operating margin −17% → 7% (3-yr avg ends)

In the filing’s words The record and the words agree: the margin widened and the filing attributes the gain to its own pricing, not volume alone.

What this means
Through the cycle the operating margin widened — about −17% early to 7% lately, median −11% — pricing power intact or improving.
Reinvestment, incremental ROIC returns capital

What this means
The capital base barely grew: this business returns cash through dividends and buybacks rather than reinvesting. Judge it on the cash returned, not on compounding.
Worst year 2018 · −31.5% op. margin

What this means
Operations went underwater in 2018, understand why before trusting the good years.
Share count +1.2%/yr

What this means
The share count is rising, dilution works against you on a per-share basis.
Dividend record paid

What this means
Paid a dividend in 2 of the years on record.

Does AI threaten the moat?

Low contestability

The moat is physical, regulated or balance-sheet-funded, the kind AI cuts costs within but does not contest.

AI is unlikely to contest a moat that is physical, regulated or balance-sheet-funded; here it reads more as a cost tool than a threat.

Read from the filing's own risk factors, paired with the industry's structure under its SIC code; the durability is read above, the price below.

All figures as filed; the source filing is linked above.

Current Position

as of fiscal year-end, Apr 30, 2026

Can the business pay what it owes this year, off the freshest balance sheet: the quality of the assets, the debt actually coming due, and what a low ratio means here.

Current assets$48M

Cash & short-term investments$2M
Receivables$5M
Inventory$23M
Other current assets$19M

Current liabilities$21M

Debt due within a year$3M
Accounts payable$3M
Other current liabilities$15M

Current ratio2.29×all current assets ÷ what's due · Graham looked for 2×

Quick ratio1.21×stricter: inventory excluded

Cash ratio0.08×strictest: cash alone against what's due

Working capital$27Mthe cushion left after near-term bills

Debt due this year vs. cash$3M due · $2M cash cash alone won't cover the maturities; it leans on refinancing or operating cash · both figures from the Apr 30, 2026 balance sheet

Current ratio, recent quarters1.5× → 2.3×

Deeper floors

Tangible book value$56Mequity stripped of goodwill & intangibles

Net current asset value$14MGraham's net-net: current assets less all liabilities

Debt incl. operating leases$19M$8M of it operating leases

Deferred revenue$9Mcustomer cash collected before delivery; operating float

From the company's latest filing.

How the cash was used, 2017–2026

Over the record, the business generated $33M of operating cash; how management split it reads as a cash returner, paying most of what it earns straight back to owners.

Reinvested$21M · 64%
Dividends$19M · 58%
Buybacks$2M · 6%

Returned to owners$21M
136% of the owner earnings the business produced over the span, $19M as dividends and $2M as buybacks.
Source of funding−$9M
Reinvestment and shareholder returns ran $9M beyond the operating cash the business generated, so the gap was financed off the balance sheet: debt rose from $0 to $11M, and cash and short-term investments drew down $8M.
Average price paid for buybacks—
Buybacks ran $2M over the span, but the filings don't tag the share count needed to deduce the average price paid.
Net change in share count11.3%
The diluted count rose from 9M to 10M: issuance (stock pay, deals) outran any buybacks, so owners were diluted on net.
Dividend record$0.00/sh
Paid in 2 of the years on record. It was cut at least once along the way.

Buybacks are gross of stock issued to staff; the share-count line above is the net of that, the figure that decides whether owners gained. The average price paid blends a year of purchases (and any accelerated repurchase), so it is close, not exact. The record of where the cash went and on what terms.

Management, ownership & pay

read the proxy →

Two things from the proxy: how much of the business the people running it own, and how they are paid.

Insider ownership28%
The stake all directors and executive officers hold together, per the 2025 proxy: skin in the game, the first thing Munger reads.
Stock-based compensation$2M
The slice of the business handed to employees in shares this year, 3% of revenue. Buffett's oldest accounting fight: this is compensation, compensation is an expense, real whether or not the headline earnings admit it. One trap: the cash-flow statement adds SBC back, so the operating cash, and the owner earnings drawn from it, are flattered by exactly this amount; counted as the cost it is, what an owner keeps is lower.

Inverting the record

Invert: instead of why Frequency Electronics Inc. is a good business, the question is what would make owning it a mistake, and whether those marks are in the record. Disconfirming tests across 2017–2026.

2 of the 4 tests turned up something to look into; the other 2 came back clean.

Look hereDid the share count rise anyway?11.3%
Diluted shares grew 11.3% over 2017–2026, even as the company spent $2M on buybacks. The repurchases were outrun by issuance — to staff, in a raise, or in a deal — and the filing says which; owners' slice still shrank. Read the buyback line beside this one, not on its own.
Look hereDid debt outgrow the business?$0 → $11M
Debt rose from $0 to $11M while owner earnings went from about $500K to $1M — under 0.1 years of owner earnings in debt then, about 10 now: measured against what the business earns, the balance sheet carries more debt than it did. Debt raised for buybacks or deals rather than growth is the kind that bites in a downturn.

And these came back clean

Is it less profitable than it was?
Did receivables and inventory outpace sales?

Each test is read from the filings and is noisy alone; a flag can mark a cyclical trough or a year of heavy investment as easily as a problem. The filing says which.

Peers, Electronic Components & Instruments

The same industry, side by side on owner economics. Each figure is a through-cycle median, so a peak or trough year can’t distort it; the group median at the foot is the line to read each against.

Company	Revenue	Gross margin	Op. margin	ROIC	Owner earn. margin
PACBPacific Biosciences of California Inc.	$160M	38%	-146.8%	-51%	-88%
LABStandard BioTools Inc.	$85M	50%	-63.7%	-28%	-43%
FOCLEDAP TMS S.A.	$71M	43%	-35.0%	-115%	-25%
FEIMFrequency Electronics Inc.	$63M	26%	-8.6%	-6%	2%
APTAlpha Pro Tech Ltd.	$59M	38%	6.7%	9%	6%
AEHRAehr Test Systems	$59M	39%	-11.0%	-13%	-13%
EYPTEyePoint Inc.	$31M	—	-243.5%	-161%	-276%
OPTXSyntec Optics Holdings Inc.	$28M	23%	-1.9%	-3%	1%
Group median	—	38%	-23.0%	-20%	-19%

The price

What a price has to assume.

What the price implies

reverse-DCF

Type today's close and see the owner-earnings growth you'd have to believe to justify it, beside what Frequency Electronics Inc. has delivered.

Frequency Electronics Inc.’s latest year shows negative owner earnings, the mark of a build-out: total capital spending outruns the cash the business throws off today. So the tool opens on the steady-state base (maintenance capex in place of the build-out spend), the cash it would earn at rest; clear the toggle below to read the latest year exactly as reported.

Today’s price $

Through the cycle, Frequency Electronics Inc. earns about $984K on its 1.6% median owner-earnings margin. This year’s −1.0% margin runs below that; the reported figure may understate a lean year. Normalize, below, values the price on that through-cycle figure rather than the latest year.

Base Normalize · through-cycle ($984K) Net of stock comp (−$2M) Steady-state · maintenance capex (($611K))

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The assumptions Required return 9% Years of high growth 10 Terminal growth 2.5%

9.0% = the 4.55% 10-year Treasury (Jul 15, 2026) + 4.45 points of equity premium. The rate you require is yours to set.

Enter a price above to run it.

Implied by the price—

Owner-earnings growth, delivered—

Owner-earnings yield—

P/E (3-yr earnings ’24–’26)—

P/B—

Graham’s price gate—

Graham capped the multiple at 15×; Buffett and Munger let that rule go: a wonderful business can deserve 50× if the thesis holds. The gate marks the bargain-hunter's floor.

Against a high-grade bond: Graham’s yardstick bond yield%

Prefilled with the 10-year Treasury (4.55%, as of Jul 15, 2026). Edit it for today’s exact figure, or a AAA corporate yield.

Graham measured a stock against the bond you could own instead, the heart of his margin of safety. Enter a price above to weigh the owner-earnings yield against this bond.

Free cash flow ($2M) on 10M shares outstanding, per the 10-K cover, as of 2026-07-15; net debt $10M. The base opens on the steady-state figure (the latest year is negative on total capex mid-build-out); clear Steady-state to use the year as filed. Net of stock comp treats option pay as the expense it is. Capex ($3M) runs well above depreciation ($2M), so this is a build-out; Steady-state swaps total capex for maintenance (≈ depreciation), lifting the base to about ($611K), the cash it would throw off if it stopped expanding. The dials set the multiple a growth belief justifies; the price, and every dollar on this page, is yours.

Weigh FEIM against another business →

Cite: Owner Scorecard, "Frequency Electronics Inc. (FEIM), the owner's record," https://ownerscorecard.com/c/FEIM, data as of 2026-07-09.

Manual order: ← FE its page in the Manual FELE →

Industry order: ← ELTK the Electronic Components & Instruments chapter FLEX →