MeritValue

FREQUENCY ELECTRONICS INC

FEIMdata completeness 88%16 fiscal years on file
The thesis, from the filings

FREQUENCY ELECTRONICS INC earns about 1% on invested capital, but has diluted owners by 6% over 5 years — worth asking whether the growth reaches owners. The cash-flow models don't apply cleanly here — the ledger says why below.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2022FY 2023FY 2024FY 2025FY 2026
Revenue$48.3M1$196,0002$89,0003$03$63.2M4
Net income−$8.66M5−$5.5M6$5.59M7$23.7M8−$903,0008
Operating cash flow$4.04M9$1.18M10$8.71M11−$1.43M12$1.28M12
Capital expenditure$1.86M13$918,00014$1.49M15$1.81M16$2.86M16
Free cash flow (derived)$2.18M9$257,00010$7.22M11−$3.24M12−$1.58M12
Total debt—————
Cash & equivalents$11.6M17$12M18$18.3M19$4.72M20$1.6M20
Diluted shares9.3M9.3M9.4M9.6M9.8M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$57.65
your share of equity
Profit it earned you last year
−$0.92
Free cash flow it threw off
−$1.61
Debt you’d be carrying
—

10 shares is a claim on $57.65 of net worth that earned you −$0.92 and generated −$1.61 of cash last year.

iii. Is this a good business?
Moat signal · return on invested capital
1% avg · 5y
FY22 -19%FY23 -20%FY24 26%FY25 24%FY26 -4%

It earned an average 1% on invested capital over 5 years. Compare that to what it costs to fund the business.

seeing a moat in the numbers →
Management signal · capital allocation
+6% shares · 5y

Share count is up 6% over 5 years — owners have been diluted. Worth asking what they got for it.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0
DCF · Growth Exit 10Y
not applicable
3y-median FCF non-positive — growth-exit DCF not applicable (see EPV)
DCF · Growth Exit 5Y
not applicable
3y-median FCF non-positive — growth-exit DCF not applicable (see EPV)
Earnings Power Value
not applicable
normalized (5y-median) earnings non-positive — EPV undefined
Graham Number
not applicable
diluted EPS missing or non-positive — Graham Number undefined

Different models answer different questions — which to trust when →

Sources — the receipts
  1. 10-K · period ending 2022-04-30 · accession 0001185185-23-000763 (Revenues)
  2. 10-K · period ending 2023-04-30 · accession 0001185185-24-000753 (RevenueFromContractWithCustomerIncludingAssessedTax)
  3. 10-K · period ending 2024-04-30 · accession 0001185185-25-000806 (RevenueFromContractWithCustomerIncludingAssessedTax)
  4. 10-K · period ending 2026-04-30 · accession 0001185185-26-002997 (Revenues)
  5. 10-K · period ending 2022-04-30 · accession 0001185185-23-000763 (NetIncomeLoss)
  6. 10-K · period ending 2023-04-30 · accession 0001185185-24-000753 (NetIncomeLoss)
  7. 10-K · period ending 2024-04-30 · accession 0001185185-25-000806 (NetIncomeLoss)
  8. 10-K · period ending 2025-04-30 · accession 0001185185-26-002997 (NetIncomeLoss)
  9. 10-K · period ending 2022-04-30 · accession 0001185185-23-000763 (NetCashProvidedByUsedInOperatingActivities)
  10. 10-K · period ending 2023-04-30 · accession 0001185185-24-000753 (NetCashProvidedByUsedInOperatingActivities)
  11. 10-K · period ending 2024-04-30 · accession 0001185185-25-000806 (NetCashProvidedByUsedInOperatingActivities)
  12. 10-K · period ending 2025-04-30 · accession 0001185185-26-002997 (NetCashProvidedByUsedInOperatingActivities)
  13. 10-K · period ending 2022-04-30 · accession 0001185185-23-000763 (PaymentsToAcquirePropertyPlantAndEquipment)
  14. 10-K · period ending 2023-04-30 · accession 0001185185-24-000753 (PaymentsToAcquirePropertyPlantAndEquipment)
  15. 10-K · period ending 2024-04-30 · accession 0001185185-25-000806 (PaymentsToAcquirePropertyPlantAndEquipment)
  16. 10-K · period ending 2025-04-30 · accession 0001185185-26-002997 (PaymentsToAcquirePropertyPlantAndEquipment)
  17. 10-K · period ending 2022-04-30 · accession 0001185185-23-000763 (CashAndCashEquivalentsAtCarryingValue)
  18. 10-K · period ending 2023-04-30 · accession 0001185185-24-000753 (CashAndCashEquivalentsAtCarryingValue)
  19. 10-K · period ending 2024-04-30 · accession 0001185185-25-000806 (CashAndCashEquivalentsAtCarryingValue)
  20. 10-K · period ending 2025-04-30 · accession 0001185185-26-002997 (CashAndCashEquivalentsAtCarryingValue)