FEIM – Historical Financial Data for DCF Model

Frequency Electronics, Inc. (NASDAQ: FEIM) Fiscal year ends April 30. All dollar figures in thousands unless noted. Compiled 2026-03-22 from SEC 10-K/10-Q filings, company earnings releases, and StockAnalysis.com.

PS 2026-03-22

Frequency Electronics, Inc. (NASDAQ: FEIM) Fiscal year ends April 30. All dollar figures in thousands unless noted. Compiled 2026-03-22 from SEC 10-K/10-Q filings, company earnings releases, and StockAnalysis.com.

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1. ANNUAL INCOME STATEMENT (FY2016 – FY2025)

Line Item	FY2016	FY2017	FY2018	FY2019	FY2020	FY2021	FY2022	FY2023	FY2024	FY2025
Revenue	$60,394	$50,351	$39,407	$49,509	$41,510	$54,254	$48,296	$40,777	$55,274	$69,811
Cost of Revenue	$39,958	$39,102	$34,244	$33,720	$35,710	$37,333	$39,697	$32,928	$36,691	$39,714
Gross Profit	$20,436	$11,249	$5,163	$15,789	$5,800	$16,921	$8,599	$7,849	$18,583	$30,097
Gross Margin %	33.8%	22.3%	13.1%	31.9%	14.0%	31.2%	17.8%	19.2%	33.6%	43.1%
SG&A	$13,205	$11,898	$10,608	$12,100	$11,600	$13,189	$11,662	$9,372	$10,184	$12,289
R&D	$5,929	$6,876	$6,950	$6,506	$5,100	$4,690	$4,975	$3,149	$3,380	$6,076
Operating Income	$1,302	($7,525)	($12,395)	($2,817)	($10,900)	($958)	($8,038)	($4,672)	$5,019	$11,732
Operating Margin %	2.2%	-14.9%	-31.4%	-5.7%	-26.3%	-1.8%	-16.6%	-11.5%	9.1%	16.8%
Interest/Invest. Income	$806	$486	$1,268	$293	n/a	$458	$199	($606)	$561	$519
Interest Expense	incl. above	incl. above	($79)	($83)	n/a	($127)	($77)	($156)	($109)	($104)
Other Income (Exp), net	$806	$486	$1,120	$344	n/a	n/a	n/a	n/a	$452	$412
Pre-tax Income	$2,075	($7,039)	($11,275)	($2,473)	n/a	n/a	n/a	n/a	$5,464	$12,144
Tax Provision	$1,070	($2,115)	$11,176	$56	n/a	n/a	n/a	n/a	($130)	($11,658)
Net Income (cont. ops)	$2,204	($4,924)	($22,451)	($2,529)	($10,000)	$680	($8,663)	($5,501)	$5,594	$23,802
Disc. Ops	($1,199)	$103	($1,326)	–	–	–	–	–	–	–
Net Income (total)	$1,005	($4,821)	($23,777)	($2,529)	($10,000)	$680	($8,663)	($5,501)	$5,594	$23,802
Net Margin %	1.7%	-9.6%	-60.3%	-5.1%	-24.1%	1.3%	-17.9%	-13.5%	10.1%	34.1%
EPS (diluted)	$0.11	($0.55)	($2.69)	($0.28)	($1.10)	$0.07	($0.93)	($0.59)	$0.59	$2.48
Shares Out (diluted, K)	8,937	8,787	8,841	8,916	9,074	9,248	9,266	9,337	9,431	9,615

Notes on Income Statement

• FY2018 tax charge: The $11.2M tax provision in FY2018 was a non-cash charge – the company established a full valuation allowance against its U.S. net deferred tax assets under the TCJA.
• FY2025 tax benefit: The ($11.7M) tax benefit in FY2025 represents the reversal of the deferred tax asset valuation allowance, recognizing $12.2M in deferred tax assets. Normalized pre-tax income was $12.1M; normalized net income (at ~21% tax rate) would be ~$9.6M.
• FY2018 discontinued ops: Gillam-FEI (Belgium subsidiary) sold April 2018 for $1M cash + $1M note.
• FY2016 revenue note: The FY2016 10-K reports $60.4M total (incl. Gillam); the earnings release highlighted $55.4M. The difference is Gillam/discontinued operations presentation. $60.4M from the 10-K is the consolidated figure including Gillam (pre-disc ops reclassification). Using $55,416 as the continuing ops revenue figure per the later earnings release for consistency.

Corrected FY2016 Revenue (continuing ops basis): $55,416

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2. D&A AND STOCK-BASED COMPENSATION

Item	FY2016	FY2017	FY2018	FY2019	FY2020	FY2021	FY2022	FY2023	FY2024	FY2025
D&A	~$3,600	~$3,400	$2,484	$2,802	~$3,000	$3,300	$3,030	$2,430	$2,120	$2,060
SBC	~$450	$457	$470	$500	~$350	$270	$250	$200	$820	$1,160

Sources

• FY2019: D&A = $2,802K, SBC = $500K (from 10-K cash flow statement, p.23 of annual report)
• FY2018: D&A = $2,484K, SBC = $470K (from same 10-K)
• FY2017: SBC = $457K (from equity rollforward in FY2018 10-K – balance at April 30, 2017 shows $457K SBC expense)
• FY2021-FY2025: From StockAnalysis.com cash flow statement data
• FY2016, FY2020: Estimated from surrounding years and MD&A commentary. FY2019 10-K notes ~$6.2M total non-cash charges in FY2019 including D&A. FY2016 D&A estimated at ~$3.6M given higher PP&E base.

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3. ANNUAL CASH FLOW (FY2016 – FY2025)

Line Item	FY2016	FY2017	FY2018	FY2019	FY2020	FY2021	FY2022	FY2023	FY2024	FY2025
Operating Cash Flow	$2,800	$3,500	$4,533	($97)	($1,400)	$12,160	$4,040	$1,180	$8,710	($1,430)
Capital Expenditures	(~$2,000)	(~$1,500)	($1,418)	($2,767)	(~$1,500)	($1,240)	($1,860)	($920)	($1,490)	($1,810)
Free Cash Flow	~$800	~$2,000	$3,115	($2,864)	(~$2,900)	$10,920	$2,180	$260	$7,220	($3,240)
Dividends Paid	$0	$0	$0	$0	$0	$0	$0	($9,350)	$0	($9,570)

Sources

• FY2019: Net cash used in operating activities = ($97K) total (continuing ops ($3,175K) + assets held for sale $3,078K). Capex = ($2,767K). From 10-K cash flow statement.
• FY2018: Operating CF = $4,533K (continuing $3,291K + disc ops $1,242K). Capex = ($1,418K). From 10-K.
• FY2017: Operating CF ~$3.5M, Capex ~$1.5M per earnings release.
• FY2016: Operating CF ~$2.8-3.0M per earnings release. Capex estimated ~$2M.
• FY2020: Operating CF ($1.4M) per FY2021 earnings release comparison. Capex estimated ~$1.5M.
• FY2021-FY2025: From StockAnalysis.com.
• Dividends: Special dividends of ~$1.00/share paid in FY2023 and FY2025.

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4. ANNUAL BALANCE SHEET (FY2016 – FY2025)

Line Item	FY2016	FY2017	FY2018	FY2019	FY2020	FY2021	FY2022	FY2023	FY2024	FY2025
Cash & Equivalents	$16,929	$9,978	$7,869	$3,683	$14,400	$9,810	$11,560	$12,050	$18,320	$4,720
Marketable Securities	incl.	incl.	$6,149	$8,199	incl.	incl.	incl.	incl.	incl.	incl.
Cash + Mkt. Securities	$16,929	$9,978	$14,018	$11,882	$14,400	$20,100	$11,560	$12,050	$18,320	$4,720
Accounts Receivable	$7,166	$10,986	$4,268	$6,362	$4,400	$5,520	$4,290	$4,620	$4,610	$5,910
Contract Assets	–	–	$5,094	$6,670	n/a	n/a	n/a	n/a	$10,523	$17,914
Inventories	$36,280	$29,051	$26,186	$23,356	$23,000	$19,660	$19,910	$20,530	$23,430	$23,490
Total Current Assets	$39,353	$40,825	$52,075	$52,699	$51,300	$61,190	$56,010	$48,310	$58,120	$53,110
PP&E (net)	$12,314	$14,813	$14,127	$13,038	$11,300	$19,390	$17,370	$14,480	$12,470	$14,850
Goodwill & Intangibles	$617	$617	$617	$617	$617	$617	$617	$617	$617	$617
Total Assets	$122,177	$113,319	$83,584	$86,771	$91,300	$98,530	$84,760	$74,500	$83,250	$93,740
Accounts Payable	incl.	incl.	$1,841	$1,188	n/a	$1,080	$1,080	$1,460	$2,350	$1,360
Contract Liabilities	incl.	incl.	incl.	incl.	n/a	$12,510	$11,100	$18,590	$21,640	$13,610
Total Current Liabilities	$10,308	$8,111	$5,257	$5,837	n/a	$20,610	$21,860	$27,280	$30,800	$23,460
Long-term Debt	$6,000	$0	$0	$0	$0	$0	$0	$0	$0	$0
Total Liabilities	$28,825	$23,987	$20,322	$23,682	$37,100	$43,120	$38,070	$41,610	$43,440	$38,120
Shareholders’ Equity	$93,352	$89,332	$63,262	$63,089	$54,200	$55,410	$46,690	$32,890	$39,820	$55,620
Book Value/Share	$10.19	$10.17	$7.15	$7.08	$5.98	$5.99	$5.04	$3.52	$4.22	$5.78

Notes on Balance Sheet

• FY2016-FY2017: Large total assets include Gillam ($28M+ in assets) and FEI-Asia. These were divested by FY2019.
• FY2020 PP&E jump to ~$19.4M in FY2021: Adoption of ASC 842 (leases) added ~$13.2M in right-of-use assets, offset by lease liabilities. The PP&E line in StockAnalysis includes ROU assets from FY2021 onward. Actual tangible PP&E was ~$6-7M.
• FY2025 PP&E: Per the 10-K, tangible PP&E (net) = $6,188K; ROU assets = $8,659K. StockAnalysis.com combines these = ~$14.8M.
• Long-term debt: FEIM paid off its $6M credit facility by FY2017. No debt since then. The “long-term obligations” shown in balance sheet (~$7-8M) from FY2021 onward are non-current lease liabilities and deferred compensation, not financial debt.
• Contract liabilities: Emerged as a major line item after ASC 606 adoption in FY2019. Represents advance payments / unearned revenue on government contracts.

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5. QUARTERLY DATA – LAST 8+ QUARTERS

FEIM fiscal quarters: Q1 = May-Jul, Q2 = Aug-Oct, Q3 = Nov-Jan, Q4 = Feb-Apr.

Quarter	End Date	Revenue (K)|GrossProfit(K)	Gross Margin %	Operating Income ($K) | Op. Margin % | Net Income ($K)	EPS (diluted)
Q4 FY2024	Apr 30, 2024	$15,576	$6,281	40.3%	$2,494	16.0%	$2,625	$0.28
Q1 FY2025	Jul 31, 2024	$15,078	$6,699	44.4%	$2,367	15.7%	$2,430	$0.25
Q2 FY2025	Oct 31, 2024	$15,820	$7,619	48.2%	$2,618	16.6%	$2,654	$0.28
Q3 FY2025	Jan 31, 2025	$18,927	$8,285	43.8%	$3,469	18.3%	$15,405	$1.60
Q4 FY2025	Apr 30, 2025	$19,986	$7,493	37.5%	$3,278	16.4%	$3,312	$0.34
Q1 FY2026	Jul 31, 2025	$13,812	$5,082	36.8%	$365	2.6%	$634	$0.07
Q2 FY2026	Oct 31, 2025	$17,127	$6,536	38.2%	$1,714	10.0%	$1,801	$0.18
Q3 FY2026	Jan 31, 2026	$16,890	$6,626	39.2%	$1,270	7.5%	$1,567	$0.16

Notes on Quarterly Data

• Q3 FY2025 net income of $15.4M: Includes the $11.7M deferred tax asset valuation allowance reversal. Normalized net income for that quarter was ~$3.5-3.7M.
• Q4 FY2025 revenue of $20.0M: Highest quarterly revenue in 25 years per management.
• Q1 FY2026 revenue drop: Timing of contract milestones. Revenue sequentially recovered in Q2/Q3 FY2026.
• FY2026 9-month totals: Revenue $47,829K vs $49,825K prior year. Operating income $3,349K vs $8,453K. The margin compression reflects a shift in contract mix toward earlier-stage, lower-margin work.

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6. BACKLOG DATA

Date	Funded Backlog
Apr 30, 2016	~$32M
Apr 30, 2017	~$39M (est.)
Apr 30, 2018	~$30M
Apr 30, 2019	~$37M
Apr 30, 2020	~$36M
Apr 30, 2021	~$40M
Apr 30, 2022	~$42M (est.)
Apr 30, 2023	~$57M
Apr 30, 2024	~$78M (record)
Apr 30, 2025	~$70M
Jul 31, 2025	~$71M
Oct 31, 2025	~$82M
Jan 31, 2026	~$83M (record)

Backlog Notes

• ~69% of backlog as of Jan 31, 2026 expected to be realized within 12 months.
• March 11, 2026: Announced two satellite contract awards totaling ~$45M combined. These will begin entering funded backlog in Q4 FY2026 (Feb-Apr 2026).
• Backlog is all funded – FEIM excludes unfunded portions and unexercised options.
• Management commentary (Q2 FY2026 call): “We anticipate multiple awards in the coming months, some of which are as large or larger than the largest contracts we have ever won.”

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7. CURRENT MARKET DATA (as of March 2026)

Metric	Value	Source
Current Stock Price	~$40-43	StockAnalysis.com (Mar 21-22, 2026)
52-Week Range	$14.41 – $61.47	StockAnalysis.com
All-Time High	$61.47 (Jan 13, 2026)	TradingView
Market Cap	~$397-420M	StockAnalysis.com
Shares Outstanding (basic)	9.84M	StockAnalysis.com / Morningstar
Shares Outstanding (diluted)	~9.78-9.84M	SEC filings
Trailing P/E	~55x	Based on TTM EPS $0.73 (includes tax benefit noise)
Normalized P/E (FY2025)	~42x	Using normalized EPS ~$1.00 (excl. DTA reversal)
Beta (StockAnalysis)	0.31	StockAnalysis.com
Beta (Yahoo Finance)	0.36	Yahoo Finance
Beta (TradingView)	1.18	TradingView (likely different methodology)
10-Year US Treasury Yield	~4.37-4.39%	Treasury.gov / TradingEconomics (Mar 20-21, 2026)
Damodaran Implied ERP	4.23%	Damodaran Jan 1, 2026 update
S&P 500 Expected Return	8.41%	Damodaran (risk-free + ERP)

Beta Discussion

FEIM’s beta varies significantly by source and methodology: - 0.31 (StockAnalysis, likely 5-year monthly regression vs S&P 500) - 0.36 (Yahoo Finance, 5-year monthly) - 1.18 (TradingView, may use a shorter lookback or different methodology)

For a DCF, you have options: 1. Use raw beta of ~0.31-0.36 and accept FEIM’s historically low correlation with the market (makes sense for a niche defense/space company with no debt). 2. Relevered/adjusted beta closer to 0.5-0.7 – many practitioners adjust toward 1.0 using the Blume adjustment (Adjusted Beta = 0.33 * 1.0 + 0.67 * Raw Beta). 3. Industry beta: Small-cap aerospace & defense companies typically have unlevered betas of 0.7-1.0 per Damodaran’s industry tables.

Given FEIM’s tiny float, illiquidity, and niche positioning, using an industry beta (~0.85-1.0 unlevered) for the DCF is arguably more appropriate than the regression beta.

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8. REVENUE SEGMENT MIX (where available)

FY	Satellite Payloads	Non-Space Gov/DOD	Commercial/Industrial	Total
FY2016	55%	~35%	~10%	$55.4M
FY2018	$14.2M (36%)	$17.6M (45%)	$7.6M (19%)	$39.4M
FY2019	$22.8M (46%)	$22.8M (46%)	$3.9M (8%)	$49.5M
FY2020	$20.4M (49%)	$16.9M (41%)	$4.2M (10%)	$41.5M
FY2021	$27.0M (50%)	$24.8M (46%)	$2.5M (4%)	$54.3M
FY2025	$40.9M (59%)	$26.5M (38%)	$2.4M (3%)	$69.8M

U.S. Government end-use (direct + subcontracts): 87-88% of revenue in recent years.

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9. ADDITIONAL DCF-RELEVANT ITEMS

Tax Rate

• Statutory federal rate: 21% (post-TCJA)
• Effective tax rate has been volatile due to DTA valuation allowance. Now that the allowance has been reversed (FY2025), expect a more normal effective rate of 20-25% going forward.
• FEIM has significant NOL carryforwards: As of April 30, 2019, had ~$23M in federal NOLs. These have been partially utilized in FY2024-FY2025. Remaining NOLs will shield near-term cash taxes.

Working Capital Patterns

• Contract assets (unbilled receivables) have grown significantly: $5.1M (FY2018) to $17.9M (FY2025). This represents revenue recognized under POC that hasn’t been billed yet.
• Contract liabilities (advance payments): Peaked at $21.6M (FY2024), now $13.6M (FY2025). These are customer deposits on contracts.
• Inventory has been relatively stable at $19-24M despite revenue fluctuations. Long production cycles = slow-moving inventory.

Capex Intensity

• Capex has been modest: $0.9-2.8M annually, well below D&A.
• Maintenance capex is probably ~$1-1.5M/year. Growth capex has been minimal.
• FEIM leases all its facilities (Long Island, Garden Grove CA). No major capital commitments.

Debt

• FEIM has been debt-free since FY2017. No credit facility drawings.
• Available credit line under advisory arrangement, never drawn.

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SOURCES

• FEIM FY2025 Earnings Release
• FEIM FY2024 Earnings Release
• FEIM Q3 FY2026 Earnings Release
• FEIM Q2 FY2026 Earnings Release
• FEIM FY2021 Earnings Release
• FEIM FY2020 Earnings Release
• FEIM FY2019 10-K (Annual Report PDF) – Contains FY2019 and FY2018 full audited financial statements
• FEIM FY2018 Earnings Release
• FEIM FY2017 Earnings Release
• FEIM FY2016 Earnings Release
• StockAnalysis.com – FEIM Financials
• StockAnalysis.com – FEIM Cash Flow
• StockAnalysis.com – FEIM Balance Sheet
• StockAnalysis.com – FEIM Revenue History
• Damodaran Implied ERP (Jan 2026)
• Treasury.gov Daily Rates
• Motley Fool – FEIM Backlog Grows