Frequency Electronics, Inc. (FEIM) shares surged 213.3% over the past year, significantly outperforming the industry average of 4.4%. In contrast, Transcat, Inc. (TRNS) saw a 15.7% gain, while Badger Meter, Inc. (BMI) declined by 45%. The company’s growth is driven by a record backlog, rising defense spending, and strong contracts in satellite and emerging quantum sensing markets. In March 2026, FEIM secured $45 million in new satellite contracts, contributing to a backlog exceeding $100 million for the first time.
Founded in 1961, FEIM specializes in precision time and frequency technologies for defense and commercial applications, including atomic frequency standards and navigation systems. The company aims to generate at least $150 million in annual revenue by fiscal 2029, targeting a compound annual growth rate above 30% while facing challenges such as declining revenues and margin pressures from lower-margin contracts and rising operating expenses.
Currently, FEIM’s valuation stands at 10.57 times trailing 12-month EV/sales, exceeding the industry average of 3.09. The company continues to explore new market opportunities, particularly in space defense and secure communications, while cautioning investors about potential near-term profitability issues associated with its evolving program mix.
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