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Frequency Electronics, Inc. (FEIM)

Company Dividend Discount ModelIndustry: Communication EquipmentSector: Technology

Valuation Snapshot

Stable Growth$15.35 - $22.10$18.64
Multi-Stage$25.52 - $27.99$26.73
Blended Fair Value$22.69
Current Price$36.72
Upside-38.22%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2025202420232022202120202019201820172016
DPS0.00%0.00%0.990.000.960.000.000.000.000.000.000.00
YoY Growth--0.00%-100.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%
Dividend Yield--3.71%0.00%13.96%0.00%0.00%0.00%0.00%0.00%0.00%0.00%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)21.04
(-) Cash Dividends Paid (M)9.73
(=) Cash Retained (M)11.31
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)4.212.631.58
Cash Retained (M)11.3111.3111.31
(-) Cash Required (M)-4.21-2.63-1.58
(=) Excess Retained (M)7.108.689.73
(/) Shares Outstanding (M)9.709.709.70
(=) Excess Retained per Share0.730.891.00
LTM Dividend per Share1.001.001.00
(+) Excess Retained per Share0.730.891.00
(=) Adjusted Dividend1.741.902.01
WACC / Discount Rate9.08%9.08%9.08%
Growth Rate-2.00%-1.00%0.00%
Fair Value$15.35$18.64$22.10
Upside / Downside-58.20%-49.23%-39.82%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)21.0420.8320.6220.4120.2120.0120.61
Payout Ratio46.25%55.00%63.75%72.50%81.25%90.00%92.50%
Projected Dividends (M)9.7311.4513.1414.8016.4218.0119.06

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.08%9.08%9.08%
Growth Rate-2.00%-1.00%0.00%
Year 1 PV (M)10.3910.5010.61
Year 2 PV (M)10.8211.0511.27
Year 3 PV (M)11.0611.4011.75
Year 4 PV (M)11.1411.6012.07
Year 5 PV (M)11.0811.6612.26
PV of Terminal Value (M)192.96203.01213.47
Equity Value (M)247.46259.21271.43
Shares Outstanding (M)9.709.709.70
Fair Value$25.52$26.73$27.99
Upside / Downside-30.51%-27.21%-23.78%

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