Frequency Electronics (Frequency Electronics) Gross Margin % : 22.63% (As of Jan. 2024)

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What is Frequency Electronics Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Frequency Electronics's Gross Profit for the three months ended in Jan. 2024 was $3.10 Mil. Frequency Electronics's Revenue for the three months ended in Jan. 2024 was $13.71 Mil. Therefore, Frequency Electronics's Gross Margin % for the quarter that ended in Jan. 2024 was 22.63%.

The historical rank and industry rank for Frequency Electronics's Gross Margin % or its related term are showing as below:

FEIM' s Gross Margin % Range Over the Past 10 Years
Min: 13.1 Med: 26.55 Max: 34.78
Current: 31.01

During the past 13 years, the highest Gross Margin % of Frequency Electronics was 34.78%. The lowest was 13.10%. And the median was 26.55%.

FEIM's Gross Margin % is ranked better than
63.56% of 2437 companies
in the Hardware industry
Industry Median: 24.45 vs FEIM: 31.01

Frequency Electronics had a gross margin of 22.63% for the quarter that ended in Jan. 2024 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Frequency Electronics was 2.90% per year.

Frequency Electronics Gross Margin % Historical Data

The historical data trend for Frequency Electronics's Gross Margin % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Frequency Electronics Gross Margin % Chart

Frequency Electronics Annual Data

Trend

Apr14

Apr15

Apr16

Apr17

Apr18

Apr19

Apr20

Apr21

Apr22

Apr23

Gross Margin %

Get a 7-Day Free Trial

31.89

13.85

31.19

17.80

19.25

Frequency Electronics Quarterly Data
	Apr19	Jul19	Oct19	Jan20	Apr20	Jul20	Oct20	Jan21	Apr21	Jul21	Oct21	Jan22	Apr22	Jul22	Oct22	Jan23	Apr23	Jul23	Oct23	Jan24
Gross Margin %	Get a 7-Day Free Trial															32.63	31.06	39.23	31.90	22.63

Competitive Comparison of Frequency Electronics's Gross Margin %

For the Communication Equipment subindustry, Frequency Electronics's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Frequency Electronics's Gross Margin % Distribution in the Hardware Industry

For the Hardware industry and Technology sector, Frequency Electronics's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Frequency Electronics's Gross Margin % falls into.

Frequency Electronics Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

Frequency Electronics's Gross Margin for the fiscal year that ended in Apr. 2023 is calculated as

Gross Margin % (A: Apr. 2023 )	=	Gross Profit (A: Apr. 2023 )	/	Revenue (A: Apr. 2023 )
	=	7.8	/	40.777
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(40.777 - 32.928)	/	40.777
	=	19.25 %

Frequency Electronics's Gross Margin for the quarter that ended in Jan. 2024 is calculated as

Gross Margin % (Q: Jan. 2024 )	=	Gross Profit (Q: Jan. 2024 )	/	Revenue (Q: Jan. 2024 )
	=	3.1	/	13.714
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(13.714 - 10.61)	/	13.714
	=	22.63 %

A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.

Frequency Electronics (NAS:FEIM) Gross Margin % Explanation

Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.

Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %

1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key

Frequency Electronics had a gross margin of 22.63% for the quarter that ended in Jan. 2024 => Competition eroding margins

Be Aware

If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.

Frequency Electronics Gross Margin % Related Terms

Thank you for viewing the detailed overview of Frequency Electronics's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.

Frequency Electronics (Frequency Electronics) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Hardware » Frequency Electronics Inc (NAS:FEIM) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

98K:Germany

Address

55 Charles Lindbergh Boulevard, Mitchel Field, NY, USA, 11553

Website

https://www.frequencyelectronics.com

Frequency Electronics Inc is engaged in the design, development, and manufacture of high-precision timing, and frequency control products for space, air, sea, and terrestrial applications. The company has FEI-NY and FEI-Zyfer reportable segments. It derives the majority of its revenues from the FEI-NY segment. FEI-NY segment operations consist principally of precision time and frequency control products used in three principal markets namely communication satellites (both commercial and U.S. Government-funded); terrestrial cellular telephone or other ground-based telecommunication stations; and other components and systems for the U.S. military.

Executives

Russell M Sarachek	director	4718 FOXHALL CRESCENTS NW, WASHINGTON DC 20007
Edenbrook Long Only Value Fund, Lp	director, 10 percent owner	EDENBROOK CAPITAL, LLC, 116 RADIO CIRCLE, SUITE 202, MT. KISCO NY 10549
Steven E Strang	officer: President, FEI-Zyfer, Inc.	C/O FREQUENCY ELECTRONICS, INC., 55 CHARLES LINDBERGH BLVD, MITCHEL FIELD NY 11553
Thomas Mcclelland	officer: Vice President, Comml Products	C/O FREQUENCY ELECTRONICS INC, 55 CHARLES LINDBERGH BLVD, MITCHEL FIELD NY 11553
Stanton D Sloane	director	COMTECH TELECOMMUNICATIONS CORP., 68 SOUTH SERVICE RD., SUITE 230, MELVILLE NY 11747
John Patrick Caulfield	officer: VP of Manufacturing	C/O FREQUENCY ELECTRONICS, 55 CHARLES LINDBERGH BLVD., MITCHEL FIELD NY 11533
Edenbrook Capital, Llc	director, 10 percent owner	116 RADIO CIRCLE, SUITE 202, MT. KISCO NY 10549
Martin B Bloch	director, officer: President	FREQUENCY ELECTRONICS INC, 55 CHARLES LINDBERGH BLVD, MITCHEL FIELD NY 11553
Robert Schwartz	director	11552 PROSPEROUS DRIVE, ODESSA FL 33556
Jonathan Brolin	director, 10 percent owner	2 DEPOT PLAZA, 4TH FLOOR, BEDFORD HILLS NY 10507
Privet Fund Lp	10 percent owner, other: See Explanation of Responses	3280 PEACHTREE ROAD NE, SUITE 2670, Atlanta GA 30305
Oleandro Mancini	officer: Vice President, Bus. Develop	C/O FREQUENCY ELECTRONICS INC, 55 CHARLES LINDBERGH BLVD, MITCHEL FIELD NY 11553
Lance W Lord	director	1110 TRUMPETERS COURT, MONUMENT CO 80132
Steven Lawrence Bernstein	officer: Chief Financial Officer	C/O FREQUENCY ELECTRONICS INC., 55 CHARLES LINDBERGH BLVD., MITCHEL FIELD NY 11553
Ryan Levenson	10 percent owner, other: See Explanation of Responses	2396 DELLWOOD DRIVE, ATLANTA GA 30305