2D·

A profitable quantum technology company for the first time. At another acceptable valuation

My dears, over the last few weeks I have seen massive investments being made in quantum technology companies.

I've noticed that a lot of fantasy and the future are being priced into the valuations.

Investments are being made in companies that are valued in the billions but have not yet generated any turnover.

That's why I went looking again and found an interesting company for you. Here we have double-digit earnings growth. And a valuation that is still acceptable for the sector of the future.

In my opinion, the risk here is lower than with the hype stocks.

I look forward to your opinion and constructive criticism in the comments.

The markets have reached a point where diplomatic changes and the slightest deviation in profits and sales are enough to shake up the market. This makes it all the more important to find promising stocks and keep an eye on them. Today we are looking at Frequency Electronics, the current frontrunner in the "Communication Equipment" sector. The share price has risen by over 42% in 4 weeks. Frequency Electronics produces high-precision timing technologies Satellites, airplanes, rockets and 5G networks use these systems.

Frequency Electronics is a US company that specializes in the development and manufacture of high-precision timing and frequency products. These are used in mission-critical systems for satellites, military, aerospace and telecommunications.

Key business areas and technologies

Quantum sensor technology: Frequency Electronics researches and invests in quantum technology and organizes summits to advance the development of quantum sensors.

Precise time and frequency technology: FEI is a world leader in time and frequency control and synchronization systems. These include highly stable rubidium atomic clocks for satellites.

Space and defense applications: Frequency Electronics' products can be found in a variety of military and commercial systems, including satellite payloads, missiles, drones, aircraft and GPS systems.

Network synchronization: The company offers solutions for the synchronization of telecommunications networks to ensure interference-free transfer of voice, data and video. This is particularly crucial for the introduction of newer technologies such as 5G.

Alternative Position, Navigation and Timing (APNT): As GPS signals can be susceptible to interference, FEI develops alternative solutions to enable reliable positioning and timing in all conditions.

Vertical integration: The company manufactures many of its core components, such as quartz crystal resonators and rubidium lamps, in-house. This guarantees high precision and quality.

Corporate structure

Headquarters: Mitchel Field, New York.

Stock exchange: The company is listed on the NASDAQ under the ticker symbol FEIM.

Subsidiaries: FEI-Zyfer in California, specializing in GPS technologies, and FEI-Elcom Tech in New Jersey, serving communications and radar systems.

Financial development

Financial year 2025: Revenue increased to USD 69.8 million and operating profit doubled to USD 11.7 million. This is due to a strategic realignment towards higher-margin projects.

Q1 of the 2026 financial year: Profit and revenue fell short of expectations, which the company attributed to customer-related delays.

Current developments

Orders and projects: The company continues to receive contracts in the defense and aerospace sectors, including for missile defense and quantum sensors.

Share performance: Despite the disappointing latest quarterly figures, the share has performed impressively over an extended period, indicating positive sentiment among investors.

Ladies and gentlemen, due to time constraints, but to be able to introduce you to the company today. I have added AI. Next time I'll do my own research again.

"I promise"

AI answers may contain errors. For financial questions, you should consult an expert.

You can find an exciting company presentation under the link ⬇️. Anyone interested should definitely read it.

https://www.sharedeals.de/frequency-electronics-eine-uebersehene-perle/

The Traderfox Monkey Trader indicator shows good results (perhaps something for star investors). @Simpson
@EpsEra

https://traderfox.de/aktien/frequency-electronics-inc-858079/

www.sharedeals.deFrequency Electronics: Eine übersehene Perle? › sharedeals.de

25 Comentarios

Klein-Anleger1@Klein-Anleger1

Thank you, it looks really exciting... @Multibagger?

•

Tenbagger2024@Tenbagger2024

@Klein-Anleger1 have a look. Gladly feedback

••

Klein-Anleger1@Klein-Anleger1

@Tenbagger2024 I think the valuation for the segment is very favorable, but maybe I'm missing something 🤔😁

••

Tenbagger2024@Tenbagger2024

@Klein-Anleger1
The chart also looks good over the years

•

Tenbagger2024@Tenbagger2024

@Klein-Anleger1
My presentation $ALNT is also going well

•

Max@Divident_e

My dear. Simply great

•

Tenbagger2024@Tenbagger2024

@All-in-or-nothing My dear, what do you think?

••

All-in-or-nothing@All-in-or-nothing

@Tenbagger2024 very interesting in principle. Profitable is of course a highlight, especially at Bereich🤷🏼‍♂️. I just came across $AMPG while researching. Sales growth is top. Not yet profitable. They produce the following:

- Low-Noise Amplifiers (LNA) - MMIC/modules for receivers (broadband, S to Ka band).
- LNBs (Low Noise Block Downconverters) for satellite earth stations/teleports (e.g. Ka-band LNBs).
- Massive MIMO / ORAN radio units (e.g. 5G CAT B 64T/64R platforms) for mobile radio base stations.
- Cryogenic / ultra-low noise amplifiers (for quantum receivers / criosystems).
- Broadband HPAs, lab/benchtop amplifiers and customized RF subsystems

Among other things, they manufacture cryogenic / quantum LNA receiver amplifiers. Which is not uninteresting because: every qubit needs its own amplifier! All in all, it's a colorful mix in the special supplier sector for mobile communications, space, defense and quantum computing. And all just with some kind of receiver amplifier😅. With so many hype topics that are covered by the products, the story could become quite blatant. Profitability should be achieved next year. Most of the money is currently earned with mobile technology. But it could be interesting from my point of view🤔.
Edit: I just saw that you've also introduced them before😅. I've somehow missed it so far, sorry.

••

Tenbagger2024@Tenbagger2024

@All-in-or-nothing

I had already found them.

https://getqu.in/XFSFOK/

•

All-in-or-nothing@All-in-or-nothing

@Tenbagger2024 I noticed that too, yes😅🫣. I'd even read your post, but somehow it had passed me by. I actually find it even more interesting due to the broad positioning in some hype sectors. But of course a lot depends on scaling and margin improvements in the value. Exciting, but of course again high-risk🫣.

••

Tenbagger2024@Tenbagger2024

@All-in-or-nothing
They will be profitable next year with a P/E ratio of 46.
Frequency has a 28 P/E ratio next year and 28% earnings growth

•

Tenbagger2024@Tenbagger2024

@All-in-or-nothing
EbiT margin at Frequency Electronics is 15.58%.
At Amplitech next year 6.56% .
That's why I like Frequency a little better

•

All-in-or-nothing@All-in-or-nothing

@Tenbagger2024 I have compared the multiples, yes. I just find a simple part that is necessary in many areas, such as a receiver amplifier, which is manufactured by $AMPG in a specialized way for many different areas, quite interesting as a business model. When they gain a foothold in the quantum field and I look at how many qubits are used to plan or build quantum computers, I get dizzy when I think that each qubit needs one of these special amplifiers😅. That already excites me😂🫣. Since $FEIM is involved in the field of sensor technology for quantum computing, I suspect that not as many of these devices are needed for a quantum computer as for the amplifier topic. In principle, however, I find both values highly interesting😁. Thanks again to you for your Recherchearbeit🙏🏻.

•

Chris@Multibagger

In the next few weeks, the US government will get into quantum computing. I suspect at $QBTS. Then there will be another hype.

•

Tenbagger2024@Tenbagger2024

@Multibagger
Amplitech oder Frequency ?

•

Chris@Multibagger

@Tenbagger2024 The glass ball is still being cleaned. In the first moment, I guess the whole industry will be bought, like $MP. But in contrast, quantum computing is not a long-term boom, the companies are all massively overvalued. So I think I would rather bet on Frequency at the moment.

•

PikaPika0105@PikaPika0105

Overlooked at +200% 😭

••

Tenbagger2024@Tenbagger2024

@PikaPika0105
Still find an entry point attractive

••

PikaPika0105@PikaPika0105

But definitely interesting and not so overrated in the medium term

••

PikaPika0105@PikaPika0105

The fair value is set in the article (from July) at under 30$.....

••

Tenbagger2024@Tenbagger2024

@PikaPika0105
With a PEG of 1.11, I still see upside potential.
Perhaps wait for a small correction.
But I think there should still be room in the long term

•

Elsa E.@EpsEra

Thank you for the presentation, really an exciting company and currently still moderately valued compared to D-Wave or Rigetti. Nevertheless, the sector is very speculative and small setbacks can trigger major price movements. Personally, I would rather bet on established players such as IBM, Honeywell or Alphabet, which are also active in the quantum sector.

••

Tenbagger2024@Tenbagger2024

@EpsEra
Yes, but quantum technology is only one part of the company. So I don't see that much risk here. You even have a small moat in the other areas

••

Turnaround@Turnaround

Great contribution. Going in with a small position. Thanks for the inspiration.

••

Tenbagger2024@Tenbagger2024

@Turnaround
With pleasure 😘

••