19.98 USD
-0.92 (-4.4%)
Last: Jan 30, 2026, 03:49 PM
Taking everything into account, IRDM scores 5 out of 10 in our fundamental rating. IRDM was compared to 36 industry peers in the Diversified Telecommunication Services industry. IRDM scores excellent on profitability, but there are some minor concerns on its financial health. IRDM is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
- In the past year IRDM was profitable.
- IRDM had a positive operating cash flow in the past year.
- The reported net income has been mixed in the past 5 years: IRDM reported negative net income in multiple years.
- IRDM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- Looking at the Return On Assets, with a value of 4.91%, IRDM is in the better half of the industry, outperforming 69.44% of the companies in the same industry.
- With an excellent Return On Equity value of 27.86%, IRDM belongs to the best of the industry, outperforming 94.44% of the companies in the same industry.
- IRDM has a Return On Invested Capital of 8.45%. This is amongst the best in the industry. IRDM outperforms 88.89% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for IRDM is below the industry average of 6.71%.
- The last Return On Invested Capital (8.45%) for IRDM is above the 3 year average (4.17%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.91% | ||
| ROE | 27.86% | ||
| ROIC | 8.45% |
ROA(3y)1.7%
ROA(5y)0.63%
ROE(3y)7.35%
ROE(5y)3.48%
ROIC(3y)4.17%
ROIC(5y)2.96%
1.3 Margins
- With a decent Profit Margin value of 14.40%, IRDM is doing good in the industry, outperforming 72.22% of the companies in the same industry.
- With an excellent Operating Margin value of 26.73%, IRDM belongs to the best of the industry, outperforming 94.44% of the companies in the same industry.
- IRDM's Operating Margin has improved in the last couple of years.
- IRDM has a better Gross Margin (71.30%) than 86.11% of its industry peers.
- IRDM's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 26.73% | ||
| PM (TTM) | 14.4% | ||
| GM | 71.3% |
OM growth 3Y48.14%
OM growth 5Y68.52%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-1.47%
GM growth 5Y-0.51%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), IRDM is creating some value.
- The number of shares outstanding for IRDM has been reduced compared to 1 year ago.
- IRDM has less shares outstanding than it did 5 years ago.
- Compared to 1 year ago, IRDM has a worse debt to assets ratio.
2.2 Solvency
- IRDM has an Altman-Z score of 1.10. This is a bad value and indicates that IRDM is not financially healthy and even has some risk of bankruptcy.
- IRDM's Altman-Z score of 1.10 is fine compared to the rest of the industry. IRDM outperforms 69.44% of its industry peers.
- IRDM has a debt to FCF ratio of 5.92. This is a neutral value as IRDM would need 5.92 years to pay back of all of its debts.
- Looking at the Debt to FCF ratio, with a value of 5.92, IRDM is in the better half of the industry, outperforming 77.78% of the companies in the same industry.
- A Debt/Equity ratio of 4.02 is on the high side and indicates that IRDM has dependencies on debt financing.
- With a Debt to Equity ratio value of 4.02, IRDM is not doing good in the industry: 75.00% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.02 | ||
| Debt/FCF | 5.92 | ||
| Altman-Z | 1.1 |
ROIC/WACC1.16
WACC7.3%
2.3 Liquidity
- A Current Ratio of 2.67 indicates that IRDM has no problem at all paying its short term obligations.
- IRDM has a better Current ratio (2.67) than 88.89% of its industry peers.
- IRDM has a Quick Ratio of 1.93. This is a normal value and indicates that IRDM is financially healthy and should not expect problems in meeting its short term obligations.
- The Quick ratio of IRDM (1.93) is better than 83.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.67 | ||
| Quick Ratio | 1.93 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 22.90% over the past year.
- The Revenue has been growing slightly by 7.30% in the past year.
- Measured over the past years, IRDM shows a quite strong growth in Revenue. The Revenue has been growing by 8.19% on average per year.
EPS 1Y (TTM)22.9%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%66.67%
Revenue 1Y (TTM)7.3%
Revenue growth 3Y10.57%
Revenue growth 5Y8.19%
Sales Q2Q%6.66%
3.2 Future
- IRDM is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 17.07% yearly.
- IRDM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.46% yearly.
EPS Next Y11.59%
EPS Next 2Y7.46%
EPS Next 3Y8.01%
EPS Next 5Y17.07%
Revenue Next Year6.55%
Revenue Next 2Y4.2%
Revenue Next 3Y4.06%
Revenue Next 5Y4.46%
3.3 Evolution
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 17.53 indicates a rather expensive valuation of IRDM.
- Based on the Price/Earnings ratio, IRDM is valued a bit cheaper than 72.22% of the companies in the same industry.
- IRDM is valuated rather cheaply when we compare the Price/Earnings ratio to 28.39, which is the current average of the S&P500 Index.
- IRDM is valuated rather expensively with a Price/Forward Earnings ratio of 18.02.
- 66.67% of the companies in the same industry are more expensive than IRDM, based on the Price/Forward Earnings ratio.
- The average S&P500 Price/Forward Earnings ratio is at 25.72. IRDM is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.53 | ||
| Fwd PE | 18.02 |
4.2 Price Multiples
- IRDM's Enterprise Value to EBITDA is on the same level as the industry average.
- Based on the Price/Free Cash Flow ratio, IRDM is valued cheaply inside the industry as 80.56% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.85 | ||
| EV/EBITDA | 8.86 |
4.3 Compensation for Growth
- The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- IRDM has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.51
PEG (5Y)N/A
EPS Next 2Y7.46%
EPS Next 3Y8.01%
5. Dividend
5.1 Amount
- IRDM has a Yearly Dividend Yield of 2.66%.
- Compared to an average industry Dividend Yield of 2.29, IRDM pays a bit more dividend than its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.82, IRDM pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.66% |
5.2 History
- On average, the dividend of IRDM grows each year by 69.07%, which is quite nice.
- IRDM has been paying a dividend for less than 5 years, so it still needs to build a track record.
Dividend Growth(5Y)69.07%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
- IRDM pays out 50.09% of its income as dividend. This is a bit on the high side, but may be sustainable.
- The dividend of IRDM is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP50.09%
EPS Next 2Y7.46%
EPS Next 3Y8.01%
IRIDIUM COMMUNICATIONS INC / IRDM FAQ
What is the fundamental rating for IRDM stock?
ChartMill assigns a fundamental rating of 5 / 10 to IRDM.
What is the valuation status for IRDM stock?
ChartMill assigns a valuation rating of 5 / 10 to IRIDIUM COMMUNICATIONS INC (IRDM). This can be considered as Fairly Valued.
What is the profitability of IRDM stock?
IRIDIUM COMMUNICATIONS INC (IRDM) has a profitability rating of 7 / 10.
What is the valuation of IRIDIUM COMMUNICATIONS INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for IRIDIUM COMMUNICATIONS INC (IRDM) is 17.53 and the Price/Book (PB) ratio is 4.65.
Can you provide the expected EPS growth for IRDM stock?
The Earnings per Share (EPS) of IRIDIUM COMMUNICATIONS INC (IRDM) is expected to grow by 11.59% in the next year.