16.44 USD
-0.01 (-0.06%)
16.45 USD
+0.01 (+0.06%)
Overall IRDM gets a fundamental rating of 6 out of 10. We evaluated IRDM against 37 industry peers in the Diversified Telecommunication Services industry. IRDM scores excellent on profitability, but there are some minor concerns on its financial health. IRDM has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
IRDM had positive earnings in the past year.
In the past year IRDM had a positive cash flow from operations.
In multiple years IRDM reported negative net income over the last 5 years.
IRDM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 4.91%, IRDM is doing good in the industry, outperforming 72.97% of the companies in the same industry.
IRDM has a Return On Equity of 27.86%. This is amongst the best in the industry. IRDM outperforms 97.30% of its industry peers.
IRDM has a better Return On Invested Capital (8.45%) than 89.19% of its industry peers.
The Average Return On Invested Capital over the past 3 years for IRDM is below the industry average of 6.50%.
The 3 year average ROIC (4.17%) for IRDM is below the current ROIC(8.45%), indicating increased profibility in the last year.
| 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
IRDM's Profit Margin of 14.40% is fine compared to the rest of the industry. IRDM outperforms 75.68% of its industry peers.
The Operating Margin of IRDM (26.73%) is better than 94.59% of its industry peers.
IRDM's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 71.30%, IRDM belongs to the top of the industry, outperforming 89.19% of the companies in the same industry.
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so IRDM is still creating some value.
IRDM has less shares outstanding than it did 1 year ago.
The number of shares outstanding for IRDM has been reduced compared to 5 years ago.
IRDM has a worse debt/assets ratio than last year.
2.2 Solvency
IRDM has an Altman-Z score of 0.98. This is a bad value and indicates that IRDM is not financially healthy and even has some risk of bankruptcy.
IRDM has a Altman-Z score of 0.98. This is comparable to the rest of the industry: IRDM outperforms 59.46% of its industry peers.
The Debt to FCF ratio of IRDM is 5.92, which is a neutral value as it means it would take IRDM, 5.92 years of fcf income to pay off all of its debts.
IRDM has a better Debt to FCF ratio (5.92) than 81.08% of its industry peers.
IRDM has a Debt/Equity ratio of 4.02. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 4.02, IRDM is doing worse than 75.68% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.02 | ||
| Debt/FCF | 5.92 | ||
| Altman-Z | 0.98 |
ROIC/WACC1.21
WACC6.97%
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 89.19% of its industry peers.
A Quick Ratio of 1.93 indicates that IRDM should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.93, IRDM belongs to the top of the industry, outperforming 83.78% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.67 | ||
| Quick Ratio | 1.93 |
3. Growth
3.1 Past
IRDM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 22.90%, which is quite impressive.
Looking at the last year, IRDM shows a small growth in Revenue. The Revenue has grown by 7.30% in the last 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.
Based on estimates for the next years, IRDM will show a small growth in Revenue. The Revenue will grow by 4.46% on average per year.
EPS Next Y11.59%
EPS Next 2Y7.46%
EPS Next 3Y8.01%
EPS Next 5Y17.07%
Revenue Next Year6.52%
Revenue Next 2Y4.08%
Revenue Next 3Y3.99%
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
The Price/Earnings ratio is 14.42, which indicates a correct valuation of IRDM.
Compared to the rest of the industry, the Price/Earnings ratio of IRDM indicates a somewhat cheap valuation: IRDM is cheaper than 78.38% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of IRDM to the average of the S&P500 Index (26.15), we can say IRDM is valued slightly cheaper.
The Price/Forward Earnings ratio is 14.83, which indicates a correct valuation of IRDM.
Based on the Price/Forward Earnings ratio, IRDM is valued a bit cheaper than the industry average as 72.97% of the companies are valued more expensively.
IRDM's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 36.12.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.42 | ||
| Fwd PE | 14.83 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of IRDM is on the same level as its industry peers.
94.59% of the companies in the same industry are more expensive than IRDM, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.71 | ||
| EV/EBITDA | 7.85 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of IRDM may justify a higher PE ratio.
PEG (NY)1.24
PEG (5Y)N/A
EPS Next 2Y7.46%
EPS Next 3Y8.01%
5. Dividend
5.1 Amount
IRDM has a Yearly Dividend Yield of 3.60%. Purely for dividend investing, there may be better candidates out there.
In the last 3 months the price of IRDM has falen by -33.95%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
IRDM's Dividend Yield is a higher than the industry average which is at 5.78.
Compared to an average S&P500 Dividend Yield of 2.41, IRDM pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.6% |
5.2 History
The dividend of IRDM is nicely growing with an annual growth rate of 69.07%!
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
50.09% of the earnings are spent on dividend by IRDM. This is a bit on the high side, but may be sustainable.
IRDM's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP50.09%
EPS Next 2Y7.46%
EPS Next 3Y8.01%
16.44
-0.01 (-0.06%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners95.02%
Inst Owner Change1.11%
Ins Owners2.58%
Ins Owner Change-0.23%
Market Cap1.74B
Revenue(TTM)871.71M
Net Income(TTM)125.51M
Analysts80
Price Target29.35 (78.53%)
Short Float %10.22%
Short Ratio2.95
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.6% |
Yearly Dividend0.56
Dividend Growth(5Y)69.07%
DP50.09%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)7.52%
Min EPS beat(2)-17.49%
Max EPS beat(2)32.54%
EPS beat(4)3
Avg EPS beat(4)31.76%
Min EPS beat(4)-17.49%
Max EPS beat(4)94.51%
EPS beat(8)7
Avg EPS beat(8)122.6%
EPS beat(12)8
Avg EPS beat(12)156.35%
EPS beat(16)11
Avg EPS beat(16)273.71%
Revenue beat(2)1
Avg Revenue beat(2)0.13%
Min Revenue beat(2)-0.7%
Max Revenue beat(2)0.97%
Revenue beat(4)2
Avg Revenue beat(4)0.53%
Min Revenue beat(4)-0.7%
Max Revenue beat(4)2.26%
Revenue beat(8)4
Avg Revenue beat(8)0.31%
Revenue beat(12)6
Avg Revenue beat(12)0.9%
Revenue beat(16)9
Avg Revenue beat(16)1.18%
PT rev (1m)-11.6%
PT rev (3m)-20.34%
EPS NQ rev (1m)-8.42%
EPS NQ rev (3m)-12.59%
EPS NY rev (1m)5.34%
EPS NY rev (3m)-0.02%
Revenue NQ rev (1m)-1.33%
Revenue NQ rev (3m)-1.89%
Revenue NY rev (1m)0.09%
Revenue NY rev (3m)-0.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.42 | ||
| Fwd PE | 14.83 | ||
| P/S | 2 | ||
| P/FCF | 5.71 | ||
| P/OCF | 4.4 | ||
| P/B | 3.87 | ||
| P/tB | 6.62 | ||
| EV/EBITDA | 7.85 |
EPS(TTM)1.14
EY6.93%
EPS(NY)1.11
Fwd EY6.74%
FCF(TTM)2.88
FCFY17.52%
OCF(TTM)3.74
OCFY22.73%
SpS8.22
BVpS4.25
TBVpS2.48
PEG (NY)1.24
PEG (5Y)N/A
Graham Number10.44
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.91% | ||
| ROE | 27.86% | ||
| ROCE | 9.51% | ||
| ROIC | 8.45% | ||
| ROICexc | 8.76% | ||
| ROICexgc | 9.52% | ||
| OM | 26.73% | ||
| PM (TTM) | 14.4% | ||
| GM | 71.3% | ||
| FCFM | 35.07% |
ROA(3y)1.7%
ROA(5y)0.63%
ROE(3y)7.35%
ROE(5y)3.48%
ROIC(3y)4.17%
ROIC(5y)2.96%
ROICexc(3y)4.34%
ROICexc(5y)3.12%
ROICexgc(3y)4.59%
ROICexgc(5y)3.27%
ROCE(3y)4.7%
ROCE(5y)3.34%
ROICexgc growth 3Y75.01%
ROICexgc growth 5Y96.64%
ROICexc growth 3Y71.22%
ROICexc growth 5Y94.01%
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%
F-Score7
Asset Turnover0.34
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.02 | ||
| Debt/FCF | 5.92 | ||
| Debt/EBITDA | 4.1 | ||
| Cap/Depr | 43.55% | ||
| Cap/Sales | 10.42% | ||
| Interest Coverage | 2.58 | ||
| Cash Conversion | 89.8% | ||
| Profit Quality | 243.56% | ||
| Current Ratio | 2.67 | ||
| Quick Ratio | 1.93 | ||
| Altman-Z | 0.98 |
F-Score7
WACC6.97%
ROIC/WACC1.21
Cap/Depr(3y)26.95%
Cap/Depr(5y)21.48%
Cap/Sales(3y)9.2%
Cap/Sales(5y)8.22%
Profit Quality(3y)1660.03%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)22.9%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%66.67%
EPS Next Y11.59%
EPS Next 2Y7.46%
EPS Next 3Y8.01%
EPS Next 5Y17.07%
Revenue 1Y (TTM)7.3%
Revenue growth 3Y10.57%
Revenue growth 5Y8.19%
Sales Q2Q%6.66%
Revenue Next Year6.52%
Revenue Next 2Y4.08%
Revenue Next 3Y3.99%
Revenue Next 5Y4.46%
EBIT growth 1Y17.98%
EBIT growth 3Y63.8%
EBIT growth 5Y82.32%
EBIT Next Year135.94%
EBIT Next 3Y38.05%
EBIT Next 5Y26.25%
FCF growth 1Y30.92%
FCF growth 3Y5.48%
FCF growth 5Y30.68%
OCF growth 1Y24.95%
OCF growth 3Y7.47%
OCF growth 5Y13.67%
IRIDIUM COMMUNICATIONS INC / IRDM FAQ
What is the fundamental rating for IRDM stock?
ChartMill assigns a fundamental rating of 6 / 10 to IRDM.
What is the valuation status of IRIDIUM COMMUNICATIONS INC (IRDM) stock?
ChartMill assigns a valuation rating of 6 / 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 are the PE and PB ratios of IRIDIUM COMMUNICATIONS INC (IRDM) stock?
The Price/Earnings (PE) ratio for IRIDIUM COMMUNICATIONS INC (IRDM) is 14.42 and the Price/Book (PB) ratio is 3.87.
What is the earnings growth outlook for IRIDIUM COMMUNICATIONS INC?
The Earnings per Share (EPS) of IRIDIUM COMMUNICATIONS INC (IRDM) is expected to grow by 11.59% in the next year.