16.44 USD
+0.04 (+0.24%)
16.3962 USD
-0.04 (-0.27%)
We assign a fundamental rating of 6 out of 10 to IRDM. IRDM was compared to 37 industry peers in the Diversified Telecommunication Services industry. While IRDM belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. IRDM has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
IRDM had positive earnings in the past year.
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.
Each year in the past 5 years IRDM had a positive operating cash flow.
1.2 Ratios
IRDM's Return On Assets of 4.91% is fine compared to the rest of the industry. IRDM outperforms 72.97% of its industry peers.
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.
Measured over the past 3 years, the Average Return On Invested Capital for IRDM is below the industry average of 6.50%.
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 75.68% of the companies in the same industry.
IRDM has a Operating Margin of 26.73%. This is amongst the best in the industry. IRDM outperforms 94.59% of its industry peers.
IRDM's Operating Margin has improved in the last couple of years.
IRDM has a Gross Margin of 71.30%. This is amongst the best in the industry. IRDM outperforms 89.19% 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so IRDM is still creating some value.
Compared to 1 year ago, IRDM has less shares outstanding
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
Based on the Altman-Z score of 0.97, we must say that IRDM is in the distress zone and has some risk of bankruptcy.
IRDM has a Altman-Z score (0.97) which is in line with 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.
Looking at the Debt to FCF ratio, with a value of 5.92, IRDM belongs to the top of the industry, outperforming 81.08% of the companies in the same industry.
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 | 0.97 |
ROIC/WACC1.21
WACC6.96%
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.
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 83.78% 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.
Looking at the last year, IRDM shows a small growth in Revenue. The Revenue has grown by 7.30% in the last year.
IRDM shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.19% yearly.
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
The Earnings Per Share is expected to grow by 17.07% on average over the next years. This is quite good.
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 Year6.52%
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
Based on the Price/Earnings ratio of 14.42, the valuation of IRDM can be described as correct.
78.38% of the companies in the same industry are more expensive than IRDM, based on the Price/Earnings ratio.
IRDM is valuated rather cheaply when we compare the Price/Earnings ratio to 26.31, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 14.83 indicates a correct valuation of IRDM.
70.27% of the companies in the same industry are more expensive than IRDM, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.56, IRDM is valued rather cheaply.
| 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 indicates a somewhat cheap valuation: IRDM is cheaper than 62.16% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, IRDM is valued cheaply inside the industry as 94.59% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.63 | ||
| EV/EBITDA | 7.79 |
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 3.47%.
The stock price of IRDM dropped by -34.55% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
Compared to an average industry Dividend Yield of 5.67, IRDM pays a bit more dividend than its industry peers.
IRDM's Dividend Yield is a higher than the S&P500 average which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.47% |
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.
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%
16.44
+0.04 (+0.24%)
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 Cap1.72B
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 | 3.47% |
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)0%
PT rev (3m)-20.34%
EPS NQ rev (1m)-1.39%
EPS NQ rev (3m)-8.36%
EPS NY rev (1m)5.34%
EPS NY rev (3m)-0.02%
Revenue NQ rev (1m)0.07%
Revenue NQ rev (3m)-1.84%
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 | 1.98 | ||
| P/FCF | 5.63 | ||
| P/OCF | 4.34 | ||
| P/B | 3.82 | ||
| P/tB | 6.53 | ||
| EV/EBITDA | 7.79 |
EPS(TTM)1.14
EY6.93%
EPS(NY)1.11
Fwd EY6.74%
FCF(TTM)2.92
FCFY17.75%
OCF(TTM)3.78
OCFY23.02%
SpS8.32
BVpS4.3
TBVpS2.52
PEG (NY)1.24
PEG (5Y)N/A
Graham Number10.5
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 | 0.97 |
F-Score7
WACC6.96%
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 3.82.
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.