IRIDIUM COMMUNICATIONS INC (IRDM) Stock Fundamental Analysis
USA - NASDAQ:IRDM - US46269C1027 - Common Stock
18.08 USD
-0.67 (-3.57%)
18.22 USD
+0.14 (+0.77%)
IRDM gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 35 industry peers in the Diversified Telecommunication Services industry. IRDM has an excellent profitability rating, 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
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.
In the past 5 years IRDM always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of IRDM (4.41%) is better than 74.29% of its industry peers.
The Return On Equity of IRDM (23.89%) is better than 94.29% of its industry peers.
Looking at the Return On Invested Capital, with a value of 7.86%, IRDM belongs to the top of the industry, outperforming 85.71% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for IRDM is below the industry average of 6.32%.
The last Return On Invested Capital (7.86%) for IRDM is above the 3 year average (4.17%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.41% | ||
| ROE | 23.89% | ||
| ROIC | 7.86% |
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 13.20% is fine compared to the rest of the industry. IRDM outperforms 80.00% of its industry peers.
Looking at the Operating Margin, with a value of 25.46%, IRDM belongs to the top of the industry, outperforming 88.57% of the companies in the same industry.
In the last couple of years the Operating Margin of IRDM has grown nicely.
Looking at the Gross Margin, with a value of 71.62%, IRDM belongs to the top of the industry, outperforming 88.57% 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 | 25.46% | ||
| PM (TTM) | 13.2% | ||
| GM | 71.62% |
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.
IRDM has less shares outstanding than it did 1 year ago.
IRDM has less shares outstanding than it did 5 years ago.
IRDM has a worse debt/assets ratio than last year.
2.2 Solvency
IRDM has an Altman-Z score of 1.01. 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 1.01 is fine compared to the rest of the industry. IRDM outperforms 68.57% of its industry peers.
IRDM has a debt to FCF ratio of 5.55. This is a neutral value as IRDM would need 5.55 years to pay back of all of its debts.
The Debt to FCF ratio of IRDM (5.55) is better than 82.86% of its industry peers.
IRDM has a Debt/Equity ratio of 3.82. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of IRDM (3.82) is worse than 77.14% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.82 | ||
| Debt/FCF | 5.55 | ||
| Altman-Z | 1.01 |
ROIC/WACC1.11
WACC7.1%
2.3 Liquidity
IRDM has a Current Ratio of 2.51. This indicates that IRDM is financially healthy and has no problem in meeting its short term obligations.
With an excellent Current ratio value of 2.51, IRDM belongs to the best of the industry, outperforming 88.57% of the companies in the same industry.
A Quick Ratio of 1.75 indicates that IRDM should not have too much problems paying its short term obligations.
IRDM has a better Quick ratio (1.75) than 82.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.51 | ||
| Quick Ratio | 1.75 |
3. Growth
3.1 Past
IRDM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 41.27%, which is quite impressive.
The Revenue has been growing slightly by 7.56% 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)41.27%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-24.81%
Revenue 1Y (TTM)7.56%
Revenue growth 3Y10.57%
Revenue growth 5Y8.19%
Sales Q2Q%7.88%
3.2 Future
Based on estimates for the next years, IRDM will show a very strong growth in Earnings Per Share. The EPS will grow by 27.81% on average per year.
The Revenue is expected to grow by 5.65% on average over the next years.
EPS Next Y11.6%
EPS Next 2Y18.43%
EPS Next 3Y20.03%
EPS Next 5Y27.81%
Revenue Next Year6.37%
Revenue Next 2Y4.74%
Revenue Next 3Y4.51%
Revenue Next 5Y5.65%
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 18.08 indicates a rather expensive 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 62.86% of the companies listed in the same industry.
IRDM's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.38.
Based on the Price/Forward Earnings ratio of 13.43, the valuation of IRDM can be described as correct.
74.29% of the companies in the same industry are more expensive than IRDM, based on the Price/Forward Earnings ratio.
IRDM's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.86.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.08 | ||
| Fwd PE | 13.43 |
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 cheaper than 88.57% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.89 | ||
| EV/EBITDA | 8.74 |
4.3 Compensation for Growth
IRDM's 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.
IRDM's earnings are expected to grow with 20.03% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.56
PEG (5Y)N/A
EPS Next 2Y18.43%
EPS Next 3Y20.03%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.10%, IRDM has a reasonable but not impressive dividend return.
In the last 3 months the price of IRDM has falen by -36.41%. 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 5.03.
Compared to an average S&P500 Dividend Yield of 2.38, IRDM pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.1% |
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
55.46% 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.
DP55.46%
EPS Next 2Y18.43%
EPS Next 3Y20.03%
18.08
-0.67 (-3.57%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners99.16%
Inst Owner Change-3.67%
Ins Owners2.59%
Ins Owner Change-0.35%
Market Cap1.92B
Analysts82.5
Price Target33.21 (83.68%)
Short Float %9.35%
Short Ratio3.62
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.1% |
Yearly Dividend0.56
Dividend Growth(5Y)69.07%
DP55.46%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.01%
Min EPS beat(2)-17.49%
Max EPS beat(2)17.47%
EPS beat(4)3
Avg EPS beat(4)24.62%
Min EPS beat(4)-17.49%
Max EPS beat(4)94.51%
EPS beat(8)6
Avg EPS beat(8)101.66%
EPS beat(12)8
Avg EPS beat(12)154.92%
EPS beat(16)11
Avg EPS beat(16)274.95%
Revenue beat(2)0
Avg Revenue beat(2)-0.54%
Min Revenue beat(2)-0.7%
Max Revenue beat(2)-0.39%
Revenue beat(4)2
Avg Revenue beat(4)0.58%
Min Revenue beat(4)-0.7%
Max Revenue beat(4)2.26%
Revenue beat(8)3
Avg Revenue beat(8)-0.2%
Revenue beat(12)5
Avg Revenue beat(12)0.8%
Revenue beat(16)9
Avg Revenue beat(16)1.34%
PT rev (1m)-9.88%
PT rev (3m)-15.71%
EPS NQ rev (1m)-6.71%
EPS NQ rev (3m)-11.41%
EPS NY rev (1m)-2.46%
EPS NY rev (3m)-2.46%
Revenue NQ rev (1m)-0.9%
Revenue NQ rev (3m)-1.65%
Revenue NY rev (1m)-0.14%
Revenue NY rev (3m)-0.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.08 | ||
| Fwd PE | 13.43 | ||
| P/S | 2.24 | ||
| P/FCF | 5.89 | ||
| P/OCF | 4.63 | ||
| P/B | 4.05 | ||
| P/tB | 6.71 | ||
| EV/EBITDA | 8.74 |
EPS(TTM)1
EY5.53%
EPS(NY)1.35
Fwd EY7.45%
FCF(TTM)3.07
FCFY16.99%
OCF(TTM)3.9
OCFY21.59%
SpS8.08
BVpS4.46
TBVpS2.69
PEG (NY)1.56
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.41% | ||
| ROE | 23.89% | ||
| ROCE | 8.85% | ||
| ROIC | 7.86% | ||
| ROICexc | 8.12% | ||
| ROICexgc | 8.82% | ||
| OM | 25.46% | ||
| PM (TTM) | 13.2% | ||
| GM | 71.62% | ||
| FCFM | 38.01% |
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%
ROICexcg growth 3Y75.01%
ROICexcg 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 Turnover0.33
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.82 | ||
| Debt/FCF | 5.55 | ||
| Debt/EBITDA | 4.25 | ||
| Cap/Depr | 42.56% | ||
| Cap/Sales | 10.28% | ||
| Interest Coverage | 2.28 | ||
| Cash Conversion | 97.34% | ||
| Profit Quality | 288.04% | ||
| Current Ratio | 2.51 | ||
| Quick Ratio | 1.75 | ||
| Altman-Z | 1.01 |
F-Score7
WACC7.1%
ROIC/WACC1.11
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)41.27%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-24.81%
EPS Next Y11.6%
EPS Next 2Y18.43%
EPS Next 3Y20.03%
EPS Next 5Y27.81%
Revenue 1Y (TTM)7.56%
Revenue growth 3Y10.57%
Revenue growth 5Y8.19%
Sales Q2Q%7.88%
Revenue Next Year6.37%
Revenue Next 2Y4.74%
Revenue Next 3Y4.51%
Revenue Next 5Y5.65%
EBIT growth 1Y28.18%
EBIT growth 3Y63.8%
EBIT growth 5Y82.32%
EBIT Next Year136.86%
EBIT Next 3Y38.52%
EBIT Next 5Y28.07%
FCF growth 1Y30.65%
FCF growth 3Y5.48%
FCF growth 5Y30.68%
OCF growth 1Y23.58%
OCF growth 3Y7.47%
OCF growth 5Y13.67%