17.74 USD
+0.2 (+1.14%)
17.88 USD
+0.14 (+0.79%)
Overall IRDM gets a fundamental rating of 6 out of 10. We evaluated IRDM against 38 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 correct valuation and a medium 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.
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
IRDM has a Return On Assets of 4.91%. This is in the better half of the industry: IRDM outperforms 73.68% of its industry peers.
With an excellent Return On Equity value of 27.86%, IRDM belongs to the best of the industry, outperforming 94.74% of the companies in the same industry.
With an excellent Return On Invested Capital value of 8.45%, IRDM belongs to the best of the industry, outperforming 89.47% 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 6.50%.
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
With a decent Profit Margin value of 14.40%, IRDM is doing good in the industry, outperforming 76.32% of the companies in the same industry.
IRDM's Operating Margin of 26.73% is amongst the best of the industry. IRDM outperforms 94.74% of its industry peers.
IRDM's Operating Margin has improved in the last couple of years.
The Gross Margin of IRDM (71.30%) is better than 89.47% of its industry peers.
In the last couple of years the Gross Margin of IRDM has remained more or less at the same level.
| 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
IRDM has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, IRDM has less shares outstanding
IRDM has less shares outstanding than it did 5 years ago.
The debt/assets ratio for IRDM is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.01, we must say that IRDM is in the distress zone and has some risk of bankruptcy.
With a decent Altman-Z score value of 1.01, IRDM is doing good in the industry, outperforming 65.79% of the companies in the same industry.
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.
With an excellent Debt to FCF ratio value of 5.92, IRDM belongs to the best of the industry, outperforming 81.58% 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.
The Debt to Equity ratio of IRDM (4.02) is worse than 76.32% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.02 | ||
| Debt/FCF | 5.92 | ||
| Altman-Z | 1.01 |
ROIC/WACC1.19
WACC7.09%
2.3 Liquidity
IRDM has a Current Ratio of 2.67. This indicates that IRDM is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of IRDM (2.67) is better than 89.47% 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 84.21% 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.
The Revenue has been growing by 8.19% on average over the past years. This is quite good.
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 15.56, the valuation of IRDM can be described as correct.
Based on the Price/Earnings ratio, IRDM is valued a bit cheaper than 76.32% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.46, IRDM is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 16.00, the valuation of IRDM can be described as correct.
71.05% 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 rather cheap valuation when compared to the S&P500 average which is at 36.10.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.56 | ||
| Fwd PE | 16 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as IRDM.
94.74% 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 | 6.08 | ||
| EV/EBITDA | 8.11 |
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)1.34
PEG (5Y)N/A
EPS Next 2Y7.46%
EPS Next 3Y8.01%
5. Dividend
5.1 Amount
IRDM has a Yearly Dividend Yield of 3.31%.
The stock price of IRDM dropped by -29.38% 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 5.64, 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 | 3.31% |
5.2 History
The dividend of IRDM is nicely growing with an annual growth rate of 69.07%!
IRDM has paid a dividend for less than 5 years, so there is no long track record yet.
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.
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%
17.74
+0.2 (+1.14%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners97.06%
Inst Owner Change1.11%
Ins Owners2.63%
Ins Owner Change-0.23%
Market Cap1.86B
Revenue(TTM)871.71M
Net Income(TTM)125.51M
Analysts80
Price Target29.35 (65.45%)
Short Float %10.29%
Short Ratio3.78
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.31% |
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)-17.78%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-8.42%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.02%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.33%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.56 | ||
| Fwd PE | 16 | ||
| P/S | 2.13 | ||
| P/FCF | 6.08 | ||
| P/OCF | 4.69 | ||
| P/B | 4.12 | ||
| P/tB | 7.05 | ||
| EV/EBITDA | 8.11 |
EPS(TTM)1.14
EY6.43%
EPS(NY)1.11
Fwd EY6.25%
FCF(TTM)2.92
FCFY16.45%
OCF(TTM)3.78
OCFY21.34%
SpS8.32
BVpS4.3
TBVpS2.52
PEG (NY)1.34
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 | 1.01 |
F-Score7
WACC7.09%
ROIC/WACC1.19
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 Year139.57%
EBIT Next 3Y37.22%
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 15.56 and the Price/Book (PB) ratio is 4.12.
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.