IRIDIUM COMMUNICATIONS INC (IRDM) Stock Fundamental Analysis
USA - NASDAQ:IRDM - US46269C1027 - Common Stock
16.24 USD
+0.09 (+0.56%)
We assign a fundamental rating of 6 out of 10 to IRDM. IRDM was compared to 36 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 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.
IRDM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of IRDM (4.89%) is better than 75.00% of its industry peers.
With an excellent Return On Equity value of 27.78%, IRDM belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 8.44%, IRDM belongs to the top of the industry, outperforming 86.11% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for IRDM is below the industry average of 6.44%.
The last Return On Invested Capital (8.44%) for IRDM is above the 3 year average (4.18%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.89% | ||
| ROE | 27.78% | ||
| ROIC | 8.44% |
ROA(3y)1.7%
ROA(5y)0.63%
ROE(3y)7.35%
ROE(5y)3.47%
ROIC(3y)4.18%
ROIC(5y)2.97%
1.3 Margins
Looking at the Profit Margin, with a value of 14.34%, IRDM is in the better half of the industry, outperforming 77.78% of the companies in the same industry.
With an excellent Operating Margin value of 26.65%, 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 Gross Margin of 71.30%. This is amongst the best in the industry. IRDM outperforms 88.89% 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 | 26.65% | ||
| PM (TTM) | 14.34% | ||
| GM | 71.3% |
OM growth 3Y48.05%
OM growth 5Y68.46%
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.
Compared to 5 years ago, IRDM has less shares outstanding
IRDM has a worse debt/assets ratio than last year.
2.2 Solvency
IRDM has an Altman-Z score of 0.97. This is a bad value and indicates that IRDM is not financially healthy and even has some risk of bankruptcy.
IRDM has a better Altman-Z score (0.97) than 63.89% of its industry peers.
IRDM has a debt to FCF ratio of 5.93. This is a neutral value as IRDM would need 5.93 years to pay back of all of its debts.
IRDM has a Debt to FCF ratio of 5.93. This is amongst the best in the industry. IRDM outperforms 80.56% 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.
With a Debt to Equity ratio value of 4.02, IRDM is not doing good in the industry: 77.78% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.02 | ||
| Debt/FCF | 5.93 | ||
| Altman-Z | 0.97 |
ROIC/WACC1.2
WACC7.01%
2.3 Liquidity
IRDM has a Current Ratio of 2.68. This indicates that IRDM is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 2.68, IRDM belongs to the top of the industry, outperforming 88.89% of the companies in the same industry.
IRDM has a Quick Ratio of 1.94. This is a normal value and indicates that IRDM is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.94, IRDM belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.68 | ||
| Quick Ratio | 1.94 |
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.
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.
The Revenue is expected to grow by 4.46% on average over the next years.
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
IRDM is valuated correctly with a Price/Earnings ratio of 14.25.
IRDM's Price/Earnings ratio is a bit cheaper when compared to the industry. IRDM is cheaper than 69.44% of the companies in the same industry.
When comparing the Price/Earnings ratio of IRDM to the average of the S&P500 Index (25.46), we can say IRDM is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 14.65, the valuation of IRDM can be described as correct.
IRDM's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. IRDM is cheaper than 69.44% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of IRDM to the average of the S&P500 Index (35.39), we can say IRDM is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.25 | ||
| Fwd PE | 14.65 |
4.2 Price Multiples
IRDM's Enterprise Value to EBITDA ratio is in line with the industry average.
94.44% 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 | 5.65 | ||
| EV/EBITDA | 7.8 |
4.3 Compensation for Growth
IRDM's 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)1.23
PEG (5Y)N/A
EPS Next 2Y7.46%
EPS Next 3Y8.01%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.42%, IRDM has a reasonable but not impressive dividend return.
In the last 3 months the price of IRDM has falen by -34.99%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
Compared to an average industry Dividend Yield of 5.85, IRDM pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.44, IRDM pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.42% |
5.2 History
The dividend of IRDM is nicely growing with an annual growth rate of 69.23%!
IRDM has paid a dividend for less than 5 years, so there is no long track record yet.
Dividend Growth(5Y)69.23%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
50.40% 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.
DP50.4%
EPS Next 2Y7.46%
EPS Next 3Y8.01%
NASDAQ:IRDM (11/19/2025, 2:58:28 PM)
16.24
+0.09 (+0.56%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners95.02%
Inst Owner Change1.02%
Ins Owners2.58%
Ins Owner Change-0.23%
Market Cap1.72B
Revenue(TTM)871.71M
Net Income(TTM)125.00M
Analysts80
Price Target29.35 (80.73%)
Short Float %10.22%
Short Ratio2.95
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.42% |
Yearly Dividend0.56
Dividend Growth(5Y)69.23%
DP50.4%
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)-2.48%
Revenue NQ rev (1m)-1.33%
Revenue NQ rev (3m)-1.89%
Revenue NY rev (1m)0.13%
Revenue NY rev (3m)-0.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.25 | ||
| Fwd PE | 14.65 | ||
| P/S | 1.98 | ||
| P/FCF | 5.65 | ||
| P/OCF | 4.35 | ||
| P/B | 3.83 | ||
| P/tB | 6.55 | ||
| EV/EBITDA | 7.8 |
EPS(TTM)1.14
EY7.02%
EPS(NY)1.11
Fwd EY6.83%
FCF(TTM)2.87
FCFY17.7%
OCF(TTM)3.73
OCFY22.98%
SpS8.22
BVpS4.24
TBVpS2.48
PEG (NY)1.23
PEG (5Y)N/A
Graham Number10.43
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.89% | ||
| ROE | 27.78% | ||
| ROCE | 9.48% | ||
| ROIC | 8.44% | ||
| ROICexc | 8.76% | ||
| ROICexgc | 9.51% | ||
| OM | 26.65% | ||
| PM (TTM) | 14.34% | ||
| GM | 71.3% | ||
| FCFM | 34.99% |
ROA(3y)1.7%
ROA(5y)0.63%
ROE(3y)7.35%
ROE(5y)3.47%
ROIC(3y)4.18%
ROIC(5y)2.97%
ROICexc(3y)4.35%
ROICexc(5y)3.12%
ROICexgc(3y)4.59%
ROICexgc(5y)3.28%
ROCE(3y)4.69%
ROCE(5y)3.33%
ROICexgc growth 3Y74.9%
ROICexgc growth 5Y96.57%
ROICexc growth 3Y71.12%
ROICexc growth 5Y93.94%
OM growth 3Y48.05%
OM growth 5Y68.46%
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 | 5.93 | ||
| Debt/EBITDA | 4.11 | ||
| Cap/Depr | 43.75% | ||
| Cap/Sales | 10.44% | ||
| Interest Coverage | 2.58 | ||
| Cash Conversion | 89.94% | ||
| Profit Quality | 244% | ||
| Current Ratio | 2.68 | ||
| Quick Ratio | 1.94 | ||
| Altman-Z | 0.97 |
F-Score7
WACC7.01%
ROIC/WACC1.2
Cap/Depr(3y)26.93%
Cap/Depr(5y)21.47%
Cap/Sales(3y)9.18%
Cap/Sales(5y)8.21%
Profit Quality(3y)1675.55%
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 1Y17.61%
EBIT growth 3Y63.7%
EBIT growth 5Y82.25%
EBIT Next Year135.94%
EBIT Next 3Y38.05%
EBIT Next 5Y26.25%
FCF growth 1Y30.62%
FCF growth 3Y5.47%
FCF growth 5Y30.68%
OCF growth 1Y24.8%
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 14.25 and the Price/Book (PB) ratio is 3.83.
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.