IRIDIUM COMMUNICATIONS INC (IRDM) Stock Fundamental Analysis
USA - NASDAQ:IRDM - US46269C1027 - Common Stock
17.97 USD
+0.15 (+0.84%)
18.1 USD
+0.13 (+0.72%)
Overall IRDM gets a fundamental rating of 6 out of 10. We evaluated IRDM against 36 industry peers in the Diversified Telecommunication Services industry. While IRDM has a great profitability rating, 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.
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 4.93% is fine compared to the rest of the industry. IRDM outperforms 77.78% of its industry peers.
Looking at the Return On Equity, with a value of 27.94%, IRDM belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 8.45%, 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 6.55%.
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 | 4.93% | ||
| ROE | 27.94% | ||
| 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
Looking at the Profit Margin, with a value of 14.44%, IRDM belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
Looking at the Operating Margin, with a value of 26.75%, IRDM belongs to the top of the industry, outperforming 91.67% of the companies in the same industry.
In the last couple of years the Operating Margin of IRDM has grown nicely.
With an excellent Gross Margin value of 71.30%, IRDM belongs to the best of the industry, outperforming 88.89% of the companies in the same industry.
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 | 26.75% | ||
| PM (TTM) | 14.44% | ||
| 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.
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 1.02. This is a bad value and indicates that IRDM is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of IRDM (1.02) is better than 63.89% of its industry peers.
The Debt to FCF ratio of IRDM is 5.93, which is a neutral value as it means it would take IRDM, 5.93 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of IRDM (5.93) is better than 83.33% 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.
IRDM has a Debt to Equity ratio of 4.02. This is in the lower half of the industry: IRDM underperforms 77.78% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.02 | ||
| Debt/FCF | 5.93 | ||
| Altman-Z | 1.02 |
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.
IRDM's Current ratio of 2.67 is amongst the best of the industry. IRDM outperforms 88.89% 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.
IRDM's Quick ratio of 1.93 is amongst the best of the industry. IRDM outperforms 83.33% of its industry peers.
| 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.
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 27.81% on average over the next years. This is a very strong growth
Based on estimates for the next years, IRDM will show a small growth in Revenue. The Revenue will grow by 5.65% on average per year.
EPS Next Y5.93%
EPS Next 2Y13.26%
EPS Next 3Y17.38%
EPS Next 5Y27.81%
Revenue Next Year6.42%
Revenue Next 2Y4.81%
Revenue Next 3Y4.54%
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 15.76 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 72.22% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.13, IRDM is valued a bit cheaper.
With a Price/Forward Earnings ratio of 14.59, IRDM is valued correctly.
Compared to the rest of the industry, the Price/Forward Earnings ratio of IRDM indicates a somewhat cheap valuation: IRDM is cheaper than 69.44% of the companies listed in the same industry.
IRDM is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.35, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.76 | ||
| Fwd PE | 14.59 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, IRDM is valued a bit cheaper than the industry average as 61.11% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, IRDM is valued cheaper than 91.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.25 | ||
| EV/EBITDA | 8.17 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive 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 17.38% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.66
PEG (5Y)N/A
EPS Next 2Y13.26%
EPS Next 3Y17.38%
5. Dividend
5.1 Amount
IRDM has a Yearly Dividend Yield of 3.23%.
The stock price of IRDM dropped by -24.53% 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.
IRDM's Dividend Yield is a higher than the industry average which is at 5.32.
IRDM's Dividend Yield is a higher than the S&P500 average which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.23% |
5.2 History
On average, the dividend of IRDM grows each year by 69.07%, which is quite nice.
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 49.66% 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.
DP49.66%
EPS Next 2Y13.26%
EPS Next 3Y17.38%
17.97
+0.15 (+0.84%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners95.02%
Inst Owner Change0.5%
Ins Owners2.58%
Ins Owner Change-0.22%
Market Cap1.91B
Revenue(TTM)871.71M
Net Income(TTM)125.85M
Analysts80
Price Target29.35 (63.33%)
Short Float %10.59%
Short Ratio3.27
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.23% |
Yearly Dividend0.56
Dividend Growth(5Y)69.07%
DP49.66%
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)-25.49%
EPS NQ rev (1m)-7.13%
EPS NQ rev (3m)-8.31%
EPS NY rev (1m)0%
EPS NY rev (3m)-7.42%
Revenue NQ rev (1m)-1.39%
Revenue NQ rev (3m)-2.16%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)-0.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.76 | ||
| Fwd PE | 14.59 | ||
| P/S | 2.19 | ||
| P/FCF | 6.25 | ||
| P/OCF | 4.81 | ||
| P/B | 4.23 | ||
| P/tB | 7.23 | ||
| EV/EBITDA | 8.17 |
EPS(TTM)1.14
EY6.34%
EPS(NY)1.23
Fwd EY6.85%
FCF(TTM)2.88
FCFY16.01%
OCF(TTM)3.73
OCFY20.78%
SpS8.22
BVpS4.25
TBVpS2.48
PEG (NY)2.66
PEG (5Y)N/A
Graham Number10.44
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.93% | ||
| ROE | 27.94% | ||
| ROCE | 9.51% | ||
| ROIC | 8.45% | ||
| ROICexc | 8.77% | ||
| ROICexgc | 9.52% | ||
| OM | 26.75% | ||
| PM (TTM) | 14.44% | ||
| GM | 71.3% | ||
| FCFM | 35.01% |
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%
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 | 5.93 | ||
| Debt/EBITDA | 4.09 | ||
| Cap/Depr | 43.58% | ||
| Cap/Sales | 10.45% | ||
| Interest Coverage | 2.59 | ||
| Cash Conversion | 89.64% | ||
| Profit Quality | 242.52% | ||
| Current Ratio | 2.67 | ||
| Quick Ratio | 1.93 | ||
| Altman-Z | 1.02 |
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 Y5.93%
EPS Next 2Y13.26%
EPS Next 3Y17.38%
EPS Next 5Y27.81%
Revenue 1Y (TTM)7.3%
Revenue growth 3Y10.57%
Revenue growth 5Y8.19%
Sales Q2Q%6.66%
Revenue Next Year6.42%
Revenue Next 2Y4.81%
Revenue Next 3Y4.54%
Revenue Next 5Y5.65%
EBIT growth 1Y18.13%
EBIT growth 3Y63.8%
EBIT growth 5Y82.32%
EBIT Next Year135.94%
EBIT Next 3Y38.05%
EBIT Next 5Y28.07%
FCF growth 1Y30.71%
FCF growth 3Y5.48%
FCF growth 5Y30.68%
OCF growth 1Y24.89%
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 15.76 and the Price/Book (PB) ratio is 4.23.
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 5.93% in the next year.