Logo image of IRDM

IRIDIUM COMMUNICATIONS INC (IRDM) Stock Fundamental Analysis

NASDAQ:IRDM - Nasdaq - US46269C1027 - Common Stock - Currency: USD

29.41  +0.28 (+0.96%)

After market: 29.44 +0.03 (+0.1%)

Fundamental Rating

5

Overall IRDM gets a fundamental rating of 5 out of 10. We evaluated IRDM against 32 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 has a correct valuation and a medium growth rate.


Dividend Valuation Growth Profitability Health

Quickly go to:

7

1. Profitability

1.1 Basic Checks

In the past year IRDM was profitable.
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.
IRDM Yearly Net Income VS EBIT VS OCF VS FCFIRDM Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 200M -200M

1.2 Ratios

With an excellent Return On Assets value of 3.25%, IRDM belongs to the best of the industry, outperforming 80.65% of the companies in the same industry.
The Return On Equity of IRDM (11.24%) is better than 77.42% of its industry peers.
With a decent Return On Invested Capital value of 5.17%, IRDM is doing good in the industry, outperforming 67.74% 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 5.42%.
The last Return On Invested Capital (5.17%) for IRDM is above the 3 year average (1.96%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 3.25%
ROE 11.24%
ROIC 5.17%
ROA(3y)0.19%
ROA(5y)-1.13%
ROE(3y)0.59%
ROE(5y)-2.71%
ROIC(3y)1.96%
ROIC(5y)1.4%
IRDM Yearly ROA, ROE, ROICIRDM Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 5 -5 10 -10

1.3 Margins

With an excellent Profit Margin value of 11.09%, IRDM belongs to the best of the industry, outperforming 87.10% of the companies in the same industry.
With an excellent Operating Margin value of 21.36%, IRDM belongs to the best of the industry, outperforming 83.87% 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 71.96%. This is amongst the best in the industry. IRDM outperforms 87.10% of its industry peers.
IRDM's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 21.36%
PM (TTM) 11.09%
GM 71.96%
OM growth 3Y19.27%
OM growth 5Y5.3%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-1.8%
GM growth 5Y-0.32%
IRDM Yearly Profit, Operating, Gross MarginsIRDM Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 20 -20 40 60

More info and screens

5

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), IRDM is destroying value.
IRDM has less shares outstanding than it did 1 year ago.
IRDM has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, IRDM has a worse debt to assets ratio.
IRDM Yearly Shares OutstandingIRDM Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 20M 40M 60M 80M 100M
IRDM Yearly Total Debt VS Total AssetsIRDM Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 1B 2B 3B 4B

2.2 Solvency

Based on the Altman-Z score of 1.45, we must say that IRDM is in the distress zone and has some risk of bankruptcy.
IRDM's Altman-Z score of 1.45 is amongst the best of the industry. IRDM outperforms 80.65% of its industry peers.
IRDM has a debt to FCF ratio of 6.44. This is a slightly negative value and a sign of low solvency as IRDM would need 6.44 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 6.44, IRDM is doing good in the industry, outperforming 74.19% of the companies in the same industry.
IRDM has a Debt/Equity ratio of 2.08. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of IRDM (2.08) is worse than 74.19% of its industry peers.
Industry RankSector Rank
Debt/Equity 2.08
Debt/FCF 6.44
Altman-Z 1.45
ROIC/WACC0.66
WACC7.9%
IRDM Yearly LT Debt VS Equity VS FCFIRDM Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 500M 1B 1.5B

2.3 Liquidity

A Current Ratio of 2.25 indicates that IRDM has no problem at all paying its short term obligations.
The Current ratio of IRDM (2.25) is better than 87.10% of its industry peers.
IRDM has a Quick Ratio of 1.52. 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 1.52, IRDM belongs to the top of the industry, outperforming 80.65% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 2.25
Quick Ratio 1.52
IRDM Yearly Current Assets VS Current LiabilitesIRDM Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 100M 200M 300M 400M 500M

More info and screens

5

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 616.67% over the past year.
The Revenue has been growing slightly by 2.87% in the past year.
Measured over the past years, IRDM shows a quite strong growth in Revenue. The Revenue has been growing by 8.62% on average per year.
EPS 1Y (TTM)616.67%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%2200%
Revenue 1Y (TTM)2.87%
Revenue growth 3Y10.67%
Revenue growth 5Y8.62%
Sales Q2Q%7.68%

3.2 Future

IRDM is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 128.03% yearly.
The Revenue is expected to grow by 4.43% on average over the next years.
EPS Next Y595.78%
EPS Next 2Y186.82%
EPS Next 3Y128.03%
EPS Next 5YN/A
Revenue Next Year4.04%
Revenue Next 2Y3.86%
Revenue Next 3Y4.09%
Revenue Next 5Y4.43%

3.3 Evolution

When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
IRDM Yearly Revenue VS EstimatesIRDM Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 200M 400M 600M 800M 1B
IRDM Yearly EPS VS EstimatesIRDM Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 0 0.5 -0.5 1 -1

More info and screens

4

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 31.62, IRDM can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of IRDM is on the same level as its industry peers.
When comparing the Price/Earnings ratio of IRDM to the average of the S&P500 Index (28.64), we can say IRDM is valued inline with the index average.
IRDM is valuated quite expensively with a Price/Forward Earnings ratio of 29.79.
IRDM's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.51, IRDM is valued a bit more expensive.
Industry RankSector Rank
PE 31.62
Fwd PE 29.79
IRDM Price Earnings VS Forward Price EarningsIRDM Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of IRDM indicates a slightly more expensive valuation: IRDM is more expensive than 61.29% of the companies listed in the same industry.
IRDM's Price/Free Cash Flow ratio is in line with the industry average.
Industry RankSector Rank
P/FCF 13.07
EV/EBITDA 12.25
IRDM Per share dataIRDM EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 2 4 6

4.3 Compensation for Growth

IRDM's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
IRDM has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as IRDM's earnings are expected to grow with 128.03% in the coming years.
PEG (NY)0.05
PEG (5Y)N/A
EPS Next 2Y186.82%
EPS Next 3Y128.03%

More info and screens

4

5. Dividend

5.1 Amount

IRDM has a Yearly Dividend Yield of 2.00%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 5.41, IRDM pays a bit more dividend than its industry peers.
IRDM's Dividend Yield is comparable with the S&P500 average which is at 2.28.
Industry RankSector Rank
Dividend Yield 2%

5.2 History

The dividend of IRDM is nicely growing with an annual growth rate of 26.43%!
IRDM is new to the dividend game and has less than 3 years of track record.
Dividend Growth(5Y)26.43%
Div Incr Years0
Div Non Decr Years0
IRDM Yearly Dividends per shareIRDM Yearly Dividends per shareYearly Dividends per share 2023 2024 0.1 0.2 0.3 0.4 0.5

5.3 Sustainability

IRDM pays out 73.34% of its income as dividend. This is not a sustainable payout ratio.
The dividend of IRDM is growing, but earnings are growing more, so the dividend growth is sustainable.
DP73.34%
EPS Next 2Y186.82%
EPS Next 3Y128.03%
IRDM Yearly Income VS Free CF VS DividendIRDM Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 100M -100M 200M -200M
IRDM Dividend Payout.IRDM Dividend Payout, showing the Payout Ratio.IRDM Dividend Payout.PayoutRetained Earnings

More info and screens

IRIDIUM COMMUNICATIONS INC

NASDAQ:IRDM (1/23/2025, 9:12:13 PM)

After market: 29.44 +0.03 (+0.1%)

29.41

+0.28 (+0.96%)

Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)10-17 2024-10-17/bmo
Earnings (Next)02-13 2025-02-13/amc
Inst Owners85.56%
Inst Owner Change0.03%
Ins Owners2.04%
Ins Owner Change0.36%
Market Cap3.35B
Analysts80
Price Target41.31 (40.46%)
Short Float %7.92%
Short Ratio8.54
Dividend
Industry RankSector Rank
Dividend Yield 2%
Yearly Dividend0.52
Dividend Growth(5Y)26.43%
DP73.34%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)27.86%
Min EPS beat(2)3.06%
Max EPS beat(2)52.66%
EPS beat(4)3
Avg EPS beat(4)178.69%
Min EPS beat(4)-135.01%
Max EPS beat(4)794.07%
EPS beat(8)5
Avg EPS beat(8)220.07%
EPS beat(12)8
Avg EPS beat(12)358.39%
EPS beat(16)12
Avg EPS beat(16)285.82%
Revenue beat(2)1
Avg Revenue beat(2)0.4%
Min Revenue beat(2)-2.34%
Max Revenue beat(2)3.15%
Revenue beat(4)1
Avg Revenue beat(4)-0.99%
Min Revenue beat(4)-3.18%
Max Revenue beat(4)3.15%
Revenue beat(8)3
Avg Revenue beat(8)0.9%
Revenue beat(12)7
Avg Revenue beat(12)1.59%
Revenue beat(16)9
Avg Revenue beat(16)1.64%
PT rev (1m)0%
PT rev (3m)1.25%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)0.85%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.95%
Valuation
Industry RankSector Rank
PE 31.62
Fwd PE 29.79
P/S 4.2
P/FCF 13.07
P/OCF 10.75
P/B 4.26
P/tB 5.67
EV/EBITDA 12.25
EPS(TTM)0.93
EY3.16%
EPS(NY)0.99
Fwd EY3.36%
FCF(TTM)2.25
FCFY7.65%
OCF(TTM)2.74
OCFY9.3%
SpS7
BVpS6.91
TBVpS5.19
PEG (NY)0.05
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 3.25%
ROE 11.24%
ROCE 6.55%
ROIC 5.17%
ROICexc 5.3%
ROICexgc 5.75%
OM 21.36%
PM (TTM) 11.09%
GM 71.96%
FCFM 32.14%
ROA(3y)0.19%
ROA(5y)-1.13%
ROE(3y)0.59%
ROE(5y)-2.71%
ROIC(3y)1.96%
ROIC(5y)1.4%
ROICexc(3y)2.08%
ROICexc(5y)1.48%
ROICexgc(3y)2.12%
ROICexgc(5y)1.51%
ROCE(3y)2.49%
ROCE(5y)1.77%
ROICexcg growth 3Y41.17%
ROICexcg growth 5Y22.67%
ROICexc growth 3Y41.09%
ROICexc growth 5Y22.6%
OM growth 3Y19.27%
OM growth 5Y5.3%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-1.8%
GM growth 5Y-0.32%
F-Score8
Asset Turnover0.29
Health
Industry RankSector Rank
Debt/Equity 2.08
Debt/FCF 6.44
Debt/EBITDA 4.08
Cap/Depr 23.98%
Cap/Sales 6.92%
Interest Coverage 1.73
Cash Conversion 77.78%
Profit Quality 289.85%
Current Ratio 2.25
Quick Ratio 1.52
Altman-Z 1.45
F-Score8
WACC7.9%
ROIC/WACC0.66
Cap/Depr(3y)20.08%
Cap/Depr(5y)22.52%
Cap/Sales(3y)8.68%
Cap/Sales(5y)10.74%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)616.67%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%2200%
EPS Next Y595.78%
EPS Next 2Y186.82%
EPS Next 3Y128.03%
EPS Next 5YN/A
Revenue 1Y (TTM)2.87%
Revenue growth 3Y10.67%
Revenue growth 5Y8.62%
Sales Q2Q%7.68%
Revenue Next Year4.04%
Revenue Next 2Y3.86%
Revenue Next 3Y4.09%
Revenue Next 5Y4.43%
EBIT growth 1Y288.84%
EBIT growth 3Y31.99%
EBIT growth 5Y14.38%
EBIT Next Year587.68%
EBIT Next 3Y97.83%
EBIT Next 5YN/A
FCF growth 1Y-11.21%
FCF growth 3Y4.58%
FCF growth 5YN/A
OCF growth 1Y-9.06%
OCF growth 3Y8.03%
OCF growth 5Y3.61%