18.73 USD
-0.08 (-0.43%)
18.94 USD
+0.21 (+1.12%)
We assign a fundamental rating of 6 out of 10 to IRDM. IRDM was compared to 38 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 has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year IRDM was profitable.
In the past year IRDM had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: IRDM reported negative net income in multiple years.
In the past 5 years IRDM always reported a positive cash flow from operatings.
1.2 Ratios
IRDM's Return On Assets of 4.91% is fine compared to the rest of the industry. IRDM outperforms 73.68% of its industry peers.
Looking at the Return On Equity, with a value of 27.86%, IRDM belongs to the top 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.
Measured over the past 3 years, the Average Return On Invested Capital for IRDM is below the industry average of 6.52%.
The last Return On Invested Capital (8.45%) for IRDM is above the 3 year average (4.17%), which is a sign of increasing profitability.
| 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
The Profit Margin of IRDM (14.40%) is better than 76.32% of its industry peers.
Looking at the Operating Margin, with a value of 26.73%, IRDM belongs to the top of the industry, outperforming 94.74% of the companies in the same industry.
IRDM's Operating Margin has improved in the last couple of years.
With an excellent Gross Margin value of 71.30%, IRDM belongs to the best of the industry, outperforming 89.47% 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 | 26.73% | ||
| 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.
The number of shares outstanding for IRDM has been reduced compared to 1 year ago.
The number of shares outstanding for IRDM has been reduced compared to 5 years ago.
IRDM has a worse debt/assets ratio than last year.
2.2 Solvency
IRDM has an Altman-Z score of 1.04. 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 (1.04) than 68.42% of its industry peers.
The Debt to FCF ratio of IRDM is 5.92, which is a neutral value as it means it would take IRDM, 5.92 years of fcf income to pay off all of its debts.
IRDM has a Debt to FCF ratio of 5.92. This is amongst the best in the industry. IRDM outperforms 81.58% 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's Debt to Equity ratio of 4.02 is on the low side compared to the rest of the industry. IRDM is outperformed by 76.32% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.02 | ||
| Debt/FCF | 5.92 | ||
| Altman-Z | 1.04 |
ROIC/WACC1.18
WACC7.17%
2.3 Liquidity
A Current Ratio of 2.67 indicates that IRDM has no problem at all paying its short term obligations.
IRDM has a better Current ratio (2.67) 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.
With an excellent Quick ratio value of 1.93, IRDM belongs to the best of the industry, outperforming 84.21% of the companies in the same industry.
| 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.
The Revenue has been growing slightly by 7.30% in the past 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 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 16.43.
Compared to the rest of the industry, the Price/Earnings ratio of IRDM indicates a somewhat cheap valuation: IRDM is cheaper than 73.68% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 26.56. IRDM is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 16.89, IRDM is valued correctly.
68.42% of the companies in the same industry are more expensive than IRDM, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 23.79. IRDM is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.43 | ||
| Fwd PE | 16.89 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of IRDM is on the same level as its industry peers.
Based on the Price/Free Cash Flow ratio, IRDM is valued cheaper than 94.74% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.42 | ||
| EV/EBITDA | 8.34 |
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)1.42
PEG (5Y)N/A
EPS Next 2Y7.46%
EPS Next 3Y8.01%
5. Dividend
5.1 Amount
IRDM has a Yearly Dividend Yield of 3.08%. Purely for dividend investing, there may be better candidates out there.
IRDM's Dividend Yield is a higher than the industry average which is at 2.28.
Compared to an average S&P500 Dividend Yield of 1.87, IRDM pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.08% |
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
50.09% of the earnings are spent on dividend by IRDM. 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%
18.73
-0.08 (-0.43%)
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-0.2%
Market Cap1.96B
Revenue(TTM)871.71M
Net Income(TTM)125.51M
Analysts80
Price Target29.35 (56.7%)
Short Float %10.29%
Short Ratio3.78
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.08% |
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)-11.6%
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)0.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.43 | ||
| Fwd PE | 16.89 | ||
| P/S | 2.25 | ||
| P/FCF | 6.42 | ||
| P/OCF | 4.95 | ||
| P/B | 4.36 | ||
| P/tB | 7.44 | ||
| EV/EBITDA | 8.34 |
EPS(TTM)1.14
EY6.09%
EPS(NY)1.11
Fwd EY5.92%
FCF(TTM)2.92
FCFY15.58%
OCF(TTM)3.78
OCFY20.21%
SpS8.32
BVpS4.3
TBVpS2.52
PEG (NY)1.42
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 | 1.04 |
F-Score7
WACC7.17%
ROIC/WACC1.18
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 5 / 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 16.43 and the Price/Book (PB) ratio is 4.36.
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.