IRIDIUM COMMUNICATIONS INC (IRDM) Fundamental Analysis & Valuation

NASDAQ:IRDM • US46269C1027

Current stock price

37.4 USD
-1.56 (-4%)
At close:
36.4564 USD
-0.94 (-2.52%)
Pre-Market:

This IRDM fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

8

1. IRDM Profitability Analysis

1.1 Basic Checks

  • In the past year IRDM was profitable.
  • IRDM had a positive operating cash flow in the past year.
  • IRDM had positive earnings in 4 of the past 5 years.
  • In the past 5 years IRDM always reported a positive cash flow from operatings.
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 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 100M -100M 200M 300M 400M

1.2 Ratios

  • With a decent Return On Assets value of 4.17%, IRDM is doing good in the industry, outperforming 70.27% of the companies in the same industry.
  • The Return On Equity of IRDM (22.54%) is better than 89.19% of its industry peers.
  • With an excellent Return On Invested Capital value of 7.93%, IRDM belongs to the best of the industry, outperforming 86.49% of the companies in the same industry.
  • IRDM had an Average Return On Invested Capital over the past 3 years of 5.97%. This is in line with the industry average of 6.00%.
  • The last Return On Invested Capital (7.93%) for IRDM is above the 3 year average (5.97%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 4.17%
ROE 22.54%
ROIC 7.93%
ROA(3y)3.11%
ROA(5y)1.86%
ROE(3y)15.34%
ROE(5y)9.21%
ROIC(3y)5.97%
ROIC(5y)4.3%
IRDM Yearly ROA, ROE, ROICIRDM Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 10 -10 20

1.3 Margins

  • The Profit Margin of IRDM (12.05%) is better than 75.68% of its industry peers.
  • IRDM's Profit Margin has improved in the last couple of years.
  • With an excellent Operating Margin value of 25.84%, IRDM belongs to the best of the industry, outperforming 94.59% 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 71.57%. This is amongst the best in the industry. IRDM outperforms 89.19% 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 RankSector Rank
OM 25.84%
PM (TTM) 12.05%
GM 71.57%
OM growth 3Y36.53%
OM growth 5Y34.79%
PM growth 3Y121.55%
PM growth 5YN/A
GM growth 3Y-0.26%
GM growth 5Y-1.08%
IRDM Yearly Profit, Operating, Gross MarginsIRDM Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 20 -20 40 60

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ROAROEROICOperating and Profit MarginShow most profitable peers

6

2. IRDM Health Analysis

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.
  • IRDM has a worse debt/assets ratio than last year.
IRDM Yearly Shares OutstandingIRDM Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20M 40M 60M 80M 100M
IRDM Yearly Total Debt VS Total AssetsIRDM Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B 4B

2.2 Solvency

  • IRDM has an Altman-Z score of 1.67. This is a bad value and indicates that IRDM is not financially healthy and even has some risk of bankruptcy.
  • IRDM's Altman-Z score of 1.67 is fine compared to the rest of the industry. IRDM outperforms 72.97% of its industry peers.
  • The Debt to FCF ratio of IRDM is 5.78, which is a neutral value as it means it would take IRDM, 5.78 years of fcf income to pay off all of its debts.
  • With an excellent Debt to FCF ratio value of 5.78, IRDM belongs to the best of the industry, outperforming 81.08% of the companies in the same industry.
  • A Debt/Equity ratio of 3.74 is on the high side and indicates that IRDM has dependencies on debt financing.
  • The Debt to Equity ratio of IRDM (3.74) is worse than 81.08% of its industry peers.
Industry RankSector Rank
Debt/Equity 3.74
Debt/FCF 5.78
Altman-Z 1.67
ROIC/WACC1.06
WACC7.51%
IRDM Yearly LT Debt VS Equity VS FCFIRDM Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 500M 1B 1.5B

2.3 Liquidity

  • IRDM has a Current Ratio of 2.85. This indicates that IRDM is financially healthy and has no problem in meeting its short term obligations.
  • IRDM has a better Current ratio (2.85) than 91.89% of its industry peers.
  • A Quick Ratio of 2.21 indicates that IRDM has no problem at all paying its short term obligations.
  • Looking at the Quick ratio, with a value of 2.21, IRDM belongs to the top of the industry, outperforming 86.49% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 2.85
Quick Ratio 2.21
IRDM Yearly Current Assets VS Current LiabilitesIRDM Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 100M 200M 300M 400M 500M

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

5

3. IRDM Growth Analysis

3.1 Past

  • The earnings per share for IRDM have decreased by -7.20% in the last year.
  • Measured over the past years, IRDM shows a very strong growth in Earnings Per Share. The EPS has been growing by 147.63% on average per year.
  • Looking at the last year, IRDM shows a small growth in Revenue. The Revenue has grown by 4.05% in the last year.
  • Measured over the past years, IRDM shows a quite strong growth in Revenue. The Revenue has been growing by 8.36% on average per year.
EPS 1Y (TTM)-7.2%
EPS 3Y147.64%
EPS 5YN/A
EPS Q2Q%-25.93%
Revenue 1Y (TTM)4.05%
Revenue growth 3Y6.53%
Revenue growth 5Y8.36%
Sales Q2Q%1.94%

3.2 Future

  • The Earnings Per Share is expected to grow by 15.37% on average over the next years. This is quite good.
  • The Revenue is expected to grow by 2.76% on average over the next years.
EPS Next Y6.88%
EPS Next 2Y9.01%
EPS Next 3Y18.41%
EPS Next 5Y15.37%
Revenue Next Year0.56%
Revenue Next 2Y1.52%
Revenue Next 3Y2.03%
Revenue Next 5Y2.76%

3.3 Evolution

  • Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
  • The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
IRDM Yearly Revenue VS EstimatesIRDM Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 200M 400M 600M 800M 1B
IRDM Yearly EPS VS EstimatesIRDM Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 0 1 -1 2

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Find the best growth stocksShow best growing peers

3

4. IRDM Valuation Analysis

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 37.78, IRDM can be considered very expensive at the moment.
  • 62.16% of the companies in the same industry are more expensive than IRDM, based on the Price/Earnings ratio.
  • Compared to an average S&P500 Price/Earnings ratio of 27.15, IRDM is valued a bit more expensive.
  • With a Price/Forward Earnings ratio of 29.61, IRDM can be considered very expensive at the moment.
  • 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 22.12, IRDM is valued a bit more expensive.
Industry RankSector Rank
PE 37.78
Fwd PE 29.61
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 is on the same level as its industry peers.
  • IRDM's Price/Free Cash Flow is on the same level as the industry average.
Industry RankSector Rank
P/FCF 12.97
EV/EBITDA 12.78
IRDM Per share dataIRDM EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 2 4 6 8

4.3 Compensation for Growth

  • The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates IRDM does not grow enough to justify the current Price/Earnings ratio.
  • IRDM has an outstanding profitability rating, which may justify a higher PE ratio.
  • IRDM's earnings are expected to grow with 18.41% in the coming years. This may justify a more expensive valuation.
PEG (NY)5.49
PEG (5Y)N/A
EPS Next 2Y9.01%
EPS Next 3Y18.41%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

3

5. IRDM Dividend Analysis

5.1 Amount

  • IRDM has a Yearly Dividend Yield of 1.51%. Purely for dividend investing, there may be better candidates out there.
  • Compared to an average industry Dividend Yield of 2.22, IRDM pays a bit more dividend than its industry peers.
  • IRDM's Dividend Yield is comparable with the S&P500 average which is at 1.82.
Industry RankSector Rank
Dividend Yield 1.51%

5.2 History

  • The dividend of IRDM is nicely growing with an annual growth rate of 31.87%!
  • IRDM has been paying a dividend for less than 5 years, so it still needs to build a track record.
Dividend Growth(5Y)31.87%
Div Incr Years2
Div Non Decr Years2
IRDM Yearly Dividends per shareIRDM Yearly Dividends per shareYearly Dividends per share 2023 2024 2025 2026 0.1 0.2 0.3 0.4 0.5

5.3 Sustainability

  • IRDM pays out 60.36% of its income as dividend. This is not a sustainable payout ratio.
  • IRDM's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP60.36%
EPS Next 2Y9.01%
EPS Next 3Y18.41%
IRDM Yearly Income VS Free CF VS DividendIRDM Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 100M -100M 200M 300M
IRDM Dividend Payout.IRDM Dividend Payout, showing the Payout Ratio.IRDM Dividend Payout.PayoutRetained Earnings

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Find the best dividend stocksShow peers with best dividend

IRDM Fundamentals: All Metrics, Ratios and Statistics

IRIDIUM COMMUNICATIONS INC

NASDAQ:IRDM (4/27/2026, 8:00:03 PM)

Premarket: 36.4564 -0.94 (-2.52%)

37.4

-1.56 (-4%)

Chartmill FA Rating
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)04-23
Earnings (Next)07-22
Inst Owners93.45%
Inst Owner Change0.06%
Ins Owners2.9%
Ins Owner Change5.33%
Market Cap3.95B
Revenue(TTM)875.84M
Net Income(TTM)105.55M
Analysts78.75
Price Target35.47 (-5.16%)
Short Float %5.86%
Short Ratio2.26
Dividend
Industry RankSector Rank
Dividend Yield 1.51%
Yearly Dividend0.58
Dividend Growth(5Y)31.87%
DP60.36%
Div Incr Years2
Div Non Decr Years2
Ex-Date03-16
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-21.09%
Min EPS beat(2)-41.51%
Max EPS beat(2)-0.67%
EPS beat(4)1
Avg EPS beat(4)-6.78%
Min EPS beat(4)-41.51%
Max EPS beat(4)32.54%
EPS beat(8)5
Avg EPS beat(8)17.69%
EPS beat(12)7
Avg EPS beat(12)4.77%
EPS beat(16)10
Avg EPS beat(16)179.37%
Revenue beat(2)0
Avg Revenue beat(2)-3%
Min Revenue beat(2)-4.32%
Max Revenue beat(2)-1.68%
Revenue beat(4)1
Avg Revenue beat(4)-1.44%
Min Revenue beat(4)-4.32%
Max Revenue beat(4)0.97%
Revenue beat(8)3
Avg Revenue beat(8)-0.63%
Revenue beat(12)4
Avg Revenue beat(12)-0.94%
Revenue beat(16)7
Avg Revenue beat(16)0.47%
PT rev (1m)4.35%
PT rev (3m)1.93%
EPS NQ rev (1m)-1.01%
EPS NQ rev (3m)36.55%
EPS NY rev (1m)-0.38%
EPS NY rev (3m)2.48%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.54%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.31%
Valuation
Industry RankSector Rank
PE 37.78
Fwd PE 29.61
P/S 4.51
P/FCF 12.97
P/OCF 9.63
P/B 8.44
P/tB 13.89
EV/EBITDA 12.78
EPS(TTM)0.99
EY2.65%
EPS(NY)1.26
Fwd EY3.38%
FCF(TTM)2.88
FCFY7.71%
OCF(TTM)3.88
OCFY10.38%
SpS8.28
BVpS4.43
TBVpS2.69
PEG (NY)5.49
PEG (5Y)N/A
Graham Number9.93381 (-73.44%)
Profitability
Industry RankSector Rank
ROA 4.17%
ROE 22.54%
ROCE 9.34%
ROIC 7.93%
ROICexc 8.31%
ROICexgc 9.02%
OM 25.84%
PM (TTM) 12.05%
GM 71.57%
FCFM 34.81%
ROA(3y)3.11%
ROA(5y)1.86%
ROE(3y)15.34%
ROE(5y)9.21%
ROIC(3y)5.97%
ROIC(5y)4.3%
ROICexc(3y)6.2%
ROICexc(5y)4.5%
ROICexgc(3y)6.67%
ROICexgc(5y)4.8%
ROCE(3y)7.04%
ROCE(5y)5.07%
ROICexgc growth 3Y55.29%
ROICexgc growth 5Y55.87%
ROICexc growth 3Y51.85%
ROICexc growth 5Y53.76%
OM growth 3Y36.53%
OM growth 5Y34.79%
PM growth 3Y121.55%
PM growth 5YN/A
GM growth 3Y-0.26%
GM growth 5Y-1.08%
F-Score6
Asset Turnover0.35
Health
Industry RankSector Rank
Debt/Equity 3.74
Debt/FCF 5.78
Debt/EBITDA 4
Cap/Depr 49.79%
Cap/Sales 12.07%
Interest Coverage 2.57
Cash Conversion 93.62%
Profit Quality 288.87%
Current Ratio 2.85
Quick Ratio 2.21
Altman-Z 1.67
F-Score6
WACC7.51%
ROIC/WACC1.06
Cap/Depr(3y)35.03%
Cap/Depr(5y)28.47%
Cap/Sales(3y)9.74%
Cap/Sales(5y)9.19%
Profit Quality(3y)699.9%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-7.2%
EPS 3Y147.64%
EPS 5YN/A
EPS Q2Q%-25.93%
EPS Next Y6.88%
EPS Next 2Y9.01%
EPS Next 3Y18.41%
EPS Next 5Y15.37%
Revenue 1Y (TTM)4.05%
Revenue growth 3Y6.53%
Revenue growth 5Y8.36%
Sales Q2Q%1.94%
Revenue Next Year0.56%
Revenue Next 2Y1.52%
Revenue Next 3Y2.03%
Revenue Next 5Y2.76%
EBIT growth 1Y6.43%
EBIT growth 3Y45.44%
EBIT growth 5Y46.06%
EBIT Next Year108.8%
EBIT Next 3Y30.99%
EBIT Next 5Y20.25%
FCF growth 1Y20.86%
FCF growth 3Y3.12%
FCF growth 5Y7.27%
OCF growth 1Y29.35%
OCF growth 3Y5.09%
OCF growth 5Y9.88%

IRIDIUM COMMUNICATIONS INC / IRDM Fundamental Analysis FAQ

What is the fundamental rating for IRDM stock?

ChartMill assigns a fundamental rating of 6 / 10 to IRDM.


What is the valuation status for IRDM stock?

ChartMill assigns a valuation rating of 3 / 10 to IRIDIUM COMMUNICATIONS INC (IRDM). This can be considered as Overvalued.


How profitable is IRIDIUM COMMUNICATIONS INC (IRDM) stock?

IRIDIUM COMMUNICATIONS INC (IRDM) has a profitability rating of 8 / 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 37.78 and the Price/Book (PB) ratio is 8.44.


How sustainable is the dividend of IRIDIUM COMMUNICATIONS INC (IRDM) stock?

The dividend rating of IRIDIUM COMMUNICATIONS INC (IRDM) is 3 / 10 and the dividend payout ratio is 60.36%.