IRIDIUM COMMUNICATIONS INC (1IRDM.MI) Stock Fundamental Analysis
Europe - BIT:1IRDM - US46269C1027 - Common Stock
21.5 EUR
-0.03 (-0.14%)
1IRDM gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 30 industry peers in the Diversified Telecommunication Services industry. While 1IRDM belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. 1IRDM is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year 1IRDM was profitable.
1IRDM had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: 1IRDM reported negative net income in multiple years.
1IRDM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
1IRDM's Return On Assets of 4.41% is fine compared to the rest of the industry. 1IRDM outperforms 66.67% of its industry peers.
1IRDM has a Return On Equity of 23.89%. This is amongst the best in the industry. 1IRDM outperforms 93.33% of its industry peers.
Looking at the Return On Invested Capital, with a value of 7.86%, 1IRDM is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for 1IRDM is below the industry average of 7.31%.
The last Return On Invested Capital (7.86%) for 1IRDM is above the 3 year average (4.17%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.41% | ||
| ROE | 23.89% | ||
| ROIC | 7.86% |
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
1IRDM's Profit Margin of 13.20% is fine compared to the rest of the industry. 1IRDM outperforms 80.00% of its industry peers.
1IRDM has a Operating Margin of 25.46%. This is amongst the best in the industry. 1IRDM outperforms 93.33% of its industry peers.
In the last couple of years the Operating Margin of 1IRDM has grown nicely.
1IRDM's Gross Margin of 71.62% is fine compared to the rest of the industry. 1IRDM outperforms 73.33% of its industry peers.
1IRDM's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 25.46% | ||
| PM (TTM) | 13.2% | ||
| GM | 71.62% |
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), 1IRDM is creating some value.
The number of shares outstanding for 1IRDM has been reduced compared to 1 year ago.
Compared to 5 years ago, 1IRDM has less shares outstanding
Compared to 1 year ago, 1IRDM has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.20, we must say that 1IRDM is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of 1IRDM (1.20) is comparable to the rest of the industry.
1IRDM has a debt to FCF ratio of 5.55. This is a neutral value as 1IRDM would need 5.55 years to pay back of all of its debts.
1IRDM has a better Debt to FCF ratio (5.55) than 66.67% of its industry peers.
1IRDM has a Debt/Equity ratio of 3.82. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 3.82, 1IRDM is doing worse than 83.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.82 | ||
| Debt/FCF | 5.55 | ||
| Altman-Z | 1.2 |
ROIC/WACC1.07
WACC7.35%
2.3 Liquidity
A Current Ratio of 2.51 indicates that 1IRDM has no problem at all paying its short term obligations.
1IRDM's Current ratio of 2.51 is amongst the best of the industry. 1IRDM outperforms 100.00% of its industry peers.
A Quick Ratio of 1.75 indicates that 1IRDM should not have too much problems paying its short term obligations.
1IRDM's Quick ratio of 1.75 is amongst the best of the industry. 1IRDM outperforms 100.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.51 | ||
| Quick Ratio | 1.75 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 41.27% over the past year.
Looking at the last year, 1IRDM shows a small growth in Revenue. The Revenue has grown by 7.56% in the last year.
Measured over the past years, 1IRDM shows a quite strong growth in Revenue. The Revenue has been growing by 8.19% on average per year.
EPS 1Y (TTM)41.27%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-24.81%
Revenue 1Y (TTM)7.56%
Revenue growth 3Y10.57%
Revenue growth 5Y8.19%
Sales Q2Q%7.88%
3.2 Future
The Earnings Per Share is expected to grow by 29.67% on average over the next years. This is a very strong growth
1IRDM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.39% yearly.
EPS Next Y14.42%
EPS Next 2Y19.82%
EPS Next 3Y20.33%
EPS Next 5Y29.67%
Revenue Next Year6.53%
Revenue Next 2Y5.03%
Revenue Next 3Y4.78%
Revenue Next 5Y6.39%
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
The Price/Earnings ratio is 25.00, which means the current valuation is very expensive for 1IRDM.
Compared to the rest of the industry, the Price/Earnings ratio of 1IRDM is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 27.43, 1IRDM is valued at the same level.
Based on the Price/Forward Earnings ratio of 18.17, the valuation of 1IRDM can be described as rather expensive.
63.33% of the companies in the same industry are cheaper than 1IRDM, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 22.87. 1IRDM is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25 | ||
| Fwd PE | 18.17 |
4.2 Price Multiples
1IRDM's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. 1IRDM is more expensive than 66.67% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of 1IRDM indicates a somewhat cheap valuation: 1IRDM is cheaper than 76.67% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.15 | ||
| EV/EBITDA | 10.31 |
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 1IRDM may justify a higher PE ratio.
1IRDM's earnings are expected to grow with 20.33% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.73
PEG (5Y)N/A
EPS Next 2Y19.82%
EPS Next 3Y20.33%
5. Dividend
5.1 Amount
1IRDM has a Yearly Dividend Yield of 2.40%.
Compared to an average industry Dividend Yield of 4.21, 1IRDM has a dividend in line with its industry peers.
1IRDM's Dividend Yield is comparable with the S&P500 average which is at 2.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.4% |
5.2 History
On average, the dividend of 1IRDM grows each year by 69.07%, which is quite nice.
Dividend Growth(5Y)69.07%
Div Incr YearsN/A
Div Non Decr YearsN/A
5.3 Sustainability
1IRDM pays out 55.46% of its income as dividend. This is a bit on the high side, but may be sustainable.
1IRDM's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP55.46%
EPS Next 2Y19.82%
EPS Next 3Y20.33%
BIT:1IRDM (7/30/2025, 7:00:00 PM)
21.5
-0.03 (-0.14%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners99.16%
Inst Owner ChangeN/A
Ins Owners2.59%
Ins Owner ChangeN/A
Market Cap2.28B
Analysts84
Price TargetN/A
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.4% |
Yearly Dividend0.48
Dividend Growth(5Y)69.07%
DP55.46%
Div Incr YearsN/A
Div Non Decr YearsN/A
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.01%
Min EPS beat(2)-17.49%
Max EPS beat(2)17.47%
EPS beat(4)3
Avg EPS beat(4)24.62%
Min EPS beat(4)-17.49%
Max EPS beat(4)94.51%
EPS beat(8)6
Avg EPS beat(8)101.66%
EPS beat(12)8
Avg EPS beat(12)154.92%
EPS beat(16)11
Avg EPS beat(16)274.95%
Revenue beat(2)0
Avg Revenue beat(2)-0.54%
Min Revenue beat(2)-0.7%
Max Revenue beat(2)-0.39%
Revenue beat(4)2
Avg Revenue beat(4)0.58%
Min Revenue beat(4)-0.7%
Max Revenue beat(4)2.26%
Revenue beat(8)3
Avg Revenue beat(8)-0.2%
Revenue beat(12)5
Avg Revenue beat(12)0.8%
Revenue beat(16)9
Avg Revenue beat(16)1.34%
PT rev (1m)N/A
PT rev (3m)N/A
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)N/A
EPS NY rev (3m)N/A
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)N/A
Revenue NY rev (3m)N/A
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25 | ||
| Fwd PE | 18.17 | ||
| P/S | 3.1 | ||
| P/FCF | 8.15 | ||
| P/OCF | 6.42 | ||
| P/B | 5.61 | ||
| P/tB | 9.3 | ||
| EV/EBITDA | 10.31 |
EPS(TTM)0.86
EY4%
EPS(NY)1.18
Fwd EY5.5%
FCF(TTM)2.64
FCFY12.27%
OCF(TTM)3.35
OCFY15.58%
SpS6.94
BVpS3.83
TBVpS2.31
PEG (NY)1.73
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.41% | ||
| ROE | 23.89% | ||
| ROCE | 8.85% | ||
| ROIC | 7.86% | ||
| ROICexc | 8.12% | ||
| ROICexgc | 8.82% | ||
| OM | 25.46% | ||
| PM (TTM) | 13.2% | ||
| GM | 71.62% | ||
| FCFM | 38.01% |
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%
ROICexcg growth 3Y75.01%
ROICexcg 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 Turnover0.33
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.82 | ||
| Debt/FCF | 5.55 | ||
| Debt/EBITDA | 4.25 | ||
| Cap/Depr | 42.56% | ||
| Cap/Sales | 10.28% | ||
| Interest Coverage | 2.28 | ||
| Cash Conversion | 97.34% | ||
| Profit Quality | 288.04% | ||
| Current Ratio | 2.51 | ||
| Quick Ratio | 1.75 | ||
| Altman-Z | 1.2 |
F-Score7
WACC7.35%
ROIC/WACC1.07
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)41.27%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-24.81%
EPS Next Y14.42%
EPS Next 2Y19.82%
EPS Next 3Y20.33%
EPS Next 5Y29.67%
Revenue 1Y (TTM)7.56%
Revenue growth 3Y10.57%
Revenue growth 5Y8.19%
Sales Q2Q%7.88%
Revenue Next Year6.53%
Revenue Next 2Y5.03%
Revenue Next 3Y4.78%
Revenue Next 5Y6.39%
EBIT growth 1Y28.18%
EBIT growth 3Y63.8%
EBIT growth 5Y82.32%
EBIT Next Year136.86%
EBIT Next 3Y38.52%
EBIT Next 5Y28.69%
FCF growth 1Y30.65%
FCF growth 3Y5.48%
FCF growth 5Y30.68%
OCF growth 1Y23.58%
OCF growth 3Y7.47%
OCF growth 5Y13.67%