IRIDIUM COMMUNICATIONS INC (IRDM) Stock Fundamental Analysis
NASDAQ:IRDM - US46269C1027 - Common Stock
25.02 USD
+0.33 (+1.34%)
24.81 USD
-0.21 (-0.84%)
Overall IRDM gets a fundamental rating of 5 out of 10. We evaluated IRDM against 34 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 is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year IRDM was profitable.
IRDM had a positive operating cash flow in the past year.
In multiple years IRDM reported negative net income over the last 5 years.
IRDM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
IRDM has a Return On Assets of 4.41%. This is in the better half of the industry: IRDM outperforms 67.65% of its industry peers.
IRDM has a Return On Equity of 23.89%. This is amongst the best in the industry. IRDM outperforms 91.18% of its industry peers.
Looking at the Return On Invested Capital, with a value of 7.86%, IRDM belongs to the top of the industry, outperforming 85.29% 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 7.14%.
The last Return On Invested Capital (7.86%) for IRDM 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
With a decent Profit Margin value of 13.20%, IRDM is doing good in the industry, outperforming 76.47% of the companies in the same industry.
The Operating Margin of IRDM (25.46%) is better than 91.18% of its industry peers.
In the last couple of years the Operating Margin of IRDM has grown nicely.
With an excellent Gross Margin value of 71.62%, IRDM belongs to the best of the industry, outperforming 88.24% 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 | 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
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.
The number of shares outstanding for IRDM has been reduced compared to 5 years ago.
Compared to 1 year ago, IRDM has a worse debt to assets ratio.
2.2 Solvency
IRDM has an Altman-Z score of 1.19. This is a bad value and indicates that IRDM is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.19, IRDM is in the better half of the industry, outperforming 76.47% of the companies in the same industry.
IRDM has a debt to FCF ratio of 5.55. This is a neutral value as IRDM would need 5.55 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 5.55, IRDM is doing good in the industry, outperforming 79.41% of the companies in the same industry.
IRDM 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, IRDM is doing worse than 79.41% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.82 | ||
| Debt/FCF | 5.55 | ||
| Altman-Z | 1.19 |
ROIC/WACC1.05
WACC7.48%
2.3 Liquidity
A Current Ratio of 2.51 indicates that IRDM has no problem at all paying its short term obligations.
With an excellent Current ratio value of 2.51, IRDM belongs to the best of the industry, outperforming 88.24% of the companies in the same industry.
A Quick Ratio of 1.75 indicates that IRDM should not have too much problems paying its short term obligations.
IRDM's Quick ratio of 1.75 is amongst the best of the industry. IRDM outperforms 82.35% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.51 | ||
| Quick Ratio | 1.75 |
3. Growth
3.1 Past
IRDM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 41.27%, which is quite impressive.
IRDM shows a small growth in Revenue. In the last year, the Revenue has grown by 7.56%.
Measured over the past years, IRDM 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
Based on estimates for the next years, IRDM will show a very strong growth in Earnings Per Share. The EPS will grow by 27.81% on average per year.
IRDM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.65% yearly.
EPS Next Y11.6%
EPS Next 2Y18.43%
EPS Next 3Y20.03%
EPS Next 5Y27.81%
Revenue Next Year6.64%
Revenue Next 2Y4.98%
Revenue Next 3Y4.89%
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
The Price/Earnings ratio is 25.02, which means the current valuation is very expensive for IRDM.
IRDM's Price/Earnings is on the same level as the industry average.
IRDM is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.14, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 18.58, IRDM is valued on the expensive side.
67.65% 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 22.80. IRDM is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.02 | ||
| Fwd PE | 18.58 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as IRDM.
Based on the Price/Free Cash Flow ratio, IRDM is valued a bit cheaper than the industry average as 67.65% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.14 | ||
| EV/EBITDA | 10.22 |
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 20.03% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.16
PEG (5Y)N/A
EPS Next 2Y18.43%
EPS Next 3Y20.03%
5. Dividend
5.1 Amount
IRDM has a Yearly Dividend Yield of 2.36%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 1803.71, IRDM pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.34, IRDM has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.36% |
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
IRDM pays out 55.46% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of IRDM is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP55.46%
EPS Next 2Y18.43%
EPS Next 3Y20.03%
25.02
+0.33 (+1.34%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners99.16%
Inst Owner Change-3.67%
Ins Owners2.59%
Ins Owner Change1.44%
Market Cap2.65B
Analysts84
Price Target36.85 (47.28%)
Short Float %8.68%
Short Ratio4.89
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.36% |
Yearly Dividend0.56
Dividend Growth(5Y)69.07%
DP55.46%
Div Incr Years1
Div Non Decr Years1
Ex-Date
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)-6.47%
PT rev (3m)-6.47%
EPS NQ rev (1m)-5.4%
EPS NQ rev (3m)-2.29%
EPS NY rev (1m)-2.46%
EPS NY rev (3m)-2.46%
Revenue NQ rev (1m)-0.79%
Revenue NQ rev (3m)-0.08%
Revenue NY rev (1m)0.19%
Revenue NY rev (3m)0.19%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.02 | ||
| Fwd PE | 18.58 | ||
| P/S | 3.1 | ||
| P/FCF | 8.14 | ||
| P/OCF | 6.41 | ||
| P/B | 5.61 | ||
| P/tB | 9.29 | ||
| EV/EBITDA | 10.22 |
EPS(TTM)1
EY4%
EPS(NY)1.35
Fwd EY5.38%
FCF(TTM)3.07
FCFY12.28%
OCF(TTM)3.9
OCFY15.6%
SpS8.08
BVpS4.46
TBVpS2.69
PEG (NY)2.16
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 | 1.19 |
F-Score7
WACC7.48%
ROIC/WACC1.05
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 Y11.6%
EPS Next 2Y18.43%
EPS Next 3Y20.03%
EPS Next 5Y27.81%
Revenue 1Y (TTM)7.56%
Revenue growth 3Y10.57%
Revenue growth 5Y8.19%
Sales Q2Q%7.88%
Revenue Next Year6.64%
Revenue Next 2Y4.98%
Revenue Next 3Y4.89%
Revenue Next 5Y5.65%
EBIT growth 1Y28.18%
EBIT growth 3Y63.8%
EBIT growth 5Y82.32%
EBIT Next Year136.86%
EBIT Next 3Y38.52%
EBIT Next 5Y28.07%
FCF growth 1Y30.65%
FCF growth 3Y5.48%
FCF growth 5Y30.68%
OCF growth 1Y23.58%
OCF growth 3Y7.47%
OCF growth 5Y13.67%